Newsletter - April 2001

Annual General Meeting Notice to Members

In accordance with the Association's By-Laws, Article V, Section 4, notice is hereby given of the 52nd Annual General Meeting of the Canadian International Freight Forwarders Association, to be held at the Renaissance Hôtel du Parc, 3625 Avenue du Parc, Montreal on Thursday, May 31st, 2001 from 10:30 -16:00 hours. 
The National Board of Directors will present their annual Committee Reports, and the Treasurer will present his financial report. N.B. All Committee Reports will be posted on our Website prior to the AGM. In order to save time, these reports will not be read during the AGM, but the Committee Chairs will allow for a Q & A period.
According to Article IV, Section 11, a Proxy form is included in this Newsletter for use by Regular members, should they be unable to attend the Annual General Meeting. Proxies shall be presented to the Chairman of the AGM, no later than 10:30 hours on the day of the AGM, May 31, 2001. Only ONE vote per company member is allowed. 
According to Article V, Section 6 of our By-Laws, a Nominating Committee was formed at the March meeting of the National Board of Directors. The Chairman is Bill Gottlieb, President of David Kirsch Forwarders Limited who is available to receive nominations, supported by 5 signatures, for the National Board of Directors. Nominations need to be submitted not later than May 14, 2001. Mr. Gottlieb can be reached at (514) 636-0233 or by e-mail at: w-gott@kirsch.ca.

At this year's Annual General Meeting, your board is planning to host an open forum business meeting for members just prior to the formal Annual General Meeting. The forum will provide our members the opportunity for dialogue between the members and their board of directors on the various initiatives that CIFFA is involved in. We encourage our members to attend the forum prepared to ask questions and provide feedback or suggestions that CIFFA can use to enhance our Association.

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President's Report to the AGM

Dear Member, 

'Think global - act local' is a premise I have long subscribed to. And I believe it is a premise that is critical to the raison d'être of our Association, namely, we work in a profession and a world where the sun never sets, where we are forced to think daily of the farthest reaches of the globe, but at the same time must make sure that our clientele gets the local service it so richly deserves.

With this in mind, I believe that both the function and the existence of our Association is today as important as it was in earlier times. In fact, it may be even more so since today we tend to isolate ourselves with the technology surrounding us. The personal and human contact, however, is what gives life fulfillment, pleasure and satisfaction. And thanks to our Association, we do - together - have a venue to enjoy just that!

A chain, however, is only as strong as it's weakest link and thus pro-active participation in the CIFFA's affairs is a most critical component. So I urge all of you to remain active and committed so that we can continue to enjoy together the partnership and healthy competitiveness that I have seen evolve around us all. Please bear in mind, that competitiveness does not mean every one is on his or her own. Competitiveness is also cooperation, partners joining together to take advantage of each other's strength to build market share. It is a partnership for competitiveness. Partnership is the hub and Partnerships are the driving force that will make Canada competitive in the global economy. Together we must promote a knowledge ethos which recognizes that we are in the 'post-industrial' age, and into a knowledge-based economy. 

Change indeed is here to stay and practically remains the only constant in our lives today… and much is happening in ever shortening cycles. As you all know we have more and more reverted to net-based communication bulletins to keep you abreast of time sensitive information that affects our industry. We have also vastly improved our Website to make it more informative and rewarding to search out. We believe that changing our communication mix is in line with today's developments and that equal, but different, attention will have to be paid to net based technology and the print media.

With the ever-growing demand for higher skill sets and the need for broader based knowledge of our employees, we have also moved to enhance our education components. Inasmuch I am grateful to the membership for having accepted the Board's proposal to add a Director of Education to our secretariat. And I am pleased to WELCOME Doug Burek to our office. Doug is a former trainer with Air Canada and Canadian Airlines and is a specialist in Dangerous Goods by Air issues. He was also a member of the IATA/FIATA Dangerous Goods Committee. With Doug's assistance, CIFFA expects to be properly certified by early May and be able to offer to the membership IATA approved DG training as of early June of this year. 

Simultaneously we are working hard at finishing the long promised Module II of our Education course. This course will be available as of this September and will allow the successful student to claim professional status as an international freight forwarder recognized on a world-wide basis. Our course has been certified and approved by FIATA for that purpose. We are also in the midst of developing a professional designation/certification process that will outline all the requirements for certification of the individual as an International Freight Forwarder (IFF). And certainly, the initial phase of our certification process will also address grandfather rights so as to properly recognize all the professionals active in our industry for many years past. We expect to have this process finalized within this year and table it for approval by the membership at the AGM 2002 in Toronto. 

