The National Board of Directors will present their annual Committee Reports, and the Treasurer will present his financial report. In accordance with Article IV, Section 11, a Proxy form will be mailed to all regular members with proposed amendments to the By- Laws at least 14 days prior to the Annual General Meeting for those who cannot attend. Proxies shall be presented to the Chairman of the AGM, not later than 15:00 hours on the day of the AGM, April 6, 2000. There is ONE vote per regular member company by it's designated representative.

Also in accordance with Article V, Section 6, a Nominating Committee was struck and H.J. (George) Kuhn, Executive Director CIFFA was designated its Chairman. Nominations to the National Board, sponsored by 5 regular members, must be submitted to the Chair not later than one month (March 6, 2000) before the date of the annual meeting.

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Mr. Ron Willis, the Chairman of the Working Group, took significant exception to our reaction by emphasizing that at no time did he make such remarks. In view of the fact that these comments were never made by him, which The International Transport Journal subsequently confirmed, Mr. Willis' grief was more than justifiable.

In consequence, CIFFA and the editor of The Forwarder sincerely and deeply regret their remarks directed at Mr. Willis and apologize to him for any perceived attack upon his reputation. Furthermore, the Secretariat of FIATA has advised us of various inaccuracies in our article especially as regards to correct protocol, timing and the workings of the FIATA working group that have been acknowledged.

CIFFA equally wishes to express its regrets to FIATA and add that its actions and reactions are motivated by the same interests and principles as those of FIATA. Although we may take different paths, we all hope to reach the same destination!

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John O'Brien,
Director National Sales & Logistics Development
Fritz Starber Inc., Mississauga/Toronto

Joe Kachami, President
KB Forwarders Ltd., Montreal

Hans Pittinger, President
Hellmann Worldwide Logistics Inc., Mississauga/Toronto

Directors continuing in their present term are: Paul Lobas, ITN International Corp., Calgary, Tony Young, LCL Navigation Ltd., Toronto, Peter Jones, Patterson, McDougall, Toronto, Werner Herding, Panalpina Inc., Toronto, Robert Walker, Carson International, Dorval/ Montreal, Norman Loiseau, Canada Maritime Agency, Montreal, Don Lucky, Cole Freight Inc., Calgary, Jerry Giroux, Eastern Maritime Underwriters Inc., Toronto.

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VIRTUAL PROJECT LOGISTICS TEAM, is to form a group of companies, (the Team), with the resources already in place globally to service the project. This option takes advantage of current global networks, resources and expertise that can be integrated at short notice to the desired level of input. With Canadian and US companies expanding their global out-reach from traditional trading nations, to purchasing from, and selling to, non traditional markets, the need for an independent inspection, testing and certification company is considered to be an essential component, to act as your eyes and ears, until the goods arrive safely and all payments have been made.

The Team needs to establish the controls that should be put in place between the manufacturing facility and the final THE VIRTUAL PROJECT LOGISTICS SUPPORT TEAM : PROFITABLE ADVANTAGE Rob Morris P. Eng., General Manager, SGS Canada Inc. destination of the goods. These controls include the need for establishing milestones, transfer of ownership controls, due diligence to reduce risks, the need for identification of order, specification compliance and a mechanism for dispute resolution. The role of the Independent Inspection, Testing and Certification Company is to witness and record that the required milestones and controls have been met and are working. Satisfactorily or otherwise, completion at each stage requires communication to the necessary parties in an efficient and cost- effective manner. Production of these records at key points in the trading cycle can transfer liability, trigger financial transfers to take place, and should any damage or loss occur, assist in identifying where the anomaly occurred and in the process facilitate a mutually agreed resolution. The buyer, seller, financial institution, insurance company or logistics provider may collectively or independently request the services of an independent inspection, testing or certification company. The Independent Inspection, Testing and Certification Company is the ªcommon linkº, at the interfaces between each party reducing the potential for gaps in procedures. Each necessary event is witnessed and recorded for contractual compliance or just to enhance their level of confidence. Innovation is a never-ending challenge as companies strive for an advantage. Innovative financing options for projects continue to be dynamic with new monitoring and risk management control requirements attached. All the ªVirtual Logistics Support Teamº members need to be able to adapt quickly in this changing environment. The SGS Group provides global services and local solutions in more than 140 countries. Founded in 1878, SGS initially specialized in controlling grain shipments. Today, the SGS group is unique thanks to its worldwide geographical coverage and the broad range of its services. The core activities of the SGS Group include inspection and monitoring services for international trade in agricultural and mineral products, petroleum and petrochemicals, industrial equipment and consumer goods.

