President’s Message
Having just returned from the FIATA World Congress in Cancun, it is too early to properly report in detail on all the issues tabled during the congress. More time is needed for that! Still, I have returned with the one clear insight that dialogue at world level is absolutely critical to finding solutions and answers to the woes – but also opportunities – that befall our world.
Inasmuch I am greatly concerned that the trade policy process has been virtually paralyzed since the WTO stalemate in Seattle in November 1999 and buffeted by the ever-increasing backlash against globalization. Yet, there is undoubtedly an urgent need to get the multilateral process back on track, especially with the burgeoning growth of the WTO, which will have about 170 countries as members in the near future. Since the establishment of GATT in 1948, the liberalization of trade has played a fundamental role in the integration of the world economy. And as a result, growth in world trade has consistently outpaced growth in world GDP.
Yet, controversies and backlash involving the WTO – and the dialogue revolving around it - exist and relate to issues such as the role of international institutions, global governance, marginalization of the developing and least developed countries, the digital divide and the disparities it causes between countries, the role of multinationals and the role of hedge funds that need regulation. Thus, focus is required on the need to establish dialogue that would be instrumental in establishing ownership, especially among developing countries, and the imperative of linking trade with sustainable development, the absolute need to integrate members from developing countries and the need to provide coherence in the proliferation of regional trading agreements as well as the requirement to control growing trade disputes.
Globalization is the best-known means to foster growth, prosperity and opportunity for the maximum number of people. Really poor countries are those that have not been integrated in the process of globalization. Hence globalization needs to be extended, all the while ensuring improvements in those areas that require attention and by deploying more means to foster confidence. Strengthening and maintaining the momentum of globalization is, I believe, an important means of bringing about a world that does equal justice to all.
The more recent trends in the world economy, however, do not bode well for accelerating the dialogue on an international level and one clearly senses a retrenching beyond one’s own border or at least seeking comfort within the confines of regional agreements. Clearly, a deceleration of globalization is occurring as a result of the economic downturn in the United States, the burst of the New Economy bubble, uncertainty about energy prices, Japan’s recession and the negative sentiments against liberalization and mounting non-tariff barriers.
All this has been further aggravated by the horrific aftermath of September 11 that has created a whole new set of circumstances little thought of before! Even more momentum will now be lost in giving way to the more urgent and obvious issues of safety and security to people and property. This is all the more regrettable as only through such instruments as the WTO can we ensure the transfer of wealth and - through it - reasons of hope towards a more meaningful quality of life to countries and populations in desperate need of it.
Perhaps I have reached a bit too far with this message to you. For it is not of immediate relevance to our day-to-day business, neither as a company nor as an association. But then again, our industry does depend on growth in world trade and all that is intertwined with it. And it behooves us all to sometimes take a step back and have a look at the forest rather than the trees!
Yours truly,

Paul Lobas
President CIFFA
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CCRA Announce Mandatory HS Requirements
This is to confirm the requirements for the mandatory assignment of an HS code on PARS or RMD release requests, effective May 1, 2002. It has been agreed that the 10 digit HS code assigned must be either the highest value line on the invoice or a reasonable representation of the goods within the shipment. However, it must be emphasized that current mandatory HS requirements for EDI shipments containing goods subject to review by other government departments remain in effect.
The inclusion of the "reasonable representation" option addresses the concerns of both the importing community and Customs that, in some cases, assignment of the highest value invoice line for multi-page invoices would be time consuming and might not reflect the true nature of the shipment.
I would like to express my appreciation to the members of the HS Working Group, who were instrumental in developing this solution.
There may be questions regarding what constitutes "reasonable representation". Reasonable representation is intended to allow the importer to select a commodity for classification that reflects the nature of the shipment i.e. furniture, toys, clothing, auto parts, etc. When there is a significant preponderance of a commodity, then the HS code should reflect that commodity. If there are many commodities with no real majority, any of the significant commodities will be appropriate for classification. A great deal of analysis should not be required to determine which commodity needs to be CCRA Announce Mandatory HS Requirements
classified to reflect the nature of the shipment. It should also be recognized that the acceptance of one HS code for a shipment is an interim step. Eventually, the appropriate HS code will be required for all invoice lines.
The validation of the classification number at the time of release will largely involve ensuring the existence of the HS code. A reject will usually only be applied if a code is not submitted or does not exist. However, compliance monitoring will be conducted to verify the HS code applied at the time of release to the code(s) applied at the time of accounting. If it is determined that inaccurate codes are applied at the time of release, appropriate warnings and penalties will be issued.
A Customs Notice describing mandatory HS requirements will be issued in the near future. Should you have any questions or concerns regarding this matter, please contact Alice Shields at (613) 946-1672 or Rick Dale at (613) 954-7077.
Yours sincerely,
E.D. Warren, Director General
Major Project Design and Development Directorate
Editor’s Note: Don Lucky, CIFFA Customs Committee Chair, attends all CCRA meetings and will continue to keep the membership updated. See his latest report on our website at:
http://www.ciffa.com/currentissues_OCT15_2001.html
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CCRA Advises Conversion To
Euro Currency January 1, 2002
Members of the European Union who are participating in the use of a single currency will convert to the use of the Euro on January 1, 2002. The following is a list of the participating countries and currency
codes:
Austria (ATS)
Finland (FIM)
Germany (DEM)
Ireland (IEP)
Luxembourg (LUF)
Portugal (PTE) |
Belgium
(BEF)
France (FRF)
Greece (GRD)
Italy (ITL)
The Netherlands (NLG)
Spain (ESP) |
As of January 1, 2002, exchange rates will not be maintained under the previous currency codes for these countries. For all goods imported from these countries with a direct shipment date on or after January 1, 2002, the "EUR" currency code must be used.
For all goods imported from these countries with a direct shipment date prior to January 1, 2002, either the previous currency code or the "EUR" currency code may be used.
The following countries are members of the European Union, but are not currently participating in a single currency:
Denmark (DKK)
Sweden (SEK)
United Kingdom (GBP)
Denmark, Sweden, and the United Kingdom may continue to use their own currency codes or the "EUR" currency code regardless of the date of direct shipment of imported goods. There are no changes to any country codes.
For further information please refer to Customs Notice N430.
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Passage À L'Euro Au 1er
Janvier 2002
Les pays membres de l'Union européenne qui ont accepté l'utilisation d'une devise unique adopteront l'Euro le 1er janvier 2002. Voici la liste des pays participants et code de la devise:
Allemagne (DEM)
Belgique (BEF)
Finlande (FIM)
Grèce (GRD)
Italie (ITL)
Pays-Bas (NLG) |
Autriche
(ATS)
Espagne (ESP)
France (FRF)
Irlande (IEP)
Luxembourg (LUF)
Portugal (PTE) |
À compter du 1er janvier 2002 les taux de change correspondant aux anciens codes de devise pour ces pays cesseront d'être utilisés.
Pour toutes les merchandises importées de ces pays dont la date d'expédition directe est le 1er janvier 2002 ou après, le code de devise "EUR" doit être utilisé.
Pour toutes les merchandises qui sont importées de ces pays et dont la date d'expédition directe est avant le 1er janvier 2002, l'ancien code de devise ou le code de l'Euro, "EUR", peut être utilisé.
