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Freight Management Made Easy Seminar

Learn how to stretch your logistics dollar
farther than it has ever gone before

Companies involved for the first time in offshore purchasing often allow the supplier to manage the transport of goods. It’s the simple approach and makes some sense because it is generally believed that controlling freight is difficult and time consuming. But that’s really not the case.

Moreover, it is well worth the effort because the benefits of controlling your freight are significant: save money, optimize transit times, take advantage of consolidation opportunities, improve visibility and enhance your customs compliance.

It’s easier than you think. In fact, you can learn all the basic steps by taking our 90-minute Freight Management Made Easy seminar. Working one-on-one with a logistics professional, you will learn:

• How you can use IncoTerms to your advantage.
• The benefits of a global agent network. They work for you at the point of origin, report on freight availability, and communicate client needs and concerns back to suppliers in a language they will understand.
• The importance of having control of your freight when something goes wrong. It’s more common than you think. In fact, about 10 percent of all freight shipments are interrupted in some way by unexpected events such as labor strikes, severe weather or port congestion.

Contact John Leis, EDucation Coordinator at (905) 882-4880 today to book your seminar. The next step for many companies is a SMART Freight Review, available exclusively from Universal Logistics. There is no cost or obligation for this proven service, which has helped companies just like yours save thousands of dollars – or more. For education on Customs, ask about Voluntary Compliance Made Easy, a seminar that has delivered excellent results for a wide range of clients.

Port Metro Vancouver in profile

	Deep sea ships berthed at Vancouver.

This is the first in a series of mini profiles on Canada’s ports, a critical component of the country’s transportation system.

On January 1, 2008, after 150 years of operation, British Columbia’s three Lower Mainland port authorities – Fraser River Port Authority, North Fraser Port Authority and Vancouver Port Authority – amalgamated to form Port Metro Vancouver (PMV).

The Port Authority is a non-shareholder, financially self-sufficient corporation, established by the Government of Canada. It operates across five business sectors (automobiles, breakbulk, bulk, container and cruise) and facilitates trade with more than 130 world economies.

Vancouver is the Canadian gateway for freight to/from Asia and other eastern zones, while Halifax and Montreal serve Europe and western zones.

Our major trading partners, based on total weight, through Vancouver are outlined in the following table:

Click here for a a larger view of the table

The Port is comprised of cargo terminals, cruise terminals, industries requiring tidewater access, shipyards, tugboats, railways, trucks, shipping agents, freight forwarders, suppliers, builders, and administrative agencies.

As the fourth largest tonnage port in North America, there are 28 major marine cargo terminals and three Class 1 railroads.

	Containers being offloaded from cargo vessel.

In 2008, the Port handled 115 million tonnes of cargo, down 10 per cent from the previous year's 128 million tonnes. Foreign cargo tonnage through Vancouver decreased by one per cent in 2008 to 82.2 million tonnes, down from 82.8 million tonnes in 2007.

Foreign exports decreased by 2 per cent to 68.4 million tones, and foreign imports increased by 6 per cent to 13.9 million tonnes. Domestic cargo tonnage decreased by 28 per cent to 32.3 million tonnes.

Cargo data is collected at the commodity level and comparative reports (see below) are maintained.

Full reports can be accessed from
www.portmetrovancouver.com/about/factsandstats.aspx.

	Container being loaded onto street truck.

An estimated 2,500 trucks enter the port facilities each day, moving between rail and final destinations in Canada and the U.S.

The Port and its tenants are planning 4.25-billion-dollars in infrastructure over the next 10 years. Major capital projects include:

• Deltaport Third Berth, scheduled to be operational in autumn of 2009.
• Terminal 2 project, which will expand the Port’s container capacity by over 2 million TEUs by adding a new three-berth facility.

For more information visit Port Metro Vancouver.

Look for the “Freight Saving Opportunity” burst

While there is a lot of negative news about the economy and the resulting cutbacks in every industry, including the transportation sector, some changes are actually good news because they create opportunities for reduced freight costs and better transit times.

You can find this news by looking for the “Freight Saving Opportunity” burst.

