Oh, what a year it's been! Not only for your Association, but also for the entire world. As globalization efforts continue, so do the protests fighting it. Free Trade with the United States of America does not seem to be as free as we originally envisioned it. As we speak, the U.S. has added crippling taxes on Canadian softwood imports and similar steps have been taken in the steel sector, more particularly affecting exports from the Far East and Europe. Argentina's economic system has collapsed completely and Venezuela has changed the Presidency twice within days through a coup and counter-coup. China has been admitted to the World Trade Organization and considering the size and power of this vast country, this new membership will have, undoubtedly, considerable impact on future relations in international trade. 

And whilst some 10 years ago we were all hopeful that geo-politics would lead the way to eco-politics, creating a new momentum for co-prosperity and cooperation, the recent occurrences in the Middle East are once again demonstrating that the world has yet to evolve enough to revel in that degree of maturity. On the economic side, the world has become more cynical about the potential for a socially responsible free market economy in light of the Enron/Andersen affair. How unfortunate and how tragic!

In the aftermath of 9/11 we have noted a considerable drop in air and sea volume that prompted capacity surplus further influencing rate deteriorations on the carrier side, sometimes to the point of economic suicide. The added security concerns have greatly impacted on costs and the smooth flow of goods and with it challenged our perceptions of just-in-time arrangements. 

Closer to home and our Association, we struggle with a whole new set of circumstances that will impact our industry. Thankfully, the implementation of AMPS has yet again been postponed and is now set for October 7th of this year. It appears that no industry sector - and this includes the public sector - is ready to face up to the administration and consequences of this new way of doing business. Whilst we all appreciate the concept of full conformance with the law, no allowance has been made for the human factor and, particularly, for the shortcomings of partners and exporters abroad: instances such as import overages or shortages, missing bar codes, shortcomings in import documentation et al come readily to mind. Up to now, members fully understood the need for compliance and immediately reported such shortcomings. Are they to be penalized for doing so in future? CIFFA, through its board member Don Lucky, is on the working group constituted by the CCRA and will continue to fight implementation in principle and, alternatively, for exclusions of unreasonable penalties. Similarly, we are closely monitoring the implementation of the CSA program, where for all practical purposes, our industry has been excluded from benefiting from this program! CIFFA has submitted its objection to this development and is in negotiation with the respective authorities.

On the maritime side, we have been exceptionally well championed by the total engagement and commitment of our Seafreight Chair, Tony Young. Dominating the agenda are two issues: The COGSA/CMI/UNCITRAL 'Preliminary Draft Instrument on the Carriage of Goods by Sea - Working Group on Transport Law' that is still wrestling with the familiar issues of cargo liability regimes and other highly complex and far reaching issues. Our Tony Young and Peter Jones have participated at this first meeting of the UNCITRAL Group in New York as representatives of our international organization FIATA, together with a delegate from BIFA, U.K. No final position will be formulated at this meeting which is intended primarily to inquire where clarity is needed, to offer views where these would contribute to the debate and to reserve the right to revert to any issue that requires further examination at the national level. 

The second most critical issue is that of maritime security where CIFFA is actively participating in meetings with Transport Canada and dialoguing with the Shipping Federation and the World Shipping Council in the USA. The dialogue is ongoing and details cannot yet be reported. 

On the air side, our Bill Gottlieb, Chair of the FIATA Airfreight Institute, is still wrestling with the issue of agency review, cargo security, policy issue tasks with IATA and dialogue with the various world regional organizations. He travels endlessly on behalf of our industry and we all owe him a great deal of thanks for dedicating so much free time to issues affecting all of us! At the same time, CIFFA's Airfreight Chair, John O'Brien is actively involved with the IATA/FIATA Working Group on the paperless Airwaybill and issues closer to home such as effective dialogue and cooperation with the airlines serving Canada. John, too, deserves our thanks for his tireless engagement on behalf of industry-related issues. 

These are just some highlights of a plethora of issues confronting your Association on a day-to-day and month-to-month basis. There is simply not enough space to allow for detailed reporting, but suffice to say that the Board and Secretariat are often barely able to keep up with all the issues and changes that confront us on an almost daily basis. But, whatever the strategy, it takes people to make it happen. And I can state without hesitation that this Association has an outstanding board, strategically focused, committed to long-term success, and supportive of the staff. And throughout this most challenging year, the staff rose to the challenge and devoted its energy to the Association's short and mid-term success. 

In this context and as already advised in Volume 54, No. 3 (July 01), the Executive, in cooperation with the Secretariat, has undertaken to develop a new Strategic Plan for the years to come. This plan will be circulated to all voting members for discussion during the upcoming AGM in Toronto on May 30, 2001. We urge you all to read up on it and attend the AGM for a lively and constructive dialogue. 

Yours sincerely, 

Paul Lobas, 
President CIFFA

Speakers Corner

What is the Future for Air Cargo Safety?

Written by William M. Gottlieb, Chairman of the FIATA Airfreight Institute and president of David Kirsch Forwarders Ltd., Dorval, Quebec

In the post-September 11 world, security has become the overriding priority in many of our daily activities - activities which only a few months ago we took for granted. And air cargo is no exception.

Carriers and forwarders have long been focused on ensuring safety in flight by extensive training in the handling of dangerous goods by air. Cargo security was one of many other factors in the transport equation.

But for forwarders who had well established working relationships with their clients, completion of most known shipper declarations were done on a yearly blanket form, when the carrier remembered to ask for it. Time definite products with acceptance only an hour or two before flight time, were marketed aggressively by carriers and forwarders alike.

Today, many of the time definite products have been removed from the market, known shipper declarations issued on a shipment-by-shipment basis are the norm and the proper completion of same is taken seriously by all. Carriers and forwarders are reexamining how we move cargo and the security considerations that impact on each link in the transport chain. This has resulted in increased awareness of whom the actual shipper is, and under whose care and custody goods are transported from shipper to the airport.

At the same time governments (who are charged with ensuring public safety and security) are reviewing established procedures in the light of increased risk scenarios. They are issuing interim directives, more clearly defining known shipper and the screening and handling of goods.

While we hope that there will never be another tragedy related to civil aviation, we all shudder when we hear of an aircraft crash. We say a prayer for those whose lives have been affected and give a sigh or relief when it is known that air cargo was not the cause.

Swiss Example

What is foreseen for the future depends on the ongoing governmental reviews, both at the national level and globally through ICAO. Since the Lockerbie tragedy in Scotland in 1988, various governments have adopted heightened security measures which include air cargo.
The best example can be found in Switzerland, with direct government involvement, administered by the Federal Office for Civil Aviation. It is this department that vets shippers and forwarders and confers "Known Consignor" or "Regulated Agent" status. Its regulations clearly spell out the responsibilities, under threat of criminal and civil penalties, of all parties, shipper, forwarder, haulier, warehouse and aircraft operator. It covers organization of company security, training, supervision, access control, cargo acceptance procedures as well as transport and delivery procedures. It also mandates the screening of cargo to the airport/ aircraft operators directly under government control.

Spiraling Premiums

What gives rise to concern is the third party liability, which forwarders can incur as a result of the degree they are involved in the security process. This liability is covered by the Rome Convention of 1952, (Convention on Damage caused by Foreign Aircraft to Third Parties on the Surface). Article 12 states: "lf the person who suffers damage proves that it was caused by a deliberate act or omission of the operator (airline), his servants or agents, done with intent to cause damage, the liability of the operator shall be unlimited". 

This has given rise to spiraling insurance premiums for "Regulated Agents" in the United Kingdom. Under the UK system, "Regulated Agents" vet shippers and screen cargo in their own facilities, allowing for internal control over the security process and by extension provided enhanced commercial services to their clients. Today, those same forwarders are reevaluating the benefits versus the risks of being a "Regulated Agent", with liability premiums being renewed at levels 200% to 400% higher than pre-September 11, and the potential increased risk of litigation in the event of an incident. 

