| President’s Message
Though Canada is presently enjoying surprising economic
growth, we remain susceptible to the results achieved by our
neighbor to the south. While the signs in the United States are
somewhat encouraging, there is no assurance that their
economy will not slide back into a depressing state. It remains
fragile and ours is likewise.
In this context, we have concerns and serious reservations
about two programs being implemented, or about to be
implemented, by the revenue branch of government. One of
these initiatives already undertaken by the CCRA is the
examination of export shipments by customs. The need for
interdiction and risk management, particularly since 9/11, is
fully supported by Ciffa. The value of life, limb and security
cannot take a back seat. We do however question the process
as well as the allocation of costs!
The present physical examination process is resulting in the
delay of export shipments. Cargo is missing sailing schedules
and trade relationships between commercial partners are
beginning to show signs of strain. This is further compounded
by the fact that the costs for these examinations must be borne
by the shipper. We believe this is grossly unfair. Security is a
national issue and the country should assume the costs
associated with it, as it is a national expenditure for the public
good.
A second program from CCRA, the Administrative Monetary
Penalties initiative (AMPS), has tentatively been re-scheduled
for implementation in October of this year. The development
of the program has been a work in progress for some time, but
it is only recently that the details have become publicly
available. The intent was and is to attain a high degree of
compliance (100%) in fulfilling the requirements of customs.
Failure to do so will result in the application of a monetary
penalty. Repeat offences are subject to an escalating schedule.
The Canadian International Freight Forwarders Association
1243 Islington Avenue, Suite 706, Toronto, Ontario M8X 1Y9
Tel: (416)234-5100 • Fax: (416) 234-5152
July, 2002
Vol. 55 No.3
The extensive nature of the offences will have a negative
impact on trade and result in even more congestion at the
ports of entry. Importers and exporters alike, having become
aware of the costs associated with the program, are fearful of
what it will do to their business activities. It will be particularly
harmful to the small and medium size business sector.
CCRA enunciate the program as being for compliance and
that they are not doing it for revenue purposes. However,
(Continued on page 3)
President’s Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Some US Statistical Tidbits in Transportation . . . . . . . . . . . . . . . . . . . . . . . . .3
Changes to the Canadian Transportation Dangerous Goods Act & Regulations 4
CIFFA Strategic Plan Approved at 53rd AGM . . . . . . . . . . . . . . . . . . . . . . .5
Air Cargo News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Sea Cargo News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Press Releases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Canadian Transportation Agency Publishes 2001 Annual Report . . . . . . . . .11
Freight Rate Increase of 5.5% is recommended . . . . . . . . . . . . . . . . . . . . . .11
Internet Connectivity Software to CCRA takes a Byte Out of Costs . . . . . . . . .12
CIFFA Protests Scheduled Implementation Date For New Low Cargo Density . .12
Kuehne & Nagel, Gerouse sponsor Of Canadian/Swiss Artist . . . . . . . . . .13
CIFFA To Challenge Workplace Safety & Insurance Board Assessments . . . . .13
CIFFA Central region 2002 FCA Presenters & Winners . . . . . . . . . . . . . . . .14
Ciffa Regional News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
CLarification of Bill C-90 Requirements To Members In Quebec . . . . . . . . . . .18
CIFFA Is Pleased To Announce Closer Cooperation With The CSCB . . . . . . .19
Congratulations on 90 years of service to Thompson Ahern & Company Ltd. .19
Just for Laughs! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Correspondence From at Home & Around the World . . . . . . . . . . . . . . . . .21
Resumés . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
2002 Air Dangerous Goods Training Schedule . . . . . . . . . . . . . . . . . . . . .22
2002 IMO DG Training Program Schedule . . . . . . . . . . . . . . . . . . . . . . . .22
CIFFA NEWSLETTER - JULY, 2002 1
CIFFA NEWSLETTER - JULY, 2002 2
President’s Message
(Continued from page 1)
based on a trial period and at primary monetary levels, CCRA
project revenues to be approximately $22 million in the first
year, escalating thereafter as field agents become more
knowledgeable and higher levels of penalty schedules are
applied. Unquestionably, it is a cash cow, even at the level
indicated.
As suppliers of essential services to the trading community,
we are in the forefront of any activity or undertaking that may
have an impact on trade. We do not want to see Canada’s
competitive position eroded due to inappropriate methods in
applying policies or excessive diligence by field agents in the
application thereof.
Some US Statistical Tidbits in Transportation
The U.S. Department of Transportation's Bureau of
Transportation Statistics (BTS) has released its monthly
Transportation Indicators Report showing that air travel and
air freight levels began to show a slight recovery in the
early months of this year.
Although passenger and freight numbers for February
domestic flights remained down from a year earlier, they
did not fall as much as the same measures fell in January.
The measure for freight; revenue ton/miles i.e. 1 ton of
freight transported 1 mile - was down 9 percent from
February 2001 whilst revenue ton-miles were down 14
percent in January compared to a year earlier.
‘Transportation Indicators’ provides information on more
than 300 trends in the areas of safety, mobility, economic
growth, the human and natural environment, and national
security. The monthly report provides information to
address specific transportation issues and to assist in the
effort led by BTS to make transportation information more
accurate, reliable and timely. Updated reports are available
on the BTS website at the end of every month:
www.bts.gov. Here is some additional statistical
information of potential interest:
Rail intermodal traffic in the week ending May 11 was 11
percent higher in the U. S. and 12 percent higher in
Canada than in the comparable week last year.
Consumer prices for new cars and trucks have decreased 3
percent since 1997, while consumer prices for all other
components of private transportation have increased.
Operating revenues for large air carriers were down 26
percent in the fourth quarter of 2001 from a year earlier,
while expenses declined 12 percent. Passenger revenues
were down 30 percent and freight revenues were down 8
percent.
Business investment in transportation equipment was 7
percent lower in the first quarter of 2002 than the first
quarter of 2001.
The U.S. imported 12 percent less petroleum, on a net
basis, in March 2002 than in March 2001.
Continual updating of information on trends will help in
developing forecasts for the future, both within the
department and outside. The monthly report will also help
transportation decision-makers spot changes that might
require rapid action.
The validity of these statements has not been statistically
tested. BTS is testing a statistical monitoring process in
order to apply statistical quality control techniques to the
Indicators data.
CIFFA NEWSLETTER - JULY, 2002
While we strongly support the need for policies, we believe
there is a need for considerably more consultation to examine
and investigate alternative methods that are less intrusive and
more manageable, but can achieve the same end result of
solid security.
Yours sincerely,
Paul Lobas, President
3
Changes to the Canadian Transportation of
Dangerous Goods Act and Regulations
(There are changes coming to the Dangerous Goods
legislation in Canada on August 15, 2002, that affects
Shippers and Freight Forwarders. Make sure you are
prepared for them.)
In Canada, the Canadian government regulates the transportation
of Dangerous Goods by all modes of transport,
under Transport Canada. The Canadian law (Transportation
of Dangerous Goods Act and Regulations - TDGR), which
provides the details of how to move these shipments, has just
undergone a re-write. This re-write is also known as "Clear
Language", and becomes effective on August 15, 2002.
The full Clear Language TDG Regulations can be found on
the Transport Canada web site:
http://www.tc.gc.ca/tdg/clear/tofc.htm
What does this mean to Freight Forwarders and
Shippers? First, you must be aware that the
rules for moving Dangerous Goods in
Canada are changing on August 15,
2002, and second, you must know
what the applicable changes are
for your specific operation.
CIFFA provides its Members
with Air and Ocean Dangerous
Goods courses, to impart the
requisite knowledge and skills to their
staff, who deal with shipments of
Dangerous Goods. There are really two parts
of the training and qualification: the international
Air (ICAO/IATA) or Ocean (IMO) components, and
the TDGR component (because even if you ship internationally
by air or ocean, aspects of the Canadian TDGR still
apply).
Ocean DG Training and Qualifications - If someone has
taken CIFFA’s Ocean DG training courses over the past two
years, they have already learned what the applicable changes
in the new Clear Language TDG Regulations are. The
previous training and Training Certificate provided, already
met the requirements of the Clear Language TDGR.
Therefore, no additional steps or actions are required. Their
Ocean DG qualification remains in effect until the expiration
date stated on their current Training Certificate. Just
remember that there are changes taking place to the TDGR
on August 15th, which may have an impact on your
operation.
Air DG Training and Qualifications - If you have previously
taken CIFFA’s Air DG training courses, then you need to
update yourself on the TDGR component, before August 15,
2002. CIFFA has developed a Self-Study Update Training
Program for our past Air DG students. This Training
Program provides our students with the applicable
changes in the TDGR, for international Air DG
shipments, that come into effect August 15th.
Additionally, new Training Certificates will
be provided to our past Air DG students,
which will comply with the Clear
Language TDGR.
This Update Training
Program and new
Training Certificate
was sent to all past Air
DG students, free of
charge, as a service to our
Members. If you are a past CIFFA
Air DG student, and have NOT
received the Update Training Program
and new Training Certificate, please contact
the CIFFA office immediately.
If a past CIFFA Air DG student does not complete this
training by August 15, 2002, that person’s Air DG qualification
will be deemed to have expired, and they can no
longer legally deal with DG shipments. Failure to complete
this Update Training, sign the new Training Certificate, and
have the employer sign the new Training Certificate, will put
them and their company in breach of Canadian law, and
subject to legal penalties.
