News / Fiata looks to supply chain digitalisation, despite 'the elephant in the room'

‘Political unrest and Covid-19 have highlighted the need for every world corridor to be available and efficient’, said Fiata president elect Turgut Ereskin this week. 

At the 2023 Fiata World Congress, Mr Erkeskin addressed the congress’s plan to improve the multimodal corridor. He told delegates: “Fiata is looking to work with multimodal corridor management systems, such as the newly established India-Middle East- Europe corridor, and welcomes creative ideas on corridor development”. 

He stressed the importance of collaboration, adding: “The stability of regional customs should be aligned with the realities of the sectors today…Fiata commits to facilitating this and fosters further collaboration on easing these…by working together in international collaborations.” 

In an upcoming meeting in Istanbul, Fiata will announce that it would like to discuss ‘road and rail development’ in the region and encouraging interaction between the two systems.  

While the board discussed Fiata’s plans to develop the multimodal corridor physically, they also revealed ideas to create “a digital corridor within the physical corridor”, with Mr Erkeskin saying: “Success hinges on physical infrastructure, but also a streamlined process.”  

He noted that within the corridor multiple documents, necessary for multiple border crossing points, could slow trade. The answer, he suggested, was digitalisation.  

Mr Erkeskin projected that digital FBLs (forwarders’ bills of lading), as universal documents, could not only streamline trade, but also save $6.5bn in documentation costs and unlock $30-40bn in trade growth by reducing trade friction.  

But does the reward of digitalising the supply chain outweigh the cyber security risk it poses? 

Fiata’s secretary general, Stéphane Graber, said: “The elephant in the room with digitalisation is ‘sharing data’.” Mr Erkeskin noted that a data breach could cause companies within the supply chain to “lose [their] competitive edge.” 

However, Mr Graber said Fiata was working on the prevention of cybercrime and announced the Advisory Body on Safety and Security’s upcoming guide. He said: “You cannot assume that you will not have a cyber attack, it’s about what you can do on the day you are confronted with an incident.”  

Fiata claims its digital strategy will lead the way to global digital trade for all members, allowing a seamless, secure and sustainable flow of goods.