Les pays suivants sont membres de l'Union européenne mais ils n'adoptent pas encore la devise unique:
Danemark (DKK)
Royaume-Uni (GBP)
Suède (SEK)
Le Danemark, le Royaume-Uni et la Suède peuvent continuer à utiliser soit leurs propres codes de devise ou soit le code "EUR", sans égard à la date d'expédition directe des marchandises importées. Les codes des pays demeurent inchangés.
Pour de plus amples renseignements veuillez vous référer à l'Avis des douanes N403."
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Young Forwarder of the Year Award
Submission Deadline Extended to December 15, 2001
Don’t miss out! Anyone younger than 29 years of age in 2001 and having passed the CIFFA Professional Education Course – Module I can apply! Refer to our July Newsletter with all the details on Page 4 or check with our Secretariat, but keep in mind the exceptional prices for the successful applicant:
1. Fully paid attendance at the FIATA World Congress in Instanbul/Turkey
2. A two week training sojourn at a multi-modal transport facility in either Hong Kong, London/England or New Jersey/USA
3. One week of classroom based training in transport related legal and insurance matters in London/England
4. A one-week training on air cargo by IATA in Montreal
The winner of the Canadian contest - should he/she not be selected as the overall international winner - will receive the choice to visit one of the following Canadian port cities: Halifax, Montreal or Vancouver with 4 days/3 nights fully paid expenses.
So check up on the contest rules and submit your application by December 15, 2001 to the CIFFA Secretariat! The successful candidate will be required to write a 2,500 – 4,000 word dissertation on the topic ‘Safety of Cargo in International Transport’ to qualify for the international price.
Email your letter of submission to D. Burek at dougb@ciffa.com
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NAFTA Conference Overview
By Andrew Spoerri, Transport Canada
The North American Free Trade Agreement creates a timetable for the removal of barriers to the provision of transportation services among the NAFTA countries for carriage of international cargo and of passengers. For trucks and buses, NAFTA liberalizes access for motor carriers on both sides of the border on a phased schedule over six years from entry into force of the agreement and provides for liberalizing investment restrictions on trucking companies established in Mexico and the United States. Liberalization was to have begun in 1995, but the United States postponed implementation due to concerns regarding safety and enforcement.
The transportation provisions of the North American Free Trade Agreement will be fully implemented by January 1, 2002. This means that motor carriers from all three NAFTA countries will have increased access to each other’s countries, many of them for the first time. Motor carriers will be required to comply with operating requirements, as well as a variety of Customs, immigration, agricultural, and other requirements imposed by each NAFTA country.
To assist motor carriers in understanding the requirements for legal operations outside of their own countries, the U.S. Department of Transportation, in cooperation with Canada, Mexico, and other federal, state, and provincial agencies, will host a NAFTA information conference in San Antonio, Texas, October 21-24, 2001, at the Hyatt Hotel. The conference will provide a forum for U.S., Canadian, and Mexican government officials to conduct panel sessions that convey information about their requirements that apply to motor carrier operations. The NAFTA conference will include panels that convey information about:
NAFTA Conference Overview
(1) applying for U.S., Mexican, and Canadian
operating authority;
(2) immigration requirements for drivers operating
outside of their own country;
(3) Customs requirements for foreign trucks engaged
in international operations;
(4) agriculture regulations applicable to imported
commodities;
(5) tax obligations for companies operating
commercial vehicles outside their own country;
(6) motor carrier safety standards;
(7) hazardous materials transportation safety
regulations;
(8) vehicle weight and dimensions standards applicable
to foreign commercial vehicles;
(9) other federal, state, and provincial requirements.
Further information can be obtained by visiting the following website:
http://www.freetradealliance.org/conference/conference.htm
Andrew Spoerri
Motor Carrier Policy (ACGC)
Surface Transportation Policy, Transport Canada
tel. 613-998-1917 fax 613-998-2686
E-Mail: spoerra@tc.gc.ca
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Rethinking the Border
The Coalition for a Secure and Trade Efficient Border
On October 3, 2001 CIFFA participated in the above mentioned coalition dialogue in Ottawa that is comprised of some 40 Business Associations and large private firms with a high interest in efficient market accessibility to the United States.
The tragic events of September 11 have cast a new light on the management and future of the Canada-US economic and border relationship. The post-September 11 world is one in which security concerns have been pushed to the forefront of the agenda for Americans and Canadians alike. By necessity, the world of economic matters will require a new and more complex understanding of security concerns.
The urgent need to address individual and collective security within North America forces the business community, governments and citizens to contend with important issues. In particular, how we address the complexities of maintaining a secure Canada-US border that allows goods and people to travel efficiently in the post September 11 world. Clearly, border fluidity directly affects Canadian economic prospects and is inasmuch of critical importance to the well being of our economic prospects.
And whilst the cross border issue is naturally foremost in everybody’s mind, we must nevertheless not forget that between 60 – 65% of international consignments arriving in a Canadian Gateway port are destined for the Rethinking the Border
United States. Similarly, key airports such as Montreal, Toronto and Vancouver are regularly used as gateways for final destination in the United States.
The Coalition has decided to create a Steering Committee and three working groups to address particular issues vis-à-vis Customs, Transportation and Security and Immigration. A first working paper has been issued and is now posted on our Website under ‘Current Issues’. Please take the time to visit this issue and send your comments to
georgek@ciffa.com
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Air
Cargo News
Contributed by Trevor J. Stebbing, V.P., QCPS Air Cargo - YUL
In light of the appalling tragedies of September 11th, 2001, the way in which we conduct and handle our business in North America has changed forever. We are observing increases to basic freight rates and insurance premiums, plus surcharges for re-routing of cargoes to avoid unfriendly skies and to cover in part, additional security costs. We have noted new "Security Screening" declarations from Transport Canada and in addition some carriers are requiring a consignment Security Certificate be completed and signed over and above same.
Very few of the major carriers have escaped downsizing in both staff and fleet reductions. Many of the world’s well known carriers are on the verge or at bankruptcy itself, some of which were struggling prior to September 11th, 2001.
These changes are by no means standardized nor finalized. If we in the Freight Forwarding industry, think we can escape attention or responsibility, then we had better think again. Unsecured trucks, warehouses lacking security, irresponsible and/or incorrect issuance of documents, untrained or ill equipped staff must now be a thing of the past.
We need to be responsible for what we do know, know what we can control and what documentation we issue. We also need to be upfront and honest about cargoes and paperwork in our possession when handing over to another carrier. As Freight Forwarders, whether the move is domestic or international, by road, rail, air or ocean, we do have an important role to play in preventing terrorist atrocities. The last thing we need is to be considered as an easy access point for the terrorist. The sooner we start to think 'security' the sooner we can start and apply more secure methods in how we handle and document cargo under our care.
New Regulation
European Union Emergency Measures for Coniferous Non-Manufactured Wood Packing Material. The Commission of the European Communities has adopted emergency measures requiring the treatment and marking of all new and used coniferous (e.g. pine, spruce, fir) non-manufactured wood packing material (NMWP) originating in the United States, Canada, China, or Japan and departing on or after October 1, 2001, to prevent the introduction of the pinewood nematode. Hardwoods are exempt from this emergency measure.
1) A statement, either on the air waybill itself, preferably in the additional handling box, or under separate company letterhead, indicating that the wood packaging is not a non-manufactured wood type that is restricted entry into the European community.
2) All non-manufactured wood packing, if not stated otherwise on the air waybill or separate letter, must have the approved quality markings clearly indicated on the wood packaging.
Shipments that are tendered to the carrier which do not have these simple requirements will not be permitted to be flown as booked.
