List of active alerts in the home page scroller.
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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.
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:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, May 3, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, May 3, 2021:
Full Resumption of Operations at the Port of Montreal and an End to the Uncertainty
Operations at the Port of Montreal will regain stability following passage by the House of Commons of an Act to provide for the resumption and continuation of operations at the Port of Montreal. This decision means that the operational and commercial uncertainty related to labour relations between the dockworkers' union CUPE Local 375 and the Maritime Employers Association (MEA) is now over.
The process established by the legislation will lead to a new collective agreement between the parties, with no possibility of work stoppages.
The resumption of operations and the return to the usual smooth flow of goods will take several days of work by port workers and supply chain stakeholders. Because of this, clients waiting to import or export goods can expect delays in the coming weeks.
Read more in a press release from the Montreal Port Authority.
Longshore Workers Will Challenge Back-to-Work Legislation in Court
The Montreal Longshore Workers Union (CUPE 375) announced Thursday evening that it would challenge the back-to-work legislation if it passed.
Michel Murray, union representative and spokesman for CUPE 375, said, "We will contest the bill before the courts, and we have already filed a complaint with the International Labour Organization."
Read more in a statement from CUPE.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
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.
Toronto, April 28, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Wednesday, April 28, 2021:
Ottawa Tables Legislation to Send Striking Port of Montreal Workers Back on the Job
Federal Labour Minister Filomena Tassi has tabled back-to-work legislation for the Port of Montreal's 1,150 dock workers, who have been on strike since Monday morning.
The legislation, debated yesterday afternoon, would require employees to return to work after the bill passes. It would also extend their previous collective agreement until a new one is negotiated.
The legislation would also prevent any strikes or lockouts until a new agreement is signed and impose a mediator-arbitrator on both parties if negotiations fail again.
Conservative Leader Erin O'Toole issued a statement, saying his party would support the back-to-work legislation.
"Canada's Conservatives believe that a general strike at an essential port should be avoided during a pandemic for the good of Canadians, port workers of all sectors, and businesses," O'Toole said in the statement.
Read more in an article from CBC News.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
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.
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.
Toronto, April 22, 2021
As of April 21, CIFFA is aware of the following developments on the Port of Montreal labour situation.
Last Thursday, April 15, the Maritime Employers Association presented a counter proposal to the Longshoremen's Union. The parties have not met since and nothing is currently scheduled in terms of further negotiations. The union, in accordance with their partial strike decision, did not work over the April 17-18 weekend.
The railways indicate they are operating as planned, but there is a current backlog due to increased imports (from 2 weeks ago) and the past weekend's strike action.
Cargo originating from the U.S. Midwest is in many cases diverting to other ports.
Truck productivity has increased approximately 18% as cargo is moving via road.
Next week is expected to be problematic, with potential for further backlog, as six vessels are scheduled to arrive at the Port of Montreal.
CIFFA members should start to expect congestion and further delays as the union's partial strike continues.
We will update members as further information becomes clear.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, April 13, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, April 13, 2021:
Updates from Both Sides on Port of Montreal Labour Situation
The Maritime Employers Association issued the following notice on Monday.
On Saturday evening, the union executive of the Port of Montreal Longshoremen issued a 72-hour notice of an indefinite strike to the Maritime Employers Association.
The planned pressure tactics, namely the stopping of overtime work, of docking activities, of training and of weekend work, are being presented as a response to the cessation of payment for the hours that are not worked.
This indefinite strike places the Montreal port industry in a precarious situation. This decision by the union will very quickly cause significant congestion and will have a major impact on the fluidity of the logistics chain, therefore undermining the economic recovery in Quebec and Canada.
The MEA is currently evaluating all of its options. We are eager for a speedy settlement and remain ready to continue the negotiations as soon as we are summoned by the mediators.
CUPE Local 375 held a news conference yesterday, in French only. Its main points were as follows:
- Union head Michel Murray said the union was surprised that, after four days of intense negotiations last week, the MEA issued the statement over the weekend of a 72-hour notice to the union of removing the income guarantee and stopping paying the hours that are not worked, in order to mitigate the adverse effects of an 11% volume drop in March, which the union disputes.
- Murray disputed the argument that urgently needed pandemic-related goods are transiting the Port of Montreal and stated that vaccines are transported by air and for the most part via Pearson International Airport.
- Murray noted rising costs to the worldwide transport of containers – and "exploding rates," as well as the profitability of ocean carriers, saying it's not the longshoremen who are causing this rise in costs to industry.
- The union's last contract was put together in 2013 following difficult economic circumstances (evolving after the Great Recession); considering ocean carrier profitability today, the circumstances during negotiation are very different.
- The union says it prefers and has always preferred to return to the negotiating table.
- During the Q&A period at the end of the session, Murray told reporters that manufacturers (industry) use the Port of Montreal because it is cost-effective and the shortest distance from Europe to North America. Instead of writing to elected officials or to the Minister of Labour in Quebec, he said industry should write to the employer (MEA) to ask them to come to the table with their "big boy pants on," and to negotiate properly instead of throwing fuel on the fire and scaring the entire population.
- The union says that, while there may be delays to picking up containers, there won't necessarily be an impact from their action. It's not going to impact Monday-to-Friday pickups.
- The union's two main issues are work-life balance accommodation in the contract and hours of work.