As I said in one of my former messages: 'Know-how is not something abstract, it is accumulated through practical work and learning'. What we must do is develop a commitment to life-long learning, with the understanding that learning never ends and we can never know enough. We must also develop the skill to think in alternatives, since in our increasingly complex world, there is often no one valid solution to problems and challenges. There are many solutions and they are all valid. We must become open to alternative possibilities and we must be flexible in implementing solutions. We must learn to weigh our options. A corollary to this is that there are really no 'unique problems'. Others are confronted with similar problems, and they have developed various solutions. We must be willing to share our common concerns, and develop mutually supportive solutions. 

So what we need, I believe, is a creative integration between business and education - a partnership built on mutual respect, a positive value system, common goals and equally borne responsibilities. And it is therein that I see the membership value of our Association and our efforts to expand education. Through this combination we can fulfill our member's needs for better-educated and better-qualified people and give our members that value added component.

All of what I have described above, I have had the privilege to experience at our Board level! And I am immensely grateful to be part of such a qualified and highly professional body. My heartfelt thanks go to all my colleagues on the board, and the secretariat, for another year of enormous accomplishments. Particular mention must be made of the important work done by our Seafreight Chair, Tony Young. Tony has spent days on research, communication and travel on our member's behalf looking into proposed legislative changes and how they may affect our ability to do business. First on OSRA and COGSA in the United States, followed by the outline instrument for a new CMI convention on carrier's liability. Kudos go to Tony for having achieved a high recognition factor by our colleagues to the South, as well as by such eminent personalities as Professor Tetley in Montreal and Professor Ramberg in Stockholm. Through it all, CIFFA has attained a worldwide recognition factor that we have never enjoyed before. This also thanks to the pro-active legal support received from Peter Jones, a former member of our Board and still actively engaged in all issues where legal advice is sought. Members can access more information on Tony and Peter's work through our Website under Transport Law.

This is not meant to belittle the contributions made by our other key committee chairs Don Lucky, Chair of our Customs Committee, John O'Brien, Chair of our Airfreight Committee and Bob Walker, our Ways & Means Chair who coped with an immense workload bringing our By-Laws in line with today's business environment and laws. It is simply so that in this past year, sea freight issues have dominated the international agenda!

In closing I would like to welcome everybody to our May AGM '2001: a service odyssey'. I believe that we have a most exciting agenda for the Symposium Day that transcends everything and lies at the core of every company's success, namely Customer Relationship Management! It will touch on Relationship Strategies, Channel Management, Customer Satisfaction Management and Knowledge Management. … all components that ultimately lead to Peter Drucker's statement: 'Marketing is so basic that it cannot be considered a separate function .. it's the whole business seen from the point of view of its final result, that is, from the customer's point of view.'

Yours truly, 

Paul Lobas
President CIFFA

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Proposed Changes to CIFFA By Laws

By R. Walker, By-Law Chairman

In accordance with the Association By-Laws, Article VII, Section, any proposed changes must be posted to ensure all members can properly assess and vote accordingly at the coming AGM.

At the beginning of this year, the NBD asked that a serious study of the By-laws be initiated to modernize those By-laws concerned with the management of the Association. With the assistance of legal representation, help from other associations, and suggestions from various Directors, the NBD would like the members to study the following recommendations to be voted upon during the Montreal AGM on May 31, 2001. The By-Law committee, after numerous meetings, believes the following changes ensure the Association's By-Laws will meet Federal Government regulations and statutes, but will also allow the Association to work more effectively and efficiently.

In a related issue, a new committee was formed to recognize Regional issues while at the same time create a more viable internal administration that would ensure conformity with the legal aspects of the Canada Corporations and Banking Act. This committee, headed by myself, co-chaired by Rachelle Anger, President, Eastern Division, also included Steve Valentine, President, Central Division, Craig McKay, President, Western Division, Carmine Di Fruscia, Vice -President, Eastern Division as well as Bill Gottlieb, Past President, National. Several meetings resulted in the proposed By-law changes of Article VI, Section 1 and 2. With the agreement of the NBD, these changes are now presented to the Membership for acceptance. 

In my annual report I will formally thank each member of this committee for all the good work they provided.

Article II Section 4 

Any person or corporation whose business is in any manner subsidiary to, or owned in whole or in part by any shipper, consignee, exporter or importer of goods, or who buys or sells or acts as buying or selling agent in any manner whatsoever shall not be acceptable for Regular membership but may be eligible for Associate membership subject to the discretion of the NBD. Persons or corporations whose business is a subsidiary of a primary carrier may become a Regular Member should applicant show that business between the applicant and the carrier are at arms length. 

Article II Section 6 

Corporations applying for either Associate or Regular membership shall designate in their application for membership their two accredited representatives for the purpose of the Association. Such representatives may be changed by a member corporation and must be reported immediately to the Secretariat. Of the two representatives, one shall be the designated representative and the other shall be an alternative representative. Said representatives shall exercise the Member's rights in the Association only while connected with the business of the active member he represents and shall be subject at all times to removal or substitution by such active member.

