JIFFA Report 8 2015 Public Relations Committee Holds Summer Logistics Field Trip in Tokyo for School Students The Public Relations Committee held its annual logistics field trip for school students on July 31, 2014 at the Port of Tokyo's Oi Container Terminal. In the morning, participants toured the container terminal, where they took a close at a containership. After having lunch, they visited the Tokyo Kamotsu Terminal, which is also located in Oi, and the Museum of Logistics in Shinagawa. At the Oi Container Terminal, the participants were taken to the rooftop of a building to observe containerized shipments moved by incoming and outgoing trucks and trailers. Containers that had just been imported and were being exported, and reefer containers, which have a function of refrigerating products, among others, were located in designated areas. Children looked very busy taking pictures and notes of lectures given by terminal employees. On that day, a containership of more than 10,000 TEUs deployed by Mitsui O.S.K. Lines, Ltd. (MOL) on the Asia/Europe route made its maiden call at the Port of Tokyo. The participants were lucky to have an opportunity to see a brand-new vessel. The terminal employees took the participants to a safe place to allow them to watch containers being loaded and unloaded. They were excited to look very 2015 Winter Japan International Freight Forwarders Association INC. 4F, Across Shinkawa Bldg. Annex, 16–14, Shinkawa 1-chome, Chuo-ku, Tokyo 104–0033 Telephone 81 3 3297 0351 Facsimile 81 3 3297 0354 URL http://www.jiffa.or.jp Issued in January 2015 At Museum of Logistics. A school boy shouldering a frame for a rice bale (left), and diorama (below) closely at the gigantic container carrier, which measures 336.926 meters in overall length and 48.2 meters in breadth. At a nearby restaurant, the participants had buffet lunch. A wide variety of Japanese, Western and Chinese dishes, including cake and other desserts, attracted not only children, but also their parents. In the afternoon, the field trip was moved to the Tokyo Kamotsu Terminal. It is not unusual for the children and parents to see freight trains carrying containers, tanks and other shipments in daily lives, but it must not be very often to visit freight railway terminals. The participants inspected the Tokyo Kamotsu Terminal with help from staff members, who also played a video to give At Oi Container Terminal a lecture. Covering a total area of 750,000 square meters, the extensive terminal is capable of handling approximately 5,300 railway containers, which boast a capacity of five tons each. They learned anew that products that they use on a daily basis are carried not only in air, sea and overland services, but in railway services as well. At the end of the event, the Tokyo Kamotsu Terminal presented commemorative gifts to the participants, which were cell-phone charms. The final destination of the field trip was the Museum of Logistics in Shinagawa. At the museum, changes in logistics from the Edo Period (16001848) to the present were displayed. With seaport, airport, railway and other miniatures, the system of logistics was introduced in a comprehensive way. A program to allow visitors to heft carrying poles, bales of rice and other old items on their shoulders and a logistics game both appeared so fun that the children all enjoyed them. Taking this opportunity, we would like to extend our deepest appreciation for all parties who support the field trip project. JIFFA's General Assembly Approves Business Plan for Fiscal 2014 Japan International Freight Forwarders Association Inc. (JIFFA) met in Tokyo on Thursday, June 12 for its third annual general assembly since acquiring a status as a general incorporated association in 2012. During the meeting, which was presided by Chairman Jiro Nakamura, attendees conducted deliberations on and gave approval to business and settlement reports for fiscal 2013 (April 2013-March 2014) as well as a business plan and a budget proposal for fiscal 2014 (April 2014-March 2015). Business report for fiscal 2013 In fiscal 2013, JIFFA was joined by 26 forwarders and three organizations, which increased the number of regular members to 445 and that of supporting members to 22, respectively. At a time when globalization was growing among Japanese enterprises, the new members included businesses intending to launch operations in the international forwarding service market and international moving firms having obtained a license for providing forwarding services. In the first half of last fiscal year (AprilSeptember 2013), JIFFA-affiliated forwarders handled a total of 48.01 million tons of international multimodal cargo, which went up 2.2% year on year; in the second half (September 2013March 2014), 49.67 million tons, up 6.9%; and in total, 97.68 million tons, up 4.5%. JIFFA's long-standing request to join the International Federation of Freight Forwarders Associations (FIATA) was accepted finally in October 2013, when the FIATA, an organization of freight forwarders associations from many