MAINPAGE CONTACTS TO FAVORITES
About FAR
Purposes and tasks
Presidency and management
FAR members
Contacts
About FAR / Purposes and tasks

The Russian Association of Freight Forwarding and Logistic Organizations

 

In world practice the Freight Forwarder, otherwise known as the Architect of the Transport, plays a significant role in creation of the transport chain of movement of the goods from producers to consumers. And so it is customary to call the freight forwarder by the above said name. In confirmation of this nickname-slogan we may use the fact that eighty percent of the world trade is carried out with the assistance of freight forwarding companies or thanks to freight forwarders.

The Russian Association of Freight Forwarding and Logistic Organizations was established in September 1990 on the base of the freight forwarding organizations being in existence since the middle of the past century. The last re-registration of the Association caused by some alterations to the statutes and changes in its name was made in March, 2001.

In accordance with its statutes the Association is a noncommercial organization uniting on a voluntary basis freight forwarding companies and firms of different forms of property with the aim of expansion of cooperation among them, coordination of their activities, protection of their rights as well as presentation and promotion of the common freight forwarding interests at the state bodies, public and international organizations.

The Association has not the aim of extraction of profit from its activities. In case of getting any profit such a profit is subject to be used for its statutes purposes.

The Association independently makes out the plans of its activities in accordance with the statutes and on the basis of the resolutions passed by its members.

The Association ensures achievement of its statutes goals by the following ways:

1. Joining up freight forwarding organizations to a single national association.

Such unification is extremely necessary for the freight forwarders themselves as the Association serves them as a certain proof for their high professional quality, financial stability and deserved business reputation.

Membership in the association gives to any freight forwarder the name with a "capital letter" and this fact serves as a good advantage for obtaining orders for rendering freight forwarding services to the customers. Membership in the Association of any freight forwarding company is not less important for customers in general. This membership serves for the customers as a certain guarantee for obtaining of qualitative and reliable freight forwarding services.

Amalgamation of the national freight forwarders to a united organization is also for the Association sheer necessity for its normal activities and accomplishment of its tasks.

Economic structures of such country as Russia cannot function successfully without advanced development of transport and freight forwarding complex. Such complex is really the backbone of the country's economics. Striking illustration to this assertion may be 150 thousand kilometers of railways, 950 thousand kilometers of automobile roads, 44 sea and 128 river ports. In the country there are about 600 thousand railway wagons, almost 17,5 thousand of locomotives, 1120 ocean vessels of 12 mln.t of deadweight, 108 thousand truck companies with about 4,3 mln. lorries, 10 thousand of river ships and more than 5 thousand of different aircraft. The above transport infrastructure and means of transport resulted in 2006 with about 2,200 mlrd. t.km (without pipelines) of freight turnover, including transportation of about 1300 mln.t by rail, 415 mln.t were handled at our sea ports, 133 mln.t by river, 6,8 mlrd.t by lorries and 600 thousand tons by air. And it goes without saying that it would be impossible to achieve the abovementioned results without participation of the freight forwarders, the majority of which are members of the Freight Forwarders Association of the Russian Federation.

2. Protection of the Association members' interests on the Russian freight forwarding services market, coordination of their efforts in the field of expansion of business activities, non-admission and avoiding among them unlawful and dishonest competition. Presentation and promotion of the freight forwarders interests in state bodies, public and other organizations.

These activities are carried out in two directions: firstly - within the framework of the branches of public committees and councils attached to power structures and public organizations. Within the framework of the said committees and councils the Association renders to its members assistance in providing them with optimum conditions for their professional activities and achievement of high economic efficiency; secondly – in accordance with its statutes duties and obligations the Association accomplishes the aforesaid tasks directly with the power authorities taking part in discussions of drafts of various legal rules concerning transport and freight forwarding, tax and customs activities, including the Customs Code, Tax Code; different transport codes and laws. In particular, the association had a leading role in preparation and working out of the "Federal law about transport-forwarding activities", the Law was adopted by the Parliament and signed by the President of the country on June 30, 2003. In September 2006 the 6 government adopted National freight forwarding rules.

On behalf of its members the Association applies to various state and government bodies with the problems to be solved, including those cases when the member of the association for one or other reason does not want to make a show of itself. It is explained rather simply: there are many possibilities to exert influence on a commercial organization and to take some economic measures against such organization. And on the contrary it is impossible to exert influence on the Association as a non-commercial entity and to take economic measures against it. Under these circumstances the Association using its independent statutes may exert influence on the state and government bodies of various fields of activities by applying to the authorities and clearing up actions of one or another official authority or its representative.

3. Representation of the Russian freight forwarders in the International Federation of Freight Forwarders Associations (FIATA) and protection of their interests on the world market of freight forwarding services.

Since 1992 the Association has been representing the interests of the Russian freight forwarders at FIATA as a single national freight forwarders association. About 90 Russian freight forwarders are accepted to FIATA membership on individual basis. This fact serves as a positive demonstration of incoming of Russian freight forwarders to the world freight forwarding society.

The Association actively conducts its business on introduction of FIATA forms and documents into Russian freight forwarding practice.

At the beginning of 2007 about 50 members of the Association had the right to issue to their customers FIATA forms and documents.

Possession by a freight forwarder of the right to issue FIATA's Multimodal transport bill of lading, Multimodal transport waybill, Forwarders certificate of transport, Warehouse receipt etc. is a striking illustration of high professionalism of freight forwarders and a guarantee of high quality of freight forwarding services.

