The International Federation of Freight Forwarders Associations Fdration

The International Federation of Freight Forwarders Associations Fédération Internationale des Associations de Transitaires et Assimilés Internationale Föderation der Spediteurorganisationen Negotiable FIATA Multimodal Bill of Lading Dr. YANG Yuntao Deputy Chairman of ABLM, FIATA Advisory Body Legal Matters Vice President of Transport and Logistics Department, China Merchant Group September 2019

Topics 1. FIATA introduction 2. China Merchants introduction 3. FIATA transport documents 4. Moving to Digital the global voice of freight logistics

1. FIATA introduction HISTORY • Non-governmental organization, represents an industry covering more than 40, 000 freight forwarding companies in the world, currently has over 5500 forwarding members in 162 countries • FIATA is the largest non-governmental organisation in the field of transportation and its influence is worldwide. OBJECTIVES • To unite the freight forwarding industry worldwide; • To represent, promote and protect the interests of the industry by participating as advisors or experts in meetings of international bodies dealing with transportation; • To familiarise trade and industry and the public at large with the services rendered by freight forwarders through the dissemination of information, distribution of publications, etc. the global voice of freight logistics

1. FIATA cooperation with other railway related organizations • FIATA / CIT (The International Rail Transport Committee) • FIATA / OSJD (Organisation for Cooperation between Railways) • Memorandum of Cooperation signed in October 2018 • FIATA / UIC (International Union of Railways) • Marketplace Seminar • FIATA / IBS (International Rail Freight Business Association) • Base for collaboration: common interests in rail freight in Europe the global voice of freight logistics

2. Introduction to CMG China Merchants Group(CMG) is a leading comprehensive enterprise based in Hong Kong, with three core business sectors. Following China's “Belt and Road" strategy, CMG has 53 ports and over 190 branches in over 40 countries and regions in the world. In the fortune global 500 list released in 2019, China merchants and its subsidiary China merchants bank were both listed again. Property & Industrial Zone Shekou and Zhangzhou Development Zone China’s leading Property Developer & Industrial Zone Developer Transportation & Related Infrastructure World First Class Comprehensive Port Service Provider China’s No. 1 Investor and Operator of Toll Roads the global voice of freight l ogistics World First Class Energy Shipping Fleet China’s leading Logistics Service Provider Financial Service China Merchants Bank The best commercial bank in China Merchants Capital

2. Introduction to Sinotrans limited (Sinotrans) is the operation platform and brand of the logistics business of CMG. Sinotrans, which was listed in Hong Kong Stock Exchange in 2003, has formed its three main business segments including professional logistics, supply chain logistics and e-business. 物流� 商 Professional Logistics Supply Chain Logistics Professional Logistics Cold Chain Logistic, Projects Ocean/Air Freight, Road and Energy, Chemical, Fairs and Rail Services, Shipping Events …… Agency…… the global voice of freight logistics E-Business platform, Crossborder e-commerce logistics ……

2. International Rail Service of Sinotrans (1) International Through Railway Transport RU Moscow Hamburg Minsk Duisburg Manzhouli KZ MN Budapest Alashankou E r enhot si Xi’an Shenyang Tianjin Qingdao Hefei Changsha Pinxiang Shilong Ha Noi the global voice of freight logistics • 34+ lines, 14+ normalized lines, covering the whole railway port network • In 2018, 802 international trains, 70, 442 TEU; 563 trains to Europe, 51, 624 TEU

2. International Rail Service of Sinotrans (2) Land-bridge Sea-Rail Transport RU Moscow Hamburg Minsk Duisburg Manzhouli KZ Budapest MN Shenyang Erenhot Alashankou Tianjin Lanzhou Changsha Pingxiang Hanoi the global voice of freight logistics Qingdao Hefei Shilong Rail transshipment of maritime cargo originated from Japan, South Korea and southeast Asian countries via Chinese seaports (Tianjin, Qingdao etc. ), to Russia and European countries passing through the territory of China.