countries and regions, convened its annual world congress. Courses for qualifying IMTS In fiscal 2013, JIFFA gave courses of lectures for qualifying international multimodal transport specialists in Tokyo and Osaka to underpin the development of human resources who have expertise and know-how on international multimodal transport services. A total of 242 students passed the qualifying examination, raising the accumulated number of international multimodal transport specialists produced by JIFFA to 4,796. JIFFA provided language courses as well, which were for those who wanted to learn English and Chinese. To help students improve their information technology (IT) skills, JIFFA also held a basic IT course. On Jan. 1, 2014, JIFFA put into effect terms and conditions for its Multimodal Transport Bill of Lading and for its Waybill. In conjunction with the introduction of the terms and conditions, JIFFA fully revised its forms of MT B/L and Waybill as well. As for overseas logistics research, JIFFA sent missions to India (Mumbai, Ahmedabad and other municipalities) and Cambodia. Reports were compiled on findings from the projects conducted in the economies and released at dedicated sessions. Business plan for fiscal 2014 In fiscal 2014, JIFFA will strive to gain information on logistics affairs and systems in other nations, provide member companies with the information when they need it, conduct logistics research in countries that members are highly interested in and hold sessions to release reports on up-to-date information on such countries. JIFFA will also make efforts to distribute information timely on the Advance Filing Rules, the so-called Japanese 24-hour rules, which were put into effect in March 2014. To keep pace with the development of globalization among enterprises, member forwarders need to have deeper knowledge of forwarding and relevant systems in other countries, higher commands of English and Chinese and higher skills to use IT. To help them make progress, JIFFA will continue to hold courses of lectures for qualifying international multimodal transport specialists as well as language and IT courses and workshops. JIFFA will also promote education activities so that its terms and conditions for transport services, which were revised for the first time in 20 years in fiscal 2013, will be used appropriately. JIFFA Report 2 2015 JIFFA Report JIFFA Half-year Throughput Exceeds 50 Million Tons for First Time Vietnam Becomes Second Largest Source of Imports to Japan JIFFA members moved a total of 54.937 million tons of international multimodal cargo to and from Japan in the first half of fiscal 2014 (April-September), growing 14.4% from a year earlier, according to statistics compiled by the organization's Forwarding Committee. It was the first time that six-month throughput had ever exceeded 50 million tons. Imports and exports were both so favorable as to enjoyed double-digit improvements, with the former going up 11.5% to 34.665 million tons and the latter, up 19.8% to 20.277 million tons. Consolidated cargo accounted for 5.8% of the total in imports, failing to reach the 6% line for the first time; 8.1% in exports; and an all-time low of 6.7% in total. Imports Imports of international multimodal cargo continued to increase constantly until fiscal 2012 (April 2012-March 2013) thanks to the appreciation of the Japanese yen. They are, however, still brisk in fiscal 2014, although the yen has been weakening now. In the first half, imports surged 11.5% year on year to 34.665 million tons, reaching a record high for the seventh consecutive term. By origin, imports from China, the leading source of multimodal cargo destined to Japan, came back to enjoy a double-digit increase, soaring 10% to 17.955 million tons. More noteworthy were those from Vietnam, which became the second-largest trade partner from which Japan imports multimodal shipments. In volume, they jumped 56.3% to 2.562 million tons, helping the Southeast Asian nation step up from fifth place. Europe remained at third place, from which 2.351 million tons were imported, growing a mild 3.6%. Imports from Hong Kong came in fourth, which fell 7.8% to 2.28 million tons. They continued to be sluggish, suffering a yearon-year decline for four terms in a row, or since the second half of fiscal 2012 (October 2012-March 2013). Combined imports from China and Hong Kong managed to hike 7.7% to 20.235 million tons, exceeding the 20-million-ton mark for the first time. In contrast, their share did not reach the 60% mark, shrinking by 2 percentage points to 58.4%. Finished in fifth place were imports from Thailand, which zoomed so notable a 24.6% to 1.958 million tons as to defeat those from the U.S. by a narrow margin. Exports JIFFA member forwarders carried a total of 20.277 million tons of international multimodal freight from Japan in the first half of fiscal 2014, which ballooned 19.8% from a year earlier. Quantitatively, it was a growth of 3.347 million tons. From the second half of fiscal 2013, when the previous record was established, throughput