Rail Terminal Dwell / Dray Delays

Toronto, May 24, 2022

With the surge in container volume for both inbound and outbound, CN and CP are facing severe congestion issues across Canada, with an upward wait time of between 2-8 hours on average to pick up loaded containers or drop empties depending on the arrival terminal.  Although they are normally capable of handling this volume, the situation is being exacerbated by a shortage of dray carriers, which are not able to evacuate containers out of the terminals in an efficient manner.  In view of this, many trucking companies are implementing additional charges to compensate for the waiting time at the rail.  The surge in volume also affects the truckers' ability to pre-pull containers, which can result in detention and demurrage charges being incurred if the trucker is unable to perform pre-pull.

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

CP Rail and Union agree to binding arbitration to end the work stoppage

Toronto, March 21, 2022

The Teamsters Canada Rail Conference (TCRC) – Train and Engine Negotiating Committee has agreed to enter into binding arbitration with Canadian Pacific (CP), ending the work stoppage that began over the weekend.

CP will immediately begin to execute a safe and structured start-up of its train operations in Canada.  Effective immediately, CP has cancelled embargoes currently in place.  This agreement will allow for CP's 3,000 locomotive engineers, conductors, train and yard workers in Canada to return to work at noon local time on March 22, 2022.

In a statement issued early Tuesday morning, Teamsters Canada Rail Conference spokesperson Dave Fulton said while arbitration was not the preferred method, TCRC was able to negotiate terms and conditions that were in the best interest of its members, with wages and pensions still stumbling blocks.  He noted the decision to agree to final and binding arbitration was not taken lightly.

CP President and CEO Keith Creel said in a statement the railway company is pleased to have reached the agreement to enter into binding arbitration, enabling it "to resume our essential services for our customers and the North American supply chain."

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

CP Rail issues notice of force majeure and shuts down railroad, workers strike

Toronto, March 21, 2022

Canadian Pacific Railway (CP) halted operations over a labour dispute early on Sunday, March 20, with CP and the Teamsters Canada Rail Conference (TCRC) each blaming the other for the stoppage that will likely disrupt shipments of key commodities at a time of soaring prices.

"We are very disappointed with this turn of events," said TCRC spokesperson Dave Fulton.  The union said in a statement that it had begun to strike across the country in the dispute that it says affects 3,000 engineers, conductors and yard workers.

Canada's second-biggest railroad operator accused the union of misrepresenting the company's position, saying in a statement that the Teamsters were "well aware of the damage this reckless action will cause to the Canadian supply chain."  Minister of Labour Seamus O'Regan Jr. said CP and Teamsters were still at the table with federal mediators.  "We are monitoring the situation closely and expect the parties to keep working until they reach an agreement," he said in a tweet just after midnight.

Canada, the largest country by area after Russia, depends heavily on rail to move commodities and manufactured goods to port.  CP's network runs across much of southern Canada and extends as far south as Kansas City in the United States.

The shutdown is the latest blow to Canada's battered supply chain, which last year weathered floods in British Columbia that washed out track and suspended access to Canada's biggest port.  Such a stoppage would disrupt the movement of grain, potash, coal as well as intermodal containers.  CP had notified the union on Wednesday that it would lock out employees on Sunday, barring a breakthrough in talks on a deal covering pensions, pay and benefits. It said the key bargaining issue is the union's request for higher pension caps.

The country's last major railway labour disruption was an eight-day Canadian National Railway Co (CNR) strike in 2019.  However, in the past 12 years, there have been 12 stoppages due to poor weather, blockades or labour issues, according to the Western Canadian Wheat Growers Association.

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

CP issues 72-hour notice to lock-out TCRC-Train & Engine employees

Toronto, March 17, 2022

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, March 17, 2022:

CP Issues 72-Hour Notice to Lock Out TCRC-Train & Engine Employees

Canadian Pacific Railway has issued a 72-hour notice to the Teamsters Canada Rail Conference (TCRC)-Train & Engine of its plan to lock out employees at 00:01 ET on March 20, if the union leadership and the company are unable to come to a negotiated settlement or agree to binding arbitration.

"For the sake of our employees, our customers, the supply chain we serve and the Canadian economy that is trying to recover from multiple disruptions, we simply cannot prolong for weeks or months the uncertainty associated with a potential labour disruption," said Keith Creel, CP President and CEO.  "The world has never needed Canada's resources and an efficient transportation system to deliver them more than it does today.  Delaying resolution would only make things worse. We take this action with a view to bringing this uncertainty to an end."

Over the past week, CP and the TCRC leadership have been meeting daily with federal mediators to reach a new negotiated collective agreement in hopes of avoiding a labour disruption.  Despite those talks, the two sides' positions remain far apart.

Read more in a press release from CP.

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

Canadian Pacific Rail/TCRC Labour Negotiations Update

Toronto, March 8, 2022

The Teamsters Canada Rail Conference (TCRC), who represents approximately 3,000 Canadian Pacific's (CP) locomotive engineers and conductors, has voted to authorize strike action.  A strike may occur as early as March 16, 2022.  At this point CP and the TCRC are working to avoid any disruptions, with scheduled talks between both parties and federal mediators to be held between March 11 and March 16.

The key issue at the bargaining table is the TCRC leadership's demand to increase pension caps that were implemented in 2012 to put CP's Defined Benefit Pension Plan on a secure, sustainable footing.  A work stoppage of any duration at CP will impact virtually all commodities within the Canadian supply chain, thereby crippling the performance of Canada's trade-dependent economy.  The consequences of a work stoppage will be felt long after workers return to work and service resumes.

We will continue to monitor this situation and advise accordingly.

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

Canada imposes heavy tariffs on Russia and intends to ban ships from Canadian ports

Toronto, March 3, 2022

In addition to other financial sanctions, Canada has revoked "Most-Favoured Nation status" for Russia and Belarus as trading partners, meaning imports into Canada will be subject to a 35 percent tariff, and making Canada the first country to do so since war broke out in Ukraine last week.

This Order results in the application of the General Tariff for goods imported into Canada that originate from Russia or Belarus.  Under the General Tariff, a tariff rate of 35 percent will now be applicable on virtually all of these imports. Russia and Belarus will join North Korea as the only countries whose imports are subject to the General Tariff.

Quick facts

• This measure has been taken under section 31 of the Customs Tariff, and applies for 180 days, unless extended by a resolution adopted by both Houses of Parliament.
• A tariff rate of 35 percent will apply to virtually all imports. Where MFN rates are higher, the higher rates will continue to apply.