Our Gains in Brief
America West Express/Mesa Air
Inaugurated 3-daily round-trip services Columbus - OH - Toronto ON - Columbus OH on Wednesday September 05th, 2001. Flights are operated by Mesa Air with Canadair Regional Jets.
Cargolux
On Sept. 17th Cargolux inaugurated a weekly Boeing 747-400 Freighter round-trip service from Luxembourg to Calgary. Since the carrier already has obtained fifth freedom rights, possibilities exist for a second weekly service off of Seattle to Calgary, should demand continue to grow. In addition Cargolux has also launched twice-weekly services to Manila.
Canada 3000 to Launch 3 New Services
Canadian owned and operated Canada 3000 will be making aviation history on October 08th, 2001 with its inaugural non-stop flight from Toronto to Delhi utilizing the polar route, thus launching the first direct service, linking North America with India. Service will be twice weekly to start with on Monday's and Friday's.
In addition to the Toronto-Delhi-Toronto service, October 10th will see the launch of a second service from Vancouver to Delhi. To start with this will be once a week on Wednesday's and will include a one hour stop at Anchorage. Thus linking India from BOTH the East and West Coast of North America. Canada 3000 has added a new aircraft type to its fleet for this new service, the Airbus A340-300.
November 04th will be their launch date for a third service, linking Toronto to Mumbai, India, routing via London Gatwick. (with a 1 hour stop over). This will start as a twice weekly service on Tuesday's and Sunday utilizing the carrier’s A330-200 equipment.
[As information both Air Canada and Air India both formerly flew this route with stop at London Heathrow ] So, this is re-establishing links with important trade lanes (for both passenger and cargo).
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Our Losses In Brief
Virgin Atlantic Airways
Will suspend its new services from London to Toronto and London to Chicago effective October 10th, 2001 as part of its cut backs on trans-atlantic services. Also on hold now are the plans to commence services to other Canadian Cities from the United Kingdom. It is hoped that once passenger confidence is re-installed and yields increase, then services will resume.
Star Alliance Partners: Air Canada & Scandinavian Airline Systems
Announced they would suspend service on their Copenhagen-Toronto-Copenhagen route effective October 29th, 2001. Neither carrier has been satisfied with yields from this new route since its launch in May of 1999, however there is a strong possibility the service could be back up and running in the spring of 2002.
Austrian Airlines
Has announced that effective October 31st it will suspend its scheduled Vienna-Toronto-Vienna services, which began April 28th, 2001. This is part of the carrier's downsizing structure on services to North America where passenger yield has fallen sharply. It is hoped that Austrian will re-evaluate this route to re-start in either the spring or summer of 2002.
Let Us Remember
Mr. Rolim Adolfo Amaro, 58, Chairman of Brazilian Airline TAM Linhas Aereas was killed in a helicopter accident on June 09th, 2001. Just short of TAM's 25th Birthday celebrations ( July 12th, 2001 ). For many of us we have used the efficient and competitive services of TAM by inter-lining with road feeder services through Miami. For a brief eulogy as to the style and character of this individual, I can not put better words to paper than those offered from Airbus's executives.
"Commandant Rolim was a pioneer, a self-made man and an outstanding entrepreneur, widely respected throughout the aviation industry for his professional ability, dedication to the airline and his famous hands-on approach. He will be missed by all for his energy and leadership" said Airbus CEO Noel Forgeard.
"He turned a small air taxi service (Taxi Aereo Marilia) into one of Brazil's top carriers, and yet would still personally check in passengers at Sao Paulo airport. He was a friend, and will be sorely missed," John Leahy, Airbus executive vice president for customer affairs and chief commercial officer.
Mr. Amaro's motto, "the passenger is king," summed up his approach to business. TAM's fleet comprises 38 A319s/A320s and five A330s.
Open Skies In Canada?
Pressure is mounting on David Collenette, the Federal Transport Minister, to allow a new class of foreign-owned domestic airline as a way of increasing competition in Canada. The Canadian Airports Council and various tourism organizations have urged the federal government to seriously consider making unilateral policy changes to allow foreign airlines – or investors – to set up wholly owned airline operations in Canada, following a model launched in Australia in 1999.
Under the so-called right of establishment, such carrier would be restricted to domestic flying and would be operated by Canadian employees. The Canadian Airports Council (CAC) represents some 95 Canadian airports and sees itself as ‘agents of competition, and they encourage competition’. ‘They want a successful airline industry in Canada and it means that the people they deal with today are very important to their future. But equally, nobody wants to be held hostage to a very small group of service providers’.
Whilst InterVISTA Consulting, a Vancouver based airport consulting firm that researched the right of establishment concept for the CAC and others said there’s strong interest on the part of foreign airlines to invest in a domestic Canadian carrier, it is questionable whether or not that interest is still strong and active in the aftermath of September 11.
British Airways to Consolidate
British Airways has confirmed it is in preliminary talks with other European airlines about new alliances prompting speculation about the possibilities of future mergers. Saying that the European aviation industry will have to consolidate sharply in order to survive, BA indicated that it was talking with a number of carriers, including KLM.
BA has also been quoted as contemplating a link-up with American Airlines, something the company has been considering in one from or another for a while now. British Airways recently filed for anti-trust immunity in seeking an alliance with American Airlines.
Lufthansa Cargo Suffers Depressed Performance
More depressing news have been published with Lufthansa's traffic figures for the first nine months of the year! The weakening world economy and the impact of 9/11 depressed performance at Lufthansa Cargo. Cargo volumes fell by 7.2 per cent to 1,230,817 tonnes. The cargo load factor of 61.4 per cent at the three-quarter stage during this period was down 6.1 percentage points year-on-year.
Overall utilization in both the passenger and freight business at the Lufthansa group in the first nine months was down year-on-year by 4.2 percentage points to 67.7 per cent.
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Speakers
Corner
The views outlined below are not necessarily those of the
Association, but are presented as a forum to provoke
thought and discussion. The Editor
What Does the Future Hold?
Contributed by Trevor J. Stebbing, V.P., QCPS Air Cargo - YUL
More and more we are seeing carriers separate and sell off certain sections of their operations, such as maintenance, catering, cargo handling, etc., to put hard cash back onto the books. Likewise we see aircraft being sold and then immediately leased back. Apart from keeping the shareholders happy, one can't help feeling that these camouflage tact-tics eventually are going to wear pretty thin and then, we are going to see major carriers stumble and fall.
Nowadays image protection on the stock exchange appears more important than the nitty gritty's of actually running the business and servicing the customer, the people that fly with you or book cargo with you. In other words, the ones, ultimately, that give you your operating revenues and hopefully, profit. Yet today, more often than not, we are seeing the customer gradually worked down to the bottom of the list of priorities. The theory is, as long as the all-important image is there, they will keep on booking with you. A tad arrogant perhaps, nevertheless very much a reality in today's multimedia world. From the passenger side we have learned a new buzz word during the past decade 'AIR-RAGE' yet from the freight side 'CARGO-RAGE' appears to have been kept under wraps! Even so, is it fair to blame everything onto the customer that loses their cool without taking into consideration the circumstances that led up to their outburst?
Could it be that the balance between investors and customer service has been lost to the opportunists looking for a fast return for their investment? These are not long-term players, so the slightest sign of a slow down, or rumour of trouble, then the money is pulled and put into another venture where they feel they can obtain a better return more quickly. Our aviation industry with its 'plc' (public limited company) and open trading on the stock exchanges has exposed themselves to the whims of a general public, which in part is ill prepared, to put it politely, for the ups and downs of a commercial business in a highly competitive market.
