List of active alerts in the home page scroller.
N = News Alert.
C = COVID-19 Alert.
T = Trade War Alert.
R = Route.
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.