Canada is the first country to take this step, Deputy Prime Minister and Finance Minister Chrystia Freeland said Thursday, adding that the only other nation that Canada subjects to this high tariff and deprives of other associated benefits is North Korea.

"We are using tools which no one would even have imagined deploying just a week ago, and there's more to come," Freeland said.

The Minister of Transport, the Honourable Omar Alghabra, the Minister of Foreign Affairs, the Honourable Mélanie Joly, and the Minister of Fisheries, Oceans, and the Canadian Coast Guard, the Honourable Joyce Murray, announced that the Government of Canada intends to ban Russian-owned or registered ships and fishing vessels in Canadian ports and internal waters. The ban is expected to be in effect later this week through orders made pursuant to the Special Economic Measures Act.

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

Canada invokes Emergencies Act first time ever to end protests, blockades

Toronto, February 15, 2022

Yesterday, Prime Minister Justin Trudeau invoked Canada's Emergencies Act as an attempt to manage the border crisis.

Although a weeklong blockade of the vital Ambassador Bridge between Ontario and Michigan has been cleared, protesters are still obstructing crossings at Emerson, Manitoba (Pembina, North Dakota) and Coutts, Alberta (Sweet Grass, Montana).  The most powerful tools presented yesterday were in the financial areas to follow and halt the flow of money from corporations and individuals funding the protests.  The measure must be approved by the House and Senate within 7 days.  The government likely has enough support for the Act to be implemented.

Financial institutions will now have the power to freeze personal or corporate accounts they believe are being used to fund the illegal protests.  "This is about following the money. This is about stopping the financing of these illegal blockades.  We are today serving notice: if your truck is being used in these protests, your corporate accounts will be frozen." Chrystia Freeland, Minister of Finance, said.

The public order emergency grants Government the authority to apply the following temporary measures:

• Regulating and prohibiting public assemblies, including blockades, other than lawful advocacy, protest or dissent.
• Regulating the use of specified property, including goods to be used with respect to a blockade.
• Designating and securing places where blockades are to be prohibited (e.g. borders, approaches to borders, other critical infrastructure).
• Directing specified persons to render essential services to relieve impacts of blockades on Canada's economy.
• Authorizing or directing specified financial institutions to render essential services to relieve the impact of blockades, including by regulating and prohibiting the use of property to fund or support the blockades.
• Measures with respect to authorizing the Royal Canadian Mounted Police to enforce municipal and provincial laws by means of incorporation by reference.
• The imposition of fines or imprisonment for contravening on any of the measures declared under this public order emergency.

For additional details, please click the following links:

Emergencies Act link here.
Press Release link here.
Canadian Chamber Statement link here.

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

Ambassador Bridge has reopened

Toronto, February 14, 2022

The Ambassador Bridge, one of the busiest international land border crossings in Canada linking Windsor, Ontario and Detroit, Michigan, has reopened after being closed for nearly a week due to protests against pandemic restrictions and mandates.

"The Ambassador Bridge is now fully open allowing the free flow of commerce between the Canada and U.S. economies once again," the Detroit International Bridge Company, which is responsible for maintaining the bridge, announced in a statement late Sunday.

Traffic was flowing normally across the bridge, as confirmed by the Canada Border Services Agency just before midnight on Sunday, February 13th.

"The Canada Border Services Agency (CBSA) can confirm that travellers and commercial carriers are now being processed entering Canada at the Ambassador Bridge port of entry," said Judith Gadbois-St-Cyr, a spokeswoman for the agency.

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

Ambassador Bridge remains closed as protests continue

Toronto, February 9, 2022

Ambassador Bridge, one of the busiest international land border crossings in Canada linking Windsor, Ontario and Detroit, Michigan, and a major route for transport trucks, remains temporarily closed.  The closure is due to continued protests against pandemic restrictions and mandates.

Please use the following links to check current border wait times:

• CBSA – US to Canada Wait Times: https://www.cbsa-asfc.gc.ca/bwt-taf/menu-eng.html#s1
• US CBP – Canada to US Wait Times: https://bwt.cbp.gov/details/03380001/COV

Most traffic is currently being re-routed via the Blue Water Bridge (Port Huron, Michigan / Sarnia, Ontario), but that border crossing, which currently remains open, is becoming more congested with the additional truck volumes.

We will continue to monitor this situation and advise accordingly.

For more information, please call Chris Cartan, Director – Operations at (905) 882-4880, ext. 1237 or William Sanchez, Manager – Truck Services at (905) 882-4880, ext. 1224.

Port Congestion continues to affect Ocean Shipping

Toronto, February 8, 2022

2022 has not started off well, as shippers continue to face bottlenecks and service disruption related to global port congestion.  The situation is particularly challenging at key hub ports and gateway terminals, as cargo volumes remain extremely high, affecting the fluid movement of cargo on land as well as disrupting vessel schedules worldwide.

North American ports continue to struggle with these issues, as rail movements inland are delayed, and the number of vessels waiting to berth at these destination ports remains high.  We are also experiencing long delays in transit times, as vessels laden with containers destined to North America sit idle offshore or slow down the sea transit, awaiting a berthing window at the final port of arrival.

The situation in Vancouver, Montreal and Halifax remains precarious, as we are seeing significant delays in cargo moving inland from these key points of arrival in Canada.  In terms of the U.S., the problems experienced in 2021, namely vessel bunching and extended dwell time at terminals remain.  While the U.S. West Coast ports are dealing with the most serious issues, as the vast majority of inbound cargo from Asia arrives via this gateway, East Coast ports are also dealing with high volumes of cargo and the fallout from this.

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

Holiday Hours for Universal Logistics Offices

Toronto, December 15, 2021

All Canadian offices of Universal Logistics will be closed from 2:00 p.m. Friday, December 24th through to Tuesday, December 28th.  Normal business hours will resume on Wednesday, December 29th from 8:30 a.m. to 5:00 p.m..

We will also be closed on Monday, January 3rd and will resume normal business hours on Tuesday, January 4th, 2022.

If, during this holiday period you require immediate assistance regarding a Canadian Customs Clearance matter please call (905) 882-4880, ext. 1214 for after hours instructions.  For PARS tracking please visit our Website to utilize our PARS tracker.

Universal Logistics USA, Buffalo, New York will be closed from 12:00 noon on Friday, December 24th and our office will also be closed on Saturday, December 25th.  The office will reopen at 10:00 a.m. on Sunday, December 26th.

