The big supply chain disruptor is the regulators, say shippers

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regulators, say shippers">The big supply chain disruptor is the regulators, say shippers</a></h1> </div> </section> <section class="sharing"> <div class="container pad"> <ul> <li><a href="https://theloadstar.com/the-big-supply-chain-disruptor-is-the-regulators-say-shippers/"><span class="sharing-facebook" title="Share on Facebook"></span></a></li> <li><a href="https://theloadstar.com/the-big-supply-chain-disruptor-is-the-regulators-say-shippers/"><span class="sharing-linkedin" title="Share on LinkedIn"></span></a></li> <li><a href="https://theloadstar.com/the-big-supply-chain-disruptor-is-the-regulators-say-shippers/"><span class="sharing-email" title="Share by Email"></span></a></li> <li><a href="https://theloadstar.com/the-big-supply-chain-disruptor-is-the-regulators-say-shippers/"><span class="sharing-whatsapp" title="Share on WhatsApp"></span></a></li> </ul> </div> </section> <section class=""> <div class="container" style="padding: 0 10px;"> <div class="col10 centered 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class="author">By <a href="/?s=Charlotte+Goldstone" rel="author">Charlotte Goldstone</a></address> <time datetime="2024-11-04">04/11/2024</time> </div> <p><span data-contrast="auto">Shippers need their supply chain partners to collaborate in order to speed up processes and provide visibility, according to head of logistics at Early Health Group, Yulia Celetaria.</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">On the sidelines of Aviation connect in Istanbul last week, Ms Celetaria told </span><i><span data-contrast="auto">The Loadstar: </span></i><span data-contrast="auto">“I have a clinical trial that needs to be delivered from Switzerland to some remote area in Argentina, and sometimes we use five to six service providers.</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">“We work with a freight forwarder, and then the freight forwarder can outsource some other freight forwarder in another region, for example. They work with airlines, they work with warehouses if they don’t have their own, and so on and so forth.”</span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">Ms Celetaria said it was a challenge to ensure “every single party within the supply chain is following the same standards”. </span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">“I see a lot of confusion sometimes when you have so many parties,” she said.</span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">This disconnect is partly attributable to the multitude of service providers that use different IT systems.</span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">“A lot of times, these IT systems are not co-integrated. I’m getting recent pieces of information from data loggers in regard to temperature, then from airline tracking on where my product is, and so on. It’s very fragmented and I have to get all the pieces together myself.”</span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">She noted that this is partially due to investment, “because digitalisation costs money”, but also due to a lack of willingness to standardize.</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">“Everyone in the industry is speaking about standardisation, but at the end of the day, every company has their own way, and they know better… there’s only that level of collaboration that can actually happen. You can openly talk to another companies, but everybody’s in their little bubbles, I think.”</span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">Brendan Sullivan, head of cargo at IATA, said: “There is still very limited end-to-end visibility across the supply chain, and end-to-end visibility is about collaboration – actually sharing the data across the supply chain, having enough trust in the partners to do so.”</span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">He added that “technology is not the holdup anymore”, but instead it was “ireally and truly about trust and collaboration”.</span></p> <p><span data-contrast="auto">Mr Sullivan also highlighted that another area of “struggle” was around “regulatory differences”. </span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> He said: </span><span data-contrast="auto">“The regulators, obviously that’s their job, to come up with new regulations, but when they do it in isolation, without consultation with industry in pockets or regions, we end up with an impossible-to-comply scenario,” he said.</span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">“As we saw in the case of a recent regulatory change, it was completely fragmented. It was done in isolation where they looked at an integrated business model and said, ‘well, that’s the data that we want, therefore we’ll implement the rule’.” </span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">One such rule is the US Customs Border Protection’s Air Cargo Advanced Screening requirements (ACAS), introduced in 2018 but enhanced in August this year, requiring the submission of information on shipments arriving in the US from abroad.</span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">Kester Meijer, director of operational integrity, compliance and safety at KLM, </span><span data-contrast="auto">sai</span><span data-contrast="auto">d: “The present ACAS filing has seven data points. How many have they added for the enhanced ACAS filing? 20, minimum 11? Well, actually 13, but two are covered by European privacy laws, so we cannot give them. </span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">“That is your biomedical information, your passport, your identifier, the IP address that you booked your shipment from. We are not allowed by EU law to give that, but that’s what they require. And then they say ‘the last items, up to 20, they’re not mandatory, but if you want your cargo cleared pretty fast, it’s better that you give them to us’.”</span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">“Can we be better? Yes,” he added.</span> <span data-contrast="auto">“The past eight weeks I have been in calls with over 140 freight forwarders and CBP, trying to explain what they require. </span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">“The big freight forwarders have their shit together. But there was somebody in the call who said, ‘wait a minute, I still do paper air waybills. How is the airline going to solve my problem? Because you need to do risk assessment on my data, my relationship with the shipper’. </span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">“I said ‘hang on, I’m the airline, it’s your data, it’s your relationship with the shipper and CBP is going to tell me I cannot fly your cargo…’ So the big disruptor is not ourselves, it is the regulators…” </span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335557856":16777215,"335559685":0,"335559737":0,"335559738":0,"335559739":0,"335559740":240}"> </span></p> <p><span data-contrast="auto">Mr Sullivan concluded: “For this industry to be successful, we must try and make sure that we actually engage with regulators early, so that they understand the reality of our business before they go and put something in place.”</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></p> <p> </p> <div class="ls_well" style="background-color: #f8a235;"> <p><span data-ccp-props="{"201341983":0,"335559740":240}"><strong><em>Looking for a one-stop recap of last week’s supply chain news? Listen to the latest News in Brief podcast!</em></strong></span></p>  <audio class="wp-audio-shortcode" id="audio-284195-1" preload="none" style="width: 100%;" controls="controls"><source type="audio/mpeg" src="https://chrt.fm/track/93AA8F/episodes.castos.com/61e078fee345f1-77268395/1872431/c1e-xgx39tmo37jsn7wgo-nd4r8vxdb565-pxdvpr.mp3?_=1" /><a href="https://chrt.fm/track/93AA8F/episodes.castos.com/61e078fee345f1-77268395/1872431/c1e-xgx39tmo37jsn7wgo-nd4r8vxdb565-pxdvpr.mp3">https://chrt.fm/track/93AA8F/episodes.castos.com/61e078fee345f1-77268395/1872431/c1e-xgx39tmo37jsn7wgo-nd4r8vxdb565-pxdvpr.mp3</a></audio> </div> </article> </div> <div class="col-4 pad sidebar col-tab-14 col-mob-14"> <div class="ad-box"><div class="ad-middle"><a href="https://theloadstar.com/wp-content/plugins/adrotate-pro/adrotate-out.php?track=MTQzMywxMzcsMCxodHRwczovL2thbGVsb2dpc3RpY3MuY29tL2NvbnRhY3QtdXMv" target="_blank"><img 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The big supply chain disruptor is the regulators, say shippers - The Loadstar