SGS has built its reputation on a commitment to quality and confidentiality. SGS is dedicated to its independence as a guarantee of its total impartiality and as such does not engage in any manufacturing, trading and financial activities which might compromise its neutrality. The prime objective of SGS is to assist in minimizing risks and provide assessment, verification and advice of an independent nature. Global services can only work through local know- how. SGS experts around the world are indigenous to the area in which they work. They speak the local language and are familiar with local conditions, business practices and traditions. The SGS ªsingle sourceº solutions brings people of different backgrounds and skills to work together by contributing their specific expertise. Through this ªsingle sourceº SGS aims to add value by operating as your eyes and ears around the globe, enabling clients to operate in a simpler, more efficient, more cost effective and a more secure way, in every business sector.

Contact: Rob Morris, SGS Canada Inc.,

5925 Airport Road, Suite 300, Mississauga,
Ontario, L4V 1W1
Tel: 905-676-9595, Fax: 905-676 - 8391
Email: rmorris@sgsgroup.com
Website: www.sgs.ca

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USDA's Animal and Plant Health Inspection Service, in co-operation with their Canadian counterparts, recently HAVOC WREAKED BY THE ASIAN LONGHORN BEETLE completed an environmental assessment that has looked at ways to protect North American trees from these insects. The agency is also planning field tests of various insecticides and methods in spring of this year. It is hoped that an effective insecticide can be found to eradicate these unwelcome insects. Proof positive, we would say, that fumigation and control requirements implemented by the Canadian Food Inspection Agency (Memo D-98-10) have been well founded. It is only hoped that this plague can be contained before it spreads its ugly wings!

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For the first time ever, IATA and CIFFA are bringing together key decision makers, cargo professionals and managers for five intensive days of concentrated decision making on issues, strategies and directions facing carriers, cargo agents, freight forwarders, service and facility providers.

This will be a week of high excitement, packing an incredible array of current topics in seminars, workshops, symposia and other venues of communication presented by an array of national and international experts, movers and shakers. It is further spiced with a good amount of networking potential through receptions, luncheons, exhibitions and a gala dinner.

Whilst Monday is reserved for arrival and leisure activities including a Golf Tournament, Tuesday through Friday are working days where the immense amount of change we all have experienced is being discussed. Change, after all, appears to be the only constant in this rapidly and ever changing environment.

Tuesday is Workshop Day with a series of workshops dealing with the Internet in business, E- commerce and EDI and how our industry is coping with it, can take advantage of it and effectively employ strategies to maximize return on investment. Wednesday is Symposium Day with presentations and discussions that will address new commercial relationships, alliances, mergers, new transport technologies and the future of cargo distribution networks. The day is further spiced with an address on Leadership issues in the 3rd Millennium.

Thursday morning (including Lunch) and Friday morning are Specialty Days and will include two half- day sessions that will tackle recent developments and trends in the Postal World, cargo security matters, postal reform, harmonization of Cargo System Standards, trends in regulation and efforts towards deregulation, harmonization and standardization on a global basis.

In addition to four days of focus on Cargo issues, passport holders are eligible to attend the exhibition, key note speaker luncheons on Wednesday and Thursday, confirmed receptions and the Gala Dinner on Thursday. The passport is transferable which will permit other people to attend certain functions that cannot be attended by the principal holder of the passport.

The number of passports to be issued is limited! So as to avoid disappointment we strongly recommend early registration. Please visit our website at www.cargoweek.com for direct registration.

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1243 Islington Avenue, Suite 706,
Etobicoke, Ontario M8X 1Y9

In future, please send all your mail to this address as the post office box will be cancelled.

As is usual today, we cannot yet confirm the new phone and fax numbers and will have to wait until the system is installed. As soon as the permanent numbers are available we will communicate same to you by electronic message. Also our website will have the new numbers posted as quickly as possible. We are excited about the new premises as they will allow to better serve our membership and encourage you to visit us once the move has been completed.

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John Hartnett, air cargo consultant and until September, project director for air cargo facilitation group Cargo 2000, tells a story that be believes illustrates perfectly what is wrong with the traditional air cargo industry. The story is of a meeting between a major forwarder and a shipper. The shipper had just taken its Nigeria business away from the forwarder and given it to an integrator. The shipper had explained that with delivery times of up to eight days, his Nigerian distributor kept running out of stock and had lost up to 20 per cent market share to a competitor. The forwarder was phlegmatic: ªit is a pity, but we just couldn't deliver the service you were looking for at the price,º he told the shipper. The integrator had promised the shipper a 72-hour delivery 96 per cent of the time. Actually, it managed to achieve it 99 per cent of the time. As Hartnett points out, the forwarder doubtless felt that for $1.50 a kilo it was giving the best service it could afford. ªBut the irony is that the shipper was paying the integrator 10 times that amount,º he says. ªif you talk to managers in forwarding companies, they still say that this business is about price. But it is not, it is about service. Do you think that shipper was unhappy Paying the integrator 10 times as much to get the service he wanted? Quite the Opposite: he was happy as hell.º To prove how prevalent the price focused attitude is in airfreight, Hartnett points to Press reports of the recent FIATA conference in Dubai. `Too many forwarders still seem to be getting up at conferences and saying airlines and integrators are the enemy, rates are too low, customers want more for less, and life is not fair. They have failed to see that this is now a service industry, that shippers needs have changed and they have to change with them,º he says. Hartnett speaks with some authority about shipper needs, because as part of his work for Cargo 2000, he travelled around the world talking to 75 different Companies asking them what they wanted from airfreight. ªEven with all the cultural and regional differences, the result was surprisingly specific,º he says. ªThey all wanted a time-definite product, door-to- door, globally, and at a competitive price.º