On Friday, December 31st, we will close at 5:00 p.m. and our office will also be closed on Saturday, January 1st.  The office will reopen at 10:00 am on Sunday, January 2, 2022.

If, during this holiday period, you require immediate assistance regarding a U.S. Customs Clearance matter please call (800) 767-8525 to reach Universal Logistics USA Inc. after hours.  For PAPS tracking please visit our Website to utilize our PAPS Tracker.

Universal Logistics USA, Cleveland, Ohio will be closed on Friday, December 24th.  Normal business hours will resume on Monday, December 27th from 7:30 a.m. to 5:00 p.m.

We will also be closed on Friday, December 31st and will resume normal business hours on Monday, January 3, 2022.

Season's Greetings from
Universal Logistics &
Universal Logistics USA!

Port of Vancouver Operations Update – December 7

Toronto, December 7, 2021

Rail operations:  Both CP and CN mainlines between Vancouver and Kamloops are fully operational.  Rail traffic through the Fraser Canyon corridor has resumed in both directions.  All eastbound trains are transiting via CP's line, and all westbound trains are transiting via CN's line.  Enhanced track inspections and maintenance activities continue, and low-speed restrictions remain in place.

Truck operations:  Restored highway routes include detours, intermittent closures and essential-traffic-only restrictions.  Reconstruction and repairs continue on major roadways across the region.

Marine operations:  Demand for anchorages continues to exceed the capacity.

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

Port of Vancouver Operations Update – December 2

Toronto, December 2, 2021

Lighter precipitation is forecast for Thursday and Friday across southwestern B.C.  Evacuation orders for multiple communities impacted by flooding remain in place.

Rail operations:  CP and CN eastbound and westbound trains continue to transit on CP's mainline between Vancouver and Kamloops.  Enhanced track inspections and maintenance are ongoing and low-speed restrictions remain in place.  Engineering teams continue to undertake repairs on CN's mainline between Kamloops and Boston Bar at a site impacted by heavy precipitation.  A timeline for restored rail operations through the site is currently unavailable.

Truck operations:  Container terminal truck activity remains steady.  Restored highway routes include detours, intermittent closures and essential-traffic-only restrictions.  Proactive closures may occur when heavy rainfall is forecast.  Reconstruction and repairs continue on major roadways across the region.

Marine operations:  Demand for anchorages currently exceeds capacity.

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

Port of Vancouver Operations Update – November 29

Toronto, November 29, 2021

Ongoing precipitation across southwestern B.C. has caused the closures of rail lines and highway routes servicing the West Coast.

Rail operations:  CP's mainline between Kamloops and Vancouver is closed to enable engineering teams to conduct inspections and undertake repairs to stabilize sites impacted by rainfall.  No new washouts have been reported.  CN operated numerous trains over its mainline in the last 24 hours, but it has ceased operations to enable inspections and address ongoing water concerns.  A timeline for fully restored rail operations to the West Coast is currently unavailable.

Truck operations:  The Ministry of Transportation and Infrastructure proactively closed highways previously impacted by flooding and landslides due to worsening weather.

Marine operations:  Demand for anchorages currently exceeds capacity.  On Sunday morning there was a backlog of 54 ships at anchorage awaiting offloading, up from 40 on November 19.  According to data from the Vancouver Fraser Port Authority, this includes nine container ships.

The provincial state of emergency declared by the British Columbia Minister of Public Safety remains in place.

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

Port of Vancouver Operations Update – November 25

Toronto, November 25, 2021

Restoration work continues on rail and road infrastructure to re-establish key connections between the B.C. interior and the West Coast.  Increased precipitation across southwestern B.C. is forecast for the remainder of this week and over the weekend.

Rail operations:  Four trains have transited across CP's mainline between Vancouver and Kamloops.  Additional CP and CN trains were expected to transit yesterday.  All trains are operating in accordance with low-speed restrictions to enable monitoring of rail infrastructure in recently repaired areas.  Intermittent closures to address repairs and ensure safe operations may occur.  CN anticipates the opening of its mainline on Thursday, November 25.

Truck operations:  Truck operations at all four container terminals remain steady.  Reconstruction and repairs continue on major roadways across the region, with some highway routes restored, including detours, intermittent closures and essential-traffic-only restrictions.

Marine operations:  Anchorage demand is steady and remains high across all vessel types.  Anchorages are assigned in a manner that ensures fluidity across all ship types and maintains essential services.  Vessels in port can be viewed on the home page of the PortVan eHub app by selecting "Vessels in Port".

The provincial state of emergency declared by the British Columbia Minister of Public Safety remains in place.

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

Port of Vancouver Operations Update – November 23

Toronto, November 23, 2021

The Vancouver gateway continues to experience disrupted rail and truck movement due to flooding throughout the Metro Vancouver and Fraser Valley regions.  Significant progress on repairs was made over the weekend on both rail and highway infrastructure.

Rail operations:  CN and CP crews and engineering teams continue to make significant progress clearing debris and undertaking repairs to damaged rail infrastructure between Kamloops and Vancouver.  CP anticipates having its mainline operational by late Tuesday.  CN expects to open its mainline on Wednesday.  Rail service on restored lines will resume when it is safe to do so.

Truck operations:  Trucks are operating under normal conditions at all four container terminals. One highway route through the flood-impacted Fraser Valley is open for regular traffic between Metro Vancouver and the B.C. interior.  Reconstruction and repairs on all major roadways continue.  At the same time, U.S. Customs has also implemented interim measures to facilitate the movement of goods via the U.S. to avoid the flood-affected areas in Vancouver.

Marine operations:  Anchorage demand is high and nearing capacity across all vessel types.  Anchorages are assigned in a manner that ensures fluidity across all ship types and maintains essential services.  The total number of containers on the dock has increased by almost 40,000 containers since Friday.

The provincial state of emergency declared by the British Columbia Minister of Public Safety and Solicitor General remains in place.

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

Port of Vancouver Operations Update

Toronto, November 18, 2021

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, November 18, 2021:

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

Stressed supply chains snarled anew as B.C. floods wash out rail lines and roads

Toronto, November 16, 2021

The complex problem of moving goods from Point A to Point B has been made even more complicated by record-breaking rainfall and flooding in B.C. that has washed out rail lines and highways in the lower mainland.  Experts say the floods have taken an already tight supply chain and made it even tighter, at the worst possible time.  Most highways in and out of Vancouver have effectively been shut down, bringing truck traffic to a crawl.  While trucks are used for shorter haul distances of comparatively smaller loads, trains handle the bulk of transport, and both of Canada's major rail lines, CN and CP Rail have confirmed that their networks have been impacted.