Article II Section 8 

All applications for membership must be sponsored by two Regular members and shall be submitted to the appropriate regional committee for research and recommendations, then submitted to the Secretariat for presentation to the NBD by accepted means of communication.

Article II Section 15 

The Association shall maintain a register in which is entered every Member, identifying the terms, conditions, and limitations (if any) attached to the membership, and shall note on the register every revocation, suspension, withdrawal, cancellation, or termination of membership and such other information as the NBD directs. 

Article II Section 16 

Only Members in good standing shall have the right to exercise the privileges of membership. 

Article IV Section 1

A National Board of Directors (N.B.D.) composed of 12 elected directors who are representatives of Regular member corporations shall manage the affairs of the Association. In addition, the immediate Past President and the Chairpersons in office of each of the established regional committees shall be ex-officio voting members of the N.B.D. In each year one-half of the directors shall be elected to fill the position of those directors whose term of office has expired, and each Director so elected shall hold office for a two-year term from the date of his/her election or until the second annual meeting after his/her election. A retiring Director shall remain in office until the dissolution or adjournment of the meeting at which his/her retirement is accepted and his/her successor is elected.

Article IV Section 2

The election of Directors at annual meetings shall be held by secret ballot. The pre-printed ballots shall be folded and handed to scrutineers appointed by the President. The scrutineers shall count the ballots and submit them with the election results to the President who shall thereupon announce to the meeting the names of those elected. All ballots will then be destroyed. Members of the N.B.D. shall be known as National Director's of the Association.

Article IV Section 3 

The Executive Committee shall consist of the:
  • President;
  • First Vice President;
  • Second Vice President;
  • Third Vice President;
  • Secretary; 
  • Treasurer; and
  • Immediate Past President 

and its members shall remain in office until they shall have been replaced in accordance with these By-Laws. The NBD shall meet within six weeks of the Annual General meeting. At said meeting, the NBD will elect from among themselves the National Executive Officers, being the President, the First, Second and Third Vice Presidents The Secretary, and The Treasurer. The same person shall not hold two of the said offices. National Executive Officers, with exception of the President, shall hold office for a term of one year from the date of appointment or until their respective successors are appointed. The President will be elected for two consecutive one-year terms. It is intended that the First Vice President shall, where practical, represent a region of the Association different from that in which the President shall work. Any Executive members may be removed by a majority vote of the NBD. Executive members shall receive no remuneration for serving as such, but are entitled to be reimbursed for reasonable expenses incurred in the exercise of their duty.

Article IV Section 6 

a) The office of director shall be automatically vacated:

i) If a director shall resign the director's office by delivering a written resignation to the secretariat of the Corporation,
ii) If the director is found to be mentally incompetent or becomes of unsound mind,
iii) If the director becomes bankrupt or suspends payment or compounds with the director's creditors, or
iv) On death.
v) If at a special general meeting of the Members a resolution is passed by the majority of the Members present at the meeting that the director be removed from office
vi) If the director ceases to retain membership qualifications, or
vii) if the director misses three consecutive meetings without having been excused by the President.

b) Directors of the Corporation shall serve without remuneration and no Director shall directly or indirectly receive any profit from that director's position as such, provided that a director may be paid reasonable expenses incurred in the performance of directorial duties.

Article IV Section 9 

All contracts and agreements having a monetary value in excess of $15,000.00 must have the approval of the NBD of the Association and shall be signed by the President, or in his absence by a Vice President, and the Secretary, and, where appropriate shall bear the seal of the Association.
Article IV Section 11 

Proxies in a permanent form acceptable to the NBD shall be allowed from Regular members who are unable to attend a meeting of the Association. Where proxies are solicited, a solicitation will include sufficient information for the regular member to form a reasoned judgment on the business to be transacted at that meeting. Satisfactory proof of proxy must be submitted to the Secretariat at the opening of the meeting concerned. Proxies can only stand for that matter to which they were solicited. Proxies can only be made to and received from Regular members in good standing. All matters that may arise for decision at regular annual meetings other than the election of members to the NBD shall be decided by a show of hands. Each Regular member shall have one vote. Members holding valid proxies may vote for such absent Regular members that they represent within any limitation indicated on the proxy. If a Regular member wishes to provide proxy for all matters to be voted upon, the instrument appointing the proxy shall so designate.

Article IV Section 12 

The N.B.D. shall have power to conduct and conclude transactions involving amounts of money, up to but not exceeding $50,000.00. All matters involving the expenditure of amounts in excess of $50,000.00 shall be submitted to the Association for its approval.

