Canada-U.S. border closure update

Toronto, August 25, 2021

Although the Canada-U.S. border restrictions into Canada had been eased in July 2021, restrictions into the U.S. remain unchanged for non-essential travellers.

Canada announced on July 19, 2021 that as a first step, starting August 9, 2021, Canada would begin allowing entry to American citizens and permanent residents, who are currently residing in the United States, and have been fully vaccinated at least 14 days prior, to enter Canada for non-essential travel.

The U.S. announced on August 23, 2021 that existing travel limitations will remain in place until at least September 21, 2021 - the U.S. does not have similar plans to allow fully vaccinated Canadians to enter for non-essential travel.  The Department of Homeland Security filed the Federal Register notice, calling the extension of the border closure a public health decision.

Supply chains, including trucking, are not impacted by the current measures and the movement of commercial goods across the border is unaffected.  "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.

All travellers, with limited exceptions, whether entering Canada by air, land or marine vessel, must use the Government of Canada's ArriveCAN web portal to provide mandatory travel information within 72 hours before entering Canada.

On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms.  This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:

Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people.  For example, this exemption would apply to:

• healthy workers in the trade and transportation sector who are important for the movement of goods and people across the border, such as truck drivers and crew on any plane, train or marine vessel crossing the border; or
• healthy people who have to cross the border to go to work, including health care providers and critical infrastructure workers.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Ningbo port turns away vessels due to COVID-19

Toronto, August 12, 2021

The Meishan International Container Terminal (MSICT) of the Ningbo-Zhoushan port complex, has started to turn vessels away yesterday morning after a dock worker tested positive for Coronavirus (COVID-19).  Truckers are not able to pick up empty containers or gate-in loaded containers to the terminal.

Ningbo is the 3rd largest container port in the world and encompasses five container terminals.  The shutdown of the Meishan Terminal for a day, eliminates 20% of the port's capacity.  There are reportedly 140 containerships at anchor waiting for berth outside of the port which was already heavily congested due to the impact of typhoon In-Fa last month.  Any lengthy closure will result in diversion of vessels to other terminals and ports – further exacerbating capacity and putting upward pressure on freight rates.

We are closely watching developments at the Ningbo port, and will keep you updated with any additional information.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.

Canadian Border Workers Strike Ends

Toronto, August 9, 2021

After 36 hours of intense negotiations, the Public Service Alliance of Canada (PSAC) and the Customs Immigration Union (CIU) reached a tentative agreement late Friday night to end the Canadian border workers strike.

The agreement means an immediate end to the work-to-rule strike action that started Friday morning by the more than 8,500 unionized staff with the Canada Border Services Agency (CBSA) as the border reopens today to fully vaccinated travellers from the USA.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Canadian Border Delays

Toronto, August 6, 2021

Many Canada/USA border ports are seeing long lineups this morning as the Canada Border Services Agency (CBSA) begins their work-to-rule action.  The unions (PSAC and CIU) for 8,500 CBSA personnel have been in talks with the Treasury Board through the night and again this morning.

There are lengthy delays entering Canada at Windsor and Fort Erie/Niagara Falls.  Live webcams are available at both ports; Windsor Cam, Fort Erie Cam.

Travellers should refer to CBSA's Border Wait Times listing for hourly updates on the status at each border crossing.

Although almost 90 percent of CBSA employees are identified as "essential" and would continue to work in the event of a strike, they have threatened a work-to-rule by refusing to do non-essential duties of collecting duties and taxes.  The unions have warned this action could have a dramatic impact on supply chains.

We will continue to monitor the situation and advise accordingly.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Canadian Border Workers – Looming Strike Update

Toronto, August 5, 2021

With more than 8,500 unionized staff with the Canada Border Services Agency (CBSA) positioned to go on strike Friday morning, their unions (PSAC and CIU) have stated work-to-rule action will take place to significantly disrupt travellers and commercial traffic entering Canada unless a deal is reached today.

"Shut this place down to a crawl and you let nothing through," CIU president Mark Weber told a crowd at the Windsor Ambassador Bridge, if there is no contract by Friday, when the two unions are in a legal strike position.

Although almost 90 percent of CBSA employees are identified as "essential" and would continue to work in the event of a strike, they have threatened a work-to-rule by refusing to do non-essential duties of collecting duties and taxes.  The unions have warned this action could have a dramatic impact on supply chains.