Quite simply, Hartnett says, forwarders have to Position themselves to Provide such a Product or die, and to do it they have to break Out of the Price-focused mentality. ªThey have to put in place a range of time-definite services that meet customer needs, price it at a level that gives them a profit, and if they have been in the business a long time, probably change their sales and marketing teams too,º he says. ªBecause most sales and marketing teams in forwarding seem only to know how to sell on price. ªThe biggest single complaint that we got from shippers in the Cargo 2000 survey was that when forwarders came to them to offer a service, the first thing they talked about was price. They wanted to know `How much cargo willYou give us?º.

If that sounds a little harsh, Hartnett contrasts the approach of the average forwarder and an integrator to a request for a quote. ªIf a shipper approaches an integrator, a 20-year-old clerk on the other end of the line can tap into a computer and give them a service level, a delivery time, and a tariff to just about anywhere,º says Hartnett. `Very few forwarders or airlines can do that. Most say they can get it to New York for US$500, but they can't say what time it will reach midtown Manhattan. If you say, how much for a 72-hour service, they have to get back to you. And if you want a door-to-door delivery time to 100 miles outside New York or Taipei, forget it. They say they would have to contact the local partner.º

The Master Operating Plan agreed by Cargo 2000 in March is designed to tackle just this problem, of course. Though Hartnett stepped down as project director in September, this was because he had long passed the end of his two-year contract (which expired in March), and had other projects to attend to. He still believes that Cargo 2000 is the traditional air cargo industry's best hope, not just to survive, but to have any chance of tapping into the higher yields offered in today's global supply-chains.

He defends rigorously against charges that the project is losing momentum or moving too slowly. ªThe industry hadn't changed in 50 years, so to change it in 24 months was always going to be a chal- lenge,º he insists. He sees the delay in ap- pointing a systems provider for the project (Syntegra and Unisys are under considera- tion, but a decision on which will get the contract has been put back from Novem- ber to January) as a minor delay. ªit will be between January and, say, the middle of 2001 that we will find out if Cargo 2000 has really worked,º he says. What Cargo 2000 will offer forwarders is the same sys- tems capability that enables the 20-year- old integrator clerk to map out a whole transportation chain at time of booking. Under the Master Operating Plan, Syntegra or Unisys would operate a common data platform, a central computer system link- ing forwarder, shipper, broker and trucker, along with any other interested parties. When the forwarder receives a shipper's order - say for a shipment to Hong Kong - he will be able to call up a series of op- tions pre-negotiated with the airline or other parties that meet the shipper's deliv- ery needs. Once the booking is confirmed, the system will automatically notify airline, broker and trucker of shipment details and create a route map, specifying exact times for every stage in the journey, from pick up to delivery to the airport terminal, to flight arrival and departure, and clearance and delivery to consignee.

As Hartnett points out, this is exactly the information available at time of booking to UPS or FedEx. But will forwarders and airlines really sign up to the system? Hartnett does not deny that within the current Cargo 2000 camp there are foot draggers and enthusiasts. He mentions no names, but he does suggest that airlines are in general less willing than forwarders. ªThat is not surprising, in that for airlines cargo is maybe only 10 per cent of their revenue. For forwarders it is 100 per cent, so they have a lot more to lose.

Put up or shut up time will be in January when a systems opera- tor is - appointed, and Cargo 2000 members have to make the neces- sary investments to take part. Hartnett admits that will be costly, and suggests that some are baulking at the cost. ªFor example, it is es- sential for the system to work to have bar-coding down to piece- level identification. But some members are saying it will take years to achieve this. That is walking away from the decision. Bar-coding is a 30-year-old technology and if it was a safety or security require- ment, we would have it in a week. You get some people saying we should wait for two dimensional bar-codes, but why? The bar-code technology we have today can already deliver everything the cus- tomer wants.º Piece-level identification is a phrase Hartnett repeats over and over. It is vital to the Cargo 2000 system, he says, because it will provide the check points in the time-definite system. If cargo is supplied loose to airlines, it will be scanned into a container and scanned out again, so its exact location will always be visible to others in the chain. That means, for example, that brokers at the destination will always know what has made the flight or not and be able to prearrange clearance accordingly. Once again, this is stand- ard technology for integrators, and even for some airline express products. ªAs Hugh Doyle of Unisys said recently, if airlines and forwarders can't see themselves doing this, they ought to get out of the business,º says Hartnett. What will happen to those who do not adopt Cargo 2000? Hartnett offers an alternative scenario for both airlines and forwarders. ªAirlines could opt out of the service end of the business altogether and become low-cost commodity players. That means getting out of added value altogether, getting out of IT, sales and marketing departments, warehousing and ground - han- dling, or at the very least all the huge costs associated with handling loose cargo.