Over the next weeks and months governments - with the assistance of industry - will work towards establishing credible regulations for civil aviation security. It is too early to determine if governments will accept their public duty and take direct control over security procedures, or look to private industry to shoulder this obligation. If it is the latter, authorities may well find that few commercial enterprises are able to accept such a responsibility.

Online Dangerous Goods Training

In conjunction with Channel Solutions, we now have available two Air Dangerous Goods training programs: General Awareness, and Warehouse. Each training program will take about one to one-and-a-half hours to complete, including the mandatory 15-question exam.

The General Awareness program is designed for the office staff of Freight Forwarders who do NOT require DETAILED information about Air Dangerous Goods. This program is for AWARENESS purposes only.

The Warehouse program is designed for the warehouse staff of Freight Forwarders who do NOT require DETAILED information about Air Dangerous Goods, but who physically handle the cargo. This program is also for AWARENESS purposes only.

Both programs meet the training requirements specified by IATA and Transport Canada, although neither program is IATA approved. Also note that these two training programs DO NOT meet your training obligations under the IATA Cargo Agency Resolution 801, 1.1.3, and is NOT designed to replace detailed classroom instruction required under that Resolution. Both of these On-line training programs will allow you to train more of your staff on Air Dangerous Goods in a more time and cost effective manner. The intent is to provide more Dangerous Goods awareness to your employees, which will in-turn make the carriage of cargo much more safer.

Even if your company does not carry Dangerous Goods, this training will help ensure your staff are better trained to recognize undeclared or mis-declared Dangerous Goods in your cargo.

Canadian law requires anyone who handles, offers for transport, or transports Dangerous Goods be trained, or under the direct supervision of a trained person. These two on-line programs will help you meet your training obligations under Canadian law.

To avoid any legal penalties (including fines and imprisonment) for non-compliance, register all of your staff on either of these two programs. It's quick, easy, and cost effective.

A Certificate of Training will be issued to each participant who successfully completes one of these two training programs and the subsequent exam.

See the CIFFA web site for more information on these training programs, or on the other Dangerous Goods training programs we offer:

http://www.ciffa.com/education.html

Cargo Insurance and LL/E&O Market for Forwarders has Withdrawn it's Welcome Mat

More and more underwriters, regardless of nationality, are less and less interested in the cargo and liability risk coverage for the freight forwarding business. This may well be as a result of the propensity of freight forwarders to take out in claims and advice more than they put in by way of premium. 

It is also as a result of mega-sized shippers that are so large that they can, more or less, impose higher burdens of responsibility on forwarders in exchange for awarding them their business. Many large shippers have marine cargo policies with deductibles of $1 million each accident. This means they would like someone else to carry any loss below that figure.

Already, large underwriters have opted out of this sector. The mighty Allianz in Germany, for example, no longer cares to participate in the Freight Forwarder's business. In the United States, freight specialist Intercargo folded. And at the TT Club, the word goes out that it is the forwarders who have done the most to drain $50 million (!) out of the Club's reserves in the last 3 years. In market after market the trend of opting out is repeated.

The future of this sector is in dire need of rethinking on the subject of deductibles, risk management, advisory services and much else. With a contracting insurance market, a pronounced reluctance to engage in underwriting cargo risks and liability, insurance premiums will rise exponentially with those willing to continue underwriting. It is thus critical for our Industry, and every single forwarding firm large or small, to engage in proactive and responsible risk management to avoid premium increases that may heavily affect the bottom line! 

CIFFA Website Survey

CIFFA has developed a Weekly Survey Question on our web site that has been running for several weeks. The response from our Members has been substantially less than we have anticipated. Without a greater response, it is very difficult for the Secretariat to accurately gauge the views and opinions of our Members. You, as a Member, directly help set the policies of CIFFA. 

We hope you will take the few seconds required to answer our Weekly Survey Question, each week. It is very important for you, as a Member, to participate in communicating with the Secretariat so that we can deliver the services you want. This is a very easy way for you to take an active role in your Association, and help steer the direction of CIFFA and our industry.

The survey incorporates three different themes: Membership Services, Professional Designation, and Education. A different question will be posed each week, to poll the views of our Members.

CIFFA is your Association, please take part in it.

Below are the results of the surveys to date.

April 15, 2002
How many years experience do you feel are required to become a "professional" in the International Freight Forwarding industry in Canada?
3-5 years 34.48% 
6-10 years 44.83%
11-15 years 10.34%
16 or more years 10.34%

April 8, 2002
Are you in favour of CIFFA creating a Professional Designation for International Freight Forwarders in Canada? 
Yes 91.30% 
No 8.70% 

April 2, 2002
How satisfied are you with the customer service level of the CIFFA Secretariat in Toronto? (Select one answer) 
Extremely satisfied 61.54% 
Satisfied 23.08% 
Not satisfied 0.00% 
Extremely not satisfied 15.38% 
Unknown 0.00%

March 25, 2002
How often do you contact the CIFFA Secretariat in Toronto? 
Weekly 22.22% 
Monthly 16.67% 
Quarterly 38.89% 
Yearly 0.00% 
Never 22.22%

March 18, 2002 
What Member services would you like CIFFA to add? 
Self-licensing of CIFFA Member companies 15.91% 
Self-licensing of individual Freight Forwarders 9.09% 
Bonding of CIFFA Member companies 9.09% 
Create a CIFFA Professional Designation for individual Freight 29.55% 
Increase the number of social events 6.82% 
Increase CIFFA's support of charities 9.09% 

March 11, 2002
Are you satisfied with the current services that CIFFA offers its Members? 
Yes 87.10% 
No 0.00% 
Unsure 3.23% 
Unknown what services CIFFA offers 9.68%

Air Cargo News

Contributed by Trevor J. Stebbing, VP., QCPS Air Cargo - YUL

New National Carrier For Switzerland (Update)

Swissair as of midnight March 30th, 2002 became no more. The new brand name of "SWISS" under the control of Crossair AG, headquartered in Basel, came into being. Initially the full name of the new carrier was announced as being "Swiss Air Lines Ltd" However, subject to the outcome of a vote being held on May 13th, 2002, it is likely to be "Swiss International Air Lines Ltd". If approved, the new name will take effect from July 01st, 2002 onwards. So, gone forever now are the "SR" prefixed flights and our 085 Air Waybills become a thing of the past.

Under the brand-name of SWISS, all previously Swissair SR flight numbers have changed to the Crossair prefix of LX. For shipments ex Montreal, Swiss's only direct lift, (excluding RFS of course) the flight number becomes LX 89 under Crossair Air Way bill Prefix of 724. All cargo tariffs & rate agreements will remain unchanged.

March 26th, 2002 SWISS signed an extensive code share agreement with American Airlines to include the following routes: Dallas Ft Worth to Zurich; New York JFK to Zurich.

SWISS will also place its code on American flights within North America, the Caribbean and Latin America.

AMERICAN will also place its code on Swiss flights beyond Zurich to points in Europe, Africa & the Middle East. 

New National Carrier or Carriers for Belgium?

DAT (Delta Air Transport), Sabena's former subsidiary and regional partner, announced in February its new name of SN Brussels Airlines. While showing a symbolic link to the past, (SN was Sabena Flight pre-fix) the new name reflects the new values and characteristics the company commits to build upon. The implementation of the new brand will be done gradually. It will happen in parallel with the launching of new services and product approaches.

Birdie Airlines will operate long haul services from Brussels to Africa on behalf of SN Brussels Airlines utilising Birdie Airlines, a new Belgium airline, with 3 ex Sabena leased Airbus A3303-300s, from Debis Air Finanace. 

SN Brussels Airlines will inaugurate service to Africa on April 26th, 2002. Flights will be operated by Birdie Airlines using 3 A330s in SN Brussels livery. 
With regard to Sabena's North American routes, another new "Belgium" Flag carrier has emerged. VG Airlines.

VG Airlines has acquired 3 former A330-200's ex Sabena and will soon commence services from Brussels to New York ( JFK ) followed by Brussels to Boston then Los Angeles with "other" North American, rumoured to be Montreal and Toronto, routes later in the year. 