We will continue to monitor the situation and advise accordingly.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Higher U.S. Customs User Fees effective October 1, 2021

Toronto, August 3, 2021

Effective October 1, 2021, there will be new minimums and maximums for U.S. Customs' Merchandise Processing Fee (MPF).  The minimum will be $27.75 per transaction (previously $26.79) and the maximum will be $538.40 (previously $519.76).  The Informal MPF (applies to shipments valued under $2,500 USD) will change from a flat rate of $2.14 to $2.22.  The MPF rate of 0.3464% will not change.  Goods of USMCA/CUSMA Preferential Origin are exempt from MPF.  In addition to the MPF, various other U.S. Customs User Fees are also increasing – please see full list here.

The Merchandise Processing Fee is a fee imposed by U.S. Customs and Border Protection (CBP) to offset the cost of salaries and other expenses incurred in the processing of imports and release of merchandise into the United States.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Canadian Border Workers Vote to Strike as early as August 6

Toronto, July 28, 2021

More than 8,500 unionized staff with the Canada Border Services Agency (CBSA) voted yesterday in favour of a strike mandate just days before Canada allows fully vaccinated U.S. citizens to cross the border.  Although almost 90 per cent of CBSA employees are identified as "essential" and would continue to work in the event of a strike, slowdowns are expected.

In a joint statement the Public Service Alliance of Canada (PSAC) and the Customs and Immigration Union (CIU) said strike action could begin as soon as August 6 after their members, 5,500 border services officers, 2,000 headquarters staff and other workers at Canada Post facilities, voted overwhelmingly in favour of the action.

Risk of significant economic disruption

A labour dispute while borders begin to reopen could cause a significant disruption to the flow of goods, services and people entering Canada, and impact the Canadian economy by:

• Slowing down commercial traffic at the border and ports of entry;
• Impacting international mail and parcel deliveries from Canada Post and other major shipping companies;
• Impact the collection of duties and taxes on goods entering Canada.

Contract talks reached an impasse in December 2020, "We're going to work with them and we're hopeful there won't be any disruptions," Prime Minister Justin Trudeau told reporters.

Last week, Canada announced plans to allow entry of fully vaccinated Americans beginning August 9, and fully vaccinated international travellers starting on September 7.  The border has been shut for non-essential travel for more than 16 months because of the coronavirus pandemic.  Strike action, as early as August 6 could throw these plans into jeopardy.

Dennis Darby, president of the Canadian Manufacturers & Exporters (CME), said Tuesday that the economy can't afford another trade disruption. He called on all parties to return to the table.  "Any disruption will have significant impacts on our economic recovery and on the flow of essential goods into Canada," Darby said in a statement.  "This situation will cripple manufacturers' ability to get the essential components and goods to sustain global supply chains, and threatens thousands of Canadian businesses."

We will continue to monitor the situation and advise accordingly.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Typhoon In-Fa makes landfall in China

Toronto, July 27, 2021

On Sunday July 25th, Typhoon In-Fa made landfall in Zhejiang Province, China with a second landfall near Shanghai on Monday July 26th, which has wreaked havoc on the ports of Shanghai and Ningbo.  Large container ships were evacuated from Yangshan Port in Shanghai on Saturday in advance of the storm, as port operations have been suspended until further notice.  Air cargo is also suffering delays, as hundreds of flights were cancelled Sunday and Monday, in addition to suspension of railway and subway lines.  Some carriers will omit Shanghai due to operational constraints, and we expect more vessels will omit Shanghai and Ningbo in the coming days.

We will continue to monitor the situation and advise more updates as they become available.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.

Canada-U.S. border closure update

Toronto, July 21, 2021

The Canada-U.S. border restrictions into Canada are being eased, however, restrictions into the U.S. remain unchanged for non-essential travellers.

Canada announced on July 19, 2021 that as a first step, starting August 9, 2021, Canada plans to begin allowing entry to American citizens and permanent residents, who are currently residing in the United States, and have been fully vaccinated at least 14 days prior, to enter Canada for non-essential travel.

The U.S. announced on July 21, 2021 that existing travel limitations will remain in place until at least August 21, 2021 - the U.S. does not have similar plans to allow fully vaccinated Canadians to enter for non-essential travel.  The Department of Homeland Security filed the Federal Register notice, calling the extension of the border closure a public health decision.

Supply chains, including trucking, are not impacted by the current measures and the movement of commercial goods across the border is unaffected.  "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.

On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms.  This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:

Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people.  For example, this exemption would apply to:

• healthy workers in the trade and transportation sector who are important for the movement of goods and people across the border, such as truck drivers and crew on any plane, train or marine vessel crossing the border; or
• healthy people who have to cross the border to go to work, including health care providers and critical infrastructure workers.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

North American Port and Rail Delays Update

Toronto, July 16, 2021

We have received the following update in regards to the effect on rail and port operations in British Columbia from Hapag Lloyd:

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.