They could then have three to four people in head-of- fice selling cargo capacity only on a contract basis by traffic period - say April to October and November to March. They wouldn't see or handle the cargo, only move it. Ocean container lines like Ever- green have been doing this for years. You buy a container, a timed delivery, a timed collection from the port, and you pay for it if you show up with cargo or not.º Forwarders, meanwhile, could treat air- lines much like integrators already do, as mere rented capacity in their own time-definite systems. ªIntegrators supply cargo to air- lines in sealed containers and the airlines transport them unopened,º says Hartnett. ªIntegrators treat the airline as -something of an in- formation black-hole, but as the cargo is containerised they can de- liver as late as 90 minutes before the flight, and collect it 90 minutes afterwards, so that is manageable. if forwarders can't get airlines to bar-code to piece-identification level, they will have to do the same.º Of course in this scenario, airlines will not be part of the value- added chain, and Hartnett clearly sees it as in their interests to Choose the Cargo 2000 route instead. ªThat way, they will continue to ac- cept loose cargo, bar-code and provide information and so by defi- nition they will be adding value and can expect a better price. If they do not, they will continue to suffer declining yields.º Either way, he predicts that by 2004, the market will be entirely service driven.

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In an analysis of worldwide provider trends, the study concludes `that the freight forwarder, by leveraging a favorable `variable-cost' structure, a broad range of mode and service options and powerful web-based technologies, offer a price-service combination unsurpassed by any competitor, including the integrated carriers'. Over the more recent past, carriers and integrators have captured a major share of international freight growth. But that is changing. Today the international freight forwarder is reclaiming his rightful market position and many are actually gaining new market share.

The study highlights three overriding factors:

1. Cost: Forwarders are `variable cost' operators because they do not own or operate fixed transportation assets. As a result, they can react more nimbly to changing market conditions.

    

2. Service Options: Since reliance is on multiple carriers, the forwarder has a wide range of service options to work with. They can be more flexible than carriers and integrators in service Frustrated truckers have been clogging highways and blocking border crossings and - thankfully - have so far avoided to do the same thing with port traffic. But with their increasing frustration over ever higher operating costs and hefty taxation, it will only be a matter of time until graver consequences will have to be endured by the logistics community. The flash point for these protests was the surge in diesel prices that have risen to a record 0.75 Dollars a litre! Oil prices have virtually trebled over what they were a year ago and higher demand for heating oil has similarly pushed the pricing over the top, so to speak.

   Yet, the primary focus of the truckers' anger is not OPEC or the oil companies but taxes! This certainly welcome emphasis on overtaxation springs from fierce competition in the road freight market.After all, we all know that drayage costs for a container are today lower than they were 10 years ago! And the culprit for that was deregulation that unleashed a slew of competitive truck operators. Operators bought themselves shiny new rigs and waited for the dispatcher's call. And suddenly there was a shippers' market. Shippers played off carrier against carrier and carriers in turn played off options and solutions to the market place.

3. Technology: The carriers and integrators have invested billions of dollars in proprietary information systems for supply chain management. But the emergence of Internet based technology now allows even smaller forwarders to offer comparable value at a fraction of the cost.

Certainly, integrators and carriers remain a formidable competitor. They are large and well financed enterprises with very strong systems. They have mastered the art of `mass customization', where customized logistics solutions are delivered on a standardized scale to a mass market. Only the largest multi-national freight forwarders can possibly emulate this.

So the need to compete globally leaves many forwarders confronted with a difficult choice. To gain size and scope, intra- regional forwarders may either want to merge with their counterparts on other continents or alternatively forge strong alliances and partnerships. But regardless of added size and scope, the study concludes, intra-regional freight forwarders must maintain their reliability and flexibility that made them unique in the first place. Reliable, consistent and responsive service will remain the key to maintaining market momentum.

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The flash point for these protests was the surge in diesel prices that have risen to a record 0.75 Dollars a litre! Oil prices have Virtually trebled over what they were a year ago and higher demand for heating oil has similarly pushed the pricing over the top, so to speak.