The outage will only exacerbate the situation at the Port of Vancouver, which was already congested because of previous supply chain issues related to the pandemic, and the rail lines in question are the main arteries in and out of the port.

Depending on the extent of the damage, the rail companies expect to have most of their lines back up and running within a week or so, but clearing the global backlog in supply chains will take much longer.

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

Los Angeles & Long Beach delays pulling trigger on congestion fee

Toronto, November 16, 2021

It came down to the wire, but the highly controversial Los Angeles & Long Beach congestion fee backed by the Biden administration is not happening – at least, not yet.

The ports were scheduled to begin charging ocean carriers $100.00 per import container starting Monday, November 15th for boxes moving by truck that dwelled for nine or more days, and for boxes dwelling for six or more days that move by rail.  The charge was scheduled to escalate by $100.00 a day until the container left the property.

The ports announced Monday that they will "delay consideration" of the fee until November 22th citing a 26% reduction in long-dwelling containers since the plan was announced on October 25th.

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

Why cargo insurance is a good investment!

Toronto, November 5, 2021

On October 22, 2021, the Zim Kingston vessel was engulfed in flames off the coast of Vancouver.  Severe weather caused a collapse of containers, sweeping more than 100 containers overboard.  Ensuing damage ignited a fire in other containers with hazardous materials that quickly spread throughout the vessel.  The salvaging of lost containers and the assessment of damages has now begun.

Subsequent to this, on November 1st, the owners of the MV Zim Kingston, have declared "General Average".  This is a principle of maritime law whereby all stakeholders in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency.

Examples of General Average include:

• Jettison of cargo
• Hull and engine damage, caused by efforts to refloat the vessel
• Vessel assistance from tugs or other vessels
• Discharge and reloading of cargo at a port of refuge
• Damages to a vessel or cargo caused by firefighting

Losses covered by a General Average declaration are shared by every shipper that has freight on the on the vessel.  The cost per uninsured shipper can be catastrophic.  Moreover, uninsured shippers are unable to receive any surviving cargo until they have posted an Average Bond.  In contrast, shippers with proper cargo insurance suffer little or no loss.

If you have questions about cargo insurance or if you want Universal Logistics to place cargo insurance on your behalf, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.

Port of Los Angeles & Long Beach Container Excess Dwell Fee Update

Toronto, November 4, 2021

The Port of Los Angeles & Long Beach Container Excess Dwell Fee that was introduced November 1, 2021, will penalize Ocean Carriers $100.00 US per container, increasing in $100.00 increments per day, for containers that sit too long at terminals.

This policy will begin counting storage days on November 1, with fines beginning November 15 and is scheduled to last 90 days. If there is significant progress made in clearing congestion, the Port Executive Director has the discretion to extend the November 15 assessment date.  At present, this only applies to the Port of Los Angeles & Long Beach.

Ocean Carriers have already sent notices that they plan to pass these charges to importers. Penalties will be assessed after 9 days for containers being moved by truck and after 6 days for containers moving by rail.  According to the compounding penalties schedule, the penalty will be $100 for the first day, $200 for the second day, $300 for the third day, and so on without a maximum penalty amount.

For example, if a container moving by truck remains at terminal for 15 days, the penalties would be $100 (Day 9) + $200 (Day 10) + $300 (Day 11) + $400 (Day 12) + $500 (Day 13) + $600 (Day 14) + $700.00 (Day 15) for a total of $2,800 US.  Days are counted by calendar days and include weekends and holidays. These fees must be paid to the terminal before shipment will be released.

It is also the responsibility of the importer to return the empty container once offloaded. Due to these severe congestion issues, the empty return terminals are also operating at overcapacity, resulting in delays in accepting return containers.  Truck carriers, awaiting empty return availability, are being forced to hold containers on their chassis and at their truck terminals.  In such instances, additional daily fees are incurred for chassis detention and yard storage, which in turn are passed to importers.

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

Ocean Carriers Will Pass on Port Fines for Lingering Containers to Importers

Toronto, October 28, 2021

Logistics industry professionals say retailers and other cargo owners will ultimately bear the cost of drastic new fees announced Monday by the ports of Los Angeles and Long Beach in response to mounting congestion disrupting the entire U.S. economy.  Under the new policy commencing November 1, the ports will charge ocean carriers, starting at US$100.00 per day and per container, for containers that fall into one of two categories; containers scheduled to move by truck and those moving by rail. In the case of containers scheduled to move by truck, ocean carriers will be charged for every container "dwelling" nine days or more, while for containers moving by rail, carriers will be charged if the container has dwelled for three days or more.  Dwell times typically refer to the period between when the container is unloaded from a ship and the time when it is picked up.

The fees ostensibly penalize ocean carriers for not quickly clearing out imported containers piling up in their terminals, but a lack of details in the press release left freight industry stakeholders confused about how the rules will be applied.  Within minutes of the announcement by the twin ports, container lines began sending letters to importers alerting them to be prepared for the new charges.  Clearly, they are not just absorbing these costs as a part of doing business to get this cargo out, they are passing these costs on to the beneficial cargo owner.

Read more in an article from American Shipper.

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

GTA dnata Warehouse Storage Policy Update

Toronto, October 14, 2021

GTA dnata, which provides ramp, passenger and cargo warehousing services to airlines at Toronto Pearson International Airport (YYZ), has announced an update to their warehouse storage policies as outlined below.

Canadian Terminal and Warehouse Congestion

Toronto, October 1, 2021

Supply chain disruptions, which have greatly affected US bound cargo, are now starting to be felt in Canada.  At the present time the situation is most severe in Vancouver, where the main problem relates to container chassis availability and warehouse overcapacity.  Part of this issue stems from inbound containers being terminated at port, as many ocean carriers are not offering inland services at this time.

As a result, many Vancouver area warehouses are taking on cross docking services, causing much higher demand for container drayage and destuffing.  This has resulted in a backlog of consolidated containers waiting to be offloaded, causing containers to be stored at warehouse yards or held at port terminals.  The situation is compounded if containers remain on chassis at warehouse yards, as this reduces the supply of equipment required to handle other containers.

In many cases this is resulting in extra costs being incurred, which could include chassis detention as well as container demurrage and storage.