rose a significant 14.9%. Exports to China, the most powerful importer of multimodal shipments from Japan, remained robust, hiking 4.8% to 3.878 million tons. China was followed by the U.S., to which 2.87 million tons were exported, inflating 9.2%. In the U.S., domestic demand is so massive that exports from Japan marked a high growth rate for the first time in a while and enjoyed a year-on-year increase for two straight terms. Those to Hong Kong came in third place, which surged 67.6% to 1.656 million tons to enable the special administrative region to take a big leap from seventh place. South Korea defended its position as the fourth-largest importer, to which 1.57 million tons were exported, growing 5.7%. In volume, those to Europe managed to enjoy a double-digit increase of 10.6% to 1.57 million tons, but in rank, they took two steps down to fifth. Import/export total In the first half of fiscal 2014, JIFFA members transported 54.937 million tons of multimodal shipments to/from Japan, which surged 14.4% from the corresponding six months of the previous fiscal year. In terms of volume, it was a significant improvement of 6.928 million tons. China was the leading trade partner to Japan, to/from which more than 20 million tons were carried. More precisely, 21.838 million tons were handled, which surged 9.1%. Ranked second were those to/from the U.S., which improved 9.2% to 4.808 million tons. Hong Kong finished in third and Europe in fourth, switching positions with each other from a year earlier. Throughput went up 13.7% to 3.936 million tons and up 6.3% to 3.921 million tons, respectively. South Korea remained at fifth, to/from which 3.289 million tons were moved, rising 13.3%. 3 2015 Judicial Affairs Committee Holds Seminars On Transport Document in Tokyo, Osaka The Judicial Affairs Committee had published a guidebook on terms and conditions for its transport documents, which were revised in 2013. To meet requests from member forwarders to give briefings on essences of the guidebook in an easy-to-understand format, the committee held seminars in Tokyo on Tuesday, Sept. 16 and Osaka on Thursday, Sept. 18. During the first sessions of both meetings, Mr. Masaya Takeda, a member of the Judicial Affairs Committee, delivered presentations on details of JIFFA Multimodal Transport B/L and JIFFA Waybill as well as important terms and conditions. He elaborated items that are important for daily routines. During the second sessions, Mr. Natsuo Shinohara, another member of the committee, lectured about the rights and duties of carriers and shippers. He also focused on the responsibilities of carriers, analyzing specific examples in several case studies and relating them with relevant terms and conditions. At the Osaka seminar, discussions were General Affairs Committee Holds Briefing Sessions in Three Areas The General Affairs Committee convened meetings on WednesdayFriday, July 9-11, 2014 to give debriefings to member companies in the Kyushu/Chugoku, Kansai and Chukyo areas, respectively. On behalf of JIFFA, Executive Director and Secretary-General Masaharu Nozawa and members of the committee were present at the briefing sessions. Mr. Nozawa introduced key points of a report on business activities for fiscal 2013 and a business plan for fiscal 2014. He also described important policies according to which JIFFA At Fukuoka conducts activities, which were as follows: (1) JIFFA strives to become more globalized and internationalized. Efforts to make to this end include obtaining more up-to-date information by taking advantage of being a member of the International Federation of Freight Forwarders Associations (FIATA); (2) JIFFA formulates and provides timely human resource education and development programs, such as courses for qualifying international multimodal transport specialists; and (3) JIFFA revises bills of lading (B/Ls) and other transport documents with the At Nagoya held on subjects that many member companies in Kansai had wanted to learn, which were problems that could arise from using surrendered bills of ladings (B/Ls) and ways to use waybills. Mr. Hiroki Okabe, chairman of the Judicial Affairs Committee and a lawyer from law firm Okabe & Yamaguchi Counselors at Law, gave a lecture to introduce several rulings that Japanese courts had given. Mr. Hitokazu Ito, who is also a member of the committee, delivered a presentation on problems that could occur from the use of surrendered B/Ls and actual cases in which they are used. He also promoted that waybills be used more commonly. JIFFA held seminars in Tokyo in September 2013, Hong Kong in November 2013 and Hakata in July 2014, all of which were highly rated by local affiliated companies. aim of introducing documents that better fit the times and complying with international rules and regulations. On Jan. 1, 2014, two revised terms and conditions were implemented, which are for JIFFA Multimodal Transport Bill of Lading and JIFFA Waybill Non-Negotiable. During the meetings, JIFFA's Secretariat gave reasons for revising these terms and