North America Port and Rail Update

Toronto, July 8, 2021

Numerous wild fires which are active across the province of British Columbia have severely impacted rail movement from and to Vancouver.  These railway issues are also affecting terminal operations at the port of Vancouver, causing increased vessel delays and reduced ability for vessel berthing.  CN and CP rail are working closely with Transport Canada and onsite inspectors to resume safe operation.

CP Rail's mainline outage in British Columbia near Lytton is now cleared, however the backlog is significant.  Delays are anticipated between 72 to 96 hours from resumption of service.  It is anticipated that CN Rail will take a few more days to resume service.  In the meantime, CP and CN will share the one rail line for both Westbound and Eastbound trains.  The port of Vancouver is also working closely with the terminal operators, railways and government to develop a recovery plan.

Please find further updates below on North American ports, rail and intermodal services (as per Hapag Lloyd's Customer NEWS update):

With the large number of congested ports and ships awaiting berths, please note that the dates for arrivals / departures and cut-offs for vessels are constantly changing.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.

Canada-U.S. border closure extended another 30 days

Toronto, June 21, 2021

The Canada-U.S. border closure has once again been extended, to non-essential travel, for another 30 days and is now set to expire on July 21, 2021.  The Canada-U.S. border will now have been closed to non-essential travel for 16-months.

Bill Blair, Minister of Public Safety, made the announcement on Twitter, saying "in coordination with the U.S., we are extending restrictions on non-essential international travel and with the United States until July 21, 2021."  Blair added that "the government is planning measures for fully vaccinated Canadians, permanent residents, and others who are currently permitted to enter Canada."  Those measures were announced today, June 21, 2021, with the Public Health Agency of Canada's Government of Canada's first phase to easing border measures for travellers entering Canada outlining the first phase of its approach to easing border measures for fully vaccinated travellers entering Canada.

Supply chains, including trucking, are not impacted by the current measures and the movement of commercial goods across the border is unaffected.  "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.

On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms.  This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:

Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people.  For example, this exemption would apply to:

• healthy workers in the trade and transportation sector who are important for the movement of goods and people across the border, such as truck drivers and crew on any plane, train or marine vessel crossing the border; or
• healthy people who have to cross the border to go to work, including health care providers and critical infrastructure workers.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Port Issues - Southern China & Taiwan

Toronto, June 11, 2021

Efforts to control the current Coronavirus outbreak in Southern China have resulted in massive delays at the port of Yantian where cases have been identified, and it is now affecting operations of terminals in the surrounding areas.  The port of Yantian has just recently started to resume activity but is only operating at 15% of normal level.  Workforce at the terminal has also been reduced by seventy percent due to quarantine restrictions and increased testing.  There are currently 27 vessels waiting to berth at Yantian port since June 4th.  As carriers are omitting Yantian, nearby ports such as Nansha and Shekou are under further stress to handle the shift of cargo volume.  Not only is the uptick in cargo volume hampering the nearby ports, but Coronavirus outbreaks have also migrated into Nansha and Shekou.  Hong Kong will be accepting re-routed vessels which were originally to go to the aforementioned ports, however, it is fully expected it too will start to face congestion issues shortly.

In Taiwan, the port of Kaohsiung has suffered damage to their operations last week when the 316-meter-long containership OOCL Durban, toppled two container cranes.  This was due to a collision with another vessel which was anchored at pier.  This caused one crane to collapse, severe damage to another crane and damage to 30-50 containers.  As a result of this accident, there is also heavy congestion at the port of Kaohsiung which is the world's fourth largest container port.

Carriers have already announced significant disruptions to sailings and schedules due to the current situation in Southern China and Taiwan, with the Alliance cancelling or transferring 29 calls since the end of May and confirming omissions running up to June 25.

We will continue to monitor the situation and advise accordingly.

For more information, please call Paul Glionna, Vice President – Systems Development & Operations at (905) 882-4880, ext. 1220.

Canada-U.S. border closure extended another 30 days

Toronto, May 21, 2021

The Canada-U.S. border closure has once again been extended, to non-essential travel, for another 30 days and is now set to expire on June 21, 2021.  The Canada-U.S. border will now have been closed to non-essential travel for 15-months.

On Thursday, Prime Minister Justin Trudeau tweeted confirmation of the continued border closure: "Update on the Canada-US border: To protect your health and limit the spread of COVID-19, we're extending the measures currently in place by another 30 days.  Non-essential travel between our two countries remains restricted until June 21st."  Earlier in the week Trudeau said "Before we get back to normal, cases need to be under control and over 75 per cent of people need to be vaccinated for us to start loosening things in Canada.".

Supply chains, including trucking, are not impacted by this measure and the movement of commercial goods across the border is unaffected.  "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.