The situation in Toronto and Montreal, while not as dire as Vancouver, is getting worse as destuffing warehouses are faced with overcapacity, due to the sheer volume of inbound cargo.  This is delaying the unloading of containers considerably and, as in Vancouver, is resulting in extra costs being incurred as the existing supply chain struggles with ongoing excessive volume.

At this point it is difficult to predict when these issues will be resolved, but as volume levels remain high, relief from this situation is not foreseen in the near future.

We will continue to monitor this situation and advise accordingly.

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

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.

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.

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.

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.

Holiday Hours for Universal Logistics Offices

Toronto, December 18, 2020

All Canadian offices of Universal Logistics will be closed from 2:00 p.m. Thursday, December 24th through to Monday, December 26th.  Normal business hours will resume on Tuesday, December 29th from 8:30 a.m. to 5:00 p.m.

We will also be closed on Friday, January 1st and will resume normal business hours on Monday, January 4, 2021.

If, during this holiday period you require immediate assistance regarding a Canadian Customs Clearance matter please call (905) 882-4880, ext. 1214 to reach Universal Logistics after hours.  For PARS tracking please visit our Website to utilize our PARS tracker.

Universal Logistics USA, Buffalo, New York will be closed from 1:00 pm on Thursday, December 24th and our office will also be closed on Friday, December 25th.  Normal business hours will resume on Saturday, December 26th from 7:00 a.m. to 12:00 midnight.

On Thursday, December 31st, we will close at 5:00 p.m. and our office will also be closed on Friday, January 1st.  We will resume normal business hours on Saturday, January 2, 2021.

If, during this holiday period, you require immediate assistance regarding a U.S. Customs Clearance matter please call (800) 767-8525 to reach Universal Logistics USA Inc. after hours.  For PAPS tracking please visit our Website to utilize our PAPS Tracker.

Universal Logistics USA, Cleveland, Ohio will be closed from 2:00 p.m. Thursday, December 24th and our office will also be closed on Friday, December 25th.  Normal business hours will resume on Monday, December 28th from 7:30 a.m. to 5:00 p.m.

We will also be closed on Friday, January 1st and will resume normal business hours on Monday, January 4, 2021.

Season's Greetings from
Universal Logistics &
Universal Logistics USA!

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.

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.

Canadian Port Congestion

Toronto, August 26, 2020

Canadian ports on the East and West Coast of Canada are dealing with cargo backlogs, which are delaying the movement of shipments inland.  The recent strike at the Port of Montreal has created a severe backlog of containers at both Halifax and Montreal, the two main ports of arrival in Eastern Canada.  At the same time, ports on the West Coast of Canada are dealing with high levels of import volume, resulting in cargo movement delays.

It is expected it will take some time to clear the volume at these ports.

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

Montreal Longshoremen and MEA Reach Agreement to End Port Strike

Toronto, August 21, 2020

The striking longshoremen at the Port of Montreal have reached an agreement Friday with the MEA to end an 11-day-old strike and to resume work at the port.  Exact details on when the work will restart is yet to be confirmed.

Carriers are currently reviewing current vessel operations and making the necessary adjustments in light of this news, and we will communicate the details as soon as they are available.

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

Quebec and Ontario Governments Send Letter to Ottawa over Port of Montreal Strike

Toronto, August 18, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, August 18, 2020:

Read more in an article from CTV News.

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

Ottawa Won't Intervene to End Strike at Port of Montreal

Toronto, August 13, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, August 13, 2020:

Read more in an article from Global News.

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

Strike at the Port of Montreal – Vessel Diversion

Toronto, August 10, 2020

As a result of the ongoing strike at the Port of Montreal, several carriers have diverted vessels to other ports of arrival such as Halifax, New York City and Saint John, N.B..  In doing so, these carriers are applying additional costs to offset the difference in landed fees between Montreal and the revised port of arrival.

The situation is very fluid.  In some cases vessels have been diverted on route, resulting in these additional costs being applied with little warning.

Aside from this, some carriers are offering an option to route containers via other ports prior to shipping.  In these cases the costs will be confirmed prior to departure.

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

Strike at the Port of Montreal expected to continue

Toronto, August 7, 2020

The Canadian Union of Public Employees (CUPE), representing dock workers at the Port of Montreal, says it will launch an indefinite strike without an end date starting Monday, August 10th.

The move expands the pair of four-day strikes by CUPE that have diverted several ships to ports in Halifax, New York City and Saint John, N.B..  The announcement by CUPE follows escalating tensions between the union and the Maritime Employers Association amid a labour action revolving around wages and scheduling.

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

Four Day Strike to Begin Monday at Termont (Montreal)

Toronto, July 31, 2020

This morning, the Maritime Employers Association (MEA) received a 72-hour strike notice from the Canadian Union of Public Employees (CUPE) Local 375 informing them of a strike at Termont (Montreal) beginning Monday August 3, at 7:00 am until Friday August 7, at 06:59 am, a period of four days.

The strike will target operations at Termont's two terminals, Viau and Maisonneuve.

This action follows previous work stoppages this week at the Port of Montreal, initiated by CUPE Local 375 as well as the International Longshoremen's Association (ILA) Local 1657.

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

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.

72-Hour Strike to Begin July 27 at Port of Montreal

Toronto, July 24, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Friday, July 24, 2020:

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

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.

Port of Montreal Labour Negotiations Update

Toronto, July 9, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, July 9, 2020:

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

Longshoremen at Port of Montreal to go on 40-hour strike this week

Toronto, June 30, 2020

The union representing longshoremen at the Port of Montreal confirmed Tuesday that some of its members will strike later this week.  The strike is being carried out as part of the negotiations for the renewal of the longshoremen's collective agreement with the Port, which expired December 31, 2018.

The 1,125 longshoremen, members of the Canadian Union of Public Employees, have been engaged in ongoing labour negotiations with the Maritime Employers Association (MEA).  These negotiations resumed recently after a ruling by the Canada Industrial Relations Board to deny the MEA request to designate port services as essential services.

The strike is expected to last from Thursday, July 2 at 3:00 p.m. until Saturday, July 4 at 6:59 a.m..  It will mainly affect union members who work at the two Montreal Gateway Terminals (MGT) at the Port of Montreal.

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

Are you ready for CUSMA/USMCA on July 1, 2020?

Toronto, June 5, 2020

On July 1, 2020, the new CUSMA/USMCA/T-MEC agreement will replace the existing NAFTA free trade agreement for imports into Canada, USA and Mexico.