conditions and adopting a full form for the latter. A briefing was also given on the legal status of transport documents. Besides, key points were discussed on the format of JIFFA Multimodal Transport B/L and JIFFA Waybill, both of which are governed by the aforementioned revised terms and conditions; the guidebook for JIFFA transport documents (2013 edition) and others. At Kobe JIFFA Report 4 2015 Education Committee Gives Intensive Lecture On Multimodal Transport Business in Fukuoka The Education Committee gave a lecture on the international multimodal transport business in Fukuoka this fiscal year. Offered every year in Kyushu, the one-day intensive program focuses on highly interesting subjects that are thought to be helpful for forwarding service providers. A total of 50 students enrolled themselves in the fiscal 2014 course, which was held on Wednesday, July 9. To help the students learn basic knowledge of international multimodal cargo transport services, the Education Committee (1) introduced risks that could arise from using so-called surrendered bills of lading (B/Ls) and rulings issued by Japanese courts regarding surrendered B/Ls, and promoted the use of waybills. (2) As there was a case in the past in which a non-vessel-operating common carrier (NVOCC) did not prepare to pay indemnities to shippers, the committee advised that NVOCCs keep riskmanagement plans in mind on a routine basis, assuming that accidents could occur when doing business with no liability insurance. (3) Domestic feeder services were also covered, as they are a popular subject among students attending JIFFA's annual course for qualifying international multimodal transport specialists. The students stress they learn so much from JIFFA Representative Attends FIATA Meetings Mr. Masaharu Nozawa, Executive Director and Secretary-General of JIFFA, attended two important International Federation of Freight Forwarders Associations (FIATA) meetings in 2014 on behalf of the Tokyo-based association. The FIATA, which holds its Region Asia-Pacific (RAP) Field Meeting in June every year, met in Beijing, China last year, hosting some 50 attendances from 13 countries and regions. The meeting was organized in conjunction with the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) Regional Conference/Forum and Meeting of Chief Executives of National Associations for Freight Forwarders, Multimodal Transport Operators and Logistics Service Providers. The FIATA meeting and UNESCAP conference, forum and meeting have been convened together in recent years through cooperation between the organizations. Having many challenges to overcome in common, they will continue to work to deepen their partnership FIATA Regional Meeting/Asia/Pacific in Beijing JIFFA Report lectures on domestic feeder services that they should have taken them earlier. When the Education Committee conducted a survey after the intensive lecture, most of the attendees answered that it was as highly informative and fulfilling as the course for qualifying international multimodal transport specialists. As such, JIFFA was convinced that they would make effective use of the knowledge they had acquired from the lecture in their daily routines. particularly in formulating master plans for developing intra-Asia logistic collaborations and enhancing international human development programs among economies in the region. Meanwhile, the FIATA held its 52nd World Congress in Istanbul, Turkey on Oct. 15-18. Under the theme of “Sustainable Growth in Logistics,” logistics was discussed from (1) economic, (2) social and (3) environmental viewpoints. Attendees exchanged views on how economic, social and environmental issues can be addressed to have logistics grow sustainably. 5 2015 Training Workshop for New Employees Held in Tokyo The Education Committee held a training workshop in Tokyo in July 2014 for employees hired in fiscal 2014 (April 2014-March 2015). At the three-day workshop, which the association organized for the first time, lectures were designed to help the students, who joined JIFFA-affiliated companies four months earlier, learn the forwarding business from basics. Specifically, easyto-understand subjects had been selected from the results of surveys conducted during JIFFA's annual basic courses on the forwarding business, including explanations on terminology. On the first day, the attendees first studied processes in forwarding services from a DVD that JIFFA had produced on forwarding services for international seaborne shipments. They also attend lectures on export and import business practices. On the second day, lectures were given on documents, insurance and claim management for international multimodal cargo transport. On the third day, which was the last day of the workshop, the students toured Tokyo Bay in the morning on board a vessel operated by the Tokyo Metropolitan Government (TMG)'s Bureau of Port and Harbor. Going Lectures at JIFFA's conference room At Honmoku Container Terminal JIFFA Welcomes Guests from Slovenia JIFFA welcomed guests from Slovenia on