CIFFA NEWSLETTER - JULY, 2002 4
At the recent CIFFA AGM held in Mississauga, the members were given a presentation by CCRA with regard to the AMPS
program. As a follow up to this presentation CIFFA has created a Frequently Asked Questions section on our website.
CIFFA Strategic Plan Approved at 53rd AGM
This can be accessed at:
http://www.ciffa.com/downloads/2002/June/17/AMPSFAQ.pdf
All members should review these FAQs to keep aware of what procedures are in place with regard to AMPS.
CIFFA will continue to update this section of our website with new information as it becomes available through member
inquiries.
Following the AMPS presentation, the National Board of Directors presented their annual reports and the Treasurer presented
his financial report.
CIFFA CIFFA National Board of Directors National Board of Directors
Absent From Photo:
Rachelle Anger - Director, Quad City Port Services, Inc.
Bill Gottlieb - Immediate Past President, David Kirsch Forwarders Ltd.
Bob Walker - Secretary, Carson International
Craig McKay - Director, Adanac International Forwarders
Stephane Ethier - Director, Livingston International
Standing: (Left to Right)
Rino Muzzin - Palmer Muzzin Inc.
Arnis Bredovskis - FCI Fisker Cargo Inc.
Bob Burns - Carson International
Len Nataro - CG&B Group
Joe Kueppers - J.H. Bachmann (Canada) Inc.
Seated: (Left to Right)
Jodie Wilson - LCL Navigation Ltd.
Eileen Warren - Welke Global Logistics Ltd.
Wendy Trudeau - Exel Global logistics (Canada) Inc.
CIFFA NEWSLETTER - JULY, 2002
(Continued on page 18)
Standing: (Left to Right)
John O’Brien - Vice President I. Team World Wide Ltd.
Marc Bibeau - Director, OEC Overseas Express (Canada)
Doug Burek - Director, Education
Peter Schwerdt - Director, GeoLogistics Co.
Anders Fisker - Director, FCI Fisker Cargo
Pat Cullen - Director, Rodair International Ltd.
Tony Young - Vice President II. LCL Navigation Ltd.
Joe Kueppers - Director, J.H. Bachmann (Canada) Inc.
Werner Herding - Treasurer. Exec. V.P., Panalpina Inc.
John DiCorpo - Director, FedEx Trade Networks Transport &
Brokerage (Canada) Inc.
Seated: (Left to Right)
Donald Lucky - Vice President III, Cole Freight Inc.
Paul Lobas - President, ITN Logistics Group
Marilyn Massoud - Secretary-Manager
George Kuhn - Executive Director
Steve Valentine - Director, Cargo Alliance Ltd.
Central Region Committee Central Region Committee
5
operate up to 2 flights per week between points in Canada and
Lisboa and Porto.
Starting in the fall, Air Transat has announced that it will
increase wide bodied flights out of Quebec City from 4 to 6 a
week, with cargo-friendly A310-300´s The airline will operate
flights to : Fort Lauderdale (USA), Cancun & Puerto Vallarta
(Mexico), Cayo Coco & Varadero (Cuba), Puerto Plata & Punta
Cana (Dominican Republic).
CANJET: Relaunch with an inaugurate flight on Sunday 23
June between Halifax and Toronto and now provides services
to/from YHZ/Halifax - YQM/Moncton - YOW/Ottawa -
YUL/Montreal - YYZ/Toronto with a fleet of 4 x Boeing 737-
200´s.
EMIRATES: Is planning to start service to US next year. In
a first stage Emirates would fly to Chicago, New York and Los
Angeles. Emirates would later add service to South America
with flights to Recife, Rio and Sao Paulo as well as Buenos
Aires. Emirates has announced that it will likely order more
new aircraft. The airline is re-planning its future and expects to
have results by September 2002. At this time Emirates has the
following aircraft on order : 29 Airbus A330s, 6 Airbus A340-
500s, 8 Airbus A340-600s. 22 Airbus A380s (+10 options) and
37 Boeing 777s.
EVA AIR: Has announced that it plans to retire all aircraft
that have been in service for more than 12 years.
JAT YUGOSLAV AIRLINES: Was unable to
inaugurate service from Belgrade to Toronto on the 11th June,
2002 as it did not obtain the necessary landing rights for the
route.
JETSGO: The new Canadian airline of former President of
Royal Airlines, Michel Leblanc inaugurated services on
Wednesday 12th June with its first flight from Montreal to
Toronto at 0700. Jetsgo currently operates with a fleet of 3 x
160 seater MD80’s and provides services to/from on 3 daily
return flights between Montreal and Toronto, and daily return
flights from Toronto to Vancouver, Winnipeg and Halifax, with
seasonal services to/from Stephenville and Sydney. Additional
aircraft are planned to be added in the fall.
Air Cargo News
Contributed by Trevor J. Stebbing, VP., QCPS Air Cargo - YUL
BALANCE OF POWER WITHIN
CANADA SLOWLY SHIFTING: Whilst Air
Canada still controls the vast majority of the Canadian
domestic market., monthly operating statistics for June revealed
Air Canada was at 79.7 % in June, compared with 81.8 % in
May. Air Canada flew four billion RPMs in June, an increase of
1.7 per cent over June of 2001. However, domestic RPMs were
down 2.1 per cent to 1.2 billion. It was the first month since the
November failure of Canada 3000 in which Air Canada
reported a year-over-year drop in domestic RPMs. Calgarybased
WestJet, who consistently has reported excellent results,
(21 straight increases on earnings thus far) flew 297.5 million
RPMs in June, a 59.5-per-cent increase over the year-earlier
period, and continues with its success as it added services
to/from Toronto Pearson. In addition Montreal-based
newcomer, Jetsgo, the new discount carrier launch by former
Royal Airlines President Mr. Michel Leblanc, flew 18.1 million
RPMs in June after launching service on 12th June, is off to an
excellent start.
AEROLINEAS ARGENTINAS: Is continuing to
cautiously grow and re-claim its former routes. It has recently
announced plans to add services from Madrid, Spain and
Miami, U.S.A.. Currently at Madrid, where the airline already
has an MD80 aircraft based, it operates to Paris CDG (3x a
week) and London Gatwick (4x a week) and plans are to start
similar routes to Athens, Istanbul and Vienna. In addition
Aerolineas Argentinas plans on basing an MD80 in Miami for
services to Montreal and Toronto.
AIR CANADA: Has upgraded its Vancouver to New York
JFK service from an Airbus A319 to a cargo friendly Boeing 767
effective 01st July. Also, commencing 01st August through
05th September inclusive, to meet with demand, Air Canada
will be adding a second daily Montréal-Dorval to Frankfurt
service Tue, Wed, Thu, Fri, operated under code share with Star
Alliance partner, Lufthansa, to complement:-
Also in the news, Air Canada has successfully applied for 3
new code share agreements with fellow Star Alliance member
Varig Brazilian Airlines.
AIR TRANSAT: Transport minister David Collenette has
announced that Air Transat has been designated to serve
Portugal. Air Transat will operate up to 7 flights per week from
Toronto and Montreal to Lisboa and Porto during the summer
season. During the winter season, the airline proposes to
KLM Royal Dutch Airlines: Operated its last
service to Calcutta (India) on Wednesday (10Jul). KLM
CIFFA NEWSLETTER - JULY, 2002 6
suspended the route because of poor passenger loads but will
continue to serve Delhi and Mumbai. However, KLM´s
advances into Africa continue. 15th August will see the launch
of twice weekly ( Thu. Sun ) with cargo friendly Boeing 767-
300 service from Amsterdam to Abuja, Nigeria. The service
from Amsterdam to Abijan will become non-stop effective 15th
August.
KOREAN AIR: Has made the following service additions
and improvements on its North American network from Seoul
to:
Atlanta - 3x a week nonstop instead of via Dallas.
Chicago O'Hare - Increase from 4 to 7 flights a week.
Honolulu - Increase from 4 to 7 flights a week.
Los Angeles - Increase from 21 to 28 flights a week.
New York JFK - Increase from 10 to 12 flights a week.
Washington Dulles - Increase from 3 to 4 flights a week.
LAUDA AIR: The CTA just approved a license for Lauda
to fly charter flights between Canada and Italy. The Agency will
issue to the applicant a licence authorizing it to operate a nonscheduled
international service to transport traffic on charter
basis between points in Italy and points in Canada.
LUFTHANSA: Cargo load factor in June increased 7.7
points to 66.8%. Lufthansa carried 137,000 metric tons of
cargo in June, up 0.7% on the year.
Lufthansa also confirmed it has canceled its order for 60
Fairchild Dornier 728/928 regional jets. Lufthansa is now in
talks with Bombardier and Embraer about a replacement order.
The carrier has also received EU antitrust approval to share
routes between Germany and Austria with fellow Star Alliance
partner AUSTRIAN AIRLINES after agreeing to give competitors
a piece of the market. The European Commission exempted the
alliance from competition regulations until the end of 2005
after the carriers gave rival airlines as many as 40% of their
takeoff and landing times for flights between Germany and
Austria.