On the cargo side the small carriers are being snapped up by the giants whose cost-cutting measures nearly always involve closing down smaller hubs for direct service utilizing road transfer service instead, and then consolidating everything into one major already over-congested hub. Theory being: 'Bigger is Better' yet, are the access roads able to cope with the increased traffic ? Are there more loading and receiving docks? Are there more staff? How well are those staff trained and suited for their position? Have more take off and landing slots been granted? Are there additional runways? Can flight frequencies be increased safely over our skies and beyond? Is this really the future that we want, with Toronto's Pearson International being the country's prime gateway with the odd scheduled international services, mainly foreign carriers and charter operators serving Canada's other airports? Criticism also works both ways. How many of us know how to correctly fill out an Air Waybill? How many of us have taken a Dangerous Goods Course? What happened to the trainee/apprentice? Was it that long ago, when one would start at the bottom and learn the business from the ground up, with genuine pride by accomplishment?
It is a vicious circle. It is alarming, to say the least, how much these changes have pressured and influenced the aviation industry over the past 10 years or so, ironically coinciding with the increase in e-commerce technologies. What we have today is really quite a false and volatile market. On one-hand, technologies have produced more efficient aircraft that can lift greater capacities and fly further on less fuel than ever before. From the shareholder or potential shareholder’s point of view, that should allow for greater profits, a faster return on their investments. After all, these companies are on TV, the radio, in newspapers, magazines and on the web, they have a good image don't they? How many people really stop to consider that those aircraft physically cost more to lease or purchase than ever before?
Even with cramming in more seats, offering the passenger less creature comforts, it only takes a slight variance, such as an increase in fuel costs or interest rates or a labour dispute and the profits you thought would be there or that the market forced you to predict, suddenly are gone. If you don't have good media access with a fully trained damage control team, then alas, so too have many of the shareholders disappeared. Has anyone ever put a figure on what the carriers spend on damage control to keep the shareholders happy?
To have carriers openly declaring what meals will be cut or changed for less cost per passenger, how much can be saved by offering 1 movie instead of 2, removal of face cloth service, more passengers per flight attendant, less seat pitch in economy, to come up with some wonderfully huge dollar saving amount to announce to the public, and be proud of it, tells me something somewhere has gone awry.
With so many once proud national carriers, operating in many instances way beyond bankruptcy, it is only a matter of time before we start seeing once major players, stumble a fall. We hear in the news about serious financial problems with Argentina's Aeroliners Argentinas, Belgium's Sabena, Ireland's Aer Lingus, Switzerland's Swissair, the list goes on and on, yet forget it wasn't that long ago we heard similar news stories concerning, our own Canadian Airlines, now part of Air Canada and more recently TWA, now part of American Airlines. What would happen if one of these mega carriers were to go bankrupt?
For me, I believe the carriers that put their customers first, be they passenger or cargo, coupled with belonging to a similar thinking alliance have the best chance to survive. There are carriers that are not spending vast sums of money on damage control. These carriers put the customer first and, whilst volatile to the ups and downs of a very aggressive and competitive market, appear to be riding these storms better than others. Is it because they are more open and direct with their customers and don't make false promises? Having knowledgeable, friendly and courteous staff, in my opinion, is as vital to survival today as having the technologically advanced operating systems and equipment.
Are we correct to go along with a main super hub in Toronto? At what point does congestion reach saturation? How much is this theory costing us in line-ups to get to the airport, in waiting time to off-load or pick-up? Do these fast-track premium services, that cost an arm and leg, really help us or our carriers when we can't get to the cargo gate on time? Even for those of us transhipping cargoes through Toronto, we have seen transfer allowance times increase at best to 6 hours and have experienced cargo missing connecting flights, even with extended transfer times. Has anybody stopped to consider the real cost this centralization is having on our business as freight forwarders or the cost to business itself for Canada? Sure the importer or exporter can blame the freight forwarder, the freight forwarder can blame the trucker and/or the airline, but who is looking at the system itself?
South of the border, they are looking very seriously into greater utilization of the alternative airports as a way to eliminate the congestion problems. In Europe, Paris is considering a third International Airport, London Heathrow is considering a 5th Terminal, Manchester has gained a second runway, Amsterdam (KLM) has inaugurated inter-European rail transfer of cargoes. In the United Kingdom, we have seen carriers launch new services to and from alternative airports such as London Stansted, Birmingham, Manchester and London Gatwick, where cargo turn around has been smooth and ironically flight delays less of an occurrence. Reason 'less congestion' yet, at home, we see key potential airports being grossly under utilized or ignored/snubbed altogether. We are seeing less and less wide-bodied aircraft available for cargoes originating or destined to inland points. Add to that the NavCan fee, which whilst a just fee, was ruled as part of the 512b's (which means the "Canadian" pays whether it is import or export) instead of being levied in the freight charges. How much
cargo is now being moved by truck to U.S. Airports for lift or imported via U.S. gateways?
Reality of today, unless you happen to be in Toronto and you are miraculously not affected by delays or congestion, then the services and choices are limited. That, however, is not to say alternatives are not available and home grown at that. Problem/difficulty has been getting word out. Sadly, Canada lacks a regular weekly Air Cargo News paper. For the future, I would like to see better utilization, sooner rather than later, of our other airports. Perhaps, in part, that might mean government investment or investment from the private sector, or even subsidies or changing the rules to permit foreign carriers to operate domestically. In today's time sensitive world of commerce, by centralizing traffic from one congested hub to another, those outside the hub are paying the price in penalties. Those within the hub are paying the price in delays and driver waiting time fees. How long before our goods and our services become uncompetitive? There are no quick and easy answers. We, however, should observe and learn from the problems experienced with other large hubs and take steps to avoid copying i.e. setting up a situation which invites us to be in a similar mess a few months or years down the road.
CIFFA welcomes your
comments regarding industry
related matters.
Email your point of view to:
georgek@ciffa.com
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European Union
(EU) Phytosanitary Entry Requirements for Coniferous Wood Packaging Take Effect Oct. 1, 2001
Crates, skids, wood dunnage material in containers, etc., shipped to any EU country from Canada must meet these new requirements.
The Canadian Food Inspection Agency (CFIA) has implemented the Canadian Wood Packaging Certification Program (CWPCP - Memo D-01-05)) to assist wood packaging and pallet manufacturers to meet EU requirements. Approved facilities will be registered and certified to produce wood packaging that will meet the new EU import requirements. An information kit is available from CFIA by calling 1-800-442-2342 or visit their website at
http://www.inspection.gc.ca.
Approved wood packaging facilities will be issued a certification stamp to apply to wooden packing material. The stamp will display the country, ID number of the packaging facility and the method of treatment. Having this stamp on the packing material and the shipping documentation and/or customs clearance documents will facilitate the inspection and release of the consignments.
In this context we are pleased to announce that our associate member
TOPAX Export Packaging Systems,
380 Spinnacker Way,
Concord, Ontario
Phone 905-669-6464
(Jo-Lynn Hoffmann or Mark Carrington) has been certified by CFIA under Facility Registration Number CA 00003. Our congratulations go to Topax for being one of the very first facilities to qualify for registration!
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UBS Warburg Warning On
Aviation Sector
Predictions by British Airways boss Rod Eddington that Europe's aviation industry will require drastic consolidations in the future to survive seem to bear out investor sentiment as reported by a UBS Warburg survey.