In order to continue to benefit from duty free entry, of qualifying goods, existing Blanket NAFTA Certificates of Origin must be replaced with valid Blanket Certifications for the period of July 1, 2020 – December 31, 2020.

It’s important to remember the new agreement isn’t just a name change, the Rules of Origin have changed for many commodities.

Not sure where to start?  We can review your existing NAFTA Certificates with the new Rules of Origin to determine if your products still qualify.  Furthermore, we can also assist with preparation of the new Blanket Certification, and contact your vendors directly, so you’re ready for July 1, 2020.  Contact Universal Logistics for a quote.

Proof of Origin Requirements
Importers should obtain valid Blanket Certifications of Origin under the new regulations, or ensure exporters are prepared to include the applicable 9 data elements on shipping documents as outlined in the Origin Procedures Annex 5-A:

1. Indicate whether an Importer, Exporter or Producer Certification of Origin
2. Name, Address and Contact Information of the Certifier
3. Name, Address and Contact Information of the Exporter (if different from the certifier)
4. Name, Address and Contact Information of the Producer (if different from the certifier)
5. Name, Address and Contact Information of the Importer (if known)
6. Description and HS Tariff Classification of the Good(s)
7. Origin Criteria as set out in Article 4.2: Originating Goods (refer to page 4-4)
8. Blanket Period (up to 1 calendar year)
9. Authorized Signature and Date

The Certification must be signed and dated by the Certifier and accompanied by the following statement:

“I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate.  I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification.”

Although the new agreement does not have a formal Blanket Certification form, Universal Logistics has prepared a template for your use:

• CUSMA Certification of Origin
• USMCA Certification of Origin

For detailed information on the new agreement:

• Canada – CUSMA
• USA – USMCA
• Mexico – T-MEC

For more information or to engage Universal’s full CUSMA/USMCA/T-MEC Management Service, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Proposed U.S. aluminum import monitoring system

Toronto, May 1, 2020

The U.S. Department of Commerce is requesting public comments on the establishment of an Aluminum Import Monitoring and Analysis (AIM) system.

A Proposed Rule was published in the U.S. Federal Register on Wednesday, April 29 seeking comments by May 29.  The new system would replicate the current Steel Monitoring system which requires an import license to be obtained and the license number stated on the import CF7501 customs entry.

This rule, if implemented, would require importers, or their customs broker, to obtain the required license prior to import (up to 60 days in advance of shipment) for aluminum falling under one of the following HTS codes: 7601, 7604, 7605, 7606, 7607, 7608, 7609, 7616.99.51.60, and 7616.99.51.70.  These are the same HS classifications which are subject to the additional 10% Aluminum Tariff (Section 232) upon import to the U.S..

An import license will not be required on informal entries of aluminum products, such as merchandise valued at less than $2,500.  For shipments containing less than $5,000 worth of aluminum, applicants can apply for a reusable Low-Value License instead of obtaining a single-entry license for each import.

Following is additional information, along with the required data needed, to obtain the import license:

You may submit comments through the Federal eRulemaking Portal at https://www.Regulations.gov, Docket ITA-2020-200408-0103.  Comments may also be submitted by mail or hand delivery/courier, addressed to Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance, Room 1870, Department of Commerce, 1401 Constitution Ave. NW Washington, DC 20230.

As with the existing Steel Import Monitoring, should the Aluminum Import Monitoring become effective, Universal Logistics may obtain the required license needed for our clients, as required.

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

New NAFTA deal to enter into force July 1, 2020

Toronto, April 27, 2020

U.S. Trade Representative Robert Lighthizer notified U.S. Congress on Friday that the new NAFTA deal will enter into force July 1st, 2020, a month later than initially proposed.  The deal is referred to as CUSMA (Canada-United States-Mexico Agreement) in Canada and USMCA (United States-Mexico-Canada Agreement) in the U.S..

Certain requirements need to be wrapped up in the next two months, but Lighthizer said his office would work to ensure a smooth implementation of the new rules.  North American business leaders have been pushing for a delay until 2021, due to the COVID-19 pandemic.

Importers should begin obtaining valid Blanket Certifications of Origin (or ensure exporters are prepared to include the applicable certification of origin data elements on shipping documents) under the new regulations.  This will ensure there is no lapse in preferential trade status prior to the new deal taking effect.  Between now and July 1, 2020, NAFTA Certificates of Origin will still be required to obtain preferential trade status.  Once the new trade agreement becomes effective, NAFTA Certificates of Origin will no longer be valid and must be replaced with CUSMA/USMCA Certifications of Origin or specified certification of origin data elements on shipping documents.

For clients who are currently enrolled in Universal's NAFTA Project Management Program (Service Option 2 – Universal Logistics obtains Blanket Certificates for Client), we will contact your vendors directly to obtain the required Blanket CUSMA/USMCA Certifications of Origin.  For those clients not enrolled in this Service Option and who would like Universal Logistics to obtain the required Blanket Certifications of Origin directly from your vendors, please let us know.

To download Universal's CUSMA/USMCA Certification of Origin template click here.

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

CAED Decommissioning Delay

Toronto, April 16, 2020

Due to the COVID-19 pandemic, the Canadian Border Services Agency (CBSA) has delayed the decommissioning date of the Canadian Automated Export Declaration (CAED) system from June 30, 2020 to September 30, 2020.  The Canadian Export Reporting System (CERS) will replace CAED, which is the existing electronic export filing system.

Paper-based reporting, via the B13A – Export Declaration Form, will no longer be permitted as of June 30 2020.  Anyone presently using the paper reporting process will have to start using CERS on June 30, 2020.  However, anyone who now uses CAED will have until September 30, 2020 to switch to CERS.

The CBSA strongly encourages exporters and Customs service providers to activate their Canadian Export Reporting System (CERS) accounts as soon as possible.

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

Rail Blockades Update

Toronto, March 4, 2020

With the removal of rail blockades across Canada, rail operations are slowly returning to normal.

CN Rail has started calling back many of its temporarily laid-off employees in Eastern Canada.  The significant backlog of trains parked on CN's tracks and in its yards is being processed through a methodical recovery plan.  Rail cars that have been sitting idle at various marshalling yards across Eastern Canada are now starting to move to their final destination.

CP Rail, while not significantly affected by rail blockades, is dealing with a surge in volume as shippers switched to their services in light of the CN Rail blockades.  CP Rail is also working on clearing this high level of volume presently distributed throughout its system.

Despite the progress being made to resolve this ongoing issue, it is expected to take some time to clear the backlog of cargo and have both services running at normal operational levels.