On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms.  This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:

Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people.  For example, this exemption would apply to:

• healthy workers in the trade and transportation sector who are important for the movement of goods and people across the border, such as truck drivers and crew on any plane, train or marine vessel crossing the border; or
• healthy people who have to cross the border to go to work, including health care providers and critical infrastructure workers.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Port of Montreal Update

Toronto, May 3, 2021

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, May 3, 2021:

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

House of Commons passes Bill C-29 to end Port of Montreal strike

Toronto, April 29, 2021

The strike at the Port of Montreal moved a step closer to ending after members of the House of Commons approved back-to-work legislation early Thursday.

The legislation, Bill C-29, will require longshoremen at the port to return to work immediately after it takes effect.  That could come as early as 12:01 a.m. Saturday if the Senate approves the bill on Friday, which is likely.

The 1,150 longshoremen, Canadian Union of Public Employees Local (CUPE) 375, will be prohibited from further strikes until they reach a new collective bargaining agreement with the Maritime Employers Association (MEA).

The longshoremen began a general strike on Monday, which shut down most cargo operations at Canada's second-busiest port.  It came less than a year after an 11-day strike, which ended in a truce.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Ottawa Tables Legislation to Send Striking Port of Montreal Workers Back on the Job

Toronto, April 28, 2021

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Wednesday, April 28, 2021:

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Port of Montreal Strike Update

Toronto, April 26, 2021

On Sunday April 25, the federal government gave notice that it will table back-to-work legislation in response to a dockworkers' strike at Montreal's port that threatens to have widespread economic repercussions across the country.

The Government of Canada issued a Notice Paper indicating that it will introduce a bill entitled "An Act to provide for the resumption and continuation of operations at the Port of Montreal" this morning.  The notice identifies a process that will avoid some of the usual legislative steps to ensure a quick response to the labour situation.

While the notice paper is dated for Monday April 26, a government spokesman says the legislation won't come before the House until at least Tuesday and could be shelved altogether if the dockworker's union and the Maritime Employers Association reach a deal before then.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Breaking news: Port of Montreal Longshoremen's Union local 375 gives 72-hour strike notice

Toronto, April 23, 2021

The Longshoremen's Union at the Port of Montreal has given a 72-hour notice to the Maritime Employers Association that as of April 26 at 7:00 a.m. the union will be in a legal strike position.

All work performed by the union members at the port will cease except for Oceanex services protected as essential.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Port of Montreal Labour Update

Toronto, April 22, 2021

As of April 21, CIFFA is aware of the following developments on the Port of Montreal labour situation.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Port of Montreal Update

Toronto, April 13, 2021

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, April 13, 2021:

Both sides will meet today with the Federal Mediation and Conciliation Service: the MEA at 10:00 am, the union separately at 2:00 pm.

Further to the above, on Monday April 12, CIFFA sent a letter to Prime Minister Justin Trudeau, urging the government to take steps to ensure the threatening dispute at the Port of Montreal does not hit the Canadian economy.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Ships Moving in Suez Canal

Toronto, March 30, 2021

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, March 30, 2021:

Although vessel traffic is now moving again, the incident is expected to have an ongoing impact on the already strained container shipping sector for weeks and months to come.  The Asia-Europe trade lane will be hardest hit by the congestion, but the impact is anticipated to be felt in North America as well.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.

Egypt's Suez Canal blocked by container ship

Toronto, March 26, 2021

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Friday, March 26, 2021:

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.

Port of Montreal Update

Toronto, March 25, 2021

Port of Montreal – Federal Government planning back-to-work Legislation in the event of port strike.

An article in Quebec's La Presse newspaper on March 23rd suggests that the Trudeau government plans to react quickly to any strike action on the part of the longshoremen at the Port of Montreal.  Filomena Tassi, the Minister of Labour, is preparing back-to-work legislation in the event a strike is declared.  The two parties, the Longshoremen's Union Local 375 and the Maritime Employers' Association, are said to be heading back to the negotiating table this week after the union rejected the employer's so-called "final offer" on Sunday, March 21st.  The office of Labour Minister Tassi told the Canadian Press that it is pleased with the parties return to the bargaining table and invites the parties to come to an agreement as soon as possible.

Despite continued negotiations and with the potential of back-to work legislation, the situation at the Port of Montreal continues to deteriorate.  As noted previously, CN & CP Rail have extended their embargo on export cargo destined to the port and, at the same time, a shortage of empty railcars has resulted in significant delays in the movement of import containers inland.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Longshoremen Vote 99.71% Against MEA Final Offer but Say They Will Ask MEA to Return to Negotiations

Toronto, March 22, 2021

Port of Montreal Longshoremen vote 99.71% against MEA final offer.

