I N D U S T R Y   R O U N D U P

 C O M P A N Y   C O R N E R

Made-to-order pick & pack and cross-dock
solutions for E-Retailers, emerging businesses
and fast-growing companies

	Jon Barnard, Manager – Distribution Services

Looking for affordable warehouse/distribution services? Then look at Universal Logistics. We have capacity available now in the Toronto area that is ideal for companies on either side of the U.S./Canada border. U.S. companies can use our pick & pack and cross-dock services to establish a Canadian presence at a fraction of the investment required to build a new warehouse. Canadian companies can benefit by using our warehouse/distribution services to handle seasonal peaks or spikes in new business.

Key benefits include reduced lead times, lower costs per unit and reduced transit times. Even companies with as few as 10-12 orders a day can save time and money, notes Jon Barnard, Manager – Distribution Services for Universal Logistics. “Take, for example, courier costs,” explains Mr. Barnard. “There is a big cost difference between couriering something to Canada from a U.S. location and couriering that same product from our warehouse to a Canadian location.”

Additional savings are achieved because Universal Logistics offers fixed costs for order fulfilment. “That gives our clients cost certainty,” notes Mr. Barnard, “and the freedom to focus on their core competency.”

Yet another plus is the warehouse’s sophisticated information system which provides instant updates on inventory status for our clients.

Here is a typical example of how we serve our current clients: Inventory is shipped to our warehouse, located near the international airport in Toronto, Ontario. Freight arrives either directly from the client or via Universal’s transportation services. Orders come in electronically or by fax. Warehouse staff pick, pack and ship the order by post, courier, truck or air freight. Turnaround time is quick and delivery methods are customized to fit your needs – a cost effective solution from start to finish.

We also offer complete cross dock services for companies, which involves accepting delivery of a truck or pallet, breaking down the contents and shipping them out – usually same day – by post, courier, truck or air freight.

Typical clients for our warehouse and distribution services include e-retailers, emerging businesses and fast growing companies. “We are an affordable alternative,” notes Paul Glionna, Vice-President – Operations, “and we have capacity available, but it is best to call us now because we expect to get to full capacity soon.”

For more information, contact Jon Barnard, Manager – Distribution Services.

Why our web site got a face lift

	Go to www.universallogistics.ca to see our new home page

Recognizing that more and more business is being done on the web, we have revamped our home page to present – at a glance – all of our core businesses and new value-added services.

“We offer a lot more than customs brokerage and freight forwarding and want to make sure prospects and existing clients are aware of everything we offer that can help a company reduce freight costs and shorten transit times,” explains Michael Glionna, President – Universal Logistics.

The new home page features three columns, a format that will allow us to make changes easily and quickly – another important objective because regular updates are a must to meet changing client needs. Following is a quick review of what’s in each column.

Column One: What every company should know about Customs Brokerage (explains why companies need expert support before and after goods are cleared); Your Canadian Warehouse (offers solutions to your warehouse/distribution needs); Inside Trac (our package of interactive web services); Customs Compliance Made Easy (highlights our popular 90-minute EDucation seminar).

Column Two: How we help companies cut transit times, reduce freight costs and avoid customs penalties; Meeting and exceeding client expectations with our Client Care program; Industry leading specialty services, such as Book It!, UK OK, JA! Germany and Go North.

Column Three: Breaking News of interest to our clients; Request a Quote for Ocean, Air, Truck, Customs Brokerage and Distribution; Route, our company newsletter.

See. We really do offer a lot more than customs brokerage and freight forwarding.

Growing demand for customs compliance EDucation Seminar

	John Leis, EDucation program coordinator

Who has the inside story on our exclusive 90-minute EDucation seminar on customs compliance – and the growing demand for this value-added service by both medium-sized companies and large corporations? That has to be the person who delivers the seminar – John Leis, the Program Coordinator for the Universal Logistics EDucation Program.

He has delivered several seminars this year to companies with varying levels of customs compliance experience. “Some come to us with very little information on customs compliance,” he says, “other companies have a system and want to verify that what they have is correct.”

All the attendees welcome the interactive nature of the seminar and the opportunity to ask questions at any time. “No question is off limits,” says Mr. Leis, “and it is never too late to get started.”

The 90-minute seminar addresses the key compliance issues most companies face – errors in tariff classification, valuation and origin – and how to solve the problem areas by identifying and reporting the errors, a necessary step to close the gap between what is reported to Canada Customs and what is the “commercial reality”.

Among the most important insights is that attention to detail is vital, especially since simple clerical errors can lead to significant penalties, implemented through the Administrative Monetary Penalty System (AMPS), a program, introduced in 2002, that has already generated more than $25 million in penalties.

When the 90-minute seminar is complete, attendees have a clear idea of where they stand and what they need to do next. “They go away refreshed, knowing that they need a team approach and that we are here to help when they need customs compliance expertise,” explains Mr. Leis.

Here, for example, is the seminar feedback from attendee Amanda Ugarkovic of Brascorp: “Clearly and professionally presented. I’m fairly new to the Customs game and I could easily follow the presentation.”

The group rate is $199 (add $50/person for groups of more than three) for seminars at client locations; $99 for seminars given at the offices of Universal Logistics.

For our many Book It clients, Universal Logistics has joined up with the Book & Periodical Council to develop a compliance seminar that will address the unique issues facing publishers and book retailers. Scheduled for November 14, 2006, this seminar will feature a presentation from CBSA staff with insights into Customs’ audit findings specific to the book industry.