Lufthansa Cargo AG is selling its 25% stake in DHL
International to Deutsche World Net for U.S. $593 million,
pending a final contract and approval from regulatory
authorities. Lufthansa says it intends to continue working in
close cooperation with both DHL and Deutsche Post as its
strategy.
NORTH WEST AIRLINES: Inaugurated its seasonal
summer service from Memphis to Vancouver on 8th June with
cargo friendly A320-200.
CIFFA NEWSLETTER - JULY, 2002
SOBELAIR: Has been taken over by Belgian World
Airlines. The airline will continue its charter flights and will, for
the first time, initiate scheduled flights as well. Plan is to
service destinations not in SN Brussels' network such as
Athens, Cairo, Istanbul, Moscow and Tel Aviv. The airline also
wants to start service to South Africa with 3 weekly flights to
Johannesburg and/or Capetown from Nov 2002 or Apr 2003.
SOUTH AFRICAN AIRWAYS: Will increase
service from Johannesburg to New York JFK from 4 to 5 flights a
week on 01Jul. All flights are operated with a Boeing 747-400.
SWISS INTERNATIONAL AIR LINES LTD:
Effective 01st July 2002 became the new official name of
Crossair, through which Swissair has been reborn. Swiss has
decided to name all the aircraft in its fleet after mountains in its
home country of Switzerland.
On the cargo side, effective 01st July, 2002 air waybills issued
electronically must show, as Issuing Carriers’ Name and
address (box 1C of the air waybill) the following:-
Swiss International Air Lines Ltd
P.O. Box 4002 Basel, Switzerland
New pre-printed air waybills will be made available by mid-
July. Air waybills printed with the old Crossair name will
continue to be accepted until such time as they are replaced.
Your local Swiss World Cargo sales representative will contact
your according.
As of 01st July, 2002, all payments made to the airline must be
made payable to:- SWISS INTERNATIONAL AIR LINES LTD.
All other business aspects remain unchanged (this is an airline
name change only).
Recovery in Sight for Air
Transport Market
It appears that the air transport industry is set to make a
noticeable recovery in 2003, according to a forecast report
released by International Air Transport Association (IATA) in
Geneva.
The report, covering 2003 to 2005, predicts that freight volume
worldwide will rise by 5.2 per cent. Volumes on both the East
Asia/North America and East Asia/Europe lanes are set to
increase sharply, according to the report.
It is predicted that freight volumes between East Asia and North
America will increase by 7 per cent annually, making East
(Continued on page 17)
7
Sea Cargo News
Loss Prevention Alerts
Reproduced from the TT Talk e-bulletin
The following two items have important loss
prevention messages. So, please read them
carefully!
1. Handle that furniture with care!
Did you know that consignments of furniture from tropical and
sub-tropical regions are sometimes fumigated with a substance
called Sulphuryl Fluoride? This substance is widely used to
control termites and other wood-boring insects as it has
excellent penetrative properties. The problem is that it is highly
toxic and takes a long time to disperse. And, because it is
odourless, it is very difficult to detect. If Sulphuryl Fluoride
were carried as a cargo, it would be classified as hazardous
under the IMO's dangerous goods code. When it is simply used
as a fumigant for other cargo, there is no requirement to
declare that on the carriage documents, nor to label the
container in any way.
If you are handling containerized consignments of furniture
from south-east Asia and similar climatic regions, do not take
chances. Do not enter the container as soon as it is opened.
First allow it to ventilate with its doors open for half an hour or
so, just in case there are toxic vapour residues still present.
For more detail on Sulphuryl Fluoride, see the article
by Andy Trasler on the TT Club website at
h t t p : / / w w w. t t c l u b . c o m / t t c l u b . n s f / B y Key/AMIR-
56EF96?OpenDocument
2. Entering Cargo Values in Bills of Lading
Sometimes a shipper asks the carrier to issue a bill of lading
which includes the value of the goods on the face of it - usually
because the letter of credit requires this to be done. It is very
dangerous for the carrier to comply with this request because
the end result could be that the carrier loses its right to limit its
liability. Under the Hague-Visby Rules, for example, the
carrier is allowed to limit its liability to 666.67 SDRs per
package or to 2SDRS per kilo of the goods lost or damaged,
whichever is the higher, UNLESS "the nature and value of such
goods have been declared by the shipper before shipment and
inserted in the bill of lading." Note that a mention of the value
of the cargo anywhere in the bill of lading is probably sufficient
to expose the carrier to unlimited liability for loss or damage.
The mention does not have to be in the 'declared value' box,
or similar special place.
Remember too, that if you do enter the value of the cargo in the
bill of lading, your cargo liability insurance with the TT Club
CIFFA NEWSLETTER - JULY, 2002 8
will not cover you for your excess liability - that is to say, the
amount by which your liability has increased beyond what it
would have been, had no value been inserted.
So, if you receive a request from your shipper to insert the
value of the cargo, along with the other particulars, in the bill
of lading, don't do it ........ UNLESS the shipper is willing to pay
a new freight - called an ad valorem freight - which is based
upon the value declared rather than the weight and dimensions
of the consignment as normal. If the shipper agrees to pay an
ad valorem freight, you will need special insurance from the
Club, the cost of which you will presumably want to pass on to
your customer.
For more detail on entering cargo values in transport
documents, see the article by Andy Trasler on the TT Club
website at: http://www.ttclub.com/ttclub.nsf/ByKey/AMIR-
56GLWT?OpenDocument
First Box in New Security Plan Arrives
By R.G. Edmonson, JoC ONLINE, June 12, 2002
The first container in the ‘Operation Safe Commerce Supply-
Chain Security Program’ made its arrival at the Osram Sylvania
plant in Hillsborough, N.H., according to Ann O'Keefe, traffic
manager.
The container was equipped with a tracking device that
enabled U.S. officials to track it to Hillsborough from the
company's sister factory at Nove Zamky, Slovakia. The
container of automotive lamps departed on May 22 and arrived
June 7 by way of Hamburg and Montreal.
O'Keefe said that the container carried an electronic device
that downloaded its tracking data to receivers located at
strategic points, such as the U.S.-Canada border.
Operation Safe Commerce is a public-private partnership that
evolved in the Northeast earlier this year to explore ways in
which technology could be used to keep trade lanes open
while protecting supply chains from tampering by terrorists or
others. (JoC Week, March 25).
Officials are calling the Osram Sylvania shipment Phase 1 of
Operation Safe Commerce, indicating further tests are needed.
Data from the container will be analyzed by the Department of
Transportation's Volpe Center in Boston.
Operation Safe Commerce is planning a news conference
Friday in Hillsborough to announce the success of the project. Shipping Federation of Canada
Appoints Richard Le Hir as
New President
The Executive Council of The Shipping Federation of Canada
has appointed Mr. Richard Le Hir as the Federation's new
President and CEO.
A graduate in Law from the University of Montreal, Mr. Le Hir
is a member of the Quebec Bar. He has gained substantial
experience in corporate and government relations with some
of Canada's largest corporations. In the early nineties, he
spearheaded the revival of the Quebec Division of the
Canadian Manufacturers Association (now known as the
Canadian Alliance for Manufacturers and Exporters).
The Executive Council is confident that Mr. Le Hir's
background and experience will significantly contribute to the
Federation's ability to represent the interest of its membership
in Ottawa and elsewhere, and to promote the public image of
the maritime industry.
Mr. Le Hir will assume his new position on July 22, 2002.
Collenette Unveils
Transportation Blueprint
A major initiative for Transport Canada over the next twelve
months will be the development of a new transportation
"blueprint" to guide future decisions by governments and the
private sector. In a speech delivered to the Vancouver Board of
Trade in April, the Minister identified a number of transportation
challenges that the proposed blueprint will have to
address, including:
• globalization and Canada’s competitive position
• innovation and skills in the transportation sector
• integration of transportation modes
• urbanization and its effect on transportation infrastructure
• environment and sustainability
• safety and security
• accessibility
One of the major studies that will be used to develop the
blueprint is the recently-released report of the Canada
Transportation Act Review Panel. Other sources of input will
include the Transportation Table on Climate Change and the
outcomes of the June 2000 Millennium Transportation
Conference.
CIFFA NEWSLETTER - JULY, 2002
Consultations on the blueprint will begin with a series of
Ministerial round tables later this summer. A variety of stakeholders
will be consulted, including carriers, shippers, service
providers, academics, and provincial, local and territorial
governments.
Here is the link to the Minister’s speech:
http://www.tc.gc.ca/en/mediaroom/speeches/2001/20010411b
lueprint.htm
For those interested in the framework for the blueprint, the link
is as follows:
http://www.tc.gc.ca/en/blueprint/background.htm
Interpreting the Rules on
Documentary Credits
The ICC (International Chamber of Commerce) has just
published a collection of opinions on its rules governing letters
of credit and other essential instruments used in international
trade finance. The opinions provide essential guidance on the
rules' interpretation.
More than 300 queries and the responses of the ICC Banking
Commission over seven years, fully indexed, organized and
cross-referenced, are gathered in ICC Publishing's hard-backed
volume: ICC Banking Commission, Collected Opinions 1995-
2001.
All rules require interpretation, especially if the subject matter
is as complex as international trade finance. ICC Banking
Commission opinions give the official analysis of how the ICC
rules work in daily practice. They are often cited in courts of
law.