BA reportedly agreed with comments made by Lufthansa that it is likely that only BA, Air France and Lufthansa will survive intact as major players. This pessimistic view of Europe's aviation industry comes as a result from the fallout of September 11 and the weak economic activity prior to that date.
According to an analysis by UBS Warburg after its sixth annual transport conference in London, a survey showed a majority of investors expect European airline passenger traffic to recover next year to levels prevailing before last month's attack on the World Trade Center in New York. However, two or more flag carriers are expected to disappear in the process and there will be a sustained leap in the market share of low cost operators.
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Malaysia’s Port Klang Upgrade
Despite the negative outlook for container shipping following September 11, Port Klang's Northport will go ahead with a considerable port upgrade project. The refurbishment will enable the berths to receive the latest-generation container ships. Project completion is expected next year for one of the berths and within 18 months for the other.
This month, a Hapag-Lloyd 7,000-TEU vessel is scheduled to call at the port, the biggest containership ever at a Malaysian port, according to the report.
Interestingly enough, both Northport and West Port have so far remained unaffected by the general global slowdown in container shipping.
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Capacity Continues to Grow As
Economy Shrinks
Large containerships continue to be launched despite the global economic slowdown and an acknowledged overcapacity among major carriers.
Mitsubishi Heavy Industries launched the Ever Envoy, the second in a series of five 6,332-TEU E-type container vessels that it is building for Taiwan's Evergreen Group at its Kobe shipyard. She is due for delivery in February next year.
Just this month, P&O Nedlloyd Cook, launched the last in a series of four 6,800-TEU containerships. Meanwhile CMA/CGM has been taking delivery of a series of eight 6,600-TEU boxships since March this year, with the final delivery scheduled for December.
The post 9/11 world in shipping has led to a meltdown in charter rates for large containerships as carriers scramble to divest themselves of charter tonnage in attempts to slash capacity. As a result, The Far Eastern Freight Conference has embarked on a "temporary vessel scheduling and co-operation program", operating from October 1, 2001 to March 31, 2002. The program allows for voluntary vessel withdrawals by member lines.
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Contship Containerlines Moves
U.S. Offices to Florida
CONTSHIP’s U.S. management and support services have been relocated to Tampa, Florida, as part of CP Ships' development plan. Tampa already serves as management and support base for two other CP Ships brands, Lykes Lines and TMM Lines.
The office in Virginia Beach, which was the North American headquarters for Contship Containerlines, will subsequently be closed. "By focusing on Tampa, we are able to promote further co-operation, co-ordination and synergy across the various CP Ships brands. This strengthens their ability to compete and to develop their services in a way that best suits their customers," said David Halliday, CP Ships' senior vice president.
Contship Containerlines' new Florida offices
will be located at:
401 East Jackson Street, Suite 1100
Tampa, Florida 33602, USA. Tel: (1) 813 277 5600
and fax: (1) 813 277 5650.
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AMR Reports $525 Million Loss
in Third Quarter
Citing September 11 and the continuing weakness of the US economy, AMR Corp., the parent company of both American Airlines, Inc. and TWA Airlines LLC, has reported a third quarter net loss of US$525 million before special items. The result compares with net earnings of $322 million in the third quarter of 2000.
"With the economy weak and fuel prices still relatively high, American Airlines and the rest of the industry were experiencing a very difficult financial quarter even before the September 11 attacks," said Don Carty, AMR's chairman and chief executive officer. "But the attacks and their aftermath further weakened traffic and had a staggering effect on our overall financial performance, producing the largest quarterly loss in our long and proud history."
"We are in the midst of the worst financial crisis in the history of the industry, and yet we have many formidable strengths as we manage our way through the crisis and look to the future. Our brand is strong, our global route network is intact and we have an excellent fleet. All this gives us a solid base for winning back our customers, which in the end will be the key to resolving our financial challenges," Mr. Carty said.
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Schenker-Seino Logistics Opens
Centre In Japan
Schenker-Seino Logistics, a joint venture between German company Schenker AG and Japanese company Seino Transportation Co. Ltd, has opened a new logistics center near Narita (Tokyo) Airport. The Narita Logistics Center is equipped with a warehouse management system based on radio frequency technology. The facility has a temperature and humidity-controlled storage area for sensitive goods and areas for providing valued-added services such as inspection, labeling and assembly services. The new logistics center also offers in-house customs clearance for air cargo.
The joint venture will bank on the combination of Schenker's international network and Seino's presence in the domestic Japanese market. The targeted clients are industries that require fast stock movements for high value goods, such as electronics, automotive, and pharmaceutical companies. In particular, the third floor, which features an anti-static and anti-dust environment, will be geared to semiconductor producers.
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IPBCC Warns of Surcharges
The India Pakistan Bangladesh Ceylon Conferences (IPBCC) has reported that the port of Chennai in southeastern India is experiencing severe congestion and that feeder operators serving this port are recording considerable delays.
Consequently, if the situation does not improve, feeder operators have announced their intention to introduce a congestion surcharge at the port. Should this happen, IPBCC member lines will pass any such surcharge to their customers.
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New Swiss National Airline
Deal Goes Through
A US$2.65 billion deal between the Swiss government and Swiss private sector companies will create a new national airline. The new airline will see the Swiss government invest about 38% of the costs needed to fund the new airline. Swiss companies will finance the remainder while the profitable Swissair subsidiary Crossair will be given charge of managing the airline on the model 26/26/82. In other words, the new airline will take over Crossair's existing fleet of 82 airplanes and add 26 former Swissair planes for long-distance and a further 26 planes for short-distance flights.
It is expected that it will be March 2001 until the new
airline is properly constituted and organized. Until then the 'old' Swissair will continue to operate at a reduced schedule thanks to a 1 Bio. Swiss Francs 'a fond perdu' monetary injection.
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Dangerous Goods Programs
Please visit our web site to find the current schedules of our Dangerous Goods programs for Ocean and Air transportation.
Please Note: Registrations for Dangerous Goods programs must be received by CIFFA one month prior to the program start date. Due to arrangements with hotels and Instructors, we need this lead-time to avoid cancellation penalties, should we have to cancel programs. Please get your registrations in early, to avoid disappointment. Due to late registrations, we have already had to cancel several planned programs.
The next Ocean Dangerous Goods programs are:
1 Day Basic: Vancouver, TBA / Calgary, TBA / Winnipeg – postponed due to security measures.
Toronto, Nov. 12 or 13 / Montreal, Nov. 26 or 27
Day Refresher: Vancouver, TBA / Toronto, Nov. 14 / Montreal, Nov. 28
1 Day Warehouse: Toronto, Dec. 6 / Montreal, Dec. 7
The next Air Dangerous Goods programs are:
Initial/Recurrent: Montreal, Nov. 13-16 / Vancouver, Nov. 20-23
Please note that CIFFA can also provide customized in-house Dangerous Goods training for your company’s particular situation. Please contact CIFFA directly to discuss availability and
arrangements.
To register on line http://www.ciffa.com/education_rci_form.html
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Confirmation of Dangerous Goods Training
Given the recent world-wide events regarding security, and the new Enhanced Security Measures put in place by Transport Canada, CIFFA has updated its "Confirmation of Dangerous Goods Training" form. This proactive measure will highlight the seriousness of handling Dangerous Goods, as well as your company’s legal responsibilities and liabilities.