VG Airlines and Armenian Airlines have signed a MOU for the cooperation on transatlantic services. The deal which is due to take effect no later than May 26th 2002 would cover 3 weekly flights from Yerevan to Los Angeles via Brussels operated by a VG Airlines Airbus A330-200.

Air Canada has inaugurated Boeing 767-300 service from Toronto to Madrid.

AC 836 YYZ 1735-0715/+1 MAD operating on Tuesday/Thursday (daily from May 14th, 2002)
AC 837 MAD 1400-1635 YYZ operating on Wednesday/Friday (daily from May 15th, 2002)

Starting June 13th, 2002 Air Canada will add seasonal daily non-stop service from Toronto to Dublin, Ireland with continuous service to Shannon and daily flights from Toronto to Amsterdam. Air Canada renews agreement with Canada Post

Air Canada and Canada Post Corporation have renewed their long standing cargo and passenger services contract.

The multi-million dollar contract that includes carriage of mail and corporate passenger travel has been extended for a further five years for domestic service, three years for transborder and international service and two years for corporate travel.

As the carrier for Canada Post's regular and premium service mail, Air Canada will carry over 35 million kilograms of mail.

"This agreement will continue to leverage the two global networks of our two companies, including service to Canada's most remote communities and destinations around the globe," said Claude Morin, vice president of cargo at Air Canada. "We look forward to working together with Canada Post to maximize advancements in information technology in both the postal and airline industries to provide enhanced customer service."

American Airlines to Begin Seasonal Summer Service

AMERICAN Airlines will begin daily non-stop service between Chicago and Vancouver, Canada on June 15 using 129-seat McDonnell-Douglas aircraft. The service will operate until September 30.

"This new flight will complement our service to western Canada," said Thomas Aichele, American's managing director for passenger sales in Chicago. "Many of our customers have asked for flights to Vancouver and Anchorage, Alaska, both of which will be starting on June 15." 
American also offers service to Vancouver from its newest mid-continent hub in St Louis as well as its hub in Dallas/Ft Worth. 
From Chicago, American also offers daily nonstop flights to Calgary, Ottawa, Toronto and Montreal.

Air North Airlines

Air North Airlines of the Yukon announced that is acquiring two Boeing 737-200 to initiate non-stop service linking Whitehorse with Edmonton and Calgary commencing June 03rd, 2002. The new route linking Alberta with Whitehorse will operate three days a week flying non-stop from Whitehorse to Calgary, then via Edmonton back to Whitehorse.

Air North Airlines will also initiate Boeing 737-200 as a Whitehorse-Vancouver route commencing June 3rd 2002. 
The Whitehorse-Vancouver route will also be operated three days a week. 

Air North Airlines is 25 years old and currently connects Whitehorse with both Juneau and Fairbanks Alaska, as well as Dawson City, Old Crow, and Inuvik. 

Alaska Airlines

April 28th, 2002 Alaska Airlines' inaugurated a seasonal, daily, non-stop service between Vancouver International Airport (YVR) and John Wayne Airport (SNA), Orange County, California utilising Boeing 737-700 aircraft. 

Aloha Airlines 

Aloha Airlines will begin daily non-stop service between Honolulu and Vancouver International Airport on June 15, 2002, using brand-new Stage 3 extended range Boeing 737-700s.

AirPlus Comet

AirPlus Comet of Spain has inaugurated weekly non-stop Malaga-Toronto on April 12th, 2002 utilising an Airbus A310-300s. AirPlus Comet is the first Spanish company to open up this important route that will shorten the distance between the two countries. The Friday Flight MPD 919 schedule is:-

Cathay Pacific 

Cathay Pacific Airways announced that it will reinstate a number of flights to North America that were suspended late last year in a measured response to improved market demand.

From 1 July, the airline's service from Vancouver to Hong Kong will rise from 11 to 14 flights a week B747-400.

Cargolux Increases Frequency

Cargolux has now added a second weekly Boeing 747-400 Freighter from Calgary to Luxembourg on Thursdays. The increase to two weekly flights is in response to the growing demand from the Western & Mid-Western community for main-deck cargo service to Europe and beyond within Cargolux extensive system. 

Tuesday's Flight CV 7732 departs at 01:20Hrs and routes to Luxembourg via Preswick, Scotland and Wednesday's Flight CV 7754 which departs at 01:45Hrs is direct to Luxembourg.

Effective 19th April, Cargolux applied a Fuel Surcharge of CAD 00.08 p/Kg on the actual weight ( 00.05 p/Kg on inbound ), in line with most other carriers. War risk remains at CAD 00.24 p/kg also based on actual weight. Cargolux does not levy a NavCan surcharge.

CONDOR Flugdienst GmbH

Condor Flugdienst GmbH (hereinafter Condor) successfully applied to the Canadian Transportation Agency to operate each of the following routes: 
Frankfurt to Whitehorse to Anchorage and return to Frankfurt
and Frankfurt to Whitehorse to Fairbanks and return to Frankfurt. 

Edelweiss Air

Switzerland's Kuoni Reisen AG will inaugurate a weekly Edelweiss Air service from Zurich to Calgary and Vancouver on July 02nd, 2002. This will be performed utilising an A330-200. 

Northwest Airlines

Northwest Airlines announced that it will begin offering new non-stop service between its Detroit hub and Calgary on July 1st, 2002. The new Detroit - Calgary service will be operated on a seasonal basis through September 2nd, 2002. Northwest will fly the route with the modern Airbus A319 aircraft.

From Calgary, Northwest currently offers two daily non-stops to Minneapolis/St. Paul, with a third non-stop to begin on June 7, 2002. 

Air Jamaica cargo moves into larger Miami facility

Air Jamaica has moved into a new and larger cargo facility at Miami International Airport as of April 15, thus able to greatly improve transit services for the North American market.
The new facility will provide 80,000 square feet of cold storage area, and 56,000 square feet of warehouse space, with 15 receiving and delivery doors.

Air Jamaica provides full freighter service from Miami to Jamaica on Tuesdays, Thursdays and Sundays, in addition to passenger flights to Montego Bay and Kingston, with connections to Barbados, St Lucia, Grand Cayman, Nassau, Curacao and Bonaire.

Calgary International Airport Named 
"Cargo Airport of the Year: North America" 

Calgary International Airport can now add “Cargo Airport of the Year: North America" to an already impressive list of international awards and recognition received previously for its passenger facility and service excellence.

In a ceremony held at the luxurious Le Meridien Grosvenor House Hotel in London, England, Air Cargo News announced Calgary International Airport as the first airport in North, Central and South America to receive this prestigious honour. This year's other winners include Hong Kong (Asia); Dubai (Middle East) and Frankfurt (Europe). 

The Calgary Airport Authority's Director of Cargo and Logistics, Stephan Poirier, accepted the award in London at a ceremony attended by over 1000 senior cargo executives from around the world.

Initiatives contributing to Calgary International Airport's growth in air cargo activity include:

• Cargolux B747-400 twice weekly freighter service to Europe

• Working with Federal authorities to obtain the required 
operating rights for freighters to operate in and out of Canada 

• Construction of three dedicated cargo aircraft parking "aprons"

• Investment in equipment for safer handling of large shipments 

•Construction of special animal handling facilities & 
equipment 

• Investment in on-airport serviced land for cargo handling, 
logistics and warehousing facilities 

• Dedicated cargo marketing & operational support personnel

Skytrax 2002 Airline of the year award 
(the World's largest passenger survey)

Airline of the Year 2002, is an independent survey undertaken by Skytrax Research of London, UK. It is the worlds' largest Passenger Survey, attracting over 4 million* nominations around the world between August 2001 and March 2002. 

Survey data, was gathered through Online Customer Surveys, Corporate Travel Questionnaires and Onboard / Airport consumer interviews. 

