News and Views for the clients of Universal Logistics Fall 2009
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  In This Issue...
 

We make things right when your freight goes wrong

  Six reasons to choose Universal Logistics for
U.S. ocean freight
 
  What you need to know about the struggles of
the major steamship lines
 
  Expect some delays at Port of Vancouver
during Winter Olympics
 
  Look who is back – Chris Barnard  
 

 I N D U S T R Y   R O U N D U P

 
  Pearson airport slashes landing fees, terminal charges  
  Global Air Cargo Volume Improves  
  Rising demand causes air freight delays
in China and Hong Kong
 
  Global container lines cutting capacity  
  2010 NAFTA Blanket Certificate Reminder  
  NAFTA surface trade still down  
  Implementation date for 10 +2  
  New U.S regulations for plant products or goods
containing plant products
 
  Delay in new U.S. rules for empty containers with
residual chemicals
 
 

 C O M P A N Y   C O R N E R

 
  On the road again  
  At Your Service – We care about your business  
   

International Transportation, Trucking, Customs Brokerage, Distribution
 

 

We make things right when your freight goes wrong

About 90% of all freight shipments are completed with no major problems – and it is no different at Universal Logistics, where we have some of the best freight experts in the business.

But what about the one in ten shipments that are affected by events beyond your direct control, such as severe weather or labour strikes? Even something that appears relatively minor – such as a documentation error – can have a big impact. Then what? Do you get the help you need? Or do you get put on hold?

Choosing Universal Logistics means you obtain direct access to freight staff who have the training and expertise required to:

  • Assess the situation
  • Review options
  • Make recommendations

Better still, issue management is quickly elevated to a senior manager, when necessary. This is a critical advantage when every day – or perhaps every hour – is important.

Additional support is provided by a Client Care specialist who knows your business and, in all likelihood, knows you.

It all adds up to superior freight support – just one more way Universal Logistics delivers the personal service and technical expertise you would expect from a family-owned company established in 1949.

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


 
 

Six reasons to choose Universal Logistics
for U.S. ocean freight

You might be surprised to learn that our U.S. ocean freight service can meet most – if not all – of your needs. Plus there is also a good chance that we can save you time and money. Here’s how:

  1. For ocean imports, we can coordinate both LCL & FCL shipments to all points in the United States or delivered to the door, if required.
  2. For ocean exports, we can handle door-to-door shipments. That means we can do everything from booking the carrier to processing the AES Export Declaration, required by the U.S. Census Bureau.
  3. Need LCL, FCL, oversize or even large project work involving extensive packaging? We can coordinate shipments to and from all points in the United States.
  4. Changing the routing of your cargo to cut costs and optimize transit time. For example, it is often cheaper and faster to route LCL cargo, bound for U.S destinations, through Toronto. Containers arriving from both East & West Coast Canadian ports can be destuffed in Toronto, with furtherance to all points, notably mid-west U.S. destinations.

    As a full service logistics provider we can arrange truck movement from Toronto and rapid border clearance to expedite such shipments. Routing through Toronto also means you bypass the delays encountered at main U.S. ocean ports, such as New York and Long Beach, and the higher port/handling fees typically charged at U.S. ports of arrival.
  5. Are you prepared to deal with the new U.S. Customs Importer Security Filing (ISF) program, known informally as “10 + 2”, and scheduled for implementation in January 2010? We know all about it and will ensure you know what’s necessary to be compliant.
  6. For Canadian based customers shipping to clients in the U.S. from overseas, our Canadian offices can coordinate the complete move, including U.S. customs clearance, and provide the convenience of a single local contact.

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

 

 

What you need to know about the struggles
of the major steamship lines

The economic recession and resulting decline in world trade has hit the main shipping lines hard, leading to fears that there will soon be a shortage of capacity and an increase in rates, particularly on the Pacific trade lane.

We can help you manage these challenges by ensuring you are aware of rate levels and the most competitive routes. This is also a good time to take advantage of a key recommendation we make to many freight clients – take control of your freight. It’s easier than you think and we can take you through the entire process.