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, March 22, 2021:

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207

Update on Port of Montreal Labour Situation – CN/CP Rail Export Cargo Embargo Instituted

Toronto, March 18, 2021

Due to the ongoing labour negotiations at the Port of Montreal, as of March 16, 2021, CN and CP Rail are no longer accepting reservations for the Toronto – Montreal corridor for ocean export containers.  Both carriers have advised they will not begin receiving cargo until a resolution is reached.

In terms of the negotiations, on February 1st, the Maritime Employers Association (MEA) filed a complaint to the Canada Industrial Relations Board (CIRB), alleging that the union had not bargained in good faith, and a CIRB decision was rendered March 17th of no impasse.

The MEA said it acknowledges this decision and said it will follow with the recommendations emanating from the CIRB.  At the same time, as mentioned in a previous memo from the Longshoremen's Union, MEA submitted a final offer of settlement last Friday, March 12th.  The unionized workers will vote on Sunday, March 21st in a general assembly, during which the port will be closed.

In order to comply with the truce concluded with the Port of Montreal Longshoremen's Union, the Maritime Employers Association said it will not comment on the final offer that was made nor on the ongoing negotiations.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Port of Montreal Labour Dispute

Toronto, March 15, 2021

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, March 15, 2021:

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Port of Montreal Labour Negotiations Update

Toronto, March 3, 2021

The Port of Montreal Longshoremen's Union and the Maritime Employers Association, in collaboration with the Federal Mediation and Conciliation Service, completed another continuous 4-day negotiation period on February 28.

Unfortunately, the parties did not reach an agreement.  Mediators have contacted MEA representatives to summon them to a meeting on Friday, March 5.  All options are under review and mediators remain ready and available to negotiate, with the priority of reaching a settlement.

In order to comply with the truce negotiated with the Port of Montreal Longshoremen's Union, the Maritime Employers Association will not comment on the ongoing negotiations.  This truce will remain in effect until March 21, 2021.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Quebec Spring Thaw Restrictions for 2021

Toronto, February 25, 2021

The Quebec Ministry of Transportation has released 2021 "Spring Thaw" dates and zones.  These are container weight restrictions imposed every year to protect Quebec highways during the spring thaw.

The maximum recommended cargo weight carried during the thaw period is as follows:

The weight restrictions not only apply to the total cargo weight within the container, but also the distribution of weight over the axles of the chassis.  If cargo weight is not distributed evenly across all axles, the container could be subject to additional fines.

Please note, these details are guidelines.  The dates are subject to change by the Quebec Ministry of Transportation, depending on actual weather conditions.  It is advisable that you visit the Ministry's website for complete updated details.  We recommend that you ensure your shippers are aware of these cargo weight limits in order to prevent any additional costs/handling once containers arrive in Quebec during the thaw period.

Cargo that is deemed overweight may require the trucker to use extra axles which will incur additional costs.

If you have any questions concerning shipments booked with Universal Logistics and how they may be impacted by the above, please call (905) 882-4880, ext. 1308 Debbie McGuire, Manager – Freight Solutions.

Port of Montreal Labour Negotiations Update

Toronto, February 18, 2021

As the negotiation process is currently suspended and the truce between the dockworkers' union CUPE 375 and the Maritime Employers Association (MEA) draws to a close, the Montreal Port Authority (MPA) hopes that the parties will quickly reach an agreement to avoid a new work stoppage by the dockworkers

Nearly a month before the end of the truce between the employer and the union, scheduled for March 21 at 6:59 am, the MPA has found that several Quebec and Ontario businesses that use the Port of Montreal, including some that move critical cargo to combat COVID-19, are diverting containerized goods to other ports, and that others are planning to do so if a new work stoppage occurs soon.

While diversion to other ports is viewed as a way to bypass issues at the Port of Montreal, as was experienced during the last work stoppage in 2020, these ports of diversion became quickly overwhelmed and cargo movement stagnated.  Coupled with this is the fact that existing liner service to such ports is at capacity at the moment, so the options of diverting to these ports will be limited.

This situation could result in major delays in the supply chain and higher freight costs, as the economic recovery and a broader reopening of the retail sector in Quebec and Ontario get under way.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Update on Labour Negotiations between Port of Montreal Longshoremen;s Union and Maritime Employers Association

Toronto, February 10, 2021

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Wednesday, February 10, 2021:

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

CBSA Trade Verification Priorities issued for 2021

Toronto, January 14, 2021

Your chances of being selected by the Canada Border Services Agency (CBSA) for trade compliance verification are higher if you import products on the following list of priorities, updated this month.

The latest semi-annual list identifies products that are of concern which, due to misclassification, have led to a loss of revenue for the CBSA.  Non-compliant companies will have to pay retroactive duties and, potentially, Administrative Monetary Penalties.