Top Rankings for Airline of the Year 2002: 

1. Emirates 
2. Cathay Pacific Airways 
3. Singapore Airlines 
4. British Airways 
5. Deutsche Lufthansa 
6. Continental Airlines 
7. Virgin Atlantic Airways 
8. American Airlines 
9. ANA All Nippon Airways 
10. Air Canada 

Further details are available on line at Website http://www.airlinequality.com

BAX Global offers MyRMA Online for Reverse Logistics

BAX Global's new web-enabled reverse logistics tool, MyRMA, is now online. BAX says the new application makes managing product returns simpler.

The new MyRMA service was designed to be an easy-to-use, real-time, scalable web-based solution that is more cost effective and offers more specialized features than customers can design and build on their own.

MyRMA was initially developed for Xerox Corp. Last year, Xerox came to BAX Global seeking a web-enabled service that could reduce the complexities, lower costs and better manage the returns of any office printers. BAX Global now manages Xerox Office Printing business returns using the MyRMA application.

The web-based tool is generic in nature, which allows new customers to be brought on quickly, and with no IT development costs, according to the company.

BAX Global expects significant demand for these services because of the user-friendliness of the system. 

By using MyRMA, companies are able to create a private, secure area where managers of product returns can input all returns, pickup and delivery information, serial numbers and other details, like special packaging, inside office pickup and delivery, recycling and disposal requirements.

The MyRMA feature offers instant tracking and tracing at the serial number level, improved accounting, billing and management reporting of returns.

Eastern Region 2002 Forwarders Choice Awards

The Canadian International Freight Forwarders Association (Eastern Region) hosted their third annual Forwarder's Choice Awards on February 21st 2002 at the Delta Centre-Ville Hotel in Montreal. The event was attended by 380 people. The Master of Ceremonies for the evening was Rachelle Anger, Regional Chair, of Quad City Port City Services Inc.

On Thursday February 21st, 2002 CIFFA's Eastern Region held it's third annual Forwarders Choice Awards. The gala evening was attended by an extensive variety of forwarders, carriers of all modes and representatives of related industry. 380 people shared a sumptuous 4-course meal, gracefully served " à l'escoffier '. The Montreal flair was certainly evident in all aspects of the evening, from the spectacular meal and décor to the elegant dinner music and onwards to the smooth flow of presentations. The 'pièce de résistance' was a fabulous dessert, created especially for the event by Chef Hervé Dumont of the Delta Centreville Hotel.

Suspense mounted as the categories were announced, the top nominees were called out, then 'drum roll'..... and the sealed envelopes were broken to reveal the winners. Each award presentation was accompanied by it's own special musical selection, particular to the geographical region covered by the award category. The music was so inviting that many people could not refrain from dancing to the beat while standing at their tables or in the aisles.

CIFFA Eastern Region wishes to thank all the sponsors for their generosity, without which the evening would not have been such an overwhelming success. The sponsors were: Canadian Sailings Primedia Information Inc.; Port of Montreal; Aéroports de Montréal; Exel Global Logistics (Canada) Inc; LCL Navigation Ltd; Cargo Alliance Ltd.; Ecu-Line Canada Inc.; Fritz Starber Inc.; Gillespie-Munro Inc.; King City Northway Forwarding Inc.; Martin Randolph & Associates; Milgram International Shipping; Quad City Port Services Inc. and Guy Tombs Ltd.

CIFFA would also like to thank the members of the organizing committee and their employers, as well as all the contributors to the finished product, who worked so diligently to make the awards evening a success. The organizing committee was: Rachelle Anger; Sylvie Bedard; Sandy Dallas; Sylvie Daigle; Cristina Dominguez; Glenn Green; Juerg Hertner; and John Paulini. Also, thanks go out to Marketing Distinctif; Centre Typo; SJS Consultants ; DJ T.J and the Felix Seider Sound Studio and AVD Audio Visual Dynamics.

Finally, but certainly not least, special thanks to all the many CIFFA member forwarders who participated in the voting process as well as to all those who attended this special evening.

Sea Cargo News

No Upturn for Ocean Rates

A report by Chris Dupin of JOC Online indicates that despite comments by some container carriers that freight rates are starting to firm, an influential monthly report on the industry predicts "that the summer will be a difficult time for the liner sector and that the light at the end of the tunnel hasn't even been switched on yet." 

American Marine Advisors and the Commonwealth Group say their widely followed index of containership charter rates rose about 1.5% in March, but is still about 39% below where it was at the same juncture in 2001. (See 'Speakers Corner, Page 13 in our February issues 'Too many ships and not enough cargo').

"As the year progresses we are seeing conflicting signs in the market place and also an unwillingness to face up to the future possible downturns occasioned by the massive over-ordering [of new vessels] of the past 24 months," the report states. 
"The good news and the bad news seem to come out almost simultaneously and send the most opposite of messages. Yet, on balance we would say the bad news does seem to dominate and urge the most cautious of forward views," it says. 

While a possible upswing in the U.S. is encouraging, AMA/Commonwealth says "the overall weakness in global trade appears to be continuing and this does seem to put significant pressure on the liner companies. The absence of a pick-up in the Japanese economy will continue to pose a serious threat to the immediate recovery of the liner sector." 
The report says "the continued absence of large vessel fixtures at a time when there is clearly a surplus of such tonnage brings home the true illiquid nature of the container markets. This is never more prevalent than in the post-panamax sector." 

Trans-Atlantic Lines Pull Capacity 

As a consequence of over-tonnage reported earlier, major carriers in the trans-Atlantic trade have reached a new space-sharing agreement that will result in one weekly string of ships being withdrawn from the trade. 

CP Ships said that in partnership with the Grand Alliance - NYK, OOCL, P&O Nedlloyd, and Hapag-Lloyd they have reached agreement with Cosco, "K" Line and Yang Ming to form the Atlantic Space Charter Agreement (ASCA). 

CP Ships is represented in the agreement by its Lykes Lines and TMM Lines brands. Since October 2000 it has been operating five joint weekly services in the United States East Coast/Gulf-North Europe trades with the Grand Alliance. 

"Conditions remain tough on the trans-Atlantic with no growth in the total trade westbound and a decline eastbound in 2001, so this is good news,'' said Ray Miles, the chief executive officer of CP Ships. "Indeed there is still scope for even more rationalization of capacity to bring supply in line with demand. Conditions remain pretty tough on the trans-Atlantic, but these developments we consider to be fairly good news for the carriers in the Atlantic, and not the least for ourselves." About half of CP's business is in the trans-Atlantic, although many of those ships make the Port of Montreal their exclusive port of call in North America. 

AP Moller (Maersk/Sealand) Reports Liner Losses

AP Moller's tankers and liners unit, which includes container shipping giant Maersk Sealand, has reported a US$38.9 million loss for the year 2001 as compared with a profit of $111.9 million the year before.

Net revenue for the group was $9.2 billion, a slight increase compared with $8.8 billion in 2000, whereas the result before gains on sale and special items in 2001 was $105 million compared with $304 million the year before.

Booming Cross-Straits Trade

In total contradiction to the never ending political stalemate played out between mainland China and Taiwan, the two entities have become more dependent on each other in terms of trade and economic co-operation report sources from the Ministry of Foreign Trade and Economic Co-operation (Moftec).

According to Xinhua News Agency, figures show that Taiwan is currently the mainland's fourth largest trade partner and second largest import market, while the mainland is Taiwan's third largest trade partner, second largest export market and fourth largest import market, with imports from Taiwan accounting for 12 per cent of the mainland's total annual imports.

It was disclosed that in 2001 alone, a total of 4,196 Taiwanese-funded businesses were established in mainland China, involving US$6.9 billion in contractual Taiwanese investment. By the end of 2001, mainland China had approved 50,838 Taiwanese-funded businesses, 13 per cent of China's total. These brought in US$54.73 billion in contractual Taiwanese investment, 7.3 per cent of China's total. It is reported that Taiwanese investment has shifted from labor-intensive industries to capital- and technology-intensive industries in recent years.

An International Wood Packaging Guideline has Been Adopted!

During the week of March 11 - 15, 2002, the International Plant Protection Convention (IPPC) met in Rome, Italy. The second draft of the wood packaging guideline was discussed in length by most of the member countries over the period of several days. One hundred and seventeen member countries had the opportunity to contribute their point-of-view and comments prior to the final adoption.

