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Emirates Cargo

 

 

ROME: In light of the recent Germanwings disaster, the European Regions Airline Association (ERA) has warned that the increasing criminalization of air accidents is becoming an "alarming" responsibility for airline directors and executives.

According to Simon McNamara, ERA director general, airline CEOs must understand and plan for "the very real threat of criminal procedures being brought against the company or individuals following a serious incident or accident".

In response, the ERA and commercial law firm Hill Dickinson have updated a guide to corporate liability and responsibility in air accidents that explains what these threats are and how they can be best managed. The document includes advice on insurance, training, media strategy and conducting a parallel internal air accident investigation in case of an accident.

DHL 757 2002Joanna Kolatsis, co-head of Hill Dickinson's aviation team explained: "In an increasingly litigious society airline boards and senior executives need to prepare for...potential criminal prosecution. Failure to take the necessary measures can expose companies to corporate manslaughter charges and both executive and non-executive directors need to be aware of their legal obligations."

The guide cites numerous air accidents, legal proceedings and their various outcomes: One of them happened in July 2002 when a DHL B757 freighter (similar to one right) and a Bashkirian Tu-154 collided in mid-air over Uberlingen, Germany with the loss of 71 lives.

Four years later, prosecutors charged eight Swiss Skyguide air navigation service controllers with negligent homicide. A father of one of the crash victims later stabbed to death the controller on duty at the time of the accident.

In September 2007 a Swiss court convicted four of the eight mid-level managers; the others were acquitted.

The ERA notes litigation is not confined to European accidents: Last month, prosecutors in France opened a manslaughter investigation after two helicopters crashed in Argentina on March 09, killing eight French nationals filming a TV survival show.

The helicopters apparently collided in midair near Villa Castelli in La Rioja province, about 730 miles northwest of Buenos Aires, La Rioja. All 10 people on board were killed.

McNamara concluded: "Being operationally prepared for a serious event is very different to being prepared for possible criminal action. The advice and information in this document explains what the threats are and, more importantly, the measures available to protect against criminal liability exposure and how they can be managed should the worst happen."

LONDON: The Transported Asset Protection Association (TAPA) says Europe's supply chain experienced an average of three high value thefts in 2014 with an average loss of €205,624.

TAPA in Europe, the Middle East and Africa (EMEA) region recorded 1,102 cargo crimes last year. For the 33 percent of those reporting a value, losses were €74,847,422. A total of 92.8 percent of crimes took place in 10 countries: Germany, the Netherlands, U.K., France, Italy, Russia, Spain, Austria, Sweden and South Africa.

Tapa Annual Report 2015 CoverThe association says the use of violence by criminal gangs grew 4.5 percent year-on-year, driven largely by 102 violent hijackings of trucks in France, Italy and South Africa. Thefts from vehicles continued to account for the biggest share of the total with over 500 incidents in 2014.

Germany recorded the highest number of freight crimes as thefts rose 42.5 percent from 2013 to reach 285. The UK experienced the highest percentage growth of all countries in the region as thefts rose 98.8 percent to 175. Meanwhile the Netherlands saw a drop of 9.7 percent compared to the previous year but still recorded 258 incidents overall.

The top 10 cargo crimes in 2014 involved a combined loss of €32,471,000 says TAPA EMEA with 15 thefts exceeding €1 million as gangs targeted scratchcards, cosmetics, consumer electronics, clothing, footwear, tobacco products, pharmaceuticals, food and beverages, auto parts and cash.

Thorsten Neumann, chairman of TAPA EMEA commented: "It is well-known that the majority of cargo crime still goes unreported and that is a situation industry has to change. In 2007, a European Parliament study on organised theft of commercial vehicles and their loads put the annual cost to business as €8.2 billion and attacks on the supply chain by organised criminal gangs have certainly increased since then.

"We also know that the true cost of loss, taking into account all of the factors that can result from a cargo crime, can be five times the cost of the actual stolen product," he added.