All items on the list have appeared on previous lists for which new rounds have been implemented and no new products have been added.  Examples of items on the list:

• Spent fowl (Round 2)
  Harmonized System Number(s): Headings 02.07, 16.01 and 16.02
• LED lamps
  Harmonized System Number(s): Heading 85.39
• Furniture for non-domestic purposes (Round 3)
  Harmonized System Number(s): Headings 94.01 and 94.03
• Pickled vegetables (Round 4)
  Harmonized System Number(s): Heading 20.01
• Articles of apparel and clothing accessories (Round 3)
  Harmonized System Number(s): Heading 39.26
• Gloves (Round 2)
  Harmonized System Number(s): Headings 39.26 and 42.03
• Safety headgear (Round 4)
  Harmonized System Number(s): SubHeading 6506.10
• Bags (Round 2)
  Harmonized System Number(s): Heading 42.02
• Air heaters and hot air distributors (Round 2)
  Harmonized System Number(s): Heading 73.22
• Flashlights and miners' safety lamps (Round 2)
  Harmonized System Number(s): Heading 85.13

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Terminal congestion in the Greater Toronto Area

Toronto, January 13, 2021

Major rail providers in the Greater Toronto Area are experiencing high levels of volume and congestion at their local yards.  The main concern at this point is the return of empty import containers, returned to terminals after unloading.

As the main terminals in Toronto reached capacity, secondary depots have had empty containers redirected to their yards.  These depots are now reaching maximum capacity, resulting in longer wait times or the inability to accept empty import returns until space becomes available.  In many cases empty containers are being held at truck carrier terminals, awaiting a return time to become available.  As a result, extra costs related to chassis detention and yard storage, as billed by truck carriers, are being incurred.

We will continue to monitor this situation and advise accordingly.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Update – Container & Space Shortages from Asia

Toronto, January 8, 2021

North American importers are facing unprecedented increases to the cost of freight in an effort to secure space for their shipments from China.  Currently, all January space is fully booked no matter what the routing (via East Coast or West Coast).  Carriers are reducing space capacity for general Rate / FAK cargo to accommodate premium space in order to increase their revenue.  The cost for premium space is between USD 2,000 – 3,000 over the FAK rate. Many importers are begrudgingly paying this premium, as it guarantees space and equipment and enables them to get their freight moving.

Many experts are advising that after Chinese New Year, equipment will still be the problem and that we could be encountering this shortage until mid-2021.  The equipment problem throughout Asia is so bad that some carriers in North America are not accepting export bookings, and are instead using their vessels to backhaul empty containers to China.  In the current market situation, space and equipment has become the primary focus, with rates being tertiary.

We suggest that clients provide more lead time when placing orders with vendors, and to budget for additional costs as freight rates will not alleviate until possibly May.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.

Implementation of the United Kingdom Trade Continuity Remission Order, 2021

Toronto, December 29, 2020

Effective January 1, 2021, importers of qualifying goods into Canada may cite the United Kingdom Trade Continuity Remission Order, 2021 #20-1135, in order to benefit from remission of duties.

The United Kingdom Trade Continuity Remission Order (the Order) provides the tariff benefits of the Canada-United Kingdom Trade Continuity Agreement (CUKTCA) as if it were in force as of January 1, 2021.  It does so by remitting the difference between the Most-Favoured-Nation Tariff rate of customs duty and the rate of customs duty that would apply under the Comprehensive Economic and Trade Agreement (CETA).  This replicates the tariff benefits that would have applied to eligible imports from the United Kingdom (UK) and certain associated territories under the CUKTCA as the tariffs and rules of origin are equivalent under the two agreements.  The CETA is referenced because those preferential tariffs and rules of origin already exist in domestic law and the new CUKTCA agreement will mirror the CETA Rules of Origin.

This remission applies to goods imported on or after January 1, 2021, until the day on which the CUKTCA enters into force.

Importers should obtain documentation from UK exporters to identify goods meet the current CETA Rules of Origin in order for the remission order to apply for reduced duty at time of import to Canada after January 1, 2021.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Canada-U.S. border closure extended another 30 days

Toronto, December 21, 2020

The Canada-U.S. border closure has once again been extended, to non-essential travel, for another 30 days and is now set to expire on January 21, 2021.

Prime Minister Justin Trudeau said "It will be a real shame to open things too quickly and see vulnerabilities, so I'm going to be very, very cautious when it comes to keeping Canadians safe, even if there's lots of pressure to allow international travel again,".  On December 1, Trudeau said the ban on nonessential travel with the United States will not be lifted until COVID-19 is significantly more under control around the world.

Supply chains, including trucking, are not impacted by this measure and the movement of commercial goods across the border is unaffected.  "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.