In an effort to get more detailed information from our members, the new form must be completed for every office/location of each member company. In this way, CIFFA will help our members ensure their Dangerous Goods training commitments are met.
It is a requirement of CIFFA and Transport Canada, that if you handle Dangerous Goods, you must maintain qualified staff. If you are an IATA Cargo Agent, you must also ensure you have a minimum of at least two qualified staff per accepting office.
New membership applicants will have to complete the form prior to their acceptance into CIFFA. A copy of this form is included with this Newsletter and can also be found on our website at:
http://www.ciffa.com/education_dg_confirmation.html
Copies of this form will continue to be sent to current Regular members with their Errors and Omissions Insurance renewal requests.
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Customs Self Assessment - Less Than Truckload (CSA-LTL)
The purpose of this memorandum is to provide you with the design details of the CSA-LTL Solution. The design was presented to, and accepted in principal by, the Customs Management Committee (CMC), the Customs and Trade Administration Consultative Committee (CTACC), the Regional Customs Action Plan (CAP) Coordinators, the Directorate Management Team (DMT) and the CSA-LTL Working Group.
The CSA-LTL solution was designed to ensure that the benefits of the expedited CSA process are not negated in the situation of a "Failed PARS" on board a conveyance carrying both CSA and non-CSA shipments. The CSA-LTL solution outlines the possible scenarios that occur in the highway mode and how each will be dealt with depending on the circumstances. It should be noted that these processes apply only to approved CSA carriers.
The ideal scenario, as described in the CSA-LTL Discussion Paper, involves the carrier transmitting their manifest data electronically pre-arrival, and the driver being registered in the Commercial Driver Registration Program. When the aforementioned criteria are met, the truck may continue to move inland to the carriers' licensed facility pending a release decision for the non-CSA shipments. Shipments referred for Customs examination, must be backhauled to the highway sufferance warehouse or other facility as designated by the Region.
When one or more criteria are not met, there are fewer benefits. For example, the process for a non-registered driver will be more rigorous at the first point of arrival and could include a referral to secondary, an examination of the conveyance, and/or the shipment(s) on board. Also, an AMPS penalty will apply to the carrier where a non-registered driver is used. Similarly, carriers presenting paper manifests will be required to proceed to the highway sufferance warehouse pending a release decision for the non-CSA shipments. Only carriers transmitting their manifest data electronically will enjoy the benefits of proceeding to their licensed break bulk facility.
The CSA-LTL solution introduces a warehouse regime for carriers' break bulk facilities. Approved CSA carriers may apply for an SO type warehouse license and, if approved, may hold shipments at their warehouse pending a release decision by Customs. During consultations two major issues were identified. These issues are: a process to ensure the truck continues to move when CCRA's system is down; and, a national policy respecting the backhaul of shipments called for Customs examination. With respect to the process for systems outages, CCRA is reviewing two options. These options will be discussed with the Working Group and the details communicated to our clients once they are finalized.
Regarding a policy to ensure national consistency with respect to backhauls, the CCRA has committed to establishing an evaluation framework that will assess the operational impacts and corresponding resource impacts. The evaluation framework will be developed, in consultation with the CSA-LTL Working Group, and a decision made after an operational period of approximately six months.
The CSA-LTL solution is scheduled for implementation in October 2001, to coincide with the implementation of CSA. As we move towards implementation the outstanding issues will be resolved, the policy and procedures will be finalized and published, systems changes will be made and tested, and field personnel will be trained. Ongoing consultations with our clients will continue through this phase.
I would like to take this opportunity to thank you for your support during the design of the CSA-LTL solution. If you require any additional information, please do not hesitate to contact me at (613) 954-7190 or Ms. Alice Shields, Director, Commercial Re-Engineering Division at (613) 946-1672.
Yours sincerely,
E.D. Warren, Director General
Major Projects Design and Development Directorate
Objet : Solution du Programme d'auto-cotisation des douanes - Expéditions de détail - camion (PAD-EDC). L'objectif de la présente note de service est de vous fournir les details concernant la conception de la Solution PAD-EDC. La conception a été présentée et approuvée en principe par le Comité de gestion des douanes (CGD), le Comité consultatif des douanes et de l'administration de la politique commerciale (CCDAPC), les coordonnateurs régionaux du Plan d'action des douanes, l'Équipe de gestion de la direction et le Groupe de travail du PAD-EDC.
La Solution PAD-EDC a été conçue pour veiller à ce que les avantages du processus accéléré du PAD ne soit pas annulés au cas où une expedition comprenant des marchandises admissibles et non admissibles au PAD échouerait l'examen du SEA. La Solution PAD-EDC souligne les situations qui peuvent se produire dans le secteur routier et la façon de les traiter selon les circonstances. Il faut noter que ces processus ne s'appliquent qu'aux transporteurs assujettis au PAD.
Dans la situation idéale décrite par le Document de travail PAD-EDC, les transporteurs transmettent leurs données relatives au manifeste par voie électronique avant l'arrivée des marchandises à la frontière et le chauffeur participe au Programme d'inscription des chauffeurs du secteur commercial. Si on répond aux critères précités, le chauffeur peut amener l'expédition à l'installation autorisée du transporteur en attendant que la decision d'accorder ou non la mainlevée des marchandises non admissibles au PAD soit prise. Les marchandises renvoyées à un examen douanier doivent être retournées à l'entrepôt d'attente du secteur routier ou à un autre endroit désigné par la région.
Si on ne répond pas à un ou à plusieurs critères, il y a moins d'avantages. Par exemple, le traitement d'un chauffeur non incrit au PAD sera plus rigoureux au premier point d'arrivée et pourra comprendre un renvoi à une deuxième inspection et un examen du moyen de transport ou de l'expédition. De plus, une pénalité du RSAP sera imposée au transporteur si ce dernier a recours aux services d'un chauffeur non inscrit. Dans le même ordre d'idées, les transporteurs présentant des manifestes sur papier devront se rendre à l'entrepôt d'attente du secteur routier en attendant que la decision d'accorder ou non la mainlevée des marchandises non admissibles au PAD soit prise. Seuls les transporteurs qui transmettent leurs données relatives au manifeste par voie électronique seront en mesure de profiter des vantages découlant du transport à leur installation autorisée de transbordement.
La Solution PAD-EDC établit un régime d'entrepôt pour les installations de transbordement. Les transporteurs assujettis au PAD peuvent demander un permis d'exploitation d'entrepôt de type SO. Si leur demande est acceptée, ils pourront garder des expéditions à leur entrepôt jusqu'à ce que la décision d'accorder ou non la mainlevée soit rendue par les douanes. Pendant les consultations, les deux questions suivantes ont été abordées : le processus dont le but est de s'assurer que le camion poursuit sa route lorsque le système de l'ADRC est en panne; une politique nationale concernant le retour d'expéditions renvoyées à un examen douanier. L'ADRC étudie deux options relatives au processus en cas de panne du système. Ces options feront l'objet de discussions et les détails seront communiqués à nos clients dès qu'ils auront été établis. En ce qui concerne la politique visant à assurer l'uniformité des voyages de retour à l'échelle nationale, l'ADRC s'est engagée à établir un cadre d'examen qui évaluera les impacts opérationnels et les impacts corrélatifs au niveau des essources. On élaborera le cadre d'examen en collaboration avec le Groupe de travail du PAD-EDC, et une décision sera prise après un délai opérationnel d'environ six mois.