Sept. 18, 2014. On behalf of Posta Slovenije, or the Post of Slovenia, Mr. Boris Novak, General Manager; Mr. Petra Mencigar Cvar, Director for Product At JIFFA's reception room around the bay, they looked at container terminal facilities at the Port of Tokyo from the sea. In the afternoon, they were relocated to the Port of Yokohama's Honmoku Container Terminal with help from Mitsubishi Logistics Corporation, where they had a briefing on the port. Near a large containership moored at the terminal, they learned about containerloading and -unloading operations. The training workshop was attended by 50 students. When a survey was given, many answered the knowledge they had learned, the lectures they had attended and the on-the-job training they had received during the workshop would be of great help when performing business tasks in the future. The Education Committee will continue to give a similar workshop in fiscal 2015. Development; Ms. Marjan Osvald, Director International Mail and Mr. Saso Turk, Senior Advisor, visited the association. The party was accompanied by Mr. Miran Skendar, Secretary General of the Slovenia Japan Business Council. Posta Slovenije is the largest general logistics service provider in Slovenia. Its main business activities are delivering mail and international parcels as well as providing courier services. It is also engaged in carrying general cargo by sea, land, rail and air; offering storage and other miscellaneous services and having export and import shipments clear customs inspections. The parastatal is responsible for forwarding international containers that are transported by sea to the Port of Koper as well. They are moved by rail and/or land to neighboring and other countries, such as Austria, Hungary, Slovakia, southern Germany, Czech Republic and Poland. The members came to Japan to introduce Posta Slovenije to JIFFA and Japanese enterprises to enhance the trade between Slovenia and Japan. Posta Slovenije introduced itself first, and in return, JIFFA gave a presentation to give briefings on its history, organizational structure, the roles of its committees and its business activities, among others. JIFFA Report 6 2015 JIFFA Report Logistics Research Conducted in Fast Developing Chinese Inland Cities of Chengdu, Chongqing, Xi'an International Exchange Committee members visited the Chinese inland cities of Chengdu, Chongqing and Xi'an on Oct. 19-26, 2014 to research local logistics affairs. In 2013, China's real gross domestic product (GDP) managed to grow 7.7% from a year earlier, but failed to reach 8% for the second consecutive year. Nevertheless, the total value of trade increased 7.6% to a record-high US$4.16 trillion, helping the country overtake the U.S. to become the world's greatest trading nation. responsible for exporting $23 billion worth of commodities in fiscal 2013, which accounted for 40% of all products exported from Sichuan province, the capital of which is Chengdu. As for logistics, shipments to and from Chengdu are mostly transported by air. However, exports to Europe are carried by rail, while imports are moved by river from the gateway port of Shanghai. Railway services transport cargo from Chengdu to Europe in a transit time of 15 days. In 2013, a total of 400,000 tons were handled. The city has set a goal of moving 2.4 million tons a year by 2030. Chengdu Having a population of some 15 million, Chengdu is a large city where many office buildings and condominiums Rail terminal in Chengdu Traffic Jam are crammed side by side. There are many fancy cars on main streets, but many people are suffered from a traffic jam. There are two bonded areas in the city of Chengdu. The Chengdu Hi-Tech Comprehensive Bonded Zone, which a mission from the International Exchange Committee visited, became operational in 2008. Covering a total area of 4,680 square meters, the bonded zone was Bonded zone In July 2014, the local government raised the minimum monthly wage by 200 yuan, according to a Japanese forwarder doing business in Chengdu. Young workers still tend to leave work soon, contributing to a low job-retention rate, but experienced workers usually carry on. Chongqing Chongqing is a direct-controlled municipality, where some 30 million people reside. Shipments are primarily transported by ship on the Yangtze River route. Water levels of the river have become stable since the completion of the Three Gorges Dam, enabling it to accommodate 10,000-ton vessels now. When the second phase of Guoyuangang is fully completed in 2015, containerized shipments will be handled at the new port. Chongqing's capacity for processing containers will then increase from 600,000 TEUs to 2 million TEUs. Having a railway branch line, the new port is Claster of high-riss buildings projected to develop into a major logistics base in an inland region. As it concerns traffic conditions, congestions are more severe in Chongqing than in Chengdu, although regulations restrict trucks from going into the city. In Chongqing, workers earn about 3,000 yuan a month on average, nearly