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Trade Alert

 Airfreight Security Surcharge

(Toronto, October 5, 2001) As we are all aware, the airfreight industry today faces a far different set of circumstances than those prior to September 11, 2001. The terrorist attacks in the United States have severely shaken the airline industry and heightened the level of security required for air transport, resulting in considerable additional costs. As a result, Air Canada has advised this week that effective October 15, 2001 a new Security Surcharge will be implemented. It is fully expected that all airlines will follow this initiative.

The current structure for this Security Surcharge is as follows:

    Canadian Domestic Flights: $0.15 CAD per kg., minimum $15.00 CAD
  Destination U.S.A.: $0.10 US per kg., minimum $10.00 US
  Destination Europe:   0.15 Euro per kg. (approx. $0.20 CAD), no minimum

As the full impact of the new air transport procedures are determined, the charges will be reviewed by the airlines and may change over the next weeks. Imports into Canada will also be affected as we have been advised that similar surcharges will be put in place worldwide at point of origin, regardless of destination.

In addition to introducing increased security measures, most carriers have adjusted the frequency of their departures and flight schedules to coincide with the starkly reduced traveling needs of the public. In turn, this puts additional strain on cargo space availability. Consequently, routing choices will become more limited and longer lead times will be required.

It is strongly recommended that the above information be taken into consideration during your logistics planning, as air transport is becoming more restrictive and more expensive. Please do not hesitate to contact Universal Logistics to assist you with your next airfreight shipment.

Paul Glionna
Vice President – Operations

 

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