TAPA says it is working increasingly closely with the European Commission, INTERPOL, Europol, the World Customs Organization, national government ministries, law enforcement agencies and the insurance industry to identify the most effective ways to support its 800 members reduce supply chain theft.

BRUSSELS: Shipowners and operators have joined with seafarers' unions to urge EU Member States to take immediate action to address a growing humanitarian crisis in the Mediterranean.

refugees 1The European Community Shipowners' Associations, the European Transport Workers' Federation, the International Chamber of Shipping and the International Transport Workers' Federation want the EU to increase search and rescue operations in the Mediterranean due to what they say are the "untenable" dangerous rescues by merchant ships.

In a letter to the leaders of 28 EU countries, the maritime representatives warn the crisis that cost 3,500 lives last year is "out of control" and will lead to "further catastrophic loss of life" without immediate action: "The shipping industry believes that all EU and EEA Member States have a collective responsibility to prevent the loss of thousands more lives, as hundreds of thousands of migrants and refugees seek to escape to Europe in boats that are unfit for purpose. The need to act immediately is pressing and urgent," they add.

Shipowners say their vessels rescued 40,000 people last year and argue it is unacceptable that the international community is increasingly relying on merchant ships and their crews to undertake more and more large-scale rescues of up to 500 people at a time.

Noting the situation is a matter of "life and death", the shipping industry says the issue should be added to the agenda of the European Council and to that of the next relevant meetings of the EU Council of Ministers.

Norwegian ship OSLO: The Norwegian Shipowners' Association says its 150 members are less optimistic than last year about the prospects for increased turnover and profits.

The operators of the world's sixth largest shipping fleet by market value cite falling oil prices, heightened geopolitical tensions and sluggish, uncertain growth in the global economy.

"We have seen a marked negative shift in just a short time. 2015 will be a challenging year for Norwegian maritime companies, but we must be prepared for 2016 to be even more challenging," said association CEO Sturla Henriksen. Shipowners expect their turnover to rise by only 2.3 percent in 2015 to NOK 268 billion, compared to 6.0 percent in 2014.

Operators of deep-sea vessels forecast turnover to rise 5.1 percent in 2015 compared to actual growth of 3.2 percent last year, while short-sea shipowners anticipate a 2.5 percent increase this year compared to a 5.5 percent rise in 2014.

Overall, only 35 percent expect improved operating results in 2015, compared to 72 percent last year, while 42 percent think operating results will fall - a huge jump from only 8.0 percent in 2014. The association's members also expect to park more vessels – up from 20 last year to an expected figure of 29 by the end of 2015.

Henriksen said both industry and government share responsibility for the industry's future and called for productive dialogue: "The industry itself is doing all it can to survive in these challenging times, and we are encouraged by the signals sent out by the government before Easter indicating changes in the rules governing paid leave, " he said.

"We also have high expectations for the new maritime strategy, which the government has said will be released during the spring. We consider four items to be of particular interest in the strategy: a competitive shipowning tax; strengthening the Norwegian flag by relaxing Norwegian cabotage rules; a strong net wage scheme to encourage employment of more Norwegian seafarers; and improved terms of private ownership. One thing we know: Proactive policies yield good results, even in challenging times," Henriksen concluded.

The association says Norway's maritime industry employs 110,000 people, creates NOK175 billion in economic value per annum, and pays a rate of state and local income tax that is 80 percent higher per employee than other Norwegian industry sectors.

Drone businessARLINGTON, VA: The Association for Unmanned Vehicle Systems International (AUVSI) has become a partner of the U.S. National Advanced Mobility Consortium (NAMC).

The move follows recent announcements by Google, Amazon and Deutschepost DHL on the use of drones for last-mile logistics.

Commenting on Google's plans to develop a drone-based delivery service, AUVSI president & CEO Michael Toscano said the move "highlights how this technology will revolutionize industries and the importance of the FAA keeping the integration process on track...In addition the wider use of unmanned aircraft systems (UAS) will have a huge economic impact in the U.S. for both the public and commercial sectors."