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.
Toronto, March 30, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, March 30, 2021:
Ships Moving in Suez Canal after Ever Given Freed
Ships were starting to move in the Suez Canal after the dislodging of the giant Ever Given container ship cleared the key trade route for traffic.
There were 437 ships waiting to transit through the waterway, shipping agent GAC said earlier, citing the canal authority. Container shipping company Hapag-Lloyd AG expects the backlog to be cleared within four days.
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.
Toronto, March 26, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Friday, March 26, 2021:
It 'Might Take Weeks' To Free Ship Stuck In Suez Canal, Salvage Company Says
The Suez Canal Authority said in a statement Thursday that it had officially suspended traffic while efforts to dislodge the 1,300-foot Ever Given, stuck crossways in the canal, continued, raising the possibility of major new disruptions to global commerce just as supply chains have begun to recover from the COVID-19 pandemic.
Peter Berdowski, CEO of Dutch company Boskalis, which is trying to free the ship, said "it might take weeks" to get the vessel off, possibly necessitating "a combination of reducing the weight by removing containers, oil and water from the ship, tugboats and dredging of sand."
Meanwhile, shipping traffic is quickly backing up at both ends of the canal, which normally sees about 50 ships transit each day.
Shipping experts said that, if the canal can't be cleared in the next 24 to 48 hours, vessels plying routes between Europe and Asia may be forced to divert around Africa, adding up to 12 days to the journey.
Read more in an article from NPR.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
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.
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:
Longshoremen Vote 99.71% Against MEA Final Offer but Say They Will Ask MEA to Return to Negotiations
The Longshoremen's Union Local 375 held a press conference broadcast on its Facebook page on Sunday, March 21 at 4:00 pm.
After a special meeting of its members during the day on March 21 (from 7:00 am to 3:00 pm), at 3:00 pm, 91% of the union local members voted on the Maritime Employers' Association's final offer, which was presented to the union on March 12.
Of 1,023 total votes, 1,020 members refused the final offer, meaning that 99.71% voted no to the MEA offer.
During the press conference, the union cited hours of work, job security, ocean carrier profitability and the need for the "real decision-makers" to be at the table as issues.
Michel Murray, the CUPE union representative, said that, "Symbolically, the union also voted today to ask the employer to go back to the negotiation table. We intend to call the mediators this evening and our goal is to go back to the negotiation table to work on a collective agreement."
Murray also commented during the press conference that the union is aware of vessels already being diverted through the Port of Halifax even before the end of the truce and that this to them shows the employer is not playing fair.
In a release, the MEA told CIFFA that it acknowledges the employees' vote. MEA said it would have preferred a yes vote to the final job offer, but recognizes the will of the union to pursue further negotiations.
MEA said it is looking at its options and its priority is to have a decision as soon as possible. Beyond this, MEA said it would not comment further.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207
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.
Toronto, March 15, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, March 15, 2021:
"Port of Montreal Labour Dispute
The Freight Management Association of Canada provided the following information.
In a memo, the Canadian Union of Public Employees (CUPE) 375 informed its members on Sunday that the Maritime Employers Association (MEA) issued a final offer to the union late on Friday, March 12.
The union president stresses that this is an offer, not an agreement in principle between the parties. There are no details on the content of the MEA offer.
The memo says the union executive committee will undertake a detailed analysis of the offer and submit it for a vote by the members."
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
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.
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.
|
Zone 1 |
Zone 2 |
Zone 3 |
Monday, March 08 (12:01 a.m.) |
Monday, March 15 (12:01 a.m.) |
Monday, March 22 (12:01 a.m.) |
The maximum recommended cargo weight carried during the thaw period is as follows:
| 20’ Std: | 47,900 lbs | |
| 40’ Std/HQ: | 50,000 lbs | |
| 45’ HQ: | 50,000 lbs | |
| 20’ Reefer: | 46,000 lbs | |
| 40’ Reefer: | 48,000 lbs |
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.
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.
Toronto, February 10, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Wednesday, February 10, 2021:
"Update on Labour Negotiations between Port of Montreal Longshoremen's Union and Maritime Employers Association
CIFFA has learned the following details about ongoing negotiations between the Port of Montreal Longshoremen's Union and the Maritime Employers Association.
Both parties have received a letter from the Federal Minister of Labour asking for 14 days of blitz negotiations.
The federal government has hired Peter Simpson as mediator.
CIFFA understands that there have been three days of meetings between the parties and the new mediators – February 6th, 7th and 8th.
While the priority remains a signed collective agreement before the end of the truce on March 21st, in order to comply with the truce concluded on August 21st, 2020, the parties involved cannot comment on the negotiations."
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
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:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
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.
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.
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.
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:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
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.
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.
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.
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:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, October 2, 2020
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, October 1, 2020:
"Following the strike by dockworkers that paralyzed operations at the Port of Montreal in August and September, Resilience360 research indicates that major ports on both the west and east coasts of Canada continue to experience disruption ranging from port congestion to rail car shortages.
"While the strike ended more than four weeks ago, ocean- and rail-dependent supply chain operations across Canada are unlikely to fully normalize before November 2020," says Neža Kričaj, Supply Chain Risk Analyst, Resilience360.
Read more in an article from Logistics Management."
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
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.
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.
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.
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.
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:
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.
