1. International Maritime Congress, Szczecin, Poland
Intelligent logistics from the entrepreneurial perspective Marc Huybrechts, President CLECAT
International Maritime Congress, Szczecin, Poland
13 June 2013

2. Agenda CLECAT Our role Globalisation and trade facilitation
Need for Simplication
Scenario for trade facilation
Intelligent Logistics: opportunities and challenges
iCARGO
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3. Who do we represent
European Association for Forwarding, Transport, Logistic and Customs Services, established in 1958
European umbrella organisation of national federations of logistic operators, freight forwarders and customs agents
Representing companies (from multinationals to SME’s and family businesses) employing over 1 million people
Co-operating with international freight forwarders association FIATA
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4. Our role General considerations
Freight forwarders facilitate transport and trade
Their mission is to offer the best possible transport and trade related services in the best possible conditions and cost-efficient solution
Freight forwarders have every interest in the highest possible logistic efficiency
Freight forwarders are essentially neutral in respect of the transport mode
→ CLECAT fully supports initiatives to facilitate the movement of cargo
Plea for a ‘holistic’ supply chain approach
Complexity of the supply chain
What is gained on one side should not be lost on the other side
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5. Globalisation in the past
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6. Globalisation now
Much the same (ship manifest, contract of carriage, trade arrangements)
Exponential growth
Complexity
Need to regulate trade compliance in
Economic (import/export/transit)
Fiscal (VAT, fraud)
Safety& security (FAL, ENS/EXS)
Health (veterinary, fytosanitary)
Environment (TSCA)
Increased administrative burden
Threat seamless supply chains
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7. What is at stake?
Trade facilitation costs = 1 to 15% of landed cost of imported good
OECD: 1% TF improvements to world economy US$40 billion
Each additional day of delay prior to shipment reduces trade by more than 1 % (Djankovet al., 2006)
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8. Where are the problems?
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9. Need for simplification but trends that make business more complex :
Security / Safety
Supply Chain efficiency
Cargo traceability along supply chain (visibility)
Customs trends
New roles of ports transform into effective logistics platforms for trade beyond the port boundary
Forwarders ‘between the chair’ or always winner?
Architect of data
Securing compliance in overregulated world
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10. A scenario for more intelligent ‘trade facilitation’? Cassandra model
a global date pipeline build on existing trading practices
Control through Supply Chain C visibility
Trust through transparency
Capturing reliable source date (stuffing/consolidation)
Connectivity with Single Windows
Minimise transaction costs to share date in hybrid communities
System based control: facilitations being in control together
Self assessment (MCC+)
Green lane/pre-clearance/entry in records/no declarations
Government piggy back on supply chain management
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11. Freight Forwarder or 3PL Freight Forwarder or 3PL
Current Customs and International Trade Systems
3rd Country Regulation
Country A
EU Regulation
Country B
Contract of Sale, Invoice and Payment
Safety & Security by B/L declaration from Carrier
Risk Assessment for admissibility and compliance
Customs Export declaration (with overvalued invoices for recovery of tax)
Risk Assessment for admissibility and compliance
Unloading permission by ships manifest
Customs Declaration for Home Use or Regimes (undervalued for duty purposes)
Fiscal and Statistics Collection
Post Export Assurance by Government
Post Clearance Assurance by Government
Consignor or Exporter
Freight Forwarder or 3PL
Freight Forwarder or 3PL
Consignee or Importer
Container/Carrier
Bill of Lading
Manifest
Port 1
Port 2
CARGO
CARGO
CARGO
Handling Fees
Insurance
Packing List
Contracts of Carriage
Letter of Credit
Shipping Note
Carriers Receipts
House Way Bill
Vessel Booking
Freight Account
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12. Freight Forwarder or 3PL Freight Forwarder or 3PL
Future Customs and International Trade Systems
3rd Country Regulation
Country A
EU Regulation
Country B
Post Clearance Assurance by Customs
Post Export Assurance by Customs
Data relating to the goods and the people
Seamless Integrated Data Pipeline
GPS position and trader ID
GPS position and trader ID
GPS position and trader ID
GPS position and trader ID
GPS position and trader ID
Contract of Sale, Invoice and Payment
Consignor or Exporter
Freight Forwarder or 3PL
Freight Forwarder or 3PL
Consignee or Importer
Carrier
Manifest
Port 1
Port 2
CARGO
CARGO
CARGO
Data relating to carriage
Handling Fees
Insurance
Packing List
Contracts of Carriage
Letter of Credit
Shipping Note
Hesketh, Heijmann 2010
Carriers Receipts
House Way Bill
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Vessel Booking
Freight Account 12

13. Seller
National Community Platforms servicing buyer and seller joined by the pipeline interface
Barge operators
Terminals
Forwarders
Terminals
Empty depots
Road hauliers
Inspection stations
Port authorities
Importers
Exporters
Barge operators
National community system - PPP
Ship broker
Carrier
Rail operators
Ship broker
Forwarders
Exporters
Carrier
Empty depots
Rail operators
National community system -PPP
Customs
Pipeline
Road hauliers
Trade / Government Dashboard / SW
Importers
Port authorities
Inspection stations
Buyer
Customs
Trade / Government Dashboard / SW
Trade / Government Dashboard / SW
© Hesketh / Heijmann 2012
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14. Share the benefits!
That’s not fair!
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15. Intelligent Logistics – opportunities and challenges
Growing need for visibility and real time date
Huge potential of the use of SaaS and cloud based solutions (access to data enabled mobile apps etc) Internet of Things technologies, such as intelligent cargo applications
But today business is far from a paperless situation
Across modes
Across countries
Along the whole supply chain : planning, execution, monitoring and reporting
=> Zero paper documents, zero waiting time at hubs, technology independent
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16. Situation today in European multimodal transport
Complexity of freight transport information exchange in an multimodal transport context:
lack of interoperability along the supply chain
need for provision of information several times for different purposes
lack of information on multimodal availabilities
lack of integration of information from tracking and tracing technologies and intelligent cargo applications
inefficiencies, costs, reduced visibility of freight, perceived complexity for multimodal transport, sub-exploitation of multimodal transport, non-optimized use of existing transport infrastructure….
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17. Barriers Lots of small business lacking knowledge, time and money
Lack of interaction between different data exchange systems used by shipper, 3PL and carrier
Costs of integration (too many standards with different modes)
Reluctance to abandon customised systems for logistics (e-platform)
Costs of integration (too many standards within different modes of transport)
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18. Challenges
Solutions are available but implementations on a large scale are slow to appear
It is not only about technologies, but about change in organisation and behaviour
Sharing of information requires trust and co-operation
Co-operation requires interoperability
Interoperability requires standardised solutions
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19. The advantages are clear for the chain
Interoperability of transport ICT systems = make actors understand each other easily
Run transport business processes smoothly across organisational boundaries
Reduce administrative burden
Enhanced supply chain visibility and security
Optimisation of logistics chains may help to increase also environmental performance and cost efficiency
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20. iCARGO project
The iCargo project aims at advancing and extending the use of ICT to support new logistics services that:
Synchronize vehicle movements and logistics operations across various modes and actors to lower CO2 emissions
Adapt to changing conditions through dynamic planning methods involving intelligent cargo, vehicle and infrastructure systems and
Combine services, resources and information from different stakeholders, taking part in an open freight management ecosystem.
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21. The iCargo Vision

22. Thank you