He added that a recent AUVSI study has determined UAS would have an $82 billion economic impact and create more than 100,000 jobs in the first decade after integration into the country's commercial aviation network.

NAMC is a research and development partner for the U.S. Department of Defense. It has a seven-year, US $700 million agreement to determine dual-use of manned and unmanned ground vehicles and unmanned air and maritime systems. AUVSI has 7,500 members from government, industry and academia.

AUVSI says it is working with Congress and the Federal Aviation Administration (FAA) to integrate UAS into the country's national airspace system by September 30, 2015.The association says it also expects the FAA by this deadline to create six unmanned aircraft test sites; allow UAS to fly beyond line-of-sight, at any time, in the U.S. Arctic; define small unmanned aircraft as weighing less than 55lbs; and include UAS in America's NextGen air navigation system.

GENEVA: The World Economic Forum (WEF) and Accenture have identified 31 practices to help companies achieve what they claim is a "triple supply chain advantage" of increased revenue, a reduction in supply chain costs and added brand value.

In a co-produced study of 25 companies including UPS, Nestlé and SAB Miller, the WEF and Accenture demonstrate how these corporations raised their revenues 5-20 percent; cut supply chain costs by 9-16 percent, increased brand value 15-30 percent, reduced C02 emissions by 13-22 percent and produced a "significant" reduction in company risk.

Accenture"Sustainability must become a higher priority in supply chain management, given the scarcity of natural resources, rising commodity prices and greater consumer expectations for responsible sourcing and production," said Mark Pearson, senior managing director, Accenture Strategy. "This is not about trade-offs; it is about behaving in a socially responsible way that can also deliver a competitive edge."

Wolfgang Lehmacher, head of Supply Chain and Transport, Mobility Industries, World Economic Forum added: ""Part of the difficulty to date has been the decision-making process itself as it relates to sustainability. Our hope is that this report will empower companies to act now and place an emphasis on the maintenance and creation of responsible supply chains."

For the logistics industry, the report suggests companies looking for the "triple advantage" should consider more decentralized distribution networks, smart and green building deployments, and shared network facilities and transport.

The report also provides a roadmap for the value creation of supply chain practices, the prioritizing of sustainability investments and guidance for ethical commerce: "We are in the middle of a paradigm shift. Consumer pressure, fuelled by social media, is driving commercial organizations to do more than pay lip service to the global socio-environmental impact of their supply chains. This is no longer about risk mitigation, even though that is important; it is about a structural change in the way in which companies gain and maintain competitive advantage," the authors conclude.

LONDON: A study by the Sustainable Shipping Initiative (SSI), a coalition of shippers, carriers and banks, says charterers are defining how the shipping industry integrates sustainability into strategy and operations.

The group, which includes Maersk Line, Wartsila, Rio Tinto, Bunge, Cargill, Carnival, ABN AMRO, AkzoNobel and Unilever, claims it is showing how charterers are becoming a powerful force in driving sustainable shipping standards and becoming a catalyst for instigating industry change beyond regulation.

Several members say they have already achieved "significant tangible financial and environmental benefits". According to Carol Routledge, Global Sustainability manager for AkzoNobel, the company has incorporated the Clean Shipping rating index in its tendering process to inform purchasing decisions and strengthen its business value chain.

SSI logos"Including a consideration of eco efficiency rates within the tender process enables a more holistic assessment of tender responses," she explains. "It helps us to ensure that data on the environmental impact of the shipping services purchased is given due weight, alongside other considerations such as the financial impact of choices made."

Global agribusiness company Bunge reports saving some 10,000 tonnes of bunker fuel since last year by slow-steaming 25 percent of its fleet. It has also created a transparent global emissions index to help with decision-making and provided incentives to build more fuel-efficient ships.

Cargill, another major agribusiness, says it has committed to using the RightShip Green Rankings system in its vessel selection process and will only charter vessels that meet particular efficiency ratings levels. As a result it has achieved "significant emission reductions".