Yet, the primary focus of the truckers' anger is not OPEC or the oil companies but taxes! This certainly welcome emphasis on over taxation springs from fierce competition in the road freight market. After all, we all know that drayage costs for a container are today lower than they were 10 years ago! And the culprit for that was deregulation that unleashed a slew of competitive truck operators. Operators bought themselves shiny new rigs and waited for the dispatcher's call. And suddenly there vas a shippers' market. Shippers played off carrier against carrier and carriers in turn played off owner-operators who had to keep their rigs running.

Now the relentless downward pressure on trucking rates and rising costs provoked the point where the pip squeaked. And it arrived late February! Clearly, this situation cannot continue. Ultimately, shippers will have to cut carriers and truckers some slack otherwise there will be a string of bankruptcies that in turn will influence upward pressure on consumer prices. Indeed there is work to do in Ottawa to assess the taxation levels presently in place for road carriers. Truckers are business people too and like those that sit on the hierarchy of demand above them, they can recognize superfluous costs when they see them. Governments' over-bloated size and inefficiencies, which is reflected in excessive taxation, is to them the most obvious way to cut the fat while meeting market demands.

Whilst these recent actions have caused a degree of inconvenience, the truckers have merely followed the successful example of other industries clamoring for the relief from Government. The difference is that truckers are not asking for a handout. They only ask the Government to stop putting them out of business!

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ªCast is recognized as the carrier of choice between North America and Europe because of the superior added-value service we provide our customers,º says Peter Seminck, Chief Executive Officer.

In order to continue fine-tuning our Valueplus programme, we have consolidated certain aspects of our business processes such as documentation and dispatch in Montreal. We have a strong team there who will ensure we offer an even more responsive, uniform and ISO quality assured service to our clients.

The regional offices in the US and Canada will remain the principle point of client contact in the areas of sales, pricing, booking and local quality assurance. They will now be able to focus even more closely on these services,º Mr Seminck continues. The transition will take place over the next few months and customers will receive additional details as the implementation date draws near.

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The Honorable Mrs. Kay Bailey Hutchison
United States Senate
284 Russell Senate Office Building
Washington, DC 20510-4304

Dear Senator Hutchison:

We are the Canadian International Freight Forwarders Association [CIFFA], representing 148 international freight forwarding companies across Canada. Unlike in the United States, in Canada freight forwarders act as both shipper's agent as well as contracting carrier, in what is commonly known in the US as NVOCC. We are writing to you as Chairwoman of the Subcommittee on Surface Transportation and Merchant Marine in the matter of the proposed new Carriage of Goods by Sea Act.

CIFFA has serious concerns with the subcommittee's draft bill dated September 24, 1999, which we understand is the result of consultation with a number of industry groups. It is our understanding that the purpose of the new COGSA is to replace the existing COGSA with a multimodal carriage law that covers contracts of carriage between the United States and overseas nations. Our concern is with Section 7(b) which states: ªCONTRACT TO STATE APPLICATION OF ACTºÐ ªA contract of carriage issued under subsection (a) covering a shipment of goods from a port of the United States shall contain a statement that the contract is subject to the provisions of thisAct.º Madam Chairwoman, millions of tons of cargo originating from and destined to Canada are shipped annually through US ports. A very good portion of this tonnage is controlled by members of our association acting in the capacity of contracting carriers. We are therefore a party quite concerned with the implications of the new COGSA.

In spite of Sections 3(a) and 16 of the proposed Act, Section 7(b) implies that regardless of where a shipment originates from, the multimodal and other provisions of the Act will apply. Furthermore, it calls for a compulsory inclusion of a statement to this effect in any contract of carriage involving a shipment from a US port. Surely, we do not believe US legislators intend to apply the unique provisions of the proposed Act unilaterally and extraterritorially to Canadian shipments.

Accordingly, we respectfully request that the subcommittee either remove Section 7(b) from the draft bill or modify it in such a way as to limit its application to shipments originating from or destined to the United States only. We shall be available at any time to meet with the Subcommittee to discuss this issue of vital concern to the Canadian freight forwarding industry. We thank you for taking the time to consider this letter and we look forward to hearing from you.

Yours very truly,

CANADIAN INTERNATIONAL FREIGHT FORWARDERS ASSOCIATION
William Gottlieb President

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Let's go to the root of the problem. INCOTERMS were brought up to date in 2000 to deal with containerized multimodal transportation. The new terms that were introduced are FCA and CIP, which are more appropriate than FOB or CIF. FOB and CIF mean putting the container on board the ship; FCA and CIP mean delivering it past the gates of the carrier's (rail or truck) terminal or onto his loading dock in the case of LCL cargo. Those are the precise demarcation points at which ownership and risk change hands from Seller to Buyer. Whether FCA (Freight Collect) or CIP (Freight Prepaid), the Shipper wants the point of sale to take place as close to his location as possible. Thus, if he is located in Mississauga, he would want transfer of ownership to take place at Toronto and not at the ship's loadport such as Halifax, Vancouver, Los Angeles or New York.