The final document, Guidelines For Regulating Wood Packaging Material in International Trade will be available in the next few weeks following translation into the 5 IPPC official languages. The CFIA Forestry Section website will also link to the approved guideline when available at IPPC website: www.ippc.int

A Brief Overview

The international guideline will operate similar to the current European Union import requirements for softwood wood packaging. Wood packaging must be treated in an approved manner and be marked to identify the country of origin and where and by whom the treatment occurred.

Two treatments have been approved: heat treatment (where the wood core reaches a thermal temperature of 56 0 C for a minimum of 30 minutes) and methyl bromide fumigation. Other treatments are under review but currently lack scientific verification.

The guideline will apply to both softwood (i.e., pine and spruce) and hardwood (i.e., oak and birch) wood packaging. New wood packaging, re-cycled wood packaging, dunnage and re-manufactured wood packaging must be constructed to meet the new guideline for use in export. The new guideline refers to the export of wood packaging products.

The CFIA Forestry Section webpage will be updated as the details of the new guideline are released. Implementation of the new guideline will occur on a country-by-country basis. The CFIA Listserv will update any official changes to export markets and implementation dates.

Canada's Position: In response to the adoption of the new guideline, Canada will update four separate policies.

1. D-98-08 and D-98-10; the Canadian import requirements for wood packaging will need to be modified to harmonize with the IPPC guideline. A draft of the revision has been completed and is currently under review by the CFIA Forestry Team. Once the draft has been finalized, the new import policy will be distributed to the Listserv members for further review and consultation.

2. D-01-05, the Canadian Wood Packaging Certification Program. This program is currently being updated by the CWPCP working group to include hardwood wood packaging, re-manufactured wood packaging, re-cycled wood packaging and dunnage. A draft copy of the new program should be available in the next few weeks following a review by the CWPCP working group. This draft will be sent forward to the Listserv membership for further review.

3. The Canadian Lumber Export Certification Program. This program is currently being updated to include a certification process for hardwood lumber companies. This program provides certified heat treated and kiln dried lumber products for wood packaging companies registered under the CWPCP. The first draft of the program has been completed and is currently under review by the CFIA Forestry Team. Once the draft is finalized, the new Canadian lumber export certification program will be distributed to the CWPCP Listserv members, an Industry target groups and other government agencies for further review and consultation.

4. The Canadian Fumigation Certification Program. This pilot program is new to both the CFIA and Industry. The initial program draft has been completed and is currently being reviewed by the CFIA Forestry Team. Under this program, fumigation companies will be certified by the CFIA to treat softwood and hardwood wood packaging products directly under the CWPCP. A draft of this program will be distributed to the Listserv membership, a targeted Industry group and other government agencies.

CP Ships Closes on $350m Credit Facility

CP Ships has closed on the remaining US$100 million of a $350 million secured five-year revolving credit facility announced in December last year.

The facility's lead arranger, Citibank NA, has placed the $100 million with five major banks. These are in addition to the eight banks participating in the $250 million first part of the facility, which was signed on December 20 last year. All 13 banks have extensive experience of lending to the shipping industry.

The facility will be used primarily to finance CP Ships' previously announced $800 million ship investment program.

The investment program, which continues as planned with deliveries of 10 new ships expected from mid-2002 to mid-2003, will replace chartered ships with more economic vessels specifically designed to match the requirements of CP Ships' regional trades.

Security Must Start Prior to Ship Loading 

As strongly advocated by our Seafreight Chair - Tony Young, security in transport must commence prior to ship's loading and at the port of departure. 'Knowing what is on board 96 hours before vessel arrival', Tony Young mused, 'is rather useless'.

It now appears that US Customs is catching on to this! They are closing in on an agreement to place agents at the Port of Rotterdam as part of a program to pre-screen containers bound for the US. The world's largest port would become the first of 10 ports to host US agents, pending final approval from the respective Governments. 

Rotterdam, being the largest transatlantic container port, was selected for a pilot project under the container security initiative. US Customs officials insist that the permanent presence of US agents in the port would not lead to more controls or delays in the transit of containers.

Track'n Locate Solutions

(A most relevant article glimpsed from the website of 'eyefortransport') (Author: Dershana Nair, Editor - i Space Transportation Online, Pinnacle Systems Inc. www.pinnacle-sys.com)

Whilst specifically addressing the North American trucking industry, the applicability and relevance to our Industry will quickly become apparent.)

Quote: 9/11 opened a veritable pandora's box of confusion and disruption to lives and existing commercial patterns. Witness the flurry of governmental and private sector initiatives to tighten up on security gaps and the resulting delays in smooth and on-time transport performance. 

The situation just confirmed that a passive "this too shall come to a pass" attitude can be disastrous to business. Proactive, technology aided response measures instituted by some of the major players prevented major long-term breakdowns due to infrastructure disruptions. The transportation industry, as did the rest, reeled under an unprecedented demand to proactively respond to an unanticipated crisis. 

UPS had to turn to an alternate mode of transport. Trucking was the major alternative and a spokesperson confirms the importance of tracking systems in dynamically establishing contact with drivers for optimal rerouting. Schneider National used an effective tracking architecture to keep mobile workforce updated on happenings and ensure their safety.

The company also proactively sent messages confirming employee safety to apprehensive families. Countrywide, companies aided their customer's track valuable shipments and dispatch offices prepared drivers on optimum event management. It saved millions of dollars and in the long run, precious customers! 

Tracking systems, hitherto offered as a customer service nicety, suddenly reached the pinnacle of its performance. This article objectively skims over issues, technologies and benefits, actual and envisaged, connected with an application that is forecast to grow by 59% through 2005! Read on… 

Trucking Sector - Status Quo & Problems: 

A study conducted by Prof. Alan Mc Kinnon of Heriot Watt University reveals that over 20% of vehicles on the road are empty and puts underutilized capacity at an alarming 40%. Annual losses amount to billions. One quarter of journey legs are reported to have an unscheduled delivery and 23% are supposedly held up by traffic congestion. As a consequence, survival depends on innovative ways to trim internal costs while increasing service levels. 

Problems plaguing the transportation 
sector at a glimpse:

• Capacity underutilization 
• Excess miles traveled 
• Increasing fuel costs 
• Escalating insurance costs 
• Driver shortage 
• Customer demands 
• Lack of resource control 

Agreed, uncontrolled variables cannot be prevented by technology. But it may behoove us to remember that virtually every fleet, regardless of size, wastes time and money as a result of inefficient operations. Traffic congestion can't be eradicated with technology. But it can definitely aid weave an optimal cost effective route, providing real-time identification of where vehicles are and where they are heading. Fleet managers can obtain full up to the minute congestion reports, incident and other traffic related information thereby able to save tens of billions of dollars across the industry.

The just-in-time practices of B2B and overnight delivery trends in B2C have increased the frequency and number of shipments. Ironically, this brings with it the associated evil of underutilized capacity to carriers. You can no longer wait for the truck to fill up! Technology aids optimal load planning, routing and rerouting for consolidated shipments and effective back haul co-ordination. It can be used to assign routes and drivers, as well as provide tracking information to customers and employers. Opportunities abound, if you know the right tools to improve operations and address shortfalls in planning and execution. 
Annual General Meeting 
Notice to Members

In accordance with the Association's By-Laws, Article V, Section 4, notice is hereby given of the 53rd Annual General Meeting of the Canadian International Freight Forwarders Association, the be held at the Mississauga Convention Centre, 75 Derry Rd. West, Mississauga, ON, Thursday, May 30th, 2002 from 15:00 - 18:00 hours. 

The National Board of Directors will present their annual Committee Reports, and the Treasurer will present his financial report. A proxy form is attached at the end of this Newsletter should the principal of the Regular Member Head Office be unable to attend this AGM.