Article IV Section 14

All members of the NBD and all Officers of the Association shall serve without remuneration, but they should be reimbursed for their reasonable expenses in connection with meetings of the Board and Committees, and while carrying out business of the Assoc., provided that receipts are tendered for all expenses before reimbursement. If any Director, or Officer of the Association shall be employed by or shall perform services for the Assoc. otherwise than as a Director, or Officer or shall be a member of a firm or a shareholder, director or officer of a company which is or will be employed by or has or will perform services for the Association, the fact of being a Director, or Officer of the Association shall not disentitle such Director or Officer or such firm or company as the case may be, from receiving proper remuneration for services, provided that said Director, or Officer declares his involvement and abstains from any vote that relates to the provision of such services for the Association.

Article IV Section 17 

a) Every director or officer of the Corporation or other person who has undertaken or is about to undertake any liability on behalf of the Corporation, and their heirs, executors and administrators, and estate and effects, respectively, shall from time to time and at all times, be indemnified and saved harmless out of the funds of the Corporation, from and against:

i) All costs, charges and expenses whatever that such director, officer or other person sustains or incurs in or about any action, suit or proceeding that is brought, commenced or prosecuted against such person, for or in respect of any act, deed, matter or thing whatever made, done or permitted by such person, in or about the execution of the duties of that person's office, and
ii) All other costs, charges and expenses which such director, officer or other person sustains or incurs in or about or in relation to the affairs thereof, except such costs, charges or expenses as are occasioned by person's own wilful neglect or default.

b) No director or officer for the time being of the corporation shall be liable for:

(1) The acts, receipts, neglects or defaults of any other director or officer or employee;
(2) Joining in any receipt or act for conformity or for any loss, damage or expense happening to the corporation through the insufficiency or deficiency of title to any property acquired by the corporation or for or on behalf of the corporation:
(3) The insufficiency or deficiency of any security in or upon which any of the moneys of or belonging to the corporation shall be placed out or invested:
(4) Any loss or damage arising from the bankruptcy, insolvency or tortuous act of any person, firm or corporation with whom or which any moneys, securities or effects shall be lodged or deposited or for any other loss, damage or misfortune whatever which may happen in the execution of the duties of his respective office or trust or in relation thereto 

ii) Unless the same shall by or through such person's own wrongful and wilful act, neglect or default.

Article V Section 1 

Meetings of the NBD shall be held not less than quarterly and at such time and place as the President may fix. Upon receipt of any written or electronic transmission request by any four members of the NBD, the President shall call a meeting thereof. Eight members of the NBD shall constitute a quorum thereof. Written or electronic transmission notice of meeting of the NBD shall be communicated at least fourteen days prior to the date of such meeting.

Article V Section 4 

The Secretary shall send notice of any general meeting of the Association to each Regular member by post or electronic transmission and to be posted to the Association Website. Fourteen Days notice, according to circumstances, shall be given prior to said meeting. Such notice shall contain sufficient information for the Regular Member to form a reasoned judgment on the business to be transacted at that meeting and shall be sent to the last known address of the Regular Member.

Article V Section 5 

Any member of the NBD, or any five Regular members of the Association by requisition in writing or electronic transmission to the Secretary of the Association, may demand that the latter convene a general meeting of the Regular Members of the Association for the purpose to be mentioned in such requisition. Should the Secretary fail to comply with such requisition within three days from the date of receipt of the said requisition, any Regular member of the Association may convene such meeting by giving the required notice.

Article V Section 6

At a meeting of the NBD to be held in the third month prior to the date of the Annual Meeting, a nominating committee of three Regular Members shall be appointed by the NBD to prepare a list of candidates for election to the NBD for the coming year. No Member shall be nominated who has not first given his consent to stand for election. The NBD shall advise the membership of the slate so nominated at least one month before the date of the annual meeting, such notice to be given by mail or electronic transmission and posted on Association Website. Five Regular members together with the consent of the nominee may submit additional nominations for election in writing, provided that such nominations shall be delivered to the Secretary-Manager at least two weeks prior to the Annual General Meeting.

Article VI -Committees

Article VI Section 1

On the written application of at least 7 Members the NBD may from time to time establish one or more Regional Committees in any geographical area or areas of Canada. The NBD at its next meeting will decide on approval of such formation. Should the NBD disapprove, those applicants may apply to Regular Members at the following AGM.
The NBD may rescind the establishment of any such Regional Committee if its continuance is not in the best interest of the Members. 

Article VI Section 2

Each Regional Committee shall consist of a Chairperson and Vice Chairperson, elected on an annual basis but limited to two full terms, who will be chosen from Regular Members, plus at least five additional committee members who are representatives of different Regular or Associate Members. The Chairperson and Vice Chairperson will have authority to sign on the Regional Bank Account. 30 days prior to AGM the Regional Committee shall meet to elect from their members within the Region the Chairperson and Vice Chairperson for the coming year. 