The argument of whether Toronto is or is not a port stems from the outdated L/C application forms at banks around the world, which contain the phrase ªevidencing shipment from........º that prompts L/C applicants to fill in ªPort of Torontoº, or ªany Canadian Portº or ªany NorthAmerican Portº. Of course, if Port of Torontoº is required to be shown on a Bill of Lading, the Bank will insist that ªTorontoº be shown as the loadport on the Bill of Lading in order to conform to documentary requirements. Yet, the same Banker will reject a B/L showing ªTorontoº as loadport where the L/C calls for a Canadian port, because from his window high above Bay Street he must surely be able to see that there are no container ships at the Pier in the middle of January, but is it his job to go down to the busy harbour-front in mid-July when there could be? It is a question of seasonal due diligence! The fact is yes, Toronto is a port but no, not the port where the goods were loaded on the ship.

With containerized multimodal transport, it is important to know that ªPort of Loadingº and Port of Dischargeº are irrelevant and they cause problems. What is relevant are ªPlace of Receiptº and ªFinal Destinationº. L/C's involving FCA, CIP or CPT terms of sale should not contain the phrase ªevidencing shipment from a Canadian portº, or even North American port, rather, they should say: ªevidencing Place of Receipt Toronto to Final Destination ...º Loaded On Boardº notations are not necessary under these circumstances unless the Buyer wants evidence of the container loaded on board a rail car. The requirement of a notation ªloaded on board shipº is an old habit from the FOB days and it will only delay L/C negotiations until the shipping line confirms that the container is actually on board the vessel,which by then may be only few days before arrival. If ownership changes hands when the Seller delivers the goods into the carrier's custody at an inland terminal, why must he wait until the goods are on board a ship in order to be paid? Even so, the Buyer's security is not any more ironclad in knowing that the shipment is actually on board a ship than in knowing the carrier received it in Toronto.

It is the freight forwarder's role to educate Buyers and Sellers on the proper way to draft conditions of an L/C. He should not hesitate to ask for amendments before handling a shipment. At times forwarders and carriers are tempted to fudgeº documents in order to conform to the L/C after the fact. Such practices as ªback-datingº and substituting ports on a bill of lading are dangerous practices, as they might constitute documentary fraud and fundamental breach of contractº if for some reason the documents or the shipment is rejected by the Buyer. Even in a simple claim for loss or damage, cargo insurance lawyers in subrogation might seek for the non-applicability of the maximum liability limitations and legal time bar on the basis of ªfraudulentº documentation.

Your Seafreight Committee will be glad to assist on L/C and INCOTERMs questions. Please address all inquiries to CIFFA Executive Director, H. J. Kuhn, with confidence and guaranteed confidentiality.

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For we were delighted for George, from whom we knew was greatly looking forward to cater to a more leisurely lifestyle and more time to peruse a multitude of other interests. We all knew George as a man with a fascinating personality and a keen interest in the deeper meaning of life.

But we all join together in a moment of sadness to see George leave our industry and with it, his never-ending support of our Association and pro-active participation of the Associations' business at hand. George Rawbon was always there whenever a volunteer was called upon. He was always helpful, supportive and never tired to lend a hand. And he always excelled at whatever he tackled. Whether as a simple member of the Association or as a member of CIFFA's National Board of Directors, George was a man to reckon with and count on.

So here then, dear George, we shall all miss you, but at the same time rejoin in your happiness and wish you all the best for many, many happy retirement years to come.

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PART V The History of FIATA

The FIATA Business year 1929

Following a lot of decisions which were made during the General Assembly of FIATA , which took place in Berne/Switzerland from 6-7 September 1928 it was the obligation in the business year 1929 that the decisions made in 1928, which were judged as being useful and of quite long-range nature, are implemented.

In general it has to be reported that a that time FIATA held every year a meeting, in one year a so called General Assembly whereas in the other year a meeting of the Board only. In 1929 the Board meeting took place on 9 May 1929.

In this business year the British Association of Shipping and Forwarding Agents was formed and admitted as member of the federation. FIATA also gained at foothold in Eastern Europe by admitting the RIGAER SPEDITEURENVEREINIGUNG and thus having national associations in 16 countries.

The decision to introduce the general conditions to be applied to traffic between freight forwarders were discussed again. Despite the fact that a lot of subjects were of common interest the discussion showed that the international standardisation and introduction was faced with irreconcilable obstacles. The freight forwarders are treated differently in the national laws and regulations. In any case it was 7decided to introduce the most important subject into a framework containing the at least most important main points regarding the freight forwarding industry. This framework can be used by those association which do not dispose already of own general business conditions.