The New UNCITRAL Multimodal Convention 
By Tony Young, Seafreight Chair

In 1980 the United Nations proposed the Geneva Convention for Multimodal Transport, which provided for a uniform liability limitation of 2.75 SDR per kilo or 920 SDR ($1,900.00) per package, whichever is greater, from door-to-door. It was a total failure because shipowners did not accept it. Last week, UNCITRAL concluded its first two-week session at the UN Headquarters in New York on its version of a proposed multimodal convention, and this time, the U.N. may actually succeed in getting the world to implement a comprehensive multimodal door-to-door transport law. Initially conceived with a mandate to unify and harmonize the plethora of existing sea carriage laws and to draft rules to accommodate e-commerce, the Draft Instrument nevertheless provides for a door-to-door scope of liablilty, presumably at the Hague-Visby levels of 2 SDR per kilo or 666.67 SDR ($1,400.00) per package, whichever is greater.

Of course, when one talks of door-to-door uniform liability, the immediate question that comes to mind is: what is wrong with the pesent door-to-door "network liability", which has been the pattern for most contracts of carriage from FIATA's UNCTAD/ICC Rules FBL to the typical ocean carrier's ICC Approved Combined Transport Bill of Lading since twenty years? Is there a need to fix it? According to the Comité Maritime International, yes; as otherwise, the United States might update its 1936 Cogsa unilaterally with its own multimodal 1999 Cogsa bill. So the CMI embarked upon a speedy drafting project, culminating with the presentation of its Draft Instrument to UNCITRAL in December of last year.

How will the Draft Instrument change existing Hague-Visby based maritime law? Some of the proposed changes are quite radical and controversial. Here is a listing of some of the advantages shippers will be getting:

1. Door-to-door uniform liability unless another international convention (such as CMR or COTIF) has precedence.

2. Responsibiity for loss and damage to extend beyond the contracting carrier to "performing parties" that actually performed the carriage.

3. Liability for delay.

4. Ocean carriers no longer to be entitled to the "error in navigation or mangement of ship" liability exemption.

As a counter balance, the following provisions are proposed for the benefit of the carriers:

1. Service contracts to be defined as charter parties and not subject to the convention, or alternatively, subject to the convention but freedom to contract zero-liability carriage in service contracts.

2. Vessel loading and discharge functions to be performed by the carrier as shipper's agent and therefore no liability for the carrier.

3. Carriers can contract out of liability on any inland or on-carriage segments of transport, as agents of the shipper under the co-called "mixed contracts of carriage".

At first glance, it appears one set of provisions negates the other, until one considers that the majority of contracts of carriage are actually entered into between shippers and intermediaries, i.e.: freight forwarders and NVOCCs. Intermediaries are not likely to enter into no-liability carriage agreements with shippers or "mixed contracts of carriage" - that is, not unless they want their business. Yet, in order to opearate successfully as a contracting carrier with space assurance and beneficial rates, they will more than likely have to accept no-liability service contracts with the big ocean carriers. Thus, the proposed multimodal convention will have the greatest financial impact on the freight forwarding and NVOCC industries. On the one hand, their liability will be door-to-door at 666.67 SDR ($1,400) per package while on the other, they will not be able to recover losses from the subcontracted ocean carrier due to the no-liability service contract and only up to a limited amount ($2.00/lb.) from the inland carriers.

The proposed new multimodal convention will be a savings bonanza for the shipowners' P&I Clubs as well as higher recovery amounts for shippers and cargo insurance underwriters. So how will this change in risk allocation be financed? From freight forwarders and NVOCCs' legal liability insurance, of course. If they can get any, that is. With such a large undertaking of unrecoverable costs, it will be interesting to see how many of the 40,000 freight forwarders and NVOCCs around the world will be able to afford the new liability burden under the new UNCITRAL convention. For many of them, door-to-door may turn out to be just that: Looking for a new job from door to door.

So what is our industry to do? As far as Canada is concerned, we are pretty much safe as Transport Canada has told the Seafreight Chair that a uniform liability convention is a "non-starter" for Canada. This country will not likely adopt it. But what about other countries that may adopt it? After all, we rely on foreign partners to do business. That could be trouble and we must rely on FIATA, one of the four NGOs being consulted by UNCITRAL to protect the interests of the freight forwarding industry worldwide. If enough countries reject the proposed convention, it will be out the UN door along with the 1980 Convention. Let us hope for door-to-door to remain from our home to our office. 

Call for Regular Member Directors to the National Board of Directors

CIFFA is now calling on regular members for nominations to the National Board of Directors. The length of the term is for two years. According to the Association By Laws, Article V, Section 5, a nominating committee has been formed and is chaired by Mr. Christopher Gillespie, President & CEO, Gillespie-Munro Inc. of Montreal, Telephone (514) 871-1033 or (800) 501-1770, Fax (514) 871-2186, e-mail: c-gill@gmunro.ca

Any regular member interested in submitting their name to become a Director on the National Board, must submit their interest to the Nominating Chair as listed above. The nomination must outline the name, position/profile and company affiliation and be accompanied by five sponsoring signatures of current regular members of CIFFA.

As per by-laws, members must submit their nominations to the Committee or the CIFFA Secretariat by May 15, 2002 which is no later than two weeks before the annual general meeting.

The CIFFA Annual General Meeting is to be held at the Mississauga Convention Centre, 75 Derry Road (at Highway 10), Mississauga on Thursday, May 30, 2002 at 15:00 hours.

Proposed Increase in Membership Fees
Accordingly to the Association by laws Article III, Sections 1 & 3, notice is hereby given that the following proposed increase in membership fees will be tabled at the upcoming Annual General Meeting. Please be prepared to vote on this matter.

REGULAR Current Proposed
1 office in 1 province $ 685.00 $ 755.00
Offices in 2 provinces $ 950.00 $1,045.00
Offices in 3 provinces $1,200.00 $1,320.00
Offices in 4 or more provinces $1,400.00 $1,540.00
Subsidiary company $ 250.00 $ 275.00
Additional subsidiary offices $ 50.00 $ 55.00
ASSOCIATE $ 500.00 $ 550.00
Digital Advertising Opportunity at CIFFA Forwarders Choice Awards Gala Dinner - May 30, 2002

During the Forwarders Choice Awards/AGM Gala we will be using a 10 X 12 foot rear projection digital display to indicate sponsors for the event and winners of the Forwarders Choice Awards. We are also providing an opportunity for companies to advertise using this medium.

Companies forwarding a single slide (i.e. Microsoft Power Point) will be on screen for 15 seconds at a time. These digital advertisers will be on a continuous loop throughout the dinner and awards portion of the evening.

The instructions are simple: 

1. Forward an acknowledgement to marilynm@ciffa.com
Indicate your company name, phone number and full address. An Invoice will be sent to you for $200.00 plus GST. 

2. Create a Power Point slide. 
It can be as simple as a single image (i.e. company logo and slogan) 
If you do not have custom animation, don't worry about timing, we will set the transition time. You may want to convert any text to curves to ensure that the proper font is used. 

3. Forward the file to Rino Muzzin at rino@palmermuzzin.com by Monday May 13, 2002. If there are any problems, you will be notified. If you do not know how to produce a Power point slide please contact Rino for a quotation. If you have any questions, feel free to call Rino at (905) 672-6282.

Young Freight Forwarder of the Year Award - 2002

FIATA has reported that 14 candidates from around the world have applied for this year's award. For the first time representatives from Canada, Egypt and New Zealand will take part in this contest.

This year's topic relates to "Safety of cargo in international transport". CIFFA wishes the Canadian candidate, Roger Matchett of OEC, Ottawa, good luck with his submission.

Prizes included in this award are:

• Attendance at FIATA World Congress to be presented with a Certificate and a trophy.

• Two weeks' practical experience of transport infrastructure (multimodal) which is likely to include visits to container terminals, airfreight terminals, ports, surveyors' offices, etc. based in one of the three TT Club regional centres (Hong Kong, London or New Jersey).

• One week's training on Legal and Insurance Aspects of Transport (classroom based training organised by the TT Club) held in London.

