CUSTOMS BROKING & FREIGHT FORWARDING Changing times The roles of freight forwarders and customs brokers are changing in line with increased digitisation and different ways of entering the sector, writes David Sexton 32 <strong>September</strong> <strong>2019</strong> thedcn.com.au
The role of the freight forwarder is ever changing. New technologies and innovations are influencing the ways that business is done. For some insights into this sector, Daily Cargo News spoke with the peak body Down Under the Australian Federation of International Forwarders. In a conversation with <strong>DCN</strong>, AFIF chief executive Brian Lovell reflects a little upon the role of the freight forwarder. “The role of the forwarder is really, according to the world body FIATA, as the architect of the transport movement. They sit in the middle but they have to understand carrier movements in both shipping and air freight,” Mr Lovell says. “They [forwarders] have to understand whether it is best to move the goods by air or sea, something the customer doesn’t necessarily know. They have to know about the world freight networks. Geography is really important but also what goes where, how and when. They need to be able to plan and help the shipping department of an exporter plan the movement of freight.” Mr Lovell notes also the need to understand how to facilitate the movement of shipments classified as ‘dangerous goods’. “Freight forwarders have to have a great understanding of documentation, how you prepare it, customs requirements, carrier requirements and government regulated areas such as biosecurity,” he says. “So it is about understanding geography, understanding world trade systems, understanding carriers and rating structures and documentary processes for both transport and government requirements.” OPPORTUNITIES AND THREATS There are a variety of issues impacting upon the role of the forwarder. These include geopolitical tensions, trade wars and the Shippers and consignees that utilise freight forwarders are now putting a lot more pressure on... to be able to provide that visibility in the supply chain. Stuart McFarlane, AFIF SENSE OF COMMUNITY CRUCIAL FOR CUSTOMS BROKERS Customs Brokers and Forwarders Council of Australia chief executive Paul Damkjaer believes there is a bright future for those interested in a career in customs broking, But Mr Damkjaer also believes this important sector has some challenges. And he argues the sector needs to retain a sense of community, even while ensuring there is no hint of anti-competitive behaviour. He notes changes in entry levels, with some of the junior roles having disappeared owing to the advent of electronic and digital technology. “We lost the entrance level into customs broking, that was the ‘runner’, the customs house clerk where you’d clear all the bills of lading and go get the mail and the milk,” he says. “So all the bills of lading are now cleared electronically. “Then you’ve got the next stage that we used to do which used to be the compiler.” Such tasks are now often off-shored in such places as Malaysia, the Philippines, China and India. “Even small to large businesses are doing it and there are different opinions on whether to keep it in Australia,” he says. Mr Damkjaer says in days gone by, one would become a compiler and then a classifier and “then you’re almost ready to go for your licence”. “In our customs broking course we have 20% to 25% of students not employed in the industry,” he says. “Unfortunately there are not the positions for a junior. That in itself is [a concern].” He notes also the trend towards older brokers. “Some 190 brokers gave in their licence in July last year (the renewal point) and the average age for a practising broker is 54.9,” he says. “It is a bit like the truckies. It is also important to retain that sense of camaraderie and that it is what we have tried to foster at the CBFCA. “We know there are anti-competition laws and we state that but if we can get people to talk, we don’t talk price, but we want to talk about issues with the regulatory departments [Home Affairs and Department of Agriculture). This is why we have the regional [CBFCA] gatherings in each state.” Gyn9037; David Sexton; Smith Channon; Ian Ackerman; Stuart McFarlane, AFIF Martin Bourn, Smith Channon & Co Brian Lovell, AFIF Paul Damkjaer, CBFCA thedcn.com.au <strong>September</strong> <strong>2019</strong> 33
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