The opinions cover the current edition of ICC’s UCP 500,
Uniform Rules for Collections, and Uniform Rules for Demand
Guarantees. They also take in the last opinions issued on UCP
400 before these were superseded.
As a key reference source, the opinions encourage uniformity
of UCP practice and help to settle disputes that could
otherwise end up in the courts.
If an opinion has been cancelled out by a later one, this is
indicated in the text. All are clearly dated and grouped and
numbered in the sequence of the UCP articles to which they
apply. Collected Opinions includes an index containing more
than 200 key words (like Air waybill, bill of lading, drafts,
expiry date, intended vessel, on board notation, port of
loading) linked directly to the relevant opinion.
Collected Opinions may be purchased online from the ICC
Business Bookstore, from ICC Publishing and from ICC
national committees throughout the world.
9
Press Releases
1. Kuehne & Nagel strengthens its position in Egypt
Schindellegi / Cairo, July 3, 2002 - Kuehne & Nagel has
extended its ownership stake in Orient Transport Co. Ltd. Cairo
(OTC), its joint venture company in Egypt, by purchasing the
other 50 per cent of OTC, previously held by International
Associated Cargo Carrier SAE. The now wholly owned
subsidiary in Egypt operates under the name Kuehne & Nagel
Ltd.
In 1984 Kuehne & Nagel entered into a joint venture with
International Associated Cargo Carrier SAE, a shipping and
forwarding company based in Cairo. Since that time the jointly
founded company OTC has made good progress and is well
positioned in the international freight forwarding and domestic
logistics market.
"Due to the ideal combination of local know-how and the
advantages of the global Kuehne & Nagel network, the joint
venture business has been very successful", says Werner
Kleymann, Regional Director for Middle East. "We are very
pleased about this move, which confirms both, Kuehne &
Nagel’s commitment to this market and its intention to further
extend the activities in Egypt and the region wide operations."
The scope of services offered by Kuehne & Nagel in Egypt
encompasses sea, air, and project forwarding, overland
haulage, fairs & exhibition logistics, customs clearance and
transport insurance. In order to strengthen its ability to provide
logistics a service from a single source, Kuehne & Nagel Ltd. is
focused on expanding the contract logistics business.
"Our domestic and international customers will benefit from
the logistics capabilities and advanced information
technologies the Kuehne & Nagel organisation is offering", says
Bernd Krause, Managing Director of Kuehne & Nagel in Egypt.
Being fully linked to the Kuehne & Nagel global logistics
network enables us to further broaden our product portfolio
and to optimise processes."
2. FedEx overhauls brokerage & forwarder
subsidiary
FEDEX Trade Networks (FTN), a customs brokerage and
forwarding subsidiary of FedEx Corp., is to be revamped: its
corporate organization is to be restructured under a new setup;
its name will be given new branding; and it will introduce
new international shipping tools.
The changes, designed to leverage on the FedEx brand, will
CIFFA NEWSLETTER - JULY, 2002 10
also provide better access and convenience to customers, the
US express carrier said in announcing the restructuring.
Tower Group International Canada, an FTN subsidiary, will
change its name to FedEx Trade Networks Transport &
Brokerage (Canada) Inc.
FTN will create a new subsidiary, FedEx Trade Networks Trade
Services, which will incorporate the duty and tax data services
of current subsidiary, Worldtariff. It will offer new international
consulting services, and introduce a new set of integrated
international shipping resources known as Global Trade Tools.
International Shipping Tools for Large Customers Global Trade
Tools is a set of applications designed to streamline, automate,
and simplify the international shipping process for large
customers who require the special capabilities of FTN.
FTN has also acquired the express customs clearance
operations of Fritz Companies in Memphis, Tennessee;
Oakland, California; Anchorage, Alaska; and Springfield,
Missouri.
The new operations are intended to support the international
services of FedEx Express.
The company has introduced two new services this year, FedEx
Trade Networks Ocean-Ground Distribution and FedEx Trade
Networks Air-Ground Distribution, which offer ocean and air
transportation from Asia and Europe to multiple points within
the US. This is combined with services offered by other FedEx
operating companies, including FedEx Freight, FedEx Ground
and FedEx Express.
FedEx Trade Networks will now offer services through its new
Transport & Brokerage and Trade Services units as well as
Caribbean Transportation Services, the largest heavyweight
airfreight forwarder between the US and Puerto Rico.
3. Exel maintains positive 2002 trading outlook
EXEL, the UK logistics group, has reconfirmed that it expects to
meet full year market expectations for "good profit growth" this
year, and that it made progress between January and May.
Exel said that in the first five months of the year it secured new
business across all industry sectors.
The rate of renewals has also remained strong and the group
continues to enjoy healthy and new business developments so
that the medium term growth expectations remain positive, it
added.
(Continued on page 16)
Canadian Transportation
Agency Publishes 2001
Annual Report
On June 14, 02 Transport Minister David Collenette
tabled in the House of Commons the Canadian
Transportation Agency's Annual Report for the year
2001. The report describes the Agency's activities in
2001, including its significant decisions.
In 2001, as part of its efforts to ensure that all forms of
transportation are accessible to people with disabilities,
the Agency prepared a series of regulatory amendments,
guidelines, a code of practice and various publications.
The Agency continued to offer mediation services which
made it simpler for parties to resolve transportationrelated
disputes outside the regulatory process. As well,
it supported the important work of the Office of the Air
Travel Complaints Commissioner, whose mandate is to
try to settle disputes between consumers and air
carriers.
Finally, the report assesses the operation of the Canada
Transportation Act and any difficulties the Agency
encountered in its administration of the Act in 2001.
"The Canadian Transportation Agency provides fair,
flexible and effective adjudication and other services to
transportation carriers, other client groups and the
Canadian public," explained Marian L. Robson,
Chairman of the Agency. "We have been - and remain -
open to the views of persons with an interest in the
transportation industry and will continue to play an
essential role in the constant evolution of the Canadian
transportation sector."
The Canadian Transportation Agency is a quasi-judicial
tribunal which administers the Government of Canada's
legislation and policies for maintaining an economic,
efficient and accessible system of transportation within
Canada. To obtain a copy of this report or other Agency
publications, or to find out more about the Canadian
Transportation Agency, visit its Web site at:
www.cta.gc.ca.
CIFFA NEWSLETTER - JULY, 2002
Freight Rate Increase of 5.5%
is Recommended by Freight
Carriers Association
The FCA represents over 90 general freight carriers operating
throughout Canada in matters related to economics, pricing,
finances, costing, as well as motor carrier statistics. FCA has
been serving the trucking industry for more than 30 years.
The TAC is composed of executives elected by membership
to monitor the industry’s financial condition and
performance and to make recommendations.
Add skyrocketing security and insurance costs to the list of
operating cost increases piling up on the trucking industry
and it becomes evident that immediate revenue relief is
essential. The trucking industry that was already faced with
major price hikes for new equipment, e-commerce
investments, as well as labour and fringe costs, now faces
ballooning insurance and security costs. The higher
incidence of cargo thefts together with the events of
September 11, 2001 have provoked a sharp rise in the cost
of insurance and necessitated the continued enhancement
of security measures. The industry has also experienced a
sharp increase in bad debts due to more and bigger
bankruptcies in major activity sectors it is dependent upon.
A rate increase to offset these cost increases is essential so
the industry can continue to provide reliable and efficient
service.
The Tariff Advisory Committee (TAC) of the Freight Carriers
Association (FCA) meets quarterly and monitors economic
conditions as well as the latest statistics on the profitability
of general freight carriers. TAC reviews major issues
affecting the industry’s profitability and its ability to
maintain and improve service. The Committee recently
reviewed the results of cost studies conducted by FCA which
indicated major cost increases detailed below. After a
thorough review of the information and in light of current
market conditions, the Committee felt that the industry must
increase rates to offset the cost increases in order to
maintain the current level of profitability. The committee
therefore recommends a general increase in freight rates of
5.5% to become effective Monday, August 5, 2002.
Insurance and Security - The events of September 11, 2001
combined with the shrinking number of providers in the
(Continued on page 20)
11
Internet Connectivity Software To CCRA
Takes A Byte Out Of Costs...
Logistics Software Corp. of Toronto, Ontario, developers of
this technology is providing Freight Forwarders, Importers,
Exporters, and Customs Brokers with the capability to
securely exchange encrypted ACROSS, CADEX and RNS data
directly with CCRA via the Internet. The Customs Internet
Gateway Exchange (CIGE) software application is a viable
alternative to costly dedicated phone lines and third party
intervention by service providers. It is quickly proving to be
the wave of the future, after all, the Internet is going nowhere
but up with more than 82% of Canadian businesses already
on-line, 53% of which are participating in some form of ebusiness,
according to reports issued by Statistics Canada.
Certified by CCRA, the CIGE software application runs
quietly and efficiently on your computer giving full control of
all transmissions that transpire solely between you and
CCRA.
The Windows based application has all the tools necessary to
ensure that transmissions have been successfully exchanged
with CCRA. Integrated features such as CIGE's Virtual
Operator will automatically email a specific user, based on
the configuration, events that transpire.
