Freight forwarders seek aid to adapt

Date: 11/04/1996

By Rory Watson

EUROPE'S freight forwarders and customs agents are pressing for continued EU aid to help the sector adapt after the abolition of internal frontiers which has led to the loss of 65,000 jobs in the industry.

“This is almost as many jobs as have been shed in the steel industry and yet no one talks about it. Ending customs controls meant a 50&percent; reduction in turnover for some firms. The sector has still not completely sorted itself out even today and it has had to do so with almost no help,” complains Jean Chabrerie, the president of the European Liaison Committee of Freight Forwarders (CLECAT).

The internal market has brought rewards and opportunities for many in the business world, but the dismantling of physical, technical and fiscal barriers and the growth of a paper-free environment have resulted in the disappearance of some 10&percent; of CLECAT's members.

Job losses were greatest in France - 18,000 - but the elimination of border and administrative formalities also meant the end of 7,000 full-time posts in the UK and 6,500 in Germany.

CLECAT director Jean-Marie Parasie explains: “There were really dramatic consequences in places like Dover and Rosslare. Companies just disappeared. In Dover, three-quarters of the firms closed down.”

To lessen the shock in the then 12 member states, the Union allocated 30 million ecu to help freight forwarding businesses and customs agents organisations to adapt and create alternative job opportunities in frontier areas. That aid ended last December.

“We are not asking for free subsidies, but we are asking for the continuation of programmes in place. We are looking specifically for help to assist the reconversion of firms and to encourage them to diversify into more international markets such as South Africa, the United States and the Far East,” says Chabrerie.

He believes that CLECAT's message and its emphasis on developing more global opportunities is not being heeded by the European Commission.

Instead of considering a specific scheme, the Commission points to its regional programme - Interreg - which has been designed to breath new life into the Union's former border areas. But CLECAT retorts that the cross-frontier criteria are so tightly drawn that its members are unable to benefit.

Founded in 1958 with member organisations in almost every EU country, CLECAT represents some 20,000 companies employing 400,000 people in all stages of the transport chain.

They are responsible for 60 to 65&percent; of freight transported by road, between 90 and 95&percent; of cargo carried by air and over 65&percent; of shipments by sea. “We represent large and small firms who are specialised either in geographical markets, such as the Middle East and North Africa, or in specific products like furs, fruit and works of art. There is no commodity freight forwarders and customs agents we do not deal with,” says Chabrerie.

Trying to secure EU aid to help its members adapt to the new economic climate is not the only challenge facing CLECAT. The organisation is heavily involved in moves to reform the Union's overburdened transit system.

Increasing fraud is of particular concern as unscrupulous operators exploit loopholes.

Freight forwarders are held solely responsible for uncollected duties and taxes. “We proposed various reforms in 1994, but the basic rules have not changed. We are still asked to assume all the risks and be the sole guarantors. We are now saying 'no more'. Governments must accept that, with the expansion of trade and reduction of frontiers, there must be more of a balance. National exchequers must accept some of the responsibility and risks,” argues Chabrerie.

CLECAT is consulting its own members and is cooperating with the European Parliament's special inquiry into transit fraud.

But Chabrerie says some improvements would take little time to implement.

“Certain people are designated authorised consignees to whom goods can be delivered in various countries. But we do not have any national or EU lists as to who they are. So we do not know if the goods can be legally accepted or not. If a freight forwarder knows the person involved, he will deliver his consignment. If he doesn't, he won't. That must be sorted out,” he insists.