  • Each Regular Member will have one vote. 
  • Regional Committees will set Regional functions and participate in educational/training programs. They will deal with all matters of interest, however approval from the NBD must first be obtained for all matters beyond the local territory level. 
  • They may hold any event should it not require National funding however should support be required, the Committee should present an event budget and rational to the NBD for sanction. 
  • No Regional Committee shall be authorized to use the name of the Association for any correspondence other than those mentioned above, without the consent of the NBD. 
  • Each committee shall be governed by the Bylaws of the Association.

Article VI Section 3 

All other standing Committees deemed necessary or advisable shall be appointed by the NBD, which shall stipulate the duties and composition of each. 

Committee members will serve without remuneration any may be removed from office by two-thirds vote of the NBD in the event they fail to attend three consecutive meetings of the committee of which they are member.

Article VII Section 3 

The Code of Ethics may be accepted or amended by a two-thirds vote of the Regular Members present at any general meeting provided that a notice of amendment of the whole or any part of the Code of Ethics has been conveyed by mail or electronic transmission at least one week before such meeting.

Article VIII Section 2

The By-Laws may be amended by a two-thirds vote of the Regular Members present at any general meeting provided notice of such amendment has been conveyed by mail or electronic transmission at least fourteen days before such meeting. Adoption of a proposed amendment is conditional upon required government approval. Regulations made under these Bylaws by the NBD, and amendments thereto, shall be forwarded to each member; and available for public inspection within the Secretariat office.

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CMI Singapore Conference

By Tony Young, 
CIFFA Seafreight Chair

In February CIFFA's Seafreight Chair attended the Comité Maritime International's Issues of Transport Law Conference in Singapore as part of a delegation from the Canadian Maritime Law Association. The CMI is the venerable institution that created the Hague-Visby Rules, which is the foundation of most nations' maritime law, including Canada's.

The CMI is in the process of drafting a new international convention to govern multimodal transport liability and the Singapore Conference was held to discuss their proposed Outline Instrument. The same was the subject of an OECD meeting held at Paris in January as reported in the last edition of The Forwarder.

Although CIFFA had no voice at the CMI Conference, a submission of our association's views was nevertheless made to the CMLA (Canada's delegate to the CMI) in a Position Paper last December. See http://www.ciffa.com/currentissues_transportlaw_CMI.html for details.

The issue that CIFFA is most concerned about is the proposed "Performing Carrier" definition, which is designed to create contractual liabilities on the part of freight forwarders and NVOCCs who act as agents for their overseas partners. Such liability does not presently exist. The CMI was mandated by UNCITRAL (United Nations Commission on International Trade Law) to propose a new convention on the basis that it obtains unanimous support from four key industry groups: the International Chamber of Commerce (ICC), the International Chamber of Shipping (ICS), the International Union of Marine Insurance (IUMI) and FIATA. In this connection, CIFFA's seafreight chair attended the conference in support of Peter Jones, chair of FIATA's Advisory Body on Legal Matters, who made what the CMI chairman described as a "spirited attack" against their Performing Carrier provision. Whether CIFFA's and FIATA's opposition will have any effect has yet to be seen but it is encouraging that FIATA, under the Presidency of Canada's own Chris Gillespie, has issued a firm position statement on the CMI Outline Instrument. See FIATA Review February Edition or go to Peter Jones' website: http://www.forwarderlaw.com/feature/cmigill.htm for more details about FIATA's position.

The fight continues…

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Shipping Lines Are Simply Not Customer Focused

An article by Director General Colin Beaumont of BIFFA

More goods depart or arrive in the UK by sea than by any other mode of transport, and yet the shipping industry is currently failing its customers and remains totally oblivious to the principles of customer service and negotiation.

Clearly this statement needs some clarification so perhaps it would be helpful to look at a few of the issues that lead to this conclusion. 

Historically shipping lines have been protected by legislation from some of the risks to which others in the transport chain are exposed. Under the Treaty of Rome they have a block exemption from the rules that prohibit the establishment of price fixing cartels. This has been accepted because of the substantial investment required to build the ships, which are the industry's infrastructure; however, more recently they have tried to extend this to the entire transport chain when in fact they were only entitled to fix their tariffs from port-to-port according to the European Commission.

Another anomaly is the policy to impose Currency and Bunker Adjustment Factors as a percentage added to the freight rate. This again has been accepted by the shipper for years, but is has nonetheless generated much resentment amongst the customer base. In particular the Bunker Adjustment Factor (BAF) has caused widespread criticism from time to time because the rate is constantly adjusted - allegedly to take account of fluctuating fuel prices. Not unreasonably, one might argue, but why is it that the BAF rarely reflects the price fluctuations of oil other than upwards? Ask the lines this, and they will explain that their purchasing is so complex and that the base price of oil is not the only factor. Why then call it a BAF? Is it not time for some transparency?