Confirming the trend, Maersk Line says 19 percent of its customers are requesting sustainability information as part of their contracted relationship with the company. Head of Sustainability Signe Bruun Jensen observes: "We are keen to collaborate with first-movers to accelerate the development, promotion and adoption of best practices for integrating sustainability into logistics and procurement strategies as ultimately we believe that this will benefit our business, our customers and the industry as a whole."

With charterers' sustainability and procurement processes becoming increasingly interlinked, the SSI says greater standardization across ship ratings schemes and the measurement parameters for CO2, SOx and NOx emissions could help drive greater transparency, efficiency and more consistent benchmarking for further improvements.

WASHINGTON, DC: A report from the Global Sustainable Investment Association (GSIA) says the value of the world's sustainable investment market - one based on environmental, social and governance (ESG) factors - has risen from US$13.3 trillion to US$21.4 trillion in the past two years.

Between 2012 and the beginning of 2014, the fastest growing regions were the U.S., Canada and Europe - accounting for 99 percent of global sustainable investing (SRI) assets.

The GSIA report notes the growth in global SRI reflects a consensus among investors that accurate valuations and proper risk management require greater disclosure and consideration of ESG issues such as climate change, health and safety, human rights, and consumer protection. Managers are also using ESG criteria to identify opportunities to invest in sustainable businesses that are involved in energy efficiency, green infrastructure and clean fuels.

Sustainable asset managementGSIA says the largest sustainable investment strategy globally is now negative screening/exclusions - e.g. not funding arms manufacturers – and worth US$14.4 trillion, followed by ESG integration (US$12.9 trillion) and corporate engagement/shareholder action (US$7.0 trillion).

Negative screening is the largest strategy in Europe; ESG integration is now the investment focus in the U.S., Asia and Australia/New Zealand; and corporate engagement and shareholder action is the dominant strategy in Canada.

In Europe, sustainable and responsible investment strategies are growing at a faster rate than the general asset management market says the study. From 2012 to 2014 funds committed to sustainability-themed investments grew 30 percent in US$ terms while assets to which exclusionary screens were applied grew 90 percent.

At the beginning of 2014, U.S. SRI assets totaled US$6.57 trillion - up from US$3.74 trillion two years earlier. As a result, nearly 18 percent of all investments under professional management at the start of 2014 were held by individuals, institutions or money managers that consider ESG issues in selecting investments across a range of asset classes.

GSIA says sustainable investment assets in Asia have increased 32 percent since 2012 and now stand at US$53 billion. Prompted by the growing awareness of the capital required to finance a low-carbon economy, the largest Asian markets for SRI currently are Malaysia, Hong Kong and South Korea.

OSLO/COPENHAGEN: A survey of over 2000 businessmen in Europe, Asia and the Americas says customers are demanding more sustainable supply chains from their suppliers.

DNV-GL-Names-Benelux-DirectorThe report by DNV GL and the research institute GFK Eurisko found 96 percent of respondents consider aspects of sustainability when choosing a supplier with emissions mitigation as the most important factor (56 percent). Other criteria was health and safety (51 percent); economics (43 percent) and ethics (29 percent).

"With globalization and the increase in the number of intermediaries, a secure and defendable supply chain is important in order to avoid disruptions that can affect business performance. Sustainable sourcing is a fast developing requirement, driven by customers. Companies that don't act will have a hard time competing," says Luca Crisciotti, CEO of DNV GL - Business Assurance.

The survey also found that 80 percent of companies experienced pressure from their customers to prove supply chain sustainability.
Of those surveyed, 41 percent claim to have undertaken a supply chain audit in the last three years although the majority have limited the process to tier 1 suppliers.

"To face tomorrows' business climate, three basic steps have to be taken. Firstly, companies need to understand their key stakeholders' expectations with respect to the sustainability of their supply chain. Secondly, they need to clearly define their own expectations, inform their suppliers and require them to act coherently. Lastly, it is fundamental to develop a method to check and make sure that all the members in the supply chain understand and implement the requests," explained Crisciotti.