New Canadian requirements for wood packaging material from China

Effective September 1, 2009, a valid International Plant Protection Convention (IPPC) stamp will be the only accepted treatment certification method for wood packaging. Phytosanitary Certificates from China for wood packaging material will no longer be accepted due to a high level of non-compliance.

Beginning June 1, 2009, importers will be granted a three-month grace period whereby wood packaging material accompanied by a Chinese Phytosanitary Certificate in lieu of an IPPC mark will be allowed to enter Canada, subject to a verification of the certificate's authenticity by the Canadian Food Inspection Agency (CFIA) and China's General Administration of Quality Supervision, Inspection and Quarantine.

Starting September 1, 2009, the new policy change will be fully enforced, which means the Canada Border Services Agency (CBSA) will refuse the entry of any shipments containing wood packaging material certified with a Chinese Phytosanitary Certificate.

	Samples of IPPC marks

The CFIA has advised China's General Administration of Quality Supervision, Inspection and Quarantine of the phased-in approach that will be used to implement this policy change. We would recommend that you notify all of your suppliers in China of this change to avoid any potential delays/costs due to freight being refused entry to Canada.

This information has been published by the CBSA via Customs Notice 09-002 of March 4, 2009 and can be viewed at www.cbsa-asfc.gc.ca/publications/cn-ad/cn09-002-eng.pdf.

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

Airline deregulation effort could lead to more competition and better rates

Up until now, many airlines have been denied access to markets and global capital, a problem that has led to reduced competition and the resulting inflation of freight rates.

The International Air Transport Association (IATA) has met with the 15 progressive governments to discuss the future regulatory structure of international air transport. IATA circulated a paper to the attendees on potential opportunities to access markets and global capital.

View full September results at: www.iata.org/pressroom/facts_figures/traffic_results/2008-10-24-01.htm

David Lychek, Manager – Ocean & Air Services, says deregulation could benefit freight forwarders and their clients by increasing carrier options, leading to more competitive rates and better service levels.

Overall, air cargo results are not looking good:

• Worst decline since the technology bubble burst in 2001
• Declines in air freight have slowed year-to-date growth to 0.1%, with all regions except the Middle East and Africa reporting negative results
• The most alarming drop was with Asia Pacific carriers – the largest players in the market. The region’s carriers reported a 10.6% decline
• Europe and North American carriers, which had seen flat growth through August, saw cargo traffic fall 6.8% and 6.0%, respectively

The International Air Transport Association (IATA) expects North American air carriers to post a small profit of $300 million next year, after suffering the hardest hit of any region during the most recent surge in fuel prices. Although very limited hedging by the region’s carriers will result in a loss of $3.9 billion this year, according to IATA, the sudden fall in fuel prices will benefit North America most for the same reason.

The association also credited North American carriers for an early 10-percent cut in domestic capacity in response to the fuel crisis, giving the region’s carriers a head-start in combating the recession-led fall in demand.

The global outlook is poor with IATA predicting that 2009 will be “the worst revenue environment in 50 years.” In all, IATA sees a loss of $2.5 billion, led by a doubling in losses among Asia-Pacific carriers to $1.1 billion. Europe will rival Asia-Pacific’s bruising with a tenfold rise in losses, to $1 billion, according to the IATA report.

Asia-Pacific carriers hit hard by air cargo drop

The International Air Transport Association (IATA) has announced global international air transport figures for September 2008, which show that cargo traffic dropped by 7.7% compared to the same month in 2007. It described that decline as the worst since the ‘dotcom’ technology bubble burst in 2001.

The most alarming drop was with Asia Pacific carriers – the largest players in the market. That region’s carriers reported a 10.6% decline in September. Europe and North America carriers, which had seen flat growth through August, saw their cargo traffic fall 6.8% and 6%, respectively.

CN reports “solid” fourth quarter results

Canada-based North American railroad/intermodal freight operator CN turned in a solid fourth quarter 2008 performance despite significantly lower volumes. Two factors acted as shock absorbers, offsetting the impact of the weaker volumes on CN’s results:

• the decline in the value of the Canadian dollar versus the American dollar, which had a net positive translation impact on the conversion of US dollar.
• the two-month lag in CN’s fuel surcharge catching up to lower fuel prices.