Comments Michael Muir, President of Logistics Software
Corp.: "Organizations are aware of today's ever growing and
competitive marketplace. Anytime there are measures
available, whether technological or by altering business
practices, that can help reduce operating costs and
contribute to the bottom line, it is a favorable method for
winning new business". He further explains that, "Our clients
are realizing overwhelming savings in the first and second
year with an impressive percentage of return on investments
occurring within these time frames. Its always reassuring to
know that as their business increases, their operating costs
when using our software will never follow suit."
The application is capable of exchanging data with multiple
trading partners and is already pre-configured for CCRA's test
and production environments. Reporting and database
capabilities further extend the functionality of this software
application.
Logistics Software Corp's portfolio also consists of a Customs
Clearance software package, "e-Import Studio", and a
wireless RF Warehouse Management System, "Warehouse
Explorer", with complete interoperability between all three
products.
For more information visit:
www.logisticssoftware.com/cige.htm
or call Logistics Software Corp. at 905-843-7433.
Website: www.logisticssoftware.com
CIFFA Protests Scheduled Implementation Date For
New Low Cargo Density Rules By October 2002
During the latest IATA Cargo Tariff Coordinating Conference
(5/27-31, 02) an amendment to Cargo Resolution 502 was
adopted that calls for changes in the density rule from 6000
cubic cm per kilogram to 5000 cubic cm per kilogram. The
intended effective date is October 1, 2002.
The results of these adopted rules were finally published at
the end of June, but only to members of the Cargo Tariff
Coordinating Conference. It was thus late June when the
forwarding industry finally begun to hear rumors of this new
tariff rule and only received official confirmation from IATA
on July 10!
While FIATA and CIFFA certainly accept the fact that IATA is
entitled to amend resolutions, subject to Government
approval, we take great exception to the time it took to bring
this critical information to the marketplace as well as the
haphazard way it was done in. No due regard was given to
the users of air cargo who often have designed their shipping
packaging to reflect the current weight/volume ratios and
who are now faced with potentially stifling rate increases
within a very short time line. It is hardly sufficient time to reconfigure
packaging designs and related challenges with
annual summer shut downs in force now and the short time
available thereafter until rule implementation.
FIATA has protested officially to IATA about the poor manner
with which this issue was handled and the short time line
allowed for implementation. We in turn urge our members to
file similar protests to their preferred international carriers
and the Canadian Transportation Agency. Directions for filing
the complaint with the agency can be found at:
http://www.cta.gc.ca/cta-otc2000/faqs/filing_e.html.
Let us reiterate: CIFFA does not object to the rule per se. It
objects to the manner in which it has been done, i.e. with no
rationalization or explanation and the short time line allowed
for this incisive change. What we propose is the
postponement of the introduction to mid 2003 to allow time
for the shipping public to understand the impact and take
appropriate action where necessary and to allow the freight
forwarding agent to inform and consult its customer base
within a more appropriate time frame.
Your Association will keep members updated through future
e-bulletins.
CIFFA NEWSLETTER - JULY, 2002 12
Kuehne and Nagel, Generous
Sponsor of Canadian/Swiss Artist
- The Journey of Art Imitating Life
The interplay between "Tangible Reality & Ephemeral Illusion"
describes the Bubblemachine, a multi-media exhibit by artist
Ernest Daetwyler. His work was selected as one of the Swiss
Canadian contributions for ArtCanal, at the Swiss National
Exhibition, Expo 2, May 15 to October 20, 2002.
Did the artist know that this description of his artwork would
take on a literal meaning and transcend into a business reality?
With the help of the Swiss Canadian Chamber of Commerce,
Ernest approached Kuehne & Nagel International Ltd. to assist
in the transportation of the art to Switzerland. A long time
member of the Chamber, Kuehne & Nagel International Ltd.
was pleased to support the success of this Swiss-Canadian
artist. The sponsorship also takes on special significance for
the company, as the head office of Kuehne & Nagel
International Ltd. is located in Schindellegi, a small town
outside of Zurich.
Mr. Brinkmann, President and CEO of Kuehne & Nagel
International Ltd. provided further insight into the discussion
of art imitating life, "Considering the globalization of business
that is so much of what we do, it is with interest that we see
the international exchange of artwork between our two
countries".
The justification of the Exhibition as quoted by Martin Heller,
artistic director of the exhibition, is underscored by the same
theme, "the far-reaching technological, scientific and
economic developments of recent decades call for reflection
on the situation of our society…" Heller goes on further to
explain that "The Swiss National Exhibition will be interesting
if it is topical - i.e. If it succeeds in addressing the needs,
desires and situations of our time. It is the hope that in art
imitating life, "the national exhibition will ask the right
questions, try to create a dialogue between culture, economics
and politics, and be enduring, meaningful and attractive".
The festival is being billed as "the Cultural Capital of
Switzerland for 159 days". The National Exhibition occurs
only once every generation; the last one was in Lausanne in
1964. Unique to the Expo, the event is not being held in a
single location, but spread over a whole region, the Land of
the Three Lakes. The festival is expected to draw 4.8 million
guests and over 10 million admissions.
To the artist Ernest Daetwyler, your Bubblemachine has
traveled by way of a business reality, in partnership with
Kuehne & Nagel, to find a home that reflects well your interpretation
of Tangible Reality & Ephemeral Illusion. In
summary, "Art Imitating Life".
CIFFA NEWSLETTER - JULY, 2002
CIFFA to Challenge
Workplace Safety & Insurance
Board (WSIB) Assessments
For some time now, CIFFA has advised that member firms are
increasingly being targeted by the WSIB for audits that result in rate
group reclassification. At issue, typically, is the determination of
whether a member firm is classified by the WSIB in the Rate Group
570 (Trucking at $5.61 per $100 payroll), or Rate Group 560
(Warehousing at $ 2.99 per $100 payroll), or Rate Group 958
(technical and business services at $0.30 per $100 payroll, which is
voluntary). If your firm has not been audited yet by the WSIB, it is
reasonable to anticipate that this will take place in the not too
distant future.
From recently experienced WSIB audits of member firms, we
understand that the WSIB steadfastly refuses to accept classification
under Rate Group 958 regardless of whether or not a freight
forwarder operates trucking or warehousing services. This on the
grounds that the freight forwarder arranges for trucking or
warehousing services on a regular basis and consequently falls
under an insidious WSIB clause that allows taxation of intermediaries
at the same rate as the actual carrier cum service provider (like
warehousing).
The assessment/reclassification problem by the WSIB is rooted in
the fact that our industry is not recognized by the WSIB as an
industry separate and apart from General Trucking and/or
Warehousing. This allows field inspectors a broad range of
discretion in their assessments and, typically, audited firms are
assessed at the Rate Group 560 or 570. This adds a huge payroll
burden, in addition to legal fees, to our already margin challenged
industry. In other words, for every 1m Dollars in payroll, the burden
will increase from $3,000 to $30,000 (Group 560) or $56,000
(Group 570) depending on the new classification. In addition, it
promotes an uneven playing field in competitiveness between
member firms.
Your Board of Directors has concluded that an industry challenge
ought to be undertaken by CIFFA. No initiatives have yet taken
place to directly challenge the WSIB’s policies which result in the
classification of some freight forwarders within Rate Group 570 and
others within the Rate Group 560, while appearing to abandon the
previous assessments under Rate Group 958 for regular office
employees and that rate group’s significantly lower assessment
costs.
We believe that an industry wide challenge of the current WSIB
policies is needed, even though success cannot be guaranteed! We
know that in some instances, the WSIB has been prepared, in
accordance with its regulations, to recognize the proper segregation
of business activities within an industry. In some instances, industry
wide initiatives have resulted in new rate groups being formulated
which more accurately reflect the industries’ accident/cost
experiences.
CIFFA continues to meet with various firms who are highly
competent in the field of Employment and Labor Law and close
consideration and evaluation will be undertaken before any
decision is made, in order that CIFFA members are expertly
represented.
CIFFA has consulted its members, and it is unanimous that the
Association should progress forward in challenging the WSIB.
Keep posted to our website for further details.
13
CIFFA Central Region 2002
Forwarders Choice Award Presenters and Winners
A Fabulous Affair
The Canadian International Freight Forwarders Association (Central
Region) hosted the third annual Forwarder’s Choice Awards on May 30,
2002 at the Mississauga Convention Centre. The event was attended by
545 people the largest attendance for an Awards dinner in the history of
CIFFA! The Masters of Ceremonies for the evening were Steve Valentine,
President of Cargo Alliance Ltd., and Rino Muzzin, a partner in Palmer-
Muzzin Inc.
The wine was provided by Ecu Line Canada Inc., Gillship Navigation
and LCL Navigation. SGS Canada Inc. sponsored the mariner bells on
the table and Marsh Canada Limited completed the beautiful center-
Gold
Port of Montreal
Air Canada Cargo
British Airways World Cargo
Canadian Sailings
Canadian Transportation & Logistics
Ecu-Line Canada Inc.
Gillship Navigation
LCL Navigation Ltd.
Marsh Canada Limited
SGS Canada Inc.