• One week's training on air cargo provided by IATA. This training will normally be in the nearest IATA training location to the home-town of the winner.

• One year's free subscription to International Transport Journal in English, French or German.

EU Approves Acquisition of Brambles' Rail Logistics


The European Commission has approved the acquisition of the European rail logistics activities of the Australian Brambles Group by Hapag-Lloyd and VTG-Lehnkering in co-operation with the bankers MM Warburg & CO.

As the largest private partner of European railways and shippers, HAPAG-Lloyd/VTG Lehnkering will commence to consistently aim at promoting rail as a competitive means of transport, in the interests of efficient freight transport. 

VTG-Lehnkering, which belongs to the Hapag-Lloyd group, is one of the main private suppliers of rail logistics services throughout Europe. Its wagon segment for rail tank and bulk freight car hire comprises close on 40,000 units, as well as 8,000 freight cars managed via the Transwaggon group.
"With this strategic acquisition, VTG-Lehnkering has set the standard for supplying a holistic range of rail services. We offer our demanding customers in Europe added value in service, as well as depth of services and transparency," said Hartmut Luhr, a member of the executive board of VTG-Lehnkering AG and responsible for the rail and tank container logistics business unit.

Impressive Figures at Cargolux 

The Luxembourg-based freight carrier Cargolux International Airlines closed the 2001 year with a profit despite the woes that befell the industry at large. Apparently it profited from a reduction in belly-space capacity (reduction in frequency) by regular passenger airlines after 9/11.

Cargolux announced a profit of USD 15.4 million for 2001 at its annual press conference. This result was attained despite a reduction in operating profits by 38.25% and a small shrinking in gross revenues by 1.75% to USD 731.1 million. These are indeed proud results considering a year that was marred by a worldwide recession and the events of 9/11.

For Cargolux, the year started with an exceptionally strong first Quarter that was followed by a sharp drop in activity beginning with April last year. The following five months were then dominated by declining load factors and yields, as well as high fuel prices. However, the subsequent reduction of belly space capacity after 9/11 by passenger carriers had a positive impact on the last Quarter of the year for the all-cargo carrier. 

Also, Cargolux made numerous network adjustments last year to improve its services. The company added destinations such as Calgary / Alberta, Baku / Azerbaijan and Manila / Philippines to its schedule. It increased frequency to Portland / Oregon and Shanghai / China as well as to Johannesburg / South Africa. Also the Middle East saw an increase in network services by Cargolux. The company also gained new or enhanced slot access in some places such as Hong Kong where it acquired fifth freedom rights and benefited from open sky treaties with Malaysia and Chile. 
The carrier has added another B747-400 and today employs some 11 B737-400 freighters and 20 road haulage contractors to move their cargo between 91 destinations, 49 of which are served by air and 42 by road! A further B747-400 is expected to be added by autumn of this year increasing fleet capacity by another 9%. It is anticipated that the carrier will add further destinations to the existing network in the new year and Toronto may conceivably be one of the airports added to the ever-expanding network. 

CIFFA Education and DG Courses Registered Under Bill C 90

Due to former misunderstandings about the tax deductibility of any fees paid for CIFFA sponsored education courses, CIFFA has decided to apply for proper registration independent of the learning institutes used to deliver our various courses. 

As a consequence, CIFFA is now registered directly with the Ministere du Revenue, Quebec as a recognized education institution under Registration Number 02-03-2703. All future receipts issued by CIFFA for Quebec based training will now carry this number.

Locating & Tracing Applications - Panacea? 

Routing & tracking systems ensure real paybacks on investment. Soundly used, these applications can be the cure all for most carrier related evils! A quick run through of benefits reveal: 

• In transit fleet management - Real time updates on carrier progress and location for better fleet management. 

• Easily pinpoint delivery problems - Control over the entire pipeline process to proactively identify and rectify shipment delays. 

• Reduce cost of shipment tracking - Traditional methods of communication between mobile workforce and dispatch office incurred enormous bills in the form of faxes/phones/EDI. 

• Performance monitoring - driver performance, fuel economy 

• Dynamic Routing - Trucks can be dynamically rerouted to accommodate unexpected shipment additions. 

• Better exception management - Real time route engineer - mobile workforce communication aids in better order/exception management strategies. 

• Cargo safety - 85% of cargo losses happen in transit. Definitely preventable. 

• Customer satisfaction - Provide proactive 24x7 shipment visibility to clients. 

Streamline processes, improve bottom line... 

• Empowering Dispatch
Tracking systems double as effective dispatch-optimizing tools. It fine-tunes the entire task allotment to execution process through mitigating communication fallouts between the fleet management staff and actual executors, the drivers. It helps the route manager (dispatcher) make faster, more effective business decisions. Asset visualization is very effective in reducing costs. Optimize route planning in order to eliminate deadhead runs or partially filled trailers. It adds velocity to the scheduling process and real time driver communication ensures faster transmission of job orders and in- transit fleet tracking. It also keeps the dispatcher updated on shipment status information for better process monitoring. It allows the dispatcher communicate schedule revisions to the mobile staff making possible dynamic rerouting for better exception management or unprecedented shipment additions/deletions. 

• Real Time Vital information to the Driver
The driver using a satellite link can enter the arrival time at each stop, which is then reflected on the Internet screens. And the drivers can also drill down and see all of the different commodities that are being delivered at that stop. This is important because when talking about flat bed trucks, there are different rules in terms of what products can be stacked with other products. Route engineers can send optimized routes to the driver. Ability to generate a route through unfamiliar city is of great benefit to both new and experienced drivers. 

• In Warehouses & Distribution Centers
When deployed in a warehouse or DC, the real time locating system expands the percentage of usable storage area by eliminating the need to allocate bin or rack space to individual cartons. As a wireless alternative for asset management and job order tracking the system helps in reducing tools losses and supplying up to the minute information on job status and delivery. Tracking misplaced equipment saves considerable costs involved in replacement purchases. Wireless locating systems proactively keep Warehouses/Distribution Centers informed on en route shipments paving way for optimal personnel allocation for loading/unloading operations. This prevents considerable time lags. 

• Yard Management
Real time locating systems considerably facilitate yard management requirements. It streamlines the function of managing the contents (inventory) of trailers parked outside the warehouse. The system tracks the movement and location of trailers; tractors and customers have access to yard information. It increases yard throughput, improves loading door utilization, reduce demurrage costs, monitor for unauthorized trailer movements and improve the overall efficiency of yard. Yard management is generally associated with cross docking operations and may include the management of both inbound and outbound trailers. Real time location of time critical equipment prevents problems of late departure. It makes sure that assets are moving when they should and static when they ought! 

• Optimum Fuel-Efficient Routing
Small business truckers represent about 80% of the motor carrier industry and any increase in fuel costs can potentially translate into business failures as they are not always in able to demand fuel surcharges from shippers. Tracking systems go a long way in optimum route planning for fuel efficiency. Moreover increased capacity utilization and dynamic rerouting for unscheduled en-route pick ups saves precious dollars spent on fuel. 

• Cargo Security
Every year companies lose over $ 50 billion a year by way of cargo thefts. (Refer to the article of underwriter's reluctance to continue activity in the freight industry.) The National Security Council notes that 85% of these losses happen in transit! Tracking systems can play a major role in preventing both fleet and cargo thefts. 

Hail the customer 
- Give him more of the control harness! 

"Shippers are concerned with the reliability and consistency of freight movement and not necessarily with the quickest movement possible," warns a Bear Stearns report. A KPMG study that quizzed customers on their expectations from carriers put tracking and tracing solutions at the top of the most wanted list. Both the B2B & B2C contenders have realized that a pro-customer approach is the only lifeline to corporate survival. To the transportation service provider this approach is translated as moving orders rapidly and accurately out of the stock unit, onto a truck and delivering it on time to the client doorstep. 

Tracking systems go a long way in catering to the growing consumer interest in periodically checking the shipment status. It is estimated that B2C customers, on average, do 7 status checks per shipment! 