DNV and GL is one of the world's leading ship and offshore certification organizations and a leading technical advisor to the global oil and gas industry.

DAVOS, Switzerland: A World Economic Forum initiative called 'Project Mainstream' has launched three programmes covering plastic packaging, paper and paperboard production, and electronic goods asset tracking in a bid to implement a circular business process.

"The need for more circular models of manufacturing and design is undeniable – currently, 80 percent of the US$3.2 trillion value of the consumer goods sector is lost to product waste each year," commented Dominic Waughray, member of the Management Committee at the World Economic Forum.

Philips circular economyInvolving the collaboration of 30 global companies, the project is driven by the CEOs of Brambles, Brightstar, BT, Desso, Royal DSM, Ecolab, Indorama Ventures, Kingfisher, Royal Philips, Suez Environnement and Veolia.

The aim is to address current bottlenecks across the plastic, paper and electronics supply chains by focusing on material flows through product design, reverse logistics, business model innovation and cross-sector collaboration.

According to the Ellen MacArthur Foundation, today's processes, designed in isolation, result in almost all plastic packaging being made from virgin materials and used just once. Annual material demand for PET and polyester, which is used in plastic bottles and the textile industry, is 54 million tonnes, of which roughly 86 percent can end up in landfills.

The WEF estimates that nearly US$4 billion in value could be recovered from the better use of PET; some US$10 billion from redesigning paper and paperboard production; and US$52 billion from improved asset tracking of consumer electronics and household appliances.

McKinsey calculates that US$390 billion worth of consumer electronics and household appliances reach end of life every year. The company says the industrial Internet and the 'Internet of Things' can be used to extend the life and value of these products by addressing the information gaps that prevent better decision-making on what to do with a product when a (first) user is finished with it.

"There has been significant progress in the transition to a circular economy, and Project MainStream aims to act as a catalyst by tackling the challenges and stalemates that organizations cannot individually resolve. This collaboration across global supply chains marks an important next phase for the circular economy, with a clear move towards systems-level change," said Ellen MacArthur.

NEW YORK: A new global survey of senior executives and graduate students says transparency and sustainability integration remain the greatest challenges for both current and future business leaders.

Conducted on behalf of the Business for Social Responsibility (BSR) network, for the first time the survey compared the views of BSR members with respondents from Net Impact, a nonprofit that supports the next generation of corporate leaders.

Nils AndersenBSR says that while both the current and future respondents generally rate business low on transparency, the students have a lower perception of business transparency in general. Net Impact graduates were more likely to say that business is characterized by a lack of transparency than BSR members (31 percent vs. 20 percent).

The students agree with BSR members that climate change is a top priority issue. However the Net Impact graduates, who were asked to rate what should be the highest priorities for business, also ranked sustainable consumption and water issues as important: "I am drawn to brands with a story. If businesses don't have values that resonate with me, they are unable to provide me both reason and reward for their products," says Kelsey Moyes, a college student member of Net Impact.

Both groups agree that technology, economic changes and transparency are the three mega-trends that will have the most impact on business over the next 24 months. A total of 72 percent also identified political instability in key markets as having the greatest potential impact on business, followed by an inadequate pipeline of skilled labor (60 percent).

The survey coincides with an announcement by Maersk Group CEO Nils Andersen (right) at BSR's annual conference in New York who said his company plans to increase the reduction of CO2 emissions per container from 40 percent to 60 percent from a 2007 base level. In the past six years Maersk Line says it has cut the CO2 impact per TEU by more than a third.

"This means that in 2020 we will have increased our volumes by 80 percent while cutting our absolute emissions by 15 million tons. In this way we can continue to grow our business and help increase trade without increasing our impact on the environment," Andersen declared.

"Maersk Line's focus on energy efficiency enables us to be cost competitive while fulfilling our ambition to grow responsibly. That is why we are decoupling growth from resource consumption to achieve this," added Søren Toft, Maersk Line COO.

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