The Federation also decided to elaborate a scheme to make a standardised listing of services rendered by freight forwarders and thus try to reach rationalisation in the freight forwarding industry by possible simplification of the clearance between freight forwarders. This could happen best using all over the same terms for the services of the freight forwarder, the same arrangement/sequence to enable the employee involved in the clearing of the expenses to recognise each single amount. A Questionnaire shall be distributed to all national associations to name the common denomination of their services. The federation expects from the implementation of this work a considerable advantage for the freight forwarding industry because the uncoordinated use of the different terms for the same services makes the clearing between freight forwarders more difficult. It was clearly pointed out that this systems, self-understanding, is applicable between freight forwarders only and not between the freight forwarders and its clients.

According to a decision made by the GeneralAssembly in 1928 a submission has been made in view of the very strict consequences of the International Convention on the Transport of goods by rail of October 23, 1924 which entered into force on October 1, 1928. It was hopped that the intervention shows the desirable success. It was also noted that this action is especially remarkable because the federation for the first time has shown face in the public and demonstrated that the freight forwarders are prepared and willing to participate and to have a say in important questions dealing with transport laws.

The questions of the creation of a common insurance policy will be treated with by the Board of the International Union of Transport Insurers in Berlin. The federation stated its interest in the solution of this problems which will lead to the fact that the conditions in each country are equal based on this standard insurance policy.

In a resume it was declared that the federation in the first three years of its existence under the leadership of its President, Mr Paul LEHMANN, Copenhagen has proved the necessity of existence. Through its previous actions in the interest of the freight forwarders one can say that it is doing its utmost to reach non-material and material advantages in the favour of the industry and to elevate the moral standing.

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The first annual 1999 Forwarders Choice Awards were held on Wednesday, November 17, 1999 at the Hilton Toronto Airport. There were approximately 340 guests who attended this groundbreaking event. For the first time, air and ocean carriers were recognized for the superior service and reliability that they demonstrate throughout the year.

All of the regular members of CIFFA Central Division (the Toronto gateway) were polled to determine winners in two categories, air and ocean, for service between Toronto and seven different regions. As well, a Carrier of the Year for each category was chosen.

Companies who were honoured for outstanding service and commitment are:

*See Carrier of the Year Appreciation letters.

Eastern Division

The first annual 1999 Forwarders Choice Awards for Eastern Division were held on Thursday, February 17, 2000. There were approximately 395 guests who attended this premiere event. Eastern Division members were asked to recognize air and ocean carriers for their superior service and reliability demonstrated throughout the previous year.

Companies who were honoured for outstanding service and commitment are:

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REGULAR

Hartwick O'Shea & Cartwright Ltd.
(Toronto, Vancouver, Montreal)
3320 American Drive
Mississauga, ON L4V 1B3
Tel. 905-672-5100 Fax. 905-672-5107
J. Hartwick, President
S. Cartwright
K. Hartwick
Email: kyleh@hocltd.com

ASSOCIATE

Gezairi Group Cargo
Raouche - General De Gaulle St.
Salhab Bld. 6th Floor
P.O. Box 1326136
Beirut, Lebanon
Contact: N. B. Gezairi, General Manager
M. Gezairi/Ms. M. Sawaf
Tel. 011-9611-861014/5
Fax. 011-9611-862188
Email: GGC@cyberia.net.lb
www.cyberia.net.lb

Demers Insurance Adjusters Inc.
1284 Victoria St.
Greenfield Park, QC J4V 1L7
Tel. 450-671-8008/877-671-8008
Fax. 450-671-4774
M. M. Demers
Email: mmdemers@total.net
M. M. Ouimet

Shah-E-Karam Shipping Agencies
Al-Yusuf Chamber, 3/20, New Challi
Karachi, Pakistan 74000
Tel. 992-21-262-0146/8
Fax. 92-21-262-8017
Email: ashba@mail.inet.com.pk
G. Abbas, President
Mrs. G. Abbas, V.P.

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1. India
2. Pakistan
3. Shanghai, China
4. Navi Mumbai India
5. Chile
6. Bangladesh
7. Wanchai, Hong Kong
8. Hanoi, Vietnam
9. Lahore, Pakistan
10. Istanbul, Turkey
11. Karachi, Pakistan
12. Cairo, Egypt
13. Chittagong, Bangladesh
14. Peru
15. Shanghai, China
16. Shenzhen, China
17. Chittagong, Bangladesh
18. Australia
19. Chennai, Madras
20. Chennai, India
21. Chakala, Mumbai
22. Hamburg, Germany