Here is a quick review of what’s happening in the shipping business worldwide:

  • Faced with over capacity, many lines are undergoing massive restructuring plans
  • Zim Shipping Line is facing a cash flow shortage of U.S. 1 billion dollars through 2013
  • OOCL is expected to slash capacity by 20% this year, returning 16 chartered vessels to ship-owners and reducing fleet growth by 5.3 %
  • Hapag Lloyd, Germany’s largest shipping company, is expected to post losses of EUR 900 million for 2009
  • Maersk Line has let go roughly 7,000 employees in the past 18 months.
  • Evergreen has announced capacity reductions of over 30% on their North American West Coast service

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

 

 

Expect some delays at Port of Vancouver
during Winter Olympics

Operations at the Port of Vancouver will be impacted by heightened security and new activities put in place for the Winter Olympics. The Port is committed to establishing effective waterfront security while maintaining truck and rail terminals. But it is clear that some delays will be inevitable. Here is what you can expect from January 26 to March 4, the time period when port operations will be affected:

  • There will be heavy restrictions on hazmat shipments in the Vancouver area, particularly those in close proximity to Olympic venues.
  • Port facilities will be used for activities leading up to and during the Vancouver 2010 Winter Olympics. For example, Canada Place will serve as the Main Press Centre.
  • Marine patrols will be in place 24/7, with additional vessels being brought in from around the region to enhance this level of security. The Port of Vancouver, the marine section of the RCMP, the Canadian Navy and the Vancouver Police Department will also contribute to the marine security operations. There will also be surveillance from the air and protection from underwater attack.
  • Canada Border Services Agency (CBSA) is still responsible for cargo inspections of inbound cargo and is working with the Port as well as the Vancouver 2010 Integrated Security Unit on the development of operational requirements during the period of the games.

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

 

 

Look who is back - Chris Barnard

Chris Barnard has rejoined Universal Logistics as Vice-President, Projects & Market Development. In his new position, Chris will be responsible for a number of important new projects that will widen and strengthen the services offered by Universal Logistics.

"The return of Chris is very timely as he comes back at a time when we need his entrepreneurial flair and marketing expertise to accelerate projects that will directly benefit our clients," notes Michael Glionna, President – Universal Logistics. "It's exciting to see what he has contributed in just a few weeks and we look forward to having him as a key member of our senior management team."

 


 
Industry RoundUp

Pearson airport slashes landing fees, terminal charges

Landing fees and terminal charges at Toronto Pearson International Airport will be reduced by 10%, effective January 1st. The reduction is expected to result in estimated savings of $58.4 million to the airline industry.

Source: CT&C

Global Air Cargo Volume Improves

After a long decline that began in April 2008, world airfreight volume is on the way up again, leading to cautious optimism within the industry.

The turnaround began in the first quarter of 2009. The second quarter showed more improvement, leading to a reduction in the growth of excess capacity.

However, the recovery is expected to be slow and volatile. You can expect to see long-term cost cutting strategies, capacity management and cash conservation.


Rising demand causes airfreight delays in
China and Hong Kong

September was the busiest month in nearly a year for Asia’s air carriers. Traffic reached 4.06 freight metric-ton kilometres flown, the highest number the Association of Asia Pacific Airlines (AAPA) has reported since November 2008 and nearly 28% better than the low point of the downturn in February.

With demand improving, airfreight is facing backlogs of several days in China and Hong Kong as demand is outpacing supply. Forwarders are estimating that there has been a backlog of two to four days in Hong Kong, even when paying higher rates demanded by the airlines.

One forwarder complained that it seems as if cargo is being ’held hostage’ by some carriers who are demanding rate surcharges of as much as US$1/kg. Backlogs have also been reported at Shanghai, Guangzhou and Tianjin.