3. FIATA transport documents New market demand for a transport document as document of title for railway transport, to facilitate trade financing under Letter of Credit New Passage for trade between China and Europe 6, 300 trips in 2018 (totally more than 12, 000) Three Euraisa rail corridors, available between 48 Chinese cities and over 40 cities in 14 European countries. goods like mechanical equipment, computers and parts, automobiles, mobile phones, textile, woods, foods, etc. Multimodal Transport of Rail + Approach Growing economic need for trade financing in international railway transport Railway consignment note is not a document of title and therefore is normally not accepted by banks for letter of credit A transport document for railway transport as document of title is required to facilitate trade Source: China Merchants Group the global voice of freight logistics

3. FIATA transport documents FIATA has created several documents and forms to establish a uniform standard for use by freight forwarders worldwide. The documents are easily distinguishable as each has a distinctive colour and carries the FIATA logo which can be seen at the head of the page. FIATA FCR (Forwarders Certificate of Receipt) FIATA FCT (Forwarders Certificate of Transport) FWR (FIATA Warehouse Receipt) FBL (negotiable FIATA Multimodal Transport Bill of Lading) or FMTBL FWB (non-negotiable FIATA Multimodal Transport Waybill) FIATA SDT (Shippers Declaration for the Transport of Dangerous Goods) FIATA SIC (Shippers Intermodal Weight Certificate) FFI (FIATA Forwarding Instructions) the global voice of freight logistics

3. FIATA transport documents FBL (negotiable FIATA Multimodal Transport Bill of Lading) • Negotiable FIATA Multimodal Transport Bill of Lading is a carrier-type transport document set up by FIATA for the use of freight forwarders acting as Multimodal Transport Operators. It can also be issued as a marine bill of lading. • FBL has been deemed by International Chamber of Commerce to be in conformity with UNCTAD/ICC Rules for Multimodal Transport Documents and therefore bears ICC logo alongside the symbol of relevant freight forwarders association by country or territory • It can be used for multimodal transport or unimodal transport. Many forwarders use it in door-to-door transport. the global voice of freight logistics

3. FIATA transport documents FBL (negotiable FIATA Multimodal Transport Bill of Lading) • FBL is widely accepted by banks around the world for Letter of Credit transactions as it conforms to “Guide for the Uniform Customs and Practice for Documentary Credits (UCP 600)” of ICC. As a document of title, it can be presented to take delivery of the goods. • Over 1 million copies of FBL are issued every year around the globe • Freight forwarders can apply to authorized FIATA Association Members for use of FBL and other FIATA documents. More information can be found on https: //fiata. com/about-fiata/fiata-documents. html or info@fiata. com. the global voice of freight logistics

3. FIATA transport documents Usage of FBL in combination with Rail Consignment Note the global voice of freight logistics

3. FIATA transport documents Advantages of combining FBL with rail consignment note: • Both railway companies and freight forwarder can draw on their strengths: Railway: rail transport, issue consignment note and release cargo to freight forwarder (consignee) Forwarder: receipt and delivery of cargo, door-to-door transport, preparation of transport documents, customs declaration and inspection… • No need to revise the current international conventions and national laws on rail freight the global voice of freight logistics

4. Moving to Digital • FIATA is now working diligently with on creating the electronic FIATA Multimodal Bill of Lading, e. FBL. • The e. FBL solution will enable shippers and freight forwarders to draft, amend and finalize the FBL entirely on the a digital platform. Users are then, able to electronically circulate the FBL through the supply chain. • Should not all stakeholders from the supply chain be active users of the digital system, users are able to securely print the FBL from the digital system and circulate it physically alongside their cargo. The printed FBL maintains its security through a two-step security authentication utilizing a barcode and chip that ensure the authenticity of the document and also traceability as it moves through the supply chain. the global voice of freight logistics

Thank you! Find more about FIATA in www. fiata. com Schaffhauserstr. 104 CH-8152 Glattbrugg Switzerland the global voice of freight logistics Phone: +41 (0)43 211 65 00 Email: info@fiata. com