On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms.  This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:

Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people.  For example, this exemption would apply to:

• healthy workers in the trade and transportation sector who are important for the movement of goods and people across the border, such as truck drivers and crew on any plane, train or marine vessel crossing the border; or
• healthy people who have to cross the border to go to work, including health care providers and critical infrastructure workers.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Temporary Suspension of Cargo acceptance to/from South China

Toronto, December 17, 2020

Due to the COVID-19 quarantine requirements for ships crews on the feeder service running between South China and Hong Kong, ocean carriers will suspend these feeder services from mid-January until the end of February.  This is going to affect all cargo going to or sailing from the Pearl River Delta (PRD) Region of China (Dongguan, Guangzhou, Huangpu, Huizhou, Foshan, Zhongshan, Zhuhai, Xiamen, Fuzhou, etc.).  The PRD ports use feeder services to connect with mother vessels departing from Yantian/Shekou and Nansha to Canada and the USA.

During the period from mid-January to end of February, the feeder service from the PRD ports will be suspended.  If you have a shipment during this time frame which originates in one of the PRD ports, please contact us to discuss your options.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.

Canada, U.K. strike transitional trade agreement

Toronto, November 23, 2020

Canada and the United Kingdom (U.K.) struck a transitional trade deal on Saturday, November 21, 2020, to protect the flow of goods, once Brexit takes place January 1, 2021, when the U.K. is no longer part of the European Union benefiting from the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).

The new deal, Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA), is an interim measure that will be in place as Canada and the U.K. work towards negotiating a comprehensive bilateral free trade agreement over the next year.

As CETA will no longer apply to the U.K. beginning January 1, 2021, this new agreement will provide continued access to the benefits of CETA on a bilateral basis, including the elimination of tariffs on 98% of Canadian products exported to the U.K..  This will provide a competitive edge to Canadian exporters and businesses who will maintain preferential access to the U.K. market, even as the country exits the EU.

It is likely the new transitional deal will require valid CETA Origin Declarations for 2021.  More information will be provided as it becomes available.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

The Perfect Storm for Importers

Toronto, November 12, 2020

Container shortages, space constraints and port/terminal issues have been plaguing importers from Asia since September, and are continuing to worsen.  Sources say that container shortages at the ports of Xiamen, Ningbo, and Shanghai, are so serious that some vessels are leaving Asia without full loads as there is not enough equipment to be found.  Not only is equipment an issue, but getting space is equally as challenging.  Many carriers have their space full through to the second week of December.

This issue coupled with weather related problems at load ports throughout Asia have disrupted container schedules causing complications and delays at Canadian ports.  The ports of Vancouver and Prince Rupert are expected to be dealing with vessel delays and longer container dwell time through to the end of the year.  Container dwell time is the average number of days it takes for the container to load to rail once discharged from the vessel.  We are also seeing delays at the Port of Montreal and to a lesser extent in Halifax, as well as congestion issues at destination rail terminals, most notably Toronto which receives a high amount of import volume cargo destined to Canada.

We urge clients to be prepared for delays and allow for longer transit times than normal for their orders to arrive.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.

Canada-U.S. border closure extended another 30 days

Toronto, October 22, 2020

The Canada-U.S. border closure has once again been extended, to non-essential travel, for another 30 days and is now set to expire on November 21, 2020.

Prime Minister Justin Trudeau said “We will continue to make sure that Canadian safety is top of mind when we move forward.  We see the cases in the United States and elsewhere around the world, and we need to continue to keep these border controls in place” during an interview with a radio station in Winnipeg, Manitoba.

Supply chains, including trucking, are not impacted by this measure and the movement of commercial goods across the border is unaffected.  "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.

On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms.  This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:

Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people.  For example, this exemption would apply to:

• healthy workers in the trade and transportation sector who are important for the movement of goods and people across the border, such as truck drivers and crew on any plane, train or marine vessel crossing the border; or
• healthy people who have to cross the border to go to work, including health care providers and critical infrastructure workers.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Montreal Port Strike Continues to Impact North American Supply Chains

Toronto, October 2, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, October 1, 2020:

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

U.S. to drop Canadian aluminum tariffs before Canada retaliates

Toronto, September 16, 2020

The U.S. Trade Representative's office announced September 15, 2020 it will not proceed with the 10% tariff on Canadian origin aluminum, for which Canada was ready to implement retaliatory countermeasure tariffs effective September 16, 2020.

A statement from the USTR said after "consultations with the Canadian government, the United States has determined that trade in non-alloyed, unwrought aluminum is likely to normalize in the last four months of 2020, with imports declining sharply from the surges experienced earlier in the year."  The announcement also stated, "Six weeks after the end of any month during this period, the United States will determine whether actual shipments met expectations.  If actual shipments exceeded 105 percent of the expected volume for any month during the four-month period, then the United States will impose the 10 percent tariff retroactively on all shipments made in that month."  Expected monthly volumes are laid out in the statement.