Global container lines cutting capacity

According to ASX Alphaliner, the world’s Top 100 shipping lines now comprise almost 6,000 active vessels, including almost 5,000 fully cellular ships.

The global fleet has a capacity of 13,516,566 TEU (Twenty Foot Equivalent Unit) and 180,433,566 DWT (Deadweight Tonnage). By the end of August, 1.27 million TEU – or around 9.9% of the container fleet was lying idle. More capacity cuts, enacted in September and October, will result in even more lay ups.

Record numbers of container ships have been sold this year for scrap, particularly to Asian scrap yards.

Here are the top-five container lines:

  1. AP Moller-Maersk
    • 15% market share
    • Total capacity 2,028,836 TEU
    • 540 vessels: 212 owned, 328 chartered
    • 67 ships on order
  2. Mediterranean Shipping Co.
    • 11.2% market share
    • Total capacity 1,508,637 TEU
    • 406 vessels: 210 owned, 196 chartered
    • 50 ships on order
  3. CMA CGM
    • 7.6% market share
    • Total capacity 1,033,486 TEU
    • 366 vessels: 93 owned, 273 chartered
    • 60 ships on order
  4. Evergreen Line
    • 4.4% market share
    • Total capacity 594,154 TEU
    • 162 vessels: 90 owned, 72 chartered
  5. APL
    • 4% market share
    • Total capacity 543,293 TEU
    • 138 vessels: 44 owned, 94 chartered
    • 20 ships on order

For more information on the above articles, contact David Lychek, Manager – Ocean & Air Services.

2010 NAFTA Blanket Certificate Reminder

The deadline for 2010 NAFTA Certificates (December 31, 2009) is coming up fast. If you miss it and make a claim for preferential treatment without a valid NAFTA Certificate, you will be subject to an AMPS (Administrative Monetary Penalty System) transactional penalty of:

1st infraction - $1,000.00
2nd infraction - $5,000.00
3rd infraction - $10,000.00
Subsequent infractions - $25,000.00

You also need to remember that a 2009 Blanket Certificate is not valid for 2010 shipments.

For more information on NAFTA please also refer to www.naftanow.org.

We can handle the entire process for you with our convenient – and increasingly popular – NAFTA Management Service. For more information, please call (905) 882-4880 and ask to speak with Darren Lair, Customs Consulting Services.

NAFTA surface trade still down

Trade using surface transportation between the United States and its North American Free Trade Agreement (NAFTA) partners Canada and Mexico was 28% lower in July 2009 than in July 2008, dropping to $51.5 billion in the seventh consecutive month with a year-to-year decline of greater than 27%, according to the Bureau of Transportation Statistics (BTS) of the US Department of Transportation.

BTS reported that the value of U.S. surface transportation trade with Canada and Mexico rose 1.6% in July 2009 from June 2009.

US-Canada surface transportation trade totalled $31.0 billion in July, down 33.8% compared to July 2008. The value of imports carried by truck was 29.0% lower in July 2009 compared to July 2008, while the value of exports carried by truck was 24.3% lower during this period. Illinois led all states in surface trade with Canada in July with $3.1 billion.

US-Mexico surface transportation trade totalled $20.5 billion in July, down 17.1% compared to July 2008. The value of imports carried by truck was 13.7% lower in July 2009 than July 2008 while the value of exports carried by truck was 14.7% lower. Texas led all states in surface trade with Mexico in July with $7.3 billion.

Source: BTS

Implementation date for 10 +2

Full enforcement of 10+2 Importer Security Filing by the U.S. Customs and Border Protection (CBP) begins January 26, 2010.

These regulations require that all marine shipments entering/transiting the U.S. must have the following 10 importer data elements and 2 carrier data elements transmitted to U.S. Customs prior to vessel arrival: Manufacturer, Seller, Buyer Name/Address, Ship to Name/Address, Importer number, Consignee number, Country of origin and the Harmonized Tariff Number (6-digits) of the commodities, Container stuffing location and Consolidator. The Carrier will also need to submit 2 additional data sets which are: Vessel Stowage Plan and Container Status Messages.