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

Quebec Spring Thaw Restrictions for 2020

Toronto, March 2, 2020

The Quebec Ministry of Transportation has released 2020 "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:

Rail Blockade Updates

Toronto, February 27, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, February 27, 2020:

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

CN Blockades Update

Toronto, February 24, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, February 24, 2020:

We are continuing to monitor this situation and will advise accordingly.

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

Montreal Gateway Terminal has announced Force Majeure

Toronto, February 21, 2020

As a result of the ongoing rail disruption in Eastern Canada, Montreal Gateway Terminal (MGT) declared 'Force Majeure' on February 20, 2020, as there is no immediate resolution in sight and a prolonged recovery period is being anticipated.

All inland rail cargo must be evacuated immediately from the Port of Montreal.  Import rail containers dwelling more than five calendar days will be charged terminal storage effective Tuesday, February 25th.  MGT will offer storage compensation for all current grounded containers which are diverted to truck.  This compensation will be applicable only to units diverted through Monday, February 24th, 15:00 hrs.

Please be advised that on top of the additional fee to move cargo by truck, shifting and handling costs at the terminal will apply as well.

We are reviewing all affected cargo and will advise accordingly.

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

CN Blockades Update

Toronto, February 21, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Friday, February 21, 2020:

We are continuing to monitor this situation and will advise accordingly.

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

Rail Blockade Updates

Toronto, February 18, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, February 18, 2020:

We are continuing to monitor this situation and will advise accordingly.

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

Blockades continue to compromise rail service across Canada

Toronto, February 13, 2020

Anti-pipeline protesters who are demonstrating around rail lines near Belleville, Ontario and New Hazelton, British Columbia have prompted CN Rail to temporarily shut down parts of its network.  There is currently no movement of any trains – freight or passenger – at both those locations, crippling the ability to move goods and facilitate trade.

Transport Minister Marc Garneau has called the two blockades near Belleville "illegal" and "dangerous", noting their impact on economic activity, and said enforcing injunctions against protesters is a provincial responsibility, not a federal one.

According to CBC News, Indigenous Services Minister Marc Miller has offered to meet with the Mohawks of Tyendinaga if they end an eight-day demonstration that has shut down passenger and freight rail traffic through southern Ontario.

A new blockade has been set up on the CN main line in Headingley, Manitoba approximately 14 km west of Winnipeg, Manitoba.  The blockade is affecting traffic in all directions, including Western to Eastern Canada and Western Canada to the United States.  It is becoming increasingly difficult to add traffic to the network due to this rapidly changing situation.

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.

CN May Be Forced to Shut Down Parts of Network Due to Blockades

Toronto, February 12, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Wednesday, February 12, 2020:

Read more in a CN press release.

CN encourages stakeholders to contact their government representatives to explain how these blockades impact their businesses, employees and customers.

We are continuing to monitor this situation and will advise accordingly.

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

Protests compromise passenger and cargo movement across Canada

Toronto, February 10, 2020

Protesters have established blockades and protest camps across Canada, in support of the Wet'suwet'en Nation bid to halt construction of a natural gas pipeline in northern British Columbia.  The hereditary chiefs of Wet'suwet'en Nation are protesting against the Coastal GasLink project, the $6-billion, 670 km pipeline, that would see natural gas flow from the Dawson Creek area to the west coast of the province.

Tensions have ramped up considerably in the past few days.  Last week, the RCMP began enforcing a B.C. Supreme Court injunction, establishing a protest "exclusion zone" to allow construction to proceed.  RCMP tactical units are currently in an operation against numerous protest camps built to block construction of the pipeline.

In British Columbia, protesters have continued to block workers from entering the Port of Vancouver and Deltaport.  The protestors were served with a court injunction ordering them to stop blocking access to the ports late Sunday.  The injunction, granted by the B.C. Supreme Court, says they must leave the Vancouver Fraser Port Authority lands and stop blockading the port's access points, however, protesters say they intend to stand their ground.  Coupled with this, a rail blockade has been affecting all traffic in and out of the Port of Prince Rupert since February 8.

Protests in Ontario have halted rail traffic between Toronto and both Ottawa and Montreal since February 6.  Members of the Tyendinaga Mohawk Territory have been protesting along the rail lines that cut along the territory's border near Belleville, Ontario, in support of the Wet'suwet'en Nation.  CN Rail has obtained a court injunction to end the demonstration, which was served to demonstrators by CN police Saturday afternoon, however, rail traffic along these corridors remains at a standstill.

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.

UK officially leaves the European Union

Toronto, February 3, 2020

The United Kingdom (UK) officially left the European Union (EU) on January 31, 2020, and is now in a transition period with the EU until at least December 31, 2020.

Both Global Affairs Canada (GAC) and the Canada Border Services Agency (CBSA) have confirmed there will be no impact on UK originating goods under the Comprehensive Economic Trade Agreement (CETA) during the transition period.

Canada and the EU have completed informal preliminary talks about rolling over elements of CETA into a bilateral deal, but no date for formal negotiations has been set.  In addition to negotiating with the EU and Canada, the UK is also planning to negotiate a series of bilateral deals with the United States, Australia, Japan and New Zealand before the end of the year.

The UK and EU now have 11 months to negotiate a deal to avoid a "hard Brexit" which many predict would have dire economic consequences.  Reportedly, the UK has said it would offer tariff-free access to trading partners starting for one year in 2021 to insulate the British economy.

Today, British Prime Minister Boris Johnson called for a Canada-style free trade deal, saying the UK would return to the Withdrawal Agreement if such a deal was not reached.  The PM also tweeted today "We are re-emerging, after decades of hibernation, as a campaigner for global free trade".

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

China Government extends Chinese New Year Holiday

Toronto, January 30, 2020

The Chinese Government is extending their National New Year Holiday to try and contain the spread of Novel Coronavirus infections.  Normal operations should resume on the dates outlined below:

• All Provinces in China (excluding Ningbo, Nanjing, Shanghai, Shenzhen and Zhongshan): February 03, 2020
• Ningbo, Nanjing, Shanghai, Shenzhen, Zhongshan: February 10, 2020

We will continue to monitor this situation and advise if there are any further developments.

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

U.S. Senate approves USMCA Trade Agreement

Toronto, January 17, 2020

The U.S. Senate approved, by a vote of 89-10 on January 16, legislation to implement the new USMCA (USA-Mexico-Canada) Trade Agreement updating the current NAFTA.