Based on this announcement, the corresponding Canadian retaliatory countermeasure tariffs will not be imposed at this time.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Demand and Rates Spike on Trans-Pacific Trade Lane

Toronto, August 14, 2020

Since July, rates on the Trans-Pacific trade lane from Asia to North America have increased substantially due to strong consumer demand.  We have seen volumes rise steadily, even with the reinstatement of void sailings which had enabled the lines to keep rates stable while demand was low during the early months of Coronavirus (COVID-19).

The steamship lines have announced GRIs (General Rate Increases) for August 15, September 1 and September 15.  Many analysts contribute this high demand to shippers who are moving as much cargo as possible ahead of the holiday season, in anticipation that COVID outbreaks may prompt more lockdowns later this quarter.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.

U.S. CBP requires goods produced in Hong Kong marked as origin China

Toronto, August 12, 2020

Effective September 25, 2020, goods produced in Hong Kong may no longer be marked to indicate their origin as Hong Kong, but must be marked to indicate China.  This change from U.S. Customs and Border Patrol (CBP), published in the Federal Register August 11, 2020, is due to a determination by the U.S. that Hong Kong is no longer sufficiently autonomous and will, therefore, be subject to the same requirements as China.

These goods will also be subject to the additional China Tariff (where applicable), based on the origin change requirement upon entry to the U.S..

At this time it is not known whether Canada will assume the same position with respect to Hong Kong.  Where goods are produced in Hong Kong for multiple markets, the origin marking must adhere to regulations of the country of import.

We will provide details as they are available.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Single Window Initiative (SWI) becomes mandatory August 17, 2020

Toronto, July 28, 2020

The Canada Border Services Agency (CBSA) has announced that the Single Window Initiative (SWI), scheduled to become mandatory as of April 1, 2020 but delayed due to the COVID-19 pandemic, will become effective August 17, 2020.

As of this date, the existing OGD PARS and RMD service options will be decommissioned and any import declarations submitted via OGD PARS and RMD will be rejected.

CBSA created the SWI in order to electronically communicate with Participating Government Agencies (PGAs) to better identify goods with import requirements, and exchange that information with the PGA at time of release.

Universal Logistics has continued to use SWI for all PGA release requests since October 2018, however, because the program was not mandatory during that period CBSA did not require complete information for all areas.  Effective August 17, 2020 importers will be required to provide all required information at time of import.

As noted in our February 2020 issue of Route, additional fees will be implemented once SWI becomes mandatory.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Do you have your SFCR License yet?

Toronto, July 16, 2020

If you are a food business, a Safe Food for Canadians Regulations (SFCR) Licence may now be required (with certain exceptions) to import food into Canada.

The SFCR came into force January 15, 2019, with a phased in approach based upon food commodity, type of activity and business size.  After the initial January 2019 implementation, the next phases are July 15, 2020 (most importers) and July 16, 2021 (for companies with annual food sales of $100,000 or less or that have 4 or less employees).

Most businesses will require a licence effective July 15, 2020.  In order to apply for a SFCR licence, businesses will need to attest that they have preventive controls in place.

The timelines for complying with licensing, preventive controls, preventive control plan and traceability requirements vary by food, activity and size of the food business.  For information relevant to your food business, select the SFCR timelines that apply to you from the list below:

• Timetable: Dairy products, eggs, processed egg products, processed fruit or vegetable products
• Timetable: Fish
• Timetable: Meat products and food animals
• Timetable: Fresh fruit or vegetables
• Timetable: Honey and maple products
• Timetable: Unprocessed food used as grain, oil, pulse, sugar or beverages
• Timetable: Food additives and alcoholic beverages
• Timetable: All other foods (manufactured foods)

Food businesses must enrol at My CFIA to apply for a licence.  The Canadian Food Inspection Agency (CFIA) will not accept SFCR licence applications sent by email or fax.  Once your application is submitted, CFIA will generally issue a licence in approximately 15 days.

The CFIA has also created an advanced search tool called the Guidance Finder, which lets users find information about SFCR requirements by specifying activity type, food commodity, method of production and document type, along with interactive tools and timelines.

Although the CFIA announced on April 7, 2020 that due to COVID-19 they would not be prioritizing compliance activities for SFCR, they have not yet determined a firm date by which imported shipments will be rejected without a valid SFCR Licence.  CFIA are recommending all importers (where required) obtain their SFCR Licence in order to avoid delays once the regulations are enforced.

For more information about the Safe Food for Canadians Regulations, visit inspection.gc.ca/safefood or call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.