More seminars are booked for this Winter and plans are being developed to do additional seminars on NAFTA and Incoterms. To learn more, book a seminar, or suggest a seminar topic that would be of interest to your company, email John Leis or Kitt Jacques or call our office 905-882-4880.

Understanding fuel price changes

	Surging demand and geopolitical factors are the driving forces behind rising fuel prices.

If you ship freight, you know all about fuel price increases. They seem to follow one after another and it is unlikely that this trend will change any time soon, mainly because of surging demand from China and India, and geopolitical factors, such as terrorism threats and the many conflicts in the Middle East.

In our role as a customs broker and/or freight forwarder, we have no control over how and when fuel price increases are implemented. However, we do work hard to keep our clients informed as soon as possible about any price increases, which can be difficult to follow because of the many acronyms and technical terms. Here are the most common terms for fuel price increases:

FSC – Fuel Surcharge (a fee added to an invoice to cover fluctuating fuel prices)
IFP – Interim Fuel Participation
BAF – Bunker Adjustment Factor
BSC – Bunker Surcharge
FRS – Fuel Recovery Surcharge

For more information, contact Paul Glionna, Vice President – Operations

CP announces price increases for intermodal
terminal services

Fees for services at CP’s intermodal operations in Toronto (Vaughan), Montreal (Lachine), Calgary and Edmonton have gone up – again. Free Time on standard dry containers and Perishable Cargo has been reduced from three days to two days, excluding Sunday and legal holidays. Saturday will no longer be included in Free Time calculations. In addition, after expiry of Free Time, Sundays and legal holidays will be chargeable days at the following rate: $175 per container per day for the first three days and $225 per day thereafter.

For more information, contact David Lychek, Manager – Ocean Services.

What you need to know about container examinations

Ocean containers en route to North America may be inspected by the Canada Border Services Agency (CBSA), U.S. Customs and Border Protection (CBP), the Canadian Food Inspection Agency (CFIA) or the U.S. Department of Agriculture's Animal and Plant Health Inspection Agency (APHIS). The number of inspections depends upon the nature of the goods and route of physical entry.

This process is part of the Container Security Initiative Partnership Arrangement (CSI), signed by the CBSA and CBP in October 2005. The objective of this partnership is to:

• enhance marine security by having containers pre-screened and/or examined by CBSA/CBP officers in foreign ports before the containers are loaded onto vessels destined for North American soil
• protect the primary system of global trade – containerized shipping – from being exploited or disrupted by terrorists
• safeguard global maritime trade while allowing cargo containers to move faster and more efficiently through the supply chain at seaports worldwide

The CSI is an extension of the Advance Commercial Information (ACI) Initiative, which was implemented in April 2004 and allows the CBSA to target and interdict potential terrorism threats before they reach our shores.

Both CBSA and CBP have set criteria to determine those containers which may be of high risk or have a great possibility of containing drugs, prohibited goods, weapons, etc., including, country of origin/export, commodity description, weight, weight distribution, shipper, consignee, etc. If there are any questions concerning a particular container, it is not permitted aboard the outgoing vessel until CBSA or CBP have authorized its movement.

In addition to container targeting, units may also be subject to random gamma ray detection and/or physical examinations prior to vessel loading.

The areas of concern include not only terrorist activities and narcotics, but also animals and plants, which can be the source of damaging foreign pathogens that can contaminate our forests, wildlife, farming and livestock industries.

Although containers are examined by Customs and/or Agriculture Agencies, the fees for inspection are generally bourne by the importer of the goods. For LCL container shipments, the cost of the inspection is pro-rated across all the shipments in the container. For an FCL container, the total costs are applicable. Examination charges range from less than $100/shipment (LCL) to $900 or more (FCL). The costs are non-negotiable and you probably won't know they apply until the goods have been customs released for delivery.

Examinations are a necessity of international shipping, but importers can reduce the possibility of review by ensuring shippers utilize complete and accurate information on shipping documentation.

For more information, contact David Lychek, Manager – Ocean Services.

Here is an important reminder for anyone moving goods in-bond via truck, rail or ocean, and, in particular, shipments arriving via air that have not been pre-arranged with Customs. Most inland customs offices close by 5:00 p.m., which means no commercial traffic can be cleared after 5:00 p.m. (border locations are open 7/24). The only exception is a clearance for live/perishable commodities and these requests must be forwarded to Customs during business hours.

If you are unsure whether these rules apply to your shipment, contact Chris Cartan, Manager –- Customs Operations.

	Michael O’Donnell

Sales team expands

Responding to the growing demand for our services, we have added Michael O’Donnell to our sales team.

He brings to his new position more than 12 years of industry experience, including customs brokerage, truck freight and international freight. Michael, who also holds CCS and P. Log designations, is a “great addition to our sales team,” says Carlos Torres, General Manager – Business Development.

Long serving branch manager retires

After 43 years of dedicated service to Universal, Lynda Wells, Branch Manager – Fort Erie, has retired.

Lynda, who has held the position of Branch Manager since 1980, leaves behind a very committed and capable team, including the new Branch Manager, Karen Murray. Karen brings more than 20 years experience with Universal to her new position.

Lynda Wells retires

Karen Murray, new Branch Manager – Fort Erie