La Solution PAD-EDC sera mise en oeuvre en octobre 2001, soit en même temps que le PAD. À mesure que nous nous rapprocherons de la mise en oeuvre, les problèmes non réglés seront résolus, la politique et les procédures seront rédigées et publiées et les changements au système seront effectués et mis à l'épreuve. En outre, nous donnerons de la formation au personnel des bureaux locaux. Les consultations de nos clients se poursuivront au cours de cette phase.
Je voudrais profiter de cette occasion pour vous remercier de votre appui durant la conception de la Solution PAD-EDC. Si vous avez besoin de renseignements additionnels, n'hésitez pas à communiquer avec moi au (613) 954-7190 ou avec Mme Alice Shields, directrice de la Division de la réingénierie commerciale, au (613) 946-1672. Veuillez agréer, Mesdames et Messieurs, mes salutations distinguées.
E.D. Warren, Directeur général
Direction de la conception et de
l'élaboration de projets importants
Claudia Hastings
Field Liaison & Coordination
Commercial Re-engineering
8th Floor, Vanguard Building (613) 952-1635
Ed. Note: CIFFA is concerned about the fact that only Carriers and Importers can apply for a CSA ‘control’ number. This will mean that Freight Forwarders are automatically shut out from the lucrative LTL consolidation traffic from the United States to Canada as shipments can only be broken down at the carrier’s warehouse or distribution center. There is also uncertainty as to how a LTL consolidation is to be handled that contains both, CSA and Non-CSA cargo. CIFFA is following up with the CCRA and will report further as issues are clarified.
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Guy Tombs Limited celebrates its 80th anniversary
Come this October 26th, Guy Tombs Limited, the Montreal-based freight forwarder, marks its 80th year.
Long versatile in seafreight and airfreight, in recent years the firm has focused on certain niches. Explosives and military cargoes, project cargoes and chartering, and since 2000 also food-grade ISO tanks – count amongst its specialties.
Guy Tombs Limited in 1994 formed a joint venture with Ridgeway International in the U.K. The company Ridgeway North America is active in the U.S. and Canadian defence markets. Fuller details can be found on Ridgeway’s website at
www.ridgewayintl.com
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Press Releases
KLM Cargo
a. Canada: Cargo capacity will be increased ex Toronto to a daily MD11. Service ex. Montreal will be operated by a daily 767 aircraft. Vancouver frequencies will be days 1, 3, 4, 5, 6.
b. Security Surcharge on KLM Cargo Shipments Effective October 15, 2001, KLM Cargo will impose a securitysurcharge on all shipments effective October 15, 2001. This surcharge will cover various cost increases, including higher insurance premiums for the airline, extra network-wide security measures, and changes in market conditions since the September 11th terrorist attacks.
The Security Handling surcharge of USD $0.13, and CAD $0.20 per kilo will be based on the actual weight. The security charge must be entered in the Other Charges Box on the air waybill using the code MU. These charges must be included in the Total Other Charges Due Carrier.
Airline Marketing (Canada 3000)
Airline Marketing Group Inc., the former GSA for Canada 3000, announced today that they have successfully challenged the termination of their agreement with Canada 3000 to sell belly-hold cargo space for Canada 3000's passenger aircrafts.
Apparently on September 17 an injunction was granted against Canada 3000 by the Ontario Court of Justice, ordering them not to terminate or interfere with their existing GSA contract.
Any bookings, contracts and business should therefore be conducted anew with the Airline Marketing Group for belly-hold space on Canada 3000's fleet of aircrafts.
Former WestJet CEO to Head AC's New Low-Fare Carrier 8/23/01
Stephen Smith will be the president and CEO of a low-fare carrier that Air Canada is launching later this year. The appointment has taken effect in September.
Mr. Smith has over 20 years experience in the airline industry with an extensive background in the regional and discount sectors. As President and CEO of WestJet Airlines he oversaw the discount carrier's early phases of growth and the carrier's initial public offering. He was President of Air Canada regional affiliate Air Ontario from 1994 to 1999 and prior to that was President of Air Toronto, a regional carrier linking Toronto with small-size U.S. market destinations. He served as Chairman of the Air Transport Association of Canada (ATAC) in 1999.
"Steve is a proven, talented and smart airline executive and I look forward to having him back as part of the Air Canada team. His extensive background in the industry, in particular his role in developing the discount airline sector in Canada will provide our low fare carrier with the strategic and experienced leadership needed to ensure its success. I also expect Steve to play a key role in creating the low-cost culture change we are seeking to achieve," said Robert Milton, president and CEO of Air Canada.
Further details on the timing of the start-up, branding, route network, headquarters and infrastructure for the new carrier will be announced shortly after Mr. Smith joins the low-fare carrier on September 10.
PS Software Releases PROPHIX Software for Budgeting and Planning
Mississauga, Ont. headquartered EPS Software is currently shipping PROPHIX, a new OLAP software product for Budgeting, Forecasting and Management Reporting.
The software follows EPS's prior release of its Budget 2000 line of financial software.
"PROPHIX is based on our success with Budget 2000, says Paul Barber, President of EPS Software. "Many of our customers have a budgeting system implemented within one week of installing the software. This compares with many weeks or months for most competitors."
With an entry price of US$6,000, PROPHIX is a mid-market product aimed at medium sized companies that cannot afford the high prices (often $50,000 and up) of other solutions.
"PROPHIX introduces totally new concepts such as OLAP Minicubes and Delta Analysis", says Bob Walker, EPS Software's VP of Development. "We have also made great progress in ease-of-use features for budget administrators, so they can get their budgeting system up and running as quickly and easily as possible."
A PC-based application developed by EPS Software, PROPHIX is a complete multi-user financial application that simplifies enterprise-wide budgeting, forecasting and reporting for Income Statements, Balance Sheets and Cash Flow. The software, which runs on 32-bit Windows Platforms (95, 98, NT, ME and Windows 2000), can be used with a stand-alone or laptop computer, integrated in a network environment or used over the Internet.
LOGISOFT – Customs Net Exchange
Logisoft advises that it has been approved by the CCRA (Canada Customs and Revenue Agency) as a certified solution for Internet transactions to replace dedicated lines or service bureaus for such systems as CADEX, CUSDEC, ACROSS and RNS. For more information contact Tony Le Piane of Logistics Software Corp at 905-843-7433 or access by e-mail at:
info@logisticssoftware.com.
EU Resists Government Bail-Out
It is interesting to learn that the European Union has tackled the issue of emergency measures for the air transport industry in the wake of the September 11 attacks. In its brief, the EU said it would, however, resist any measures such as direct Government bailouts for national airlines that were considered a financial risk prior to the attacks. The European Commission is keen to ensure that no extra competitive advantage is gained by any one airline through cash bailouts by member state governments. What is permissible, however, is compensation for losses directly resulting from these exceptional circumstances including such items as insurance coverage, assumption of additional costs for security and compensation for direct losses suffered in the days following the attacks.
The EC says it will also give favorable consideration to the capacity coordination agreements designed to maintain a regular service on less frequented routes or the coordination of schedules during off-peak periods of the day.
The accents set by the EC will naturally affect transatlantic relations with the United States and Canada, but it is too early to speculate on the outcome of such multilateral negotiations. Still, there is no question that the ‘blanket bail-out’ of the US airlines by the US Government is frowned upon in Europe!
It will also be interesting to speculate how the EC will react to the Swiss Government’s capital injection for Swissair! Even though Switzerland is not a member state of the EU, it nevertheless has various treaties in place that hold it largely to EU standards.