Events

1. Trans Kazakhstan 2000, June 14-16, 2000 Kazakhstan, Tel. 3272-446-551
2. Hannover Messe, World Market in the New Millennium, March 20-25, 2000 Hannover, Germany Tel. 416-690-0331/1800-727-4183
3. Transportation Intermediaries Association, The Magic of Transportation, March 9-11, 2000 Orlando, Florida, Tel. 703-329-1894
4. Singapore Expo 2000, March 29-30, 2000 Singapore, Tel. (65) 732-1970 laynah@ibcasia.com.sg
5. Air Cargo Conference & Product Expo, Knoxville, TN, May 17-19, 2000 Tel. 321-783-0088, iaccair@bellsouth.net

Resumes

1. Parisian looking for a 3 month internship with forwarder beginning July 2000.
2. Torontonian looking for position as a global logistics programmer.
3. Candidate in Niagara Region looking for position withforwarder as sales representative.
4. Torontonian looking for position with forwarder.
5. Mississaugan looking for position with ocean forwarder.
6. Pakistani looking for job with forwarder in Canada.

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We wish to advise shippers and receivers that the following fuel surcharges will apply effective March 1st, on all Canadian Inland rates ( except those by rail ) ;

Nova Scotia - 6 % Surcharge New Brunswick - 6 % Surcharge PEI - 6% Surcharge Quebec - 6% Surcharge Ontario - 6% Surcharge

Newfoundland Truck delivery - 6 % Surcharge Feeder Service - 5 % Surcharge Manitoba - 8.5 % Surcharge (On Trucking portion of the rate) Saskatchewan - 5% Surcharge (On Trucking portion of the rate) Alberta - 3 % Surcharge (On Trucking portion of the rate) BC - Nil

These fuel surcharges are based on the additional charges the member lines have and are being assessed by their transportation suppliers. I am sure you are well aware of the attention the excessive fuel cost problem has been receiving in North America.

Further information may be obtained from the Conference office or from the member lines. or our web site at http://www.canconf.com/

Peter Raimondo, Chairman email: praimondo@canconf.com

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Rates on general commodities will be increased by US $120/$180 per 20ft/40ft container and rates on Refrigerated cargoes will be increased by US$300 per 40ft container.

As mentioned in a previous announcement, the member lines have during the past year suffered significant revenue erosion in the eastbound trade and these increases represent a step towards restoring revenues to previous levels. Tariff Validity Validity on tariff rates and other conditions will be on a tariff trading basis. For further information please contact the conference office, one of the member lines, or our web site at http://www.canconf.com/

Peter Raimondo, Chairman
email: praimondo@canconf.com

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The Bowl-a-thon will be held on May 6, 2000 at the Rose Bowl Lanes, starting at 13:00 hours. For further information contact Richard Masys at Tel. 514-696-2869

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The Missing Children's Network Canada is dedicated to the welfare and protection of all children.

To offer your support contact Pina Arcamone at Tel. 514-843-4333.

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William M. Gottlieb
President CIFFA,
P.O. Box 929,
Streetsville, Ontario
L5M 2C5

Dear Mr.Gottlieb,

Our entire staff was extremely pleased to learn that Air Canada Cargo had been awarded the CIFFA Central Division's ªAir Carrier of theYearº award.

It is truly a testament to the hard working men and women of our cargo team who have continuously excelled in the performance of their duties.

As we prepare to meet the challenges of the new century, we will put forth our best efforts toward maintaining the high standard that will win the respect and support of all our customers.

It is with great pride that we display the awarded plaque in our Customer Service office for our customers and employees to view.

Yours truly,

Gerry Simpson
Manager, Cargo Marketing,
Sales Planning & Support
Air Canada

December 14th, 1999

Stephen P Valentine
President CIFFA, Central Division
c/o Cargo Alliance Ltd,
7560 Airport Road Units 1/2
Mississauga, Ont. L4T 4H4

Dear Steve,

All of us at OOCL were both extremely delighted and proud to have been chosen as the ªOcean Carrier of the Yearº for 1999 and also selected as the number One Ocean Carrier for outstanding service between Toronto and Europe in 1999 by the regular Members of CIFFA Central Division.

This was a real testament to the hard work and dedication reflected by all my OOCL colleagues who are most appreciative of receiving this highly valued and respected level of recognition from our customers in the Freight Forwarding Industry,

At this time we would also like to express our sincere congratulations to the Board of CIFFA for introducing this innovative Annual Forwarders Choice Award, which has established an industry Recognition Standard in the critical areas of Carrier Service and Reliability.

While we are proud to be the first Carrier to have received this award we can assure you that the word "Complacency" does not exist in our corporate vocabulary therefore we intend to strive even harder in the coming year to retain this "hard won" recognition from our customers

Yours truly

David H. Watson
Vice President
OOCL (Canada) Inc.
191 The West Mall, Suite 900
Etobicoke. Ontario M90 5K8
Tel:(416) 6204040
Fax: (416) 6207632

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