Positive results from rail operators means continued stable intermodal operations within Canada (one less worry for Canadian importers and exporters), which is good news for freight forwarders, notes David Lychek, Manager – Ocean & Air Services.

CN added that its operations had been affected by “significant weakness” in almost all markets, primarily as a result of the current economic environment. Revenue ton-miles, a measurement of the relative weight and distance of rail freight transported by the company, had declined by 10% during the quarter, versus the comparable period of 2007.

Rail in best position to weather recession

The effects of the recession have been slower to show up in the US/Canadian rail freight industry than in North American trucking. Figures from the Association of American Railroads (ARR) reveal the carload volumes for the whole of 2008 were down only 2.2% on the previous year.

Motor vehicles are a core key market for American railroads, yet the volume of that traffic fell by 21% in December alone. Sand and gravel volumes, largely used in the construction sector, fell by a similar amount although demand there has been strong for some time.

The situation for intermodal container traffic is almost as bad. Volumes in that section fell by around 3% a month in November and December as Chinese traffic through the west coast ports crashed. Exports had previously stepped into the breech but are now flat.

The areas of business that remain the strongest for North American railroads are coal and agricultural products. Coal was up 3.5% over last year while December volumes continued to creep up around 0.7%.

Don’t expect major changes in NAFTA – Harper

Canadian Prime Minister Stephen Harper does not expect a reworking of the North American Free Trade Agreement, despite President Barack Obama’s campaign pledge to renegotiate the deal.

Harper said it would be a big mistake to tear up the 14-year-old agreement between the United States, Canada and Mexico and put up new barriers to trade at a time when the world economy is in crisis.

“It could be characterized that, while President Obama has expressed some concerns about some aspects of the working of NAFTA, I don’t think his administration will question NAFTA in any fundamental way,” he told reporters.

Key Obama aid David Plouffe says the President values Washington’s relationship with Ottawa.

What’s ahead for container shipping industry?

Industry experts predict the container shipping industry is on the verge of six major changes that will likely create opportunities and challenges for freight forwarders:

• The industry will consolidate further, with the number of container lines shrinking by as much as a third
• Surviving carriers will have to differentiate themselves on customer service, simplicity of rates and contracts
• Freight rates will stay low until trade recovers enough to absorb vessel overcapacity, a process that could take as long as four years unless many existing orders are cancelled or postponed
• The north-south trade lanes will become more important as South America’s trade with China and India grows
• The top terminal-operating companies will remain dominant and will acquire smaller, less geographically diversified
• More vessel sharing or service sharing agreements

According to latest industry data, 2009 will be the toughest year yet for the global container shipping industry, with ocean carrier casualties a real possibility. Freight rates in the major east-west trade lanes continue to fall, and with vessel supply set to exceed cargo demand by a considerable margin this year.

The undertaking of slow-steaming strategies to save fuel costs has also been turned on its head by the fall in crude prices. East-west strings are now being operated by 10 and 11 ships with extra port calls being added, just to soak up capacity. While this was mainly confined to the Asia-Europe trade, carriers are now desperately seeking any means to utilize capacity without physically laying up vessels.

Poor outlook for trucking industry

The severe recession and unprecedented credit seize-up is hitting the trucking industry hard.

The drying up of business credit throughout our banking system is the big challenge.

For motor carriers and vocational operations alike, getting through 2009 successfully – if at all – will require fleet owners to fully accept that management practices that may have been “good enough” to get by on before are simply not good enough anymore.

Industry experts say many fleets will not be able to negotiate the one-two punch of a severe recession and the unprecedented credit crunch. A wave of carrier failures is expected with poorly managed carriers being at most risk.

European Commission Streamlines Maritime sector

The European Commission has announced plans to simplify customs procedures, improve the coordination of inspections and provide guidelines for reducing the time spent on plant and animal checks.

“By making Maritime transport more attractive and creating new openings for it, the proposed measures will lead to a more balanced use of transport,” said European Commission Vice-President Antonio Tajani.

The goal is to reduce dependence on land-based transport, which the Commission considers less energy efficient.