The next problem is the wildly fluctuating freight rates. Of course we are told this is due to the law of supply and demand. Shortage of space on vessels sends up the freight rates and over capacity sends them tumbling again, leaving the customer completely stranded in his own pricing policy. Surely it is not beyond the bounds of possibility that some stability may be created in the market to give customers some chance of managing overheads. If shipping conferences have a role to play at all, this suggests itself as a prime objective.

None of these problems are new of course. The shipping lines and their customers have survived in this market environment for years with the customers for the most part forced to accept whatever is thrown at them. There are some exceptions of course. The European Shippers Council has forced shipping conferences, through the European Commission, to accept a watering down of their past strengths and there are new rules that govern their operations. Nevertheless it has been a struggle and the lines have put up a very stiff resistance to change, spending huge sums of money in defense of their actions. This in itself is indicative of their attitude to the customer, which for an important service industry leaves a lot to be desired. 

Interestingly a new problem has arrived on the scene which is testing the lines' attitude to their customers, and once again they are found wanting. Currently there is an acute shortage of UK haulage available for distribution of containers, leading to delays and increased costs for demurrage and quay rent. 

For reasons which have been well publicized, the rising cost of fuel, excise duty and other operating costs have had a devastating effect on the road transport sector with many companies unable to sustain large fleets. Add to this the shortage of trained drivers and the situation reaches crisis proportions during busy periods. 

How are the lines responding to this? They are charging their customers for delays in distribution. This means additional rent charges to be paid to the port for the time that the containers are on the quayside awaiting transport, and also for the demurrage costs on the containers themselves. To be fair, the problems with transport are not the fault of the lines but they appear to make no effort to mitigate these and one is left with the suspicion that perhaps for the lines this is an opportunity for a bit of extra back door revenue. 

The problems of shortage of haulage are not going to go away in the short term so there needs to be some cooperative dialogue to search for solutions that reduce the problem to one of manageable proportions. Shipping lines, freight forwarders, haulers and ports have within their organizational bodies the mechanism for discussion and surely it is time for this to happen.

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e-AWB

By John F. O'Brien
VP CIFFA and Chair Airfreight Committee

CIFFA is participating in a global project with IATA / FIATA that is referred to as the "Cargo Paperless Transportation Project". The prime objective is to create an internationally acceptable business process for the e-enabling of the air waybill and to replace the paper air waybill whenever it is possible to do so.

This is an 18-month program, which at the end the project will be submitted and recommended for the global role-out of the e-AWB program.

The 1st joint meeting was held in Montreal in January 2001 to set out the parameters and the process to meet the deadline for final recommendation in June of 2002.

The most recent meeting was held in Los Angeles during which the objective was "to map out the generic paper dependency process". This is the method by which we can implement and automate the air waybill information process from agent at origin to carrier(s) and then to the final agent at destination. 

There are a total of 4 work teams assigned to the project, with global participation from both air carriers and forwarder associations:
Team 1: Operations
Team 2: Export and Import
Team 3: Revenue Systems
Team 4: Standards/Support

There are certainly a plethora of issues to be considered in terms of legal requirements. For instance the e-commerce application of the air waybill, which is a legal document, needs to be ratified by 242 countries in order to be totally effective. Yet, at the moment, there are only 51 countries that have signed the document that we refer to as MP4. And we realize that most of these unsigned countries will not be ready to sign on soon. As a consequence we will have to ensure that member airlines have adequate liability insurance in order to accept e-waybills for destinations where the MP4 is not yet legally acknowledged. 

This is a major undertaking and the project, when completed, will have an enormous positive effect on the efficiencies of air cargo business globally. We are now building the framework on which we can move freight globally without a paper document. Naturally, there will be the other benefits such as simplification in the accounting process, more reliability and efficiency in tracking and tracing and, through it all, significant cost savings for both forwarders and airlines.

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Deadline for the new SED was April 1, 2001

April 1 was the day US exporters will be required to use new shippers export declarations (Form 7525-V) that identify the "U.S. Principal Party in Interest," according to the Census Bureau.

The alternate "intermodal" version of the Form 7525-V also will be no more acceptable after that date. In a letter to the US Customs Service earlier this month, the Census foreign trade division chief said that April 1 will be the end of a six-month grace period that followed approval of the new form this past October by the Office of Management and Budget.

The new forms reflect changes in export rules that require the company that gains the most financially from an export transaction - most commonly the seller - to be identified on the SED, rather than the freight forwarder.