4. Providing the Association members with information and consultative services.

It is well known that in modern market conditions it is quite impossible to reach any significant result without sufficient information. From the very beginning of the activities of the Association, which is from 1990, members of the Association have been supplied with the documents and materials clarifying and regulating freight forwarding activities and the branches of economy connected with these activities. In summary, the Association has managed to avoid information vacuum in its relations with the members.

Since 1998 the Association has been publishing its own periodical magazine "The International Forwarder". The magazine is of information and analytical nature and of active demand among freight forwarders and its customers.

Participation in exhibitions and conferences of transportation and freight forwarding themes plays a very important role in the Association activities. The Association is a permanent participant of "Transtek" exhibition and "Trans-Russia" exhibition.

5. Vocational training of freight forwarding personnel and rendering assistance in improvement of freight forwarders professional skill.

Achievement of this goal is fulfilled with the help of the Center of vocational training set up with the Association. Every year five special courses of two weeks program and several one-three days seminars on actual freight forwarding problems are conducted. A good part of the training is carried out with so called "visiting on the places" that is with conducting of the training in the premises of the companies. Graduating from these trade-improvement courses is acknowledged by the official certificate. In October 1999 during the FIATA World Congress in Dubai the Association defended 180-hour syllabus of vocational training in accordance with the FIATA international standards and obtained the right of issuing to the audience the FIATA Diplomas. Since then up to now 184 students were awarded these Diplomas.

6. Certification of quality of freight forwarders services.

It is well known that the certification promotes and enhances the prestige and significance of the freight forwarders services. In 2002 the proper state authority registered the Association's program of voluntary certification of freight forwarding services of the members of the Association.

Up to 1st March 2007 the most active members of the Association were certified. To them belong: LUKOIL-CHERNOMORYE, INTERTRANS, RAIL SERVICE, OPTIMUM-INTER, STIM, KAMA-LOGISTIC, MTK-SERVICE, VOLGAINTRANS, ARMADILLO, BAT-EXPRESS, MEZHTRANS-1, EUROSIB-LOGISTICS, VLADIVOSTOKVNESHTRANS FORWARDING, CONTINENT LOGISTICS, and SOVMORTRANS.

It is necessary to note that the Association rather carefully prepared itself for these activities.

The Association worked out and continues to improve ideology of certified verification. The basic postulate of this ideology is the fact that verification is carried out not with the aim to issue a certificate as a formal approach for verification, but mainly for rendering the active assistance to the enterprise in the field of its activities. The Association enlists to these activities the most qualified experts and authorities in the field of transportation and freight forwarding with the aim to make the certification as a special school of transmission of positive experience of freight forwarding activities. Moreover, the criteria of analysis of the documents presented by the enterprises are constantly under improvement. The aim of elaboration of such a criteria – is working out of the most effective documentary performance of mutual relations between freight forwarders and their customers.

The Association has enough possibilities for fulfilling this task by means of carrying out work on collecting and analyzing the members' activities and their experience. The results of such analytical job are used during certified verification of other members of the Association. In this case exists a good opportunity to draw attention of the verified administration and its staff to the optimum solution of the problems appeared in member companies activities.

The FIATA Secretariat fully approves this motion and recommended to enlarge and activate these activities.

7. Court of Arbitration.

A court of arbitration was established within the framework of the Association. The court was registered in accordance with the rules in force. The court is called for assisting in creation of friendly atmosphere of business cooperation among freight forwarding companies.

It is supposed that with the help of this court the commercial arguments between freight forwarders on one hand, and shippers and carriers, on the other hand will be solved.

The main advantage of appeal to the court is saving time and money. Absence up to now of official appeals to the court does not put under doubt its existence. The main fact is the presence of such availability. As for the lack of appeal it is explained by high freight forwarders professionalism, rendering the services without conflicts or solving all problems without applying to the court.

The above enumerated trends of the activities of the Freight Forwarders Association of the Russian Federation are called for offering each freight forwarder the possibility for competent participation in civil legal relations while rendering services on movement of the goods from producers to consumers by all existing modes of transport.

The freight forwarder in accordance with its duty and engagement renders a wide range of services. Under instructions of the customer the freight forwarder offers the most efficient routing of the goods transportation and suitable means of transport. The freight forwarder coordinates with all participants of delivery of the goods junctions of various means of transport and takes measures for barring unproductive handling and storage of the goods in the point of transition, makes out the documents necessary for transportation and delivery, helps to put in order customs, quarantine, phytosanitary, consular formalities, fulfills various payments and is a representative of a shipper before carriers and other partners of delivery of the goods.

It is rather difficult to overestimate the freight forwarders' role in commercial activities of consignors, exporters and importers. On one hand taking advantage of its neutral and binding link among shippers, carriers and consignees the freight forwarder obtains cutting down the value of transport component in the price of the goods, thus raising competitive abilities of the supplier. On the other hand, the freight forwarder providing transport means with cargoes reduces its run without a load. And while coordinating the time of cargo handling from one means of transport to another the freight forwarder reduces the time of being under handling, loading and unloading operations.

Thus, the activities of the Freight Forwarders Association of the Russian Federation are subjected to the creation of conditions for rendering of high quality freight forwarding services to their customers. On these services depends safe, timely and economical movement of the goods for foreign and domestic trade. Everybody should know that without fulfillment of vast volume of simple and complicated functions, without rendering of vast range of services that are necessary for movement of goods does not manage a single commercial transaction.