Canada well positioned to weather deep recession

Canada’s low debt burden – among governments, businesses and households alike – gives the country a crucial advantage as it heads into what appears to be a long recession.

Canadians are far less burdened, says Sherry Cooper, chief economist at BMO Nesbitt Burns. The United States, in contrast, is suffering because of a credit freeze that does not exist in Canada.

Another key advantage for Canada is its relatively low government debt load. The situation is far different in the U.S., where the deficit has ballooned, and Japan’s debt load is enormous. While most European countries have kept their debts under control, Canada’s total debt burden is still lower. This allows Ottawa and the provinces to spend billions in an attempt to mitigate the recession.

CN/CP issue new guidelines for 20 ft. marine containers

Effective January 1, 2009, CN and CP implemented the following rail weight limitations for cargo moving between Canadian rail terminals.

Rail carriers will not handle any container improperly loaded or any container exceeding the maximum capacities listed above. Containers that violate the new guidelines will be returned to the marine terminal, and will be subject to all applicable handling charges.

Note the above parameters refer to rail guidelines, all such cargo must also comply with Federal & Municipal roadway safety & weight limitations.

CN & CP Rail have also imposed commodity restrictions on cargo such as coiled metal products, in some cases refusing to move such product inland from port of arrival.

For a complete description of such commodity restrictions please refer to the following links to CN & CP websites.

CN www.cn.ca/documents/Shipping/Intermodal_Dimensional_Shipment_Table_en.pdf

CP www8.cpr.ca/cms/English/Customers/Existing+Customers/Bulletins/default.htm

For more information, please contact David Lychek, Manager – Ocean & Air Services, (905) 882-4880, ext. 207.

Representation at The London Book Fair

To support our membership in BookFreight, an international network of freight forwarders specializing in book publishing, we are sending three representatives to the London Book Fair, to be held in London, England, April 20-22.

Our representatives include Mark Glionna, Vice-President – Client Relations; Paul Glionna, Vice President – Operations, and David Lychek, Manager – Ocean and Air Services. All three will attend a reception held in the BookFreight booth on April 21.

“Travelling overseas you get a perspective you can’t get here in Canada", notes Mark Glionna, and we will use those insights to build on the strength of our existing services for the publishing industry.”

If you, or any of your associates, are attending the Fair and would like to arrange a meeting, please contact Mark or Paul to make the necessary arrangements.

Universal Attends The Simon & Schuster Launch Party
for Old City Hall

On Thursday, March 5th, Mark Glionna, Vice-President – Client Relations and John Leis, Client Relations, attended the official launch party of Robert Rotenberg’s murder mystery novel, Old City Hall.

Held just steps away from Toronto’s Old City Hall at the elegantly fashioned Ben McNally Books, John and Mark were the invited guests of Simon & Schuster Canada, Universal's client since 1979 and the publishing house of this critically acclaimed novel; Rotenberg’s first.

The evening included speeches from Simon & Schuster’s President, Mr. Kevin Hanson and from the book’s author, Mr. Robert Rotenberg, who was surrounded by his close friends and family members, including his father who was turning 89 later that week. The novel, set in Toronto, has already been recognized on Canada’s Top 10 Best Sellers List.

Universal wins Book and Periodical Council Recommendation

For the 14th consecutive year, Universal has been recommended as the Customs Broker and International Freight Forwarder of Canada’s Book and Periodical Council (BPC).

On Wednesday, March 14th, Mark Glionna, Vice-President – Client Relations and John Leis, Client Relations sat before the BPC’s Freight & Distribution Programme Committee, a panel comprised of 14 individuals who represent the country’s leading book publishers. The recommendation helps to further entrench Universal’s position as Canada’s logistics leader in the book retail and publishing industry.

Universal has earned this continued confidence on the strength of a full complement of customs brokerage services at competitive prices, AMPS consulting and ocean and air consolidation services from the UK, and other international printing centers such as China, Hong Kong, Singapore, Italy, Australia and New Zealand.

	John Leis – Seminar EDucation

AT YOUR SERVICE

John Leis heads up our Seminar EDucation program, created to help companies identify new ways to reduce freight costs and manage transit times.

John’s newest seminar is Freight Management Made Easy.