Other than the new form 7525-V, exporters may file electronically through the Automated Export System (AES) or its Internet portal, AESDirect.

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New Regulations for Export of Solid Wood Packaging Material (SWPM)

Clearly, packing and readying products for exports around the world could become more difficult and onerous in the very near future. With the advent of the 'Asian Beetle' infestation in North America some years ago, countries world-wide have become more sensitized to the problem of non-indigenous pests being carried in non-treated or insufficiently treated wood to foreign shores and the havoc such pests can wreak. Phytosanitary officials are extremely concerned about such pests entering their countries via solid wood packaging and/or dunnage and bracing methods. The problem has been made even more insidious as some of the pests in question are microscopic and cannot be detected by the naked eye. 

A working group has thus been formed under the auspices of the United Nations to formulate recommendations for the U.N. Standards Committee on this issue. And just recently, at a meeting in Mexico City, the working group was able to finalize their recommendations for U.N. review and country consultations. 

The recommendations can be re-caped as follows:

1.Heat treatment as a general measure requiring that lumber be treated to a specific time/temperature schedule that achieves a minimum wood core temperature of 56 degrees Celsius for at least 30 minutes (56/30, in short).

2. Other acceptable measures include fumigation with methyl bromide (applied by a recognized professional) or lumber treated by chemical impregnation. 

3. A certified wood packaging products manufacturer will apply a symbol to the export pallet or crate signifying that the pallet or crate meets the standard. This symbol will identify the country of origin, the pallet or crate manufacturer and the type of treatment used. 

It is proposed that this becomes universal legislation by May 2002. However, the member countries of the European Union (EU) have collectively decided that this target date was too far away and have implemented emergency measures effective October 1, 2001. These emergency measures have recognized the working group's recommendations as acceptable for the free flow of Canadian products throughout the European Union. 

As a consequence, the EU is implementing as of October 1 of this year new phytosanitary regulations for packing cases, boxes, crates, drums and similar packings, pallets and other load boards, pallet collars made of conifer wood except that of Thuja spp. The pest of concern is Bursaphelenchus xylophilus (pinewood nematode).

In lieu of a phytosanitary certificate or an industry issue certificate, the wood must display an approved marking, enabling the identification of where and by whom the treatment has been carried out. We understand that the Forestry Section of CFIA (Canadian Food Inspection Agency) is working closely with the affected industries and industry associations to have a proper program in place prior to October 1, 2001. The same people are also working with their respective counterparts in the EU to have agreement on specific marking details. 

Requirements until October 1, 2001

For wood packing to all EU countries, except Finland:
Wood packing made of conifer wood - except that of Thuja spp. - must be free of bark, grub holes larger than 3 mm in diameter and have moisture content of less than 20%. A phytosanitary certificate or an industry certificate is not required. 

For wood packing regulations to Finland, please inquire with CFIA in reference to their phytosanitary note of June 20, 2000.

Wood packing that is not subject to phytosanitary restrictions

1. Wood packing made of any wood based products such as plywood, particle boards, oriented strand boards, veneer, wood wool etc. which has been created using glue etc. 

2. Wood packing of non-conifer species is not currently restricted and is also exempt under the new EU regulations on wood packing. 

Should you have further questions, the Secretariat can help you find the right contacts at the Canadian Food Inspection Agency. 

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Canada to Enact OSRA-style Provisions

By Tony Young, Seafreight Chair

Ever since the United States amended its Shipping Act in 1998 under OSRA, the government of Canada had been under pressure from shipper groups in Canada opposed to freight conferences to do the same. CIFFA was consulted on the issue and had submitted its position paper in August of 1999. Bill C-14, a bill to amend the Canada Shipping Act is currently in its second reading in the House of Commons. Called Canada Shipping Act, 2001, the act will come into force 90 days after receiving royal assent. Part 15 of the Bill amends SCEA, the Shipping Conferences Exemption Act, 1987. 

Following are the amendments to SCEA: 

· Shipping conferences will be permitted to use electronic means to file conference documents (other than tariffs) with the Canadian Transportation Agency (CTA); 
· Filing of conference tariffs with the CTA will be abolished; 
· Shipping conferences will be required to provide electronic access to the public to their tariff information and other publicly accessible conference documents; 
· The period by which an individual conference member must notify its other conference members of its intention to take independent action on rates and other service items will be reduced to five days from 15. Likewise, the publication requirement of such action will be reduced from 15 days to five. In both cases this will be established in the Act itself rather than by the governor-in-council as the Act currently provides; 
· Individual conference members will be able to negotiate confidential service contracts on terms and conditions independent from those established by the conference; 
· Individual conference members will not be obligated to provide notice to the other conference members or divulge any details of that service contract; and 
· The fine for non-compliance with the Act will be raised from $1,000 per day to $10,000 per day.