as much as those in Chengdu. The JIFFA mission paid a visit to the Chongqing International Freight Agency Association (CIFAA). There are as many as 423 logistics service providers operating in the city now, 142 of which are engaged in international services, according to the association. Looking At CIFAA closely at shipments to and from Chongqing, 60% are moved via the Yangtze River, 30% by air and the balance of 10% by rail and/or truck. In the first nine months (JanuarySeptember) of 2014, the municipality exported $70 billion worth of products in total. The Chongqing International Freight Agency Association is now working on a railway route between China and Europe via Kazakhstan, which is known as the (continued on page 7) 7 2015 Language Training Committee Honors Top Performers at Practical English Course JIFFA on Oct. 20, 2014 honored three top performers at its Language Training Committee's fiscal 2014 (April 2014March 2015) training course for practical English communication, which was given in Tokyo from April to September. Chairman Jiro Nakamura, executive vice president of Nippon Express Co., Ltd., presented certificates of completion and commemorative gifts to the three at a commendation ceremony held at the association's head office, which is also located in Tokyo. Ms. Nagisa Iwasaki of Nissin Corporation (second from left, front row) obtained the highest score at the final examination. She shared her impression about the course, saying, “The amount of time I spend sending an e-mail message in English has reduced to approximately one-third.” Logistics Reserch Conducted… (continued from page 6) New Silk Road. In May 2014, the Chongqing Municipal Government opened local offices in Belgium, Germany and the Netherlands. The service has handled 8,266 TEUs of containers so far. Xi'an Xi'an was the Asian end of the Silk Road. Neatly planned and arranged cityscapes help it look different from Chengdu and Chongqing. Streets are divided into lanes for four-wheel vehicles, “There had been courses for business English and letters for employees of trading houses and other enterprises, but JIFFA was the first to open an English course for logistics service providers,” Chairman Nakamura (second from right, front row) said. “The textbooks contain so many different patterns of situations that students can deal with them using idiomatic phrases,” he added in satisfaction of the contents of the course. JIFFA launched the course in 1999 to help employees of member companies improve practical English in their business routines. The six-month program was attended by a total of 31 students and twenty-seven students were qualified for the final examination, having taken 75 percent, or 27 lectures of the 36. All of them passed the exam. 28 Students from Member Companies Finish 'English for Logistics-Training Course' The Language Training Committee held an English-language course from May 29, 2014. Entitled “Oxford Business English: English for Logistics— Training Course,” it allowed students to learn useful phrases and vocabulary in English. More specifically, it was designed to help students learn from a native speaker English texts concerned with the forwarding business. During the 10lesson program, a new project for fiscal 2014 (April 2014-March 2015), a total of 28 students studied hard to master practical English. A native speaker from the U.K., who had obtained a Certificate in Teaching English to Speakers of Other Language (CELTA), gave the lessons, using a textbook published by Oxford University Press in England, where the forwarding two-wheel vehicles and pedestrians. Unlike Chongqing, there are no heavy traffic jams. At Xi'an Xianyang International Airport, which is located approximately 40 kilometers away from the center of Xi'an, the 20,000-square-meter second-phase development was launched in July 2011 after permission had been given to construct the Xixian New District. The airport is situated so conveniently that passengers can reach 70% of the remaining municipalities in China within two hours. Taking advantage of this feature, Xi'an hopes to develop a new Silk business took root a very long time ago and the English language was first spoken. The students learned materials from British Broadcasting Corporation (BBC) programs and other useful phrases and expression related to forwarding services visually and auditorily with their eyes and ears. The English course came to an end on Thursday, Sept. 18, when completing all of the scheduled lessons. Road, or a network of aviation services. In 2013, the airport handled 180,000 tons of cargo, intending to increase throughput to 450,000 tons by 2020. Conclusion The Tree cities are all in a transition period, growing into consumption cities in line with increases in purchasing power. They are all working seriously on how they can incorporate underdeveloped logistics infrastructure into their social structures and how they can develop rail and river transport into ways to procure and sell commodities.
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