Moreover, it makes possible proactive rerouting for better exception management. It allows keeping track of a shipment throughout the supply pipeline and affords to dynamically reroute, or even palletize, shipments for multi-location deliveries. 

Facilitating Technologies. 
A glimpse into technologies that make possible Locating and Tracking systems: 

• RTLS
Real Time Locating Systems uses radio frequency technology, along with specialized software, to track assets within a confined area. It includes position information for real time monitoring. The assets that require to be monitored are filled with a wireless electronic tag that gives out a unique tracking signal. By continuously monitoring signals from tags, the RTLS system can locate items, providing managers with a real-time picture of supply chain movement, asset location and work. 

Better inventory management by reducing the time required to process inventory when picking or cross docking items for shipment, keeps workers at their stations doing what they were hired to do and thus improves customer service, cuts the cost of lost inventory and keeps labor costs in line with budgets. RTLS also helps track assets, tools and equipment and can be used to trace misplaced equipment. 

• RFID
Radio Frequency Identification is best used for inventory identification and reports on 'last-seen' location of assets. RTLS scores over conventional RFID by rendering location information of valuable assets and inventory at all times. RFID falls short when it comes to finding the real location of inventory and assets; that's where a real-time location system (RTLS) can make a significant impact on the bottom line. 

• The Internet Technologies
The Internet has opened up a low cost, hassle free environment to essential data exchange when compared to conventional EDI that demands more in terms of budget and manpower. The promise is to reduce labour, phone and fax costs. It opens a two-way communication channel between the dispatch office and a mobile workforce for better order management and on time deliveries. It also provides drivers with drill down access to vital commodity information. This especially holds up in flat beds, governed by strict norms product consolidation. 

• GPS
GPS forms the backbone of all long distance fleet location needs. GPS systems are being widely used to track anything that moves. Freight companies use it to track across the country. GPS data relayed by satellites from moving trains and trucks help dispatchers track freight as it moves across the country, thereby enabling customers to plan for deliveries with precision. This system also greatly helps reduce theft of valuable freight. GPS allows for better planning and efficiency. The technology, developed for the military, allows real time tracking of in transit fleet equipped with receivers. 

An independent study conducted by Michigan University revealed that truckers with GPS drove 10% fewer miles but made 16% more money than truckers without it. GPS, however, is not suitable for indoor tracking. Moreover, by virtue of its chip complexity and power consumption, GPS is not a cost effective way to tracking thousands of assets that are dormant for most part, as in a warehouse.

Press Releases

ICECORP International Cargo Express Expands in Vancouver

ICECORP International Cargo Express is pleased to announce the acquisition of THL International Forwarding of Vancouver, B.C.

THL was started by Erling Hecht in 1989 and offers customized transportation and logistics services for large projects, heavy equipment moves and general exports. We welcome Erling and his staff to the Icecorp Group.

KN Opens New Mexico Facility

As a result of growing business demand for contract logistics and supply chain management solutions, K&N is opening a new logistics center in Guadalajara/Jalisco, Mexico's "Silicon Valley".

K&N's "vendor managed inventory services", which are supported by a web-enabled warehouse management system, form an integral part of the service offerings available to local and international customers.

This comes as a result of the acquisition of USCO Logistics and VIA Virtual Integration Associates Inc. The new logistics center is equipped with all standard security features, as well as a temperature-controlled area of 400 square meters for temperature sensitive products

Events

1. National Marine Conference, May 26 & 27, 2002, Westin Harbour Castle, Toronto, ON, tel. 1866-592-7929,email: marine.conf.maritime@primestrategies.ca

2. National Round Table on the Environment & the Economy Conference, June 19, 2002, Congress Center, Ottawa, ON, tel. (613) 992-7189, email: admin@nrtee-trnee.ca

3. TOC 2002 Europe Conference, June 11-13, 2002, Bouwcentrum, Antwerp, Belgium, tel. (44-20) 7553-1439, email: michelle.fisk@informa.com

4. Iran Transit 2002 Forum, June 111-12, 2002, Tehran, Iran, tel. (98-21) 270-7954, email: info@irantransit.com

Just for Laughs!

If you think you are quirk-free, consider whether you indulge in any of these common idiosyncrasies:

- Refuse to take the top newspaper from a newsstand
- Insist on a certain side of the bed
- Make sure the smallest denominations of bills are on the outside
- Wait for the telephone to ring at least twice before answering
- Follow strict rules about squeezing toothpaste
- Weight yourself only first thing in the morning, stark naked
- Have jars filled with pennies that you never roll
- Keep your watch five minutes fast you're never late

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. Brazilian moving to Canada requires position. Four years sales experience, two with steamship lines. 

2. French student looking for a 3 month job placement in Operations Management in Production Engineering or Logistics.

3. Torontonian seeking position in freight forwarding with 7 years experience in the industry.

4. French student looking for a 3 month job placement in International Business including Logistics, prefers Vancouver area.

5. French student looking for a 3 month job placement in International Business.

6. Calgarian looking for a position in transportation with 8 years experience in industry with Kazakhstani forwarder.

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. Shanghai
2. Chennai, South India
3. Lagos, Nigeria
4. Karachi, Pakistan
5. Dhaka, India
6. Tirupur, India
7. Gazipur, Bangladesh
8. Channai, India
9. Mumbai, India
10. Karachi, India
11. China
12. Ghana
13. Karachi, Pakistan
14. Mashhad, Iran
15. Valparaiso, Chile
16. Karachi, Pakistan
17. Lahore, Pakistan
18. Lahore/Karachi, India
19. USA
20. Mumbai, India
21. Cairo, Egypt
22. Guangzhou, China
23. Karachi, Pakistan
24. Hochiminh City, Vietnam
25. Istanbul, Turkey
26. Colombo, Sri Lanka
27. Egypt
28. Istanbul, Turkey
29. Bombay, India

2002 - CIFFA Directory Advertising & Updates

The Membership Directory will be distributed to over 2000 companies including Regular and Associate members in addition to various government offices, associations, all advertisers, FIATA member associations and all Canadian foreign trade missions.

Direct your enquiries to our Secretary-Manager:

Mrs. / Mme Marilyn Massoud
1243 Islington Avenue, Suite 706
Toronto, Ontario M8X 1Y9
Tel.: (416) 234-5100 ext. 222
Fax: (416) 234-5152
Email: admin@ciffa.com

Le Répertorie des membres sera distribué à plus de 2000 compagnies, dont toutes les compagnies membres agréés et affiliés, divers organismes gouvernementaux et associations, tous les announceurs, les associations membres de la FIATA et les délégations commerciales canadiennes à l'étranger.

Toute demande devrait être addressée à notre secrétaire-responsable, Marilyn Massoud.

MECHANICAL SIZES AND COSTS / DIMENSIONS ET COÛTS

WIDTH HEIGHT
LARGEUR HAUTEUR 

Outside back cover *
Extérieur de couverture 7-3/4" 10" 1150 

Inside covers (2) *
Intérieur de 
couvertures (2) 7-3/4" 10" 950

Full page
Page compléte 8-3/4" 11-3/4" 750

Half page (horizontal)
Demi-page (horizontale) 7-1/4" 5" 375

Half page (vertical)
Demi-page (verticale) 3-5/8" 10" 375

One-quarter page
Quart de page 3-5/8" 5" 210

COLOUR ADS / ANNONCES EN COULEURS

• Add $190/colour - $345/4-colour 
• Ajouter 190 $/coleur - 345 $/4 coloeurs
• Prices subject to 7% GST in Canada. 
• On doit ajouter au prix, la TPS de 7% au Canada.

All prices are based on digital art being provided. 
Set up charges will be charged if applicable.

Prix valables lorsque les illustrations sont fournies sous format électronique. Des frais de mise en page seront facturés selon le cas.

* Current advertisers have first right of refusal.

Deadline for Insertion Order: June 10, 2002
Deadline for Artwork: July 02, 2002

ONLY acceptable Mac or PC Formats: QuarkXPress; Adobe Illustrator; CorelDraw!; Adobe PhotoShop
Contact CIFFA for more details.