Lykes Lines Expands African Service
FLORIDA-BASED Lykes Lines has completed the re-tonnaging of its North America-Africa East Coast Loop service with the introduction of the ‘Lykes Runner’.
The multi-purpose Astrakan Mark 3 Ro-Ro ship joins four sister ships already in service, operating every two weeks between Canada, the US and South Africa. They all carry breakbulk, bulk and container traffic, including refrigerated cargo, as well as automobiles, trucks and other rolling stocks.
The other three ships on this service are the Lykes Winner, the Lykes Inspirer and the Lykes Energizer.
The east coast loop service calls at Montreal, Philadelphia, Charleston, Cape Town, Durban, and back via Cape Town and Philadelphia to Montreal. Hamilton and Toronto are added during the Lakes season between April and December.
Lykes Lines also offers a Gulf Loop service between Africa and North America, again operated with multi-purpose ships. The Gulf loop operates monthly and calls at Durban, Cape Town, Salvador, New Orleans, Houston and Veracruz, with inducement calls at other ports in South Africa, Brazil, Venezuela, the Caribbean and North America.
Customs Committee Report Update
Our Customs Chair – Don Lucky, has prepared an excellent update on the more recent initiatives by the CCRA. Please visit our Website: www.ciffa.com and click under ‘Current Issues’ for details. Issues like AMPS, the CSA program and others are addressed therein.
New Joint Venture to Cover Mercosur Cabotage Trades
Thanks to a new joint venture between ALIANCA and DOCENAVE, weekly sailings will now meet a long-standing demand in the cabotage trade linking Brazil, Uruguay and Argentina. The combined service will deploy seven vessels in two slings on a weekly basis, starting October 29. Five vessel with a 35-day rotation will call at the ports of Buenos Aires, Montevideo, Rio Grande, Sao Francisco do Sul, Paranagua, Santos, Sepetiba, Salvador, Suape, Fortaleza and Manaus. The return trip will include port calls at Itaqui or Fortaleza alternatively, Suape, Salvador, Sepetiba, Santos, Sao Francisco do Sul and Buenos Aires. Asunscion/Paraguay will be served via Buenos Aires. Two vessels with a 14-day rotation will call at the ports of Rio Grande, Sao Francisco do Sul, Santos, Suape and Maceio with return calls at Santos and Rio Grande.
FMC Assesses $1.3 Million Civil Penalty
The Federal Maritime Commission (FMC) ordered a non vessel-operating common carrier (NVOCC) to pay a civil penalty of $1,340,000 and to cease and desist from operating in the United States as an ocean transportation intermediary. The NVOCC was found to have wilfully and knowingly obtained transportation at less than the rates and charges otherwise applicable through the means of mis-description of the commodities actually shipped and to have charged, demanded, collected, or received less or different compensation for the transportation of property than the rates and charges shown in it NVOCC tariff. Stallion Cargo, Inc., Docket No. 99-18 (October 18, 2001).
Customs Service Trade Symposium
The U.S. Customs Service has announced that it will host a Trade Symposium in Washington, DC on November 27, 2001. The focus of the symposium will be the challenges of facilitating the flow of commerce in a heightened security environment.
Livingston International Says Pre-arrival Clearance and Reputable Carriers Can Speed
Border Crossing
Toronto, Canada – Companies shipping goods across the Canada-U.S. border should use electronic pre-arrival programs to minimize ongoing delays, Peter Luit, CEO of Livingston International, said today.
Shipments entering Canada from the United States can take advantage of the Pre-Arrival Review System (PARS), a program developed by Canada Customs and Revenue Agency that allows release information to be processed before goods arrive at the border. "We are advising clients with Canada-bound shipments to take advantage of PARS and get us shipment information by any electronic means, including fax, in advance," said Luit. Carriers entering the U.S. can apply for the Pre-Arrival Processing System (PAPS), a U.S. Customs program that lets approved drivers forward shipment documentation to the border in advance of their arrival, to speed release. "We are advising clients shipping into the U.S. to use carriers set up for PAPS, or to encourage their carriers to apply," said Luit. "Both programs are fairly easy to set up and customs brokers are happy to help."
For more information, contact:
Dawneen MacKenzie, Director, Corporate
Communication, Livingston International
1-800-387-7582 ext. 3109
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Welcome To New Members
The following applications have been approved for membership at the last National Board of Director’s meeting, and according to the By-Laws, their names were circulated via email for review. We look forward to their active participation in our Association.
Associate Working Skills Centre of Ontario
350 Queen’s Quay West, 2nd Floor
Toronto, Ontario M5V 3A7
Tel. (416) 703-7770
Fax. (416) 703-1610
Email: WSC@interlog.com
Ms. S. LeRoy / Ms. L. Hindle
Ms. M. Hui / Ms. C. Chu
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Correspondence From Home and Around the World
We have received correspondence from the places listed below, looking for agency relationships with member firms in Canada. Should you be interested to establish an agency relationship in any of these places, please contact the Secretariat for details via email to
sandraf@ciffa.com
Agents:
1. China
2. Tema Ghana, West Africa
3. Shenzehn, China
4. Dhaka, Bangladesh
5. Shandong, China
6. Sialkot, Pakistan
7. Sevastopol, Ukraine
8. Poltava, Ukraine
9. Keamari, Karachi
10. Shahrah-e-Liaquat, Karachi
11. New Delhi, India
12. Shahrah-e-Liaquat, Karachi
13. Belgrade, Yugoslavia
14. Karachi, Pakistan
15. Mumbai, India
16. Chennai, India
17. Bangladesh
18. Chittagong, Bangladesh
19. Sidoarjo, East Java
20. Cairo, Egypt
21. Tallinn, Estonia
22. Mersin, Turkey
23. Cairo, Egypt
24. Bangladesh
25. Tel Aviv, Israel
26. India
27. Egypt
28. Viet Nam
29. Fouzhou, China
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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. Torontonian with 10 years operations and sales experience with freight forwarder in China.
2. German economics and environmental student seeking 6 month apprenticeship in Canada.
3. Mississaugan with 8 years experience in export department of manufacturer seeking position with freight forwarder.
4. CIFFA Toronto student seeks position in import/export, has 8 years experience from Middle East.
5. French transport student looking for short apprenticeship in
Canada.
6. Torontonian with 5 years freight forwarding experience in
Pakistan.
7. Pakistani with 14 years airfreight experience immigrating to
Canada looking for position.
8. Torontonian with over 15 years experience in international
shipping seeks position.
9. Torontonian with 8 years experience in Russian shipping
industry seeks position.
10. Montreal graduate of Management of the Maritime Resources, looking for position in marine sector.
11. Torontonian with 20 years experience in transportation
management/marketing seeks position.
12. Person with 8 years experience in CMR seeks position in Toronto area.
13. European licensed truck driver looking for similar position in Canada.
14. Small Freight Forwarder for Sale –
Anyone wishing further information on the sale of this well established West Coast Freight Forwarder, please contact the Secretariat for particulars.
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Events
of Interest
1. Air Cargo Americas, Miami, Florida, Radisson Centre, October 31-November 2, 2001.
Tel. 305-871-7910
http://www.worldtrade.org/aircargo
2. Cold Chain 2001 From Field to Shelf, Hamburg Messe und Congress, Germany, November 14-15, 2001. Tel. (44) 1932-893861,
http://www.intermodal-events.com/coldchain
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