Trade Lane
Africa Ocean
Africa Air
Caribbean Ocean
Caribbean Air
Latin America Ocean
Latin America Air
Middle East Ocean
Middle East Air
South West Pacific Ocean
South West Pacific Air
Far East Ocean
Far East Air
Europe Ocean
Europe Air
Mediterranean Ocean
Mediterranean Air
Carrier of the Year Ocean
Carrier of the Year Air
pieces with the flowers. The Carrier of the Year awards were sponsored
by Canadian Sailings and Canadian Transportation and Logistics. “Benny
& The Jets” provided the evening’s entertainment. Ciffa Central would
also like to thank Jodie Wilson, LCL Navigation; Eileen Warren, Welke
Global Logistics and Wendy Trudeau, Exel Global Logistics for their help
with registration and working with the Convention Centre to make the
evening the huge success it was.
CIFFA would sincerely like to thank each of the sponsors of the AGM
Golf Tournament and the AGM Gala FCA Dinner for their exceptional
support. Without their support these events would not have been the
resounding success they were.
Silver
Bowair & Sea Services Ltd.
Cathay Pacific
Cole Freight Inc.
David Kirsch Forwarders Ltd.
KLM Cargo
Magnacargo
Panalpina Inc.
Presenter
Awards presentation
Annette Bowen -
Bowair & Sea Services Ltd.
Pat Cullen - Rodair International Ltd.
Ken Singh - Altas International
Freight Forwarding
Peter Teixeira - Hellmann Worldwide
Logistics
Don Lucky - Cole Freight Inc.
Anders Fisker - FCI Fisker Cargo
Joe Kueppers - J.H. Bachmann
Canada Inc.
Ian Kennedy - ITN Logistics Group
Werner Herding - Panalpina Inc.
Marc Bibeau - OEC Overseas
Express Consolidators
Tony Young - LCL Navigation Ltd.
Peter Schwerdt - GeoLogistics Co.
Paul Lobas - Ciffa President ,
ITN Logistics Group
Donna Letterio - Danzas
AEI Intercontinental
George Kuhn -
Ciffa Executive Director
Peter Welke - Welke Global Logistics
Carrier of the Year Award
Normand Fillion - Port of Montreal & Joyce Hammock - Canadian Sailings
Winner - Zim Israel Navigation Company (Canada) - Bill Hamilton
Bruno Meli- IATA & Kevin Sharp Canadian Transportation & Logistics
Winner -KLM Cargo - Garry Howson
Bronze
Adams Cargo Ltd.
A.N. Deringer Inc.
AON Reed Stenhouse Inc.
Cargo Alliance Ltd.
Cargosmart
Carson International
ITN Logistics Group
Montship/Columbus
OEC Overseas Express Consolidators
OOCL Canada Inc.
Palmer Muzzin
Topax Packaging Systems
Tower Group International Canada Inc.
TSI Terminal Systems Inc.
Winner
Lykes Lines- Stella Bazios
British Airways World Cargo - Brian Russell
Kent/Tropical Shipping - Jim Scott
American Airlines - Steve Highfield
CSAV - Ron Duff
Lan Chile - Rhonda Porter
MSC - Ian Christie
British Airways World Cargo - Brian Russell
FESCO - Ron Duff
Korean Airlines - Yoon Kyungmoon
OOCL (Canada) Inc. - Alex Skeoch
Korean Airlines - Yoon Kyungmoon
Atlantic Container Line - Steve Saravo
KLM Cargo - Garry Howson
Zim Israel Navigation Company
(Canada) - Bill Hamilton
KLM Cargo - Garry Howson
14 CIFFA NEWSLETTER - JULY, 2002
CIFFA Regional News
Central Region Golf Tournament
Date: Wednesday, September 18, 2002
Location: Kleinburg Golf Club
115 RR#1 Puttinggreen Cres. Kleinburg, Ont. L0J 1C0
Main intersection - Hwy 27 North and West on Nashville Rd.
Times: 10:30 a.m. start (Teams will be notified closer to date)
Costs to be advised via e-bulletin.
Contacts: Bob Burns, Carson International, Tel. 905-673-1999
Jodie Wilson, LCL Navigation , Tel. 416-733-3733
Montr W eam T s Soccer eal Region’ Montreal Region’s Soccer Team Wins! ins!
In conditions too wet for even a fish to feel comfortable,
two opposing soccer teams played for bragging rights in
the 15th annual CIFFA - Steamship soccer game.
Driving rain made playing soccer a real challenge but
the 25 men and women who made up the 2 teams
certainly made a game out of it once they
discovered that you can't get any wetter than wet.
The courageous few spectators who braved the
weather watched the CIFFA team come away with
an 8-3 victory, which immediately ignited calls by
the Steamship team for a 'revenge' match later this
summer.
After the game, both teams headed on to a nearby
brasserie for a well-deserved meal and the usual liquid
refreshments, generously sponsored by CIFFA. Other
sponsors included ECU-Line Canada and CVS Inc.
On behalf of the players a big THANK YOU to all sponsors and supporters.
CIFFA NEWSLETTER - JULY, 2002 15
Press Release
(Continued from page 10)
4. CP Ships receives first in series of new vessels
CP SHIPS Limited, the Canadian group of carriers, has taken
delivery of the 3,200-TEU Lykes Ranger, the first in a series of a
US$800 million ship replacement programme that began in
2000.
The Lykes Ranger entered service in June, the company said,
and it has been deployed in the Asia-Americas trade lane,
where CP Ships has two twice-weekly services under Lykes
Lines and TMM Lines.
The vessel replaces the 3,000-TEU Hyundai Pioneer, that had
been deployed on a short-term charter basis.
The Lykes Ranger was completed on schedule by Taiwan's
China Shipbuilding Corporation in Kaohsiung, and the yard is
also to deliver four sister ships. All are for deployment in the
Asia-Americas trade lane by early 2003. CP Ships' ship
replacement programme remains on schedule, the company
said.
By the middle of 2003 an additional nine new ships, one
second-hand ship, and six long-term charters are scheduled for
delivery. This will increase the owned and long-term committed
fleet to more than 70 per cent of total capacity from about 30
per cent when the programme started in 2000.
By owning a higher proportion of its ship fleet, CP Ships
believes that it would reduce operating costs over the medium
to long term and improve the availability of the right ships for
its regional trade lanes at the right time.
The Lykes Ranger is ABS class society, has a length of 234
metres, a breadth of 32.2 metres, a deadweight of 40,146
tonnes, cranes 4 x 45 tonnes swl, main engine B&W 39,200
hp, a speed of 21.8 knots and is managed by Anglo Eastern
Ship Management.
5. Maersk Logistics opens unit in New Zealand
MAERSK Logistics, a member of the Danish AP Moller
conglomerate and transport group, has opened an office in
Auckland, New Zealand; one of the main markets for Maersk
in refrigerated goods.
The new office, Maersk Logistics said, forms part of the ongoing
efforts to grow with and to provide seamless, tailor-made
logistics solutions to its clients.
Maersk Logistics is already in 70 countries, employing over
4,300 people in over 200 offices.
CIFFA NEWSLETTER - JULY, 2002 16
"Our key task is to ensure that our clients get a service that is
second to none," said Soren Brandt, CEO and managing
director.
"We are determined to make a significant difference, and are
certain that the combination of highly skilled and motivated
people plus our advanced IT visibility tools and global network
will make us succeed."
Maersk Logistics now has an opportunity to offer value-added
services in the "cold chain" as well as its wide range of other
logistics solutions.
6. ViaSafe offers e-B13 service to avoid AMPS
Penalties
ViaSafe announces the release of the myViaSafe electronic B13
service for Canadian Freight Forwarders. This new service
helps lower the exporters' risk of being assessed Administrative
Monetary Penalty System (AMPS) penalties from the Canada
Customs and Revenue Agency (CCRA).
PBB Global Logistics, an internationally recognized logistics
leader with fully integrated services, including International
Freight Forwarding along with Customs Brokerage, North
American Shipping and Trade & Regulatory Services is
currently using this service. "The B13 service gives us a fully
electronic way to submit B13s to Statistics Canada. This service
not only decreases the risk of our clients receiving an AMPS
penalty but it streamlines our operations across Canada, and
eliminates the need to complete the B13 by hand" stated Guy
D'Addario, VP of Information Technology at PBB Global
Logistics. "ViaSafe was instrumental in making the electronic
transmissions to Statistics Canada and CCRA, as painless, as
possible. ViaSafe's software and technical expertise is top
notch".
AMPS is slated for implementation in October 2002. For
export declarations, penalties C170 and C345 will be applied
if the B13A is not submitted prior to export for goods destined
for international destinations. These penalties can cost
exporters thousands of dollars.
"CCRA has intensified its focus on border security and has
raised the importance of export reporting. The exporting
community must ensure they have an effective system to
submit B13s to avoid AMPS penalties" stated Oryst Dydynsky,
President of International Trade Services. "By using our
electronic B13 service, PBB has a controlled, streamlined way
to accomplish this providing extra security for their clients.’’
The ViaSafe B13 service is a simple, fully automated solution to
submit B13s to Statistics Canada. ViaSafe takes the B13 data in
a fully automated manner from the freight forwarders system
(Continued on next page)
Press Release
(Continued from page 16)
and supplies it to Statistics Canada in their required CAED
format. Freight forwarders will then receive an Export Report
Number as proof of report.
ViaSafe Inc. is a leading provider of e-global logistics services,
offering secure connectivity solutions designed specifically to
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Air Cargo News
(Continued from page 7)
Asia/North America the fastest-growing air transport market.