Failure to meet the requirements could lead to penalties of $5,000 per transaction. If Universal is arranging U.S. customs clearance for your marine shipments, full documentation must be provided in advance of cargo arrival.

More information on the 10+2 program is available online or contact Brian Rowe, General Manager – Customs Consulting Services.

New U.S regulations for plant products or goods containing plant products

Effective October 1, 2009 an Importer’s Declaration is required for all plant products or goods containing plant products imported/sold in the U.S. This is part of the U.S. Farm Act, Lacey Act Amendment, introduced in 2008.

Here are some helpful links:

For more information, contact Brian Rowe, General Manager – Customs Consulting Services.

Delay in new U.S. rules for empty containers
with residual chemicals

Empty containers that were used to import chemicals and are being returned to the U.S. will need to be cleared into the U.S. with an “estimate” of the quantity/value of the residual chemical. Previously, the containers were considered “instruments of international traffic” and as such were not subject to customs entry upon return.

Regulations issued have been delayed indefinitely, pending consultation with industry.

For more information, contact Brian Rowe, General Manager – Customs Consulting Services.

 

 
Company Corner

On the road again

There is only so much you can do from your office, especially when you are in the business of moving freight around the world. That’s why Universal’s senior executives spend a lot of time on the road visiting our partners and attending key events. We also welcome international visitors. Here’s what happened in September and October:

September 2009

Mark Glionna, Vice President – Client Relations, and Paul Glionna, Vice President – Operations, attended the annual conference of the Certified Transportation Network (CTN) in Istanbul, Turkey. Universal Logistics is the Canadian member of the worldwide network of international logistics companies.

Michael Glionna, President, and Mark Glionna attended the Canadian Society of Customs Brokers (CSCB) National AGM in Halifax. Mark Glionna, CSCB Director, presented the “Compliance and Risk Management – Toolkit for Customs Brokers” session, focused on best practices and business strategies for both importers and customs brokers, aimed to mitigate risk and enhance customs compliance.

October 2009

Representatives of Pronto, our agents in China, Hong Kong and Taiwan, visited our Head Office in Thornhill, Ontario. That visit underlines the strength of our Far East Trade Lane and the commitment of our partners.

AT YOUR SERVICE

We care about your business

Every client of Universal Logistics has the support of a dedicated Client Relations representative as part of our Client Care program – just one of many reasons why it pays to choose us for all your customs brokerage and freight forwarding needs. You can expect to be contacted proactively by your Client Relations rep, and you also have the option of requesting a meeting at any time.

“I encourage all our clients to take advantage of our Client Relations team,” says Mark Glionna, Vice President – Client Relations. “Our role is to understand your business needs, your challenges and your opportunities. We are here to help you reduce freight costs, optimize transit times and achieve airtight customs compliance.”

To get in touch with your Client Relations rep call our office (905-882-4880).

The Universal Logistics Client Relations team includes (from left):
Mark Glionna, Grace Barnard, Kitt Jacques, Brenda Munroe and John Leis.

 
   
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is produced quarterly for the clients of Universal Logistics. Reader comment and story ideas are welcome. Comments of general interest to all Route readers will, with the permission of the writer, be published. Copyright © 2010 Universal Logistics Inc. All rights reserved. Reproduction for any commercial use is strictly prohibited.

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is produced for Universal Logistics by Words at Work Advertising and Marketing (Tel: 905-940-6610). Editor: Bettina Scharnberg. Email: bscharnberg@universallogistics.ca While every effort has been made to ensure the accuracy of information contained herein, Universal Logistics accepts no responsibility or liability for errors or omissions. Written correspondence should be forwarded to:

Universal Logistics Inc.
125 Commerce Valley Drive West
Suite 750, Thornhill, Ontario L3T 7W4
Tel: 905-882-4880    Fax: 905-882-2250
Attention: Bettina Scharnberg
www.universallogistics.ca