The similarity between SCEA 2001 and OSRA will be the provision that shippers in Canada will also be able to enter into confidential service contracts with individual conference lines instead of the whole conference as a group. This would allow shippers and conference member lines to "partner" with each other on an individual basis and negotiate confidential volume rates. 

Although the bill provides for one-on-one confidential service contracts, the wording, however, does not prohibit carriers from disclosing details of their contracts such as the rate to other carriers, if they so wish, under their general anti-trust immunity, as the new provisions are not mandatory. In this respect, SCEA 2001 differs from OSRA, which prohibits any disclosure of contract details. This may not be a bad compromise as mandatory confidentiality could be detrimental to conference carriers in the mega-volume resource commodities that usually command rock bottom rates and account for large portions of a vessel's liftings if carriers are pitted against one another in contract bids. Optional confidentiality, on the other hand, would allow conference carriers to keep their higher paying contracts a secret from their competitors. The Seafreight Chair believes Transport Canada struck a good balance between competing interests with SCEA 2001. 

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Central Division Calendar of Events

ANNUAL GENERAL MEETING

LOCATION: The Royal Woodbine Golf Club 
195 Galaxy Blvd, Etobicoke
DATE: Tuesday, May 8, 2001
TIME: 17:30 hours
COST: Free to Members
CASH BAR

EDUCATION GRADUATION

LOCATION: The "Kajama" 
a three masted gaff-rigged schooner
Visit www.greatlakesschooner.com for a map on how to get there!
DATE: June 6, 2001
TIME: Boarding: 17:30 hours 
Departure: 18:00 hours

GRADUATE 
DINNER COST: FREE
DINNER COST: $37.50 
(Limited to 225 people which includes graduates, so book early)
CASH BAR

Employers are asked to let their students leave work early in order to meet departure time.

GOLF TOURNAMENT

DATE: September 19, 2001 

Details will be advertised as and when they become available.

FORWARDER’S CHOICE AWARDS DINNER

DATE: November 9, 2001 

Details will be advertised as and when they become available.

For further information contact Jodie Wilson, LCL Navigation, email: jodie@lclcan.com
 
DFAIT Notice To Exporters No. 132

Subject: Monitoring Softwood Lumber Exports to the United States

The Government of Canada will monitor the shipments of softwood lumber to the United States from all provinces and territories of Canada beginning April 1, 2001. The monitoring program will be administered through the issuance of export permits by the Minister of Foreign Affairs. The object of this monitoring program is to collect data respecting softwood lumber exports to the U.S. for all Canadian provinces and territories. The Maritime Lumber Bureau will continue to operate its Certificate of Origin program for lumber produced in Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland in addition to the Export and Import Controls Bureau (EICB) monitoring program.

For further information please contact Dennis Seebach, Deputy Director, Operations, Softwood Lumber Division (EPS), Export and Import Controls Bureau, Department of Foreign Affairs and International Trade by telephone at (613) 944-2167 or in writing at:

Mailing address: P.O. Box 481, Station A
Ottawa ON K1N 9K6

Courier address: Tower C, 4th Floor
Lester B. Pearson Bldg
125 Sussex Drive
Ottawa ON K1A 0G2

E-mail address: extotteps@dfait-maeci.gc.ca
Telephone: (613) 944-2167 (Hot line)
Facsimile: (613) 944-2170
Web Page: http://www.dfait-maeci.gc.ca/~eicb/softwood/lumber-e.htm

 
 
Correspondence From at Home and Around the World 

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.

Agents

1. Colombo, Sri Lanka
2. Tema, Ghana
3. Voronezh, Russia
4. Santiago, Chile
5. Ilyichevsk, Ukraine
6. Vitoria, Spain
7. Karachi, Pakistan
8. Shanghai, China
9. Ecuador, S.A.
10. Cairo, Egypt
11. Brentwood, Essex, UK
12. Qingdao, China
13. Istanbul, Turkey
14. Lahore, Pakistan
15. Karachi, Pakistan
16. Cairo, Egypt
17. Viet Nam
18. Lahore, Pakistan
19. Fuzhou, China
20. Calcutta, India

Resumés

Should you be interested in any of the following job applicants, please contact the Secretariat for details.

1. New Zealander immigrating to Canada in June is seeking position in customer service/sales in the freight forwarding industry. Applicant has over 18 years experience in the industry.
2. Montrealer with B.Comm seeking entry level position in management information systems department. 
3. Ottawa applicant seeking position in sales & marketing and customer service in freight forwarding company. Five years experience in transportation industry in China.
4. Torontonian with 5 years experience in office administration and 5 years in retail business seeking position with freight forwarder.

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