This will be followed by the East Asia/Europe market, which is
predicted to rise annually by 5 per cent.
According to IATA's initial forecast, freight volumes this year
will rise by 3.8 per cent over last year, and 5.5 per cent the
following year. Comparatively speaking, freight volumes on
the Europe/North America line will develop at the same level
over the next few years.
Who's Minding the Cargo?
Reproduced from The Washington Post
For all the attention given to the screening and checking of air
travelers and their baggage, dangerously little has been done
about the cargo that most airlines carry alongside the luggage
in the belly of a plane. As disclosed recently by Post reporter
Greg Schneider, the Transportation Department's inspector
general as well as Transportation Security Administration
staffers and consultants have been warning in reports that air
cargo systems include no routine scrutiny of packages and
that there are gaps in the oversight of security procedures used
by shippers.
One Transportation Security document, citing year-old intelligence
reports, said there is a 35 percent to 65 percent
likelihood that terrorists are planning to put a bomb in cargo
on a passenger plane. Whatever the odds, there can be little
question that any person or group intent on placing a bomb
on an aircraft need not be limited to luggage. Cargo is more
difficult to inspect closely, if not controlled first through
shippers and then through freight forwarders who consolidate
CIFFA NEWSLETTER - JULY, 2002
packages into containers. Breaking down containers for
inspection is slow and disruptive for businesses relying on
speedy deliveries.
Still, there are ways to increase security that can and should be
required without prohibitive expense. Oversight, based on
more extensive, up-to-date information about shippers and
freight forwarders, should be put in place, as well as
background checks and better identification of truckers and
others who move cargo to the aircraft. Random screening of at
least some meaningful percentage of all cargo, with the use of
mobile screening units, would help.
Here, as in the passenger baggage business, inspection crews
must be recruited and trained as quickly as possible. In either
case, airtight security is not in the offing, but it ought to be
pursued with all the resources possible.
US Bureau of Transportation Statistics
Indicators Show Rebound in Airline
Travel and Cargo
The U.S. Department of Transportation's Bureau of
Transportation Statistics (BTS) has released its monthly
Transportation Indicators Report showing that air travel and air
freight levels began to show a slight recovery in the early
months of this year.
Although passenger and freight numbers for February domestic
flights remained down from a year earlier, they did not fall as
much as the same measures fell in January.
The measure for freight; revenue ton/miles i.e. 1 ton of freight
transported 1 mile - was down 9 percent from February 2001
whilst revenue ton-miles were down 14 percent in January
compared to a year earlier.
Dr. Ashish Sen, BTS Director, said, "Transportation Indicators
offers a wide range of data that are updated monthly to track
the transportation system's operations since Sept. 11. BTS will
continue to monitor the nation's transportation system through
this monthly report."
The BTS Transportation Indicators report is a monthly update
of critical transportation information that details the impact of
transportation on the nation's economy and society.
These numbers are based on reports filed with BTS by the
nation's major, national, large regional and medium regional
carriers. They do not include the small regional and commuter
carriers.
(Continued on page 19)
17
CIFFA Strategic Plan Approved at 53rd AGM
(Continued from page 5)
Mr. Paul Lobas, President, tabled the Board’s Strategic
Plan. Mr. Lobas stated "Your Board of Directors
believes that it is important to re-visit, from time to
time, the key components of our "raison d’être",
namely the value proposition to our membership….
These include:
(a) Education leading up to a Professional Designation,
(b) Membership Services, and
(c) Updating important issues affecting the Legal &
Regulatory environment of our industry".
As there was no opposition from the floor, it was
unanimously agreed that the Secretariat, together with
the National Board of Directors, would move forward
to implement the various strategies outlined in the
Plan. The strategic plan can be accessed in the
‘Members only’ hangar at: http://www.ciffa.com/members (at which point you must sign in).
Complete Minutes of the 53rd Annual General Meeting may be found on our website in the "Members Only" hangar.
If you do not have a password to enter the hangar, simply apply on line, and access will be available within 24 hours.
The Barons of Barbershop The Barons of Barbershop
Clarification of Bill C-90 Requirements
to Members in Quebec
Bill C-90 was developed in Quebec to encourage companies
to provide education and training to their staff. According to
the Quebec government agency, Emploi Quebec, which
oversees this endeavour: "The Act to foster the development
of Manpower Training, which was passed in 1995, is intended
to improve the qualifications, skills and performance of
workers through continuing education. Employers whose
total payroll is $250,000 or more must invest at least 1% of
the total payroll in employee training."
Accordingly, any conferences, symposiums, congresses,
education, or training courses put on by an Association or on
behalf of the Association meet the requirements of Emploi
Quebec for "training" purposes. Also, the salaries of the
employees attending the aforementioned "training", qualify as
well. Please note that golf tournaments, cocktail receptions,
banquets, dances, etc. are not considered "training".
Because CIFFA is an Association, any relevant education and
training courses we give our Members, or contract a third
party to conduct to our Members on our behalf, qualify
against the Members 1% payroll requirement. Therefore, any
tuition fees paid for CIFFA education and training courses are
eligible, as are the salaries of the employees during their
attendance in the CIFFA education or training course. This
includes the CIFFA Air and Ocean Dangerous Goods courses,
and the CIFFA Professional Education Program (conducted
through Concordia University).
Recently, there has been some confusion from a few of our
Members in Quebec regarding the eligibility of CIFFA
education and training courses. To clarify, be assured that
CIFFA's education and training courses are eligible, and we
have had this confirmed on several occasions by Emploi
Quebec.
A few Member offices in Quebec have contacted CIFFA,
telling us that a "Training Consultant" in the Montreal area
told them the CIFFA courses do not qualify. CIFFA has
formally asked Emploi Quebec to look into this matter, and
correct the misunderstanding of the specific Consultant
involved.
We strongly encourage our Members not to allow "Training
Consultants" into their offices, and especially not to look at
their books regarding expenditures on education and
training.
CIFFA NEWSLETTER - JULY, 2002 18
Air Cargo News
(Continued from page 17)
US Bureau of Transportation....
Transportation Indicators provides information on more than
300 trends in the areas of safety, mobility, economic growth,
the human and natural environment, and national security. The
monthly report provides information to address specific transportation
issues and to assist in the effort led by BTS to make
transportation information more accurate, reliable and timely.
Updated reports will be available on the BTS website at the
end of every month.
Sept 1 Deadline Set for
E-airway Bills in Malaysia
AIR FREIGHT forwarders have been given until September
before MAS implements the electronic submission of neutral
airway bills. Originally scheduled to be done in June for
agents in Kuala Lumpur and the following month in Penang,
the postponement was to allow firms more time to get used to
the paperless system.
"We decided to launch it in September instead to make sure all
our forwarding agents understand our requirements," MAS IT
Relationship manager (cargo) David Chan You Chee said.
The launch will now take place on Sept 1 in Kuala Lumpur and
Penang simultaneously. On that date, forwarding agents have
to note that MAS will cease to issue hard copies of their airway
bill stocks for international, domestic and courier vouchers to
all its appointed agents in Kuala Lumpur and Penang.
Chan said the issuance of neutral airway bill numbers to
forwarding agents would be carried out electronically through
the Internet and Spectrum network. "The exception to this rule
will only be given in the event of a system disruption or other
valid reasons that are acceptable to MAS," he said.
"Our agents’ registration must be approved by MASkargo, and
it must also fall under the International Airway Transport
Association (IATA) specification," he said. Of the 84
appointed agents in Kuala Lumpur, 72 have already been
registered, while in Penang only 10 of the 42 appointed agents
have been registered. For the immediate future, MASkargo is
looking at expanding the electronic transactions of neutral
airway bills throughout Malaysia after the KL and Penang
launch. "We are looking at launching it in Johor, Sabah, and
Sarawak in December, and after that to smaller stations in Alor
Setar and Miri," he said. "This is our way of preparing MAS
and other Malaysian companies to operate in an IT
competitive market," he added.
CIFFA NEWSLETTER - JULY, 2002
CIFFA is Pleased To Announce
Closer Cooperation With The
CSCB
The Boards of Directors of the Canadian International Freight
Forwarders Association (CIFFA) and the Canadian Society of
Customs Brokers (CSCB) have agreed on a framework for
closer cooperation between the two organizations.
The agreement will lay the groundwork for ongoing consultation
on a wide range of issues in Canada, with special focus
on the Customs Action Plan (Customs Self Assessment,
Advance Commercial Information and the Administrative
Monetary Penalty System). This framework for consultation
will also include activities on the international stage, noting
CIFFA’s strong engagement with FIATA and the CSCB’s role as
the Secretariat of the IFCBA.
Each organization will bring its unique strengths to the table,
and where there is a shared interest, will collaborate on
advocacy activities.
This agreement also opens the door for each organization to
explore ways of working together to best serve the education
and information needs of its members.
Congratulations on 90 years
of Service to Thompson
Ahern & Company Ltd.
In business, as in life, success most often results when
individuals partner together to achieve common goals.
Since inception in 1912, Thompson Ahern & Co. Ltd.
have been incredibly fortunate to enjoy numerous
rewarding partnerships-between owners, managers,
dedicated staff, vendors and long-term client.
While reflecting on the firm’s long history and achievements
of the past, Thompson Ahern & Co. Ltd. would
like to use this occasion to re-focus their attention on
the many exciting new challenges and potential opportunities
that lie ahead.
Thompson Ahern & Co. Ltd. while celebrating the past,
are committed to the future.
19
Freight Increase
(Continued from page 11)
trucking insurance market, the imminent threats of more
terrorist acts, and ever increasing cargo theft have caused the
trucking industry’s insurance and security costs to skyrocket.
Increased insurance premiums of 50% or more, combined
with increased spending on all aspects of security have
increased carriers’ total cost by over 1% in some cases.
Unlike some other modes of transportation, the trucking
industry has not sought to offset these increased costs with a
surcharge.
Labour/Non-labour - FCA estimates the labour cost increase
to be 4.5%. The increased demands on the drivers in all
areas including security and safety require that we maintain
our dedicated professional workforce. In the fight against
terrorism, the Trucking Security Working Group, a task force
of transportation organizations in Canada and the U.S., has
suggested that truck drivers receive additional training in
spotting and reporting suspicious activities. Trucking
companies have stepped-up their training to meet these new
demands. The increase in non-labour costs is estimated at
2.6%. FCA monitors non-labour cost increases through the
use of various Statistics Canada indices.
Equipment - The new U.S. EPA standards will significantly
increase the cost of equipment as well as the cost of
maintenance while it lowers fuel efficiency. Equipment
upgrades are necessary however in order to meet the hightech
demands of the shipping public as well as to recruit and
retain proficient drivers. The need for real time information
has resulted in increased investment in technology both
inside and outside of the tractor. The lower value of the
Canadian dollar also increases the cost of equipment as
much of the equipment and/or parts are manufactured in the
U.S.
E-commerce - In order to satisfy customer demands and
remain competitive trucking companies must continue to
invest in technology. This includes investments in hardware,
software, communications systems and the necessary
training of personnel to implement these new systems.
Increase in bankruptcies and related liabilities - A 100%
increase in bankruptcy liabilities reported by the Office of
the Superintendent of Bankruptcy for 2001 v. 2000 has hit
the 3 industry sectors most impacting trucking.
Manufacturing, Wholesale and Retail Trade reported
CIFFA NEWSLETTER - JULY, 2002 20
increases of 74% to 145% in the amount of liabilities
related to these bankruptcies (See Exhibit 1). This results in
more bad debts for the trucking sector. The transportation
and storage sector has itself has seen an increase of over
200% in bankruptcy liabilities during the first quarter of
2002 (See Exhibit 2). History has shown there is a close
correlation between sharp spikes in fuel prices and the
number of bankruptcies in the Transportation & Storage
where bankruptcies increase sharply on the heels of fuel
crises, (See Exhibit 3). This trend would indicate another
surge of bankruptcies may be on the horizon, stressing the
importance of promptly recovering cost increases.
Market Conditions - The following market conditions, not
included in their calculations, have also significantly
increased costs for the trucking industry:
~ The continuing economic downturn;
~ Increased demand for appointment deliveries;
~ Increased waiting time.
Fuel Cost Increases (Excluded) - It is important to note that
the cost increases discussed above exclude the impact of
fuel cost increases. Experience has shown that the most
efficient method of handling fuel cost increases is through
the use of fuel surcharges that fluctuate along with fuel cost
changes. The shipping public has recognized the need for
the fuel surcharge currently in effect. For this reason the
impact of fuel costs has been excluded from this rate
increase recommendation.
Just for Laughs!
You and Your Boss: the subtle differences
If you take a long time, you're slow, but if your boss takes
a long time, he's thorough.
If you don't do it, you're lazy, but if your boss doesn't do
it, he's too busy.
If you make a mistake, you're an idiot, but if your boss
makes a mistake, he's 'only human'.
...... To be continued in next issue.
Events
1. FIATA World Congress Istanbul,
September 7 - 13, 2002. Details
can be glimpsed from the following
website: www.fiata2002.org.
2. 2nd UAE Trade Expo, Ethiopia, 10th -13th October, 2002.
This exhibition is being organized by Dubai Chamber of
Commerce & Industry and Dubai Ports, Customs and Free
Zone Corporation. For participating please call the Technical
coordinator (New Fields Exhibitions) at (04) 268-6870 or
email ethiopia@new-fields.com
3. ALACAT XXI Congress, October 8-10, 2002, Atlanta,
Georgia, for details visit :
www.gigasight.com/alacat/newsletter1/index_eng.html
4. Trade Corridor Conference, October 27 - 29, 2002. The
Trade Corridors Conference will be held at the White Oaks
Conference Resort & Spa, October 27-29, 2002. The program
can be accessed under the following website: www.tradecorridors.
com.
Resumés
Should you be interested in any of the following job
applicants, please contact the Secretariat for details via email
to sandraf@ciffa.com.
1. Multilinguist in Lachine, QC looking for position with
freight forwarder, has 4 years Canadian experience in export
freight forwarding.
2. Torontonian looking for position in administration with
over 10 years in the field.
3. Calgarian seeks position in transportation logistics. Has 8
years Russian experience.
4. Toronto area candidate seeks
a position in customer
service/administration, with over
12 years experience in the airline
and travel industry.
5. Applicant in GTA looking for
position within the industry with 9
years related experience, of which
2 years is Canadian.
CIFFA NEWSLETTER - JULY, 2002
Correspondence From at
Home and Around the World
Agents
We have received correspondence from the places listed
below, looking for agency relationships with member firms in
Canada. Should you be interested to establish an agency
relationship in any of these places, please contact the
Secretariat for details via email to sandraf@ciffa.com
1. Goa, India
2. Lahore, Pakistan
3. Saudi Arabia
4. Casablanca, Morocco
5. Karachi, Pakistan
6. Karachi, Pakistan
7. Estonia
8. Chittagong, Bangladesh
9. Chittagong, Bangladesh
10. Stavropol Krai, Russia
11. Colombo, Sri Lanka
12. Pakistan
13. Alexandra, Egypt
14. New Delhi, India
15. Piraeus, Greece
16. Mashhad, Iran
17. Naples, Italy
18. Korea
19. Karachi, Pakistan
20. Mombasa, Kenya
21. Jakarta
22. South Korea
23. Vietnam
24. Tehran, Iran
25. Chittagong, Bangladesh
26. India
27. Bangladesh
28. Tianjin, China
29. Namibia, Africa
30. Egypt
31. U.A.E.
32. Oakland, CA - offers drayage & intermodal services
33. South Korea
34. Chittagong, Bangladesh
35. Dhaka, Bangladesh
36. Chennai, India
21
2002 - Air Dangerous Goods
Training Schedule
Vancouver
October 15-18
Calgary
October 1-4
Toronto
September 10-13
November 5-8
Montreal
September 24-27
November 19-22
Edmonton, Winnipeg, Ottawa, Halifax
CIFFA needs your help in arranging Air DG training programs
in these cities. Get together with your Forwarding colleagues,
invite your Air DG shippers, and with a minimum of 10 people,
we will schedule a training program for you. Contact us for
more information.
Program Information
All the above programs INCLUDE an optional day for
Radioactive Material. If you do NOT need training on
Radioactive Material, do not attend the last day shown.
Person requiring Recurrent training (have previous Air DG
training), do not attend the first day shown.
Program Fees
Initial with optional day for Radioactive Material
4 days - $695.50*
Initial without optional day for Radioactive Material
3 days - $535.00*
Recurrent with optional day for Radioactive Material
3 days - $535.00*
Recurrent without optional day for Radioactive Material
2 days - $374.50*
Due to extensive and locked-in financial commitments by CIFFA, the following refund policy is in effect.
Cancellations received: • more than 4 weeks prior to program start = Full refund (minus a $50.00 admin fee)
• between 4 and 2 weeks prior to program start = 50% refund
• less than 2 weeks prior to program start = No refund
22
* Fees INCLUDE GST and a lunch.
* Group discounts are available. Please contact CIFFA for information.
Refund Policy for Dangerous Goods Training Programs
Program Fees
Basic (1 Day):
CIFFA Member - $315.65*
Non-Member - $358.45*
Recurrent (1/2 Day):
CIFFA Member - $230.05*
Non-Member - $310.30*
Warehouse (1 Day):
CIFFA Member - $347.75*
Non-Member - $395.90*
CIFFA NEWSLETTER - JULY, 2002
Edmonton
Calgary
Winnipeg
Toronto
Toronto
Toronto
Montreal
Montreal
2002 IMO DG Training
Program Schedule
City Course
Vancouver Basic (1 Day)
Basic (1 Day)
Basic (1 Day)
Basic (1 Day)
Basic (1 Day)
Recurrent (1/2 Day)
Warehouse (1 Day)
Basic (1 Day)
Recurrent (1/2 Day)
Warehouse (1 Day)
Dates
October 28
October 29
FALL TBC
October 30
September 23
November 18
September 24 (a.m.)
September 24 (p.m.)
November 19 (a.m.)
November 19 (p.m.)
November 20
September 16
November 25
September 17 (a.m.)
September 17 (p.m.)
November 26 (a.m.)
November 26 (p.m.)
September 18 Montreal
CIFFA NEWSLETTER - JULY, 2002 23
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