It will now go to President Donald Trump for his signature, which is expected next week.  The deal is expected to be ratified by Canada at the end of January, when Parliament is back in session, and will likely not take effect until mid-2020 at the earliest.

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

Cold Weather Alert affecting Rail Operations in Western Canada

Toronto, January 16, 2020

Due to the recent cold weather conditions in Western Canada, we want to remind everyone that this has a severe impact on rail movements.  Shipments moving by rail through these regions can anticipate delays of up to 48 hours.  Severe cold and high snowfall present challenging conditions to safe railway operations, primarily to rail braking systems.  As part of winter preparedness plans to ensure safe train operations, train length is restricted limiting the number of containers that can be accommodated, which results in longer transit times and congestion at railyards.

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

New NAFTA deal takes another step forward

Toronto, December 23, 2019

On December 19, 2019, the U.S. House of Representatives voted in favour of the new North American trade agreement, referred to as USMCA (United States-Mexico-Canada Agreement) in the U.S. and CUSMA (Canada-United States-Mexico Agreement) in Canada.  Amendments to the agreement were signed by Canada, U.S. and Mexico on December 10, 2019.  The new deal will replace the existing North American Free Trade Agreement (NAFTA) which was implemented in 1994.

The trade agreement will now move to the U.S. Senate for ratification in the U.S. in the new year.  Mexico has already ratified the deal and ratification is expected in Canada after the parliamentary winter break ending January 27, 2020.

Importers should obtain valid Certificates of Origin for both trade agreements for 2020, to ensure there is no lapse in preferential trade status, prior to the new deal taking effect.  Once the new trade agreement becomes effective, NAFTA Certificates of Origin will no longer be valid and must be replaced with USMCA/CUSMA Certificates of Origin.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Holiday Hours for Universal Logistics Offices

Toronto, December 16, 2019

All Canadian offices of Universal Logistics will be closed from 2:00 p.m. Tuesday, December 24th through to Thursday, December 26th.  Normal business hours will resume on Friday, December 27th from 8:30 a.m. to 5:00 p.m.

We will also be closed on Wednesday, January 1st and will resume normal business hours on Thursday, January 2, 2020.

If, during this holiday period you require immediate assistance regarding a Canadian Customs Clearance matter please call (519) 566-4157 to reach Universal Logistics after hours.  For PARS tracking please visit our Website to utilize our PARS tracker.

Universal Logistics USA, Buffalo, New York will be closed from 1:00 pm on Tuesday, December 24th and our office will also be closed on Wednesday, December 25th.  Normal business hours will resume on Thursday, December 26th from 7:00 a.m. to 12:00 midnight.

On Tuesday, December 31st, we will close at 5:00 p.m. and our office will also be closed on Wednesday, January 1st.  We will resume normal business hours on Thursday, January 2, 2020.

If, during this holiday period, you require immediate assistance regarding a U.S. Customs Clearance matter please call (800) 767-8525 to reach Universal Logistics USA Inc. after hours.  For PAPS tracking please visit our Website to utilize our PAPS Tracker.

Universal Logistics USA, Cleveland, Ohio will be closed from 2:00 p.m. Tuesday, December 24th and our office will also be closed on Wednesday, December 25th.  Normal business hours will resume on Thursday, December 26th from 7:30 a.m. to 5:00 p.m.

We will also be closed on Wednesday, January 1st and will resume normal business hours on Thursday, January 2, 2020.

Season's Greetings from
Universal Logistics &
Universal Logistics USA!

Universal Airport Operation is on the Move

Toronto, December 10, 2019

We are excited to announce that effective December 9, 2019, our Toronto Airport office has moved to a larger facility just blocks away from our previous location.  Following is our new address:

Our Airport branch telephone and fax numbers remain the same:

This requirement for an expanded facility is the direct result of our dramatic growth in warehousing and distribution services, and the need to be better positioned to handle our clients' increased demand for these services in future.

Our Toronto Airport branch office is a full service operation, including air freight, customs brokerage, warehousing and distribution services.  We look forward to handling your logistics requirements at this new location, and thank you for your continued support of our services.

For more information, please call Mark Glionna, Vice President – Client Relations & Business Development at (905) 882-4880, ext. 212.

CN announces tentative agreement to end strike

Toronto, November 26, 2019

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, November 26, 2019:

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.

CN strike update

Toronto, November 25, 2019

Negotiations between the union and federal mediators to reach an agreement in the ongoing CN Rail strike have continued through the weekend.

CN calls on the union leaders to consider voluntary binding arbitration by an independent third party, selected by the Minister of Labour, as a means to end this labour dispute and return to the business of moving the Canadian economy safely and efficiently.  CN has a small pool of qualified managers that allows the company to operate safely at approximately 10% of normal service across its extensive 22,000 kilometer long Canadian network.  Currently, very limited amounts of various commodities are moving across the country.

We are continuing to see containers load to rail from Vancouver, Montreal and Halifax ports, as CN has prioritized moving container traffic to keep Canada's ports fluid so that they can return to normal operations once the strike has ended.

We will continue to monitor the situation and advise accordingly.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.

More than 3,000 CN workers on strike, shutting down Canada's biggest rail network

Toronto, November 19, 2019

More than 3,000 Canadian National Railway Co. (CN) train operators went on strike just past midnight on Tuesday morning, shutting down Canada's largest rail network.

The workers, represented by the Teamsters Canada Rail Conference, and CN failed to reach an agreement on a new contract after several months of mediated talks, the union said.

CN has advised they will be forced to wind down rail operations as they do not have sufficient qualified managers to safely maintain normal freight operations during this strike.

The two sides failed to reach an agreement despite the urging of two federal ministers on Monday night.  Transport Minister Marc Garneau and Labour Minister Patty Hajdu met with CN and union representatives separately in Montreal to try to settle their differences.

Via Rail, Canada's passenger train service that operates mainly on CN lines, will not be adversely affected by the strike, the union has said.  Similarly, commuter rail operations in Vancouver, Toronto and Montreal will be unaffected.

We will continue to monitor the situation and advise accordingly.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.

CN Update – Teamsters could strike as of November 19

Toronto, November 18, 2019

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Sunday, November 17, 2019:

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.

U.S. temporarily lifts tariffs on over 400 Chinese goods

Toronto, September 26, 2019

The United States Trade Representative (USTR) has announced that temporary exclusions to the China Tariffs have been granted to 437 products from China.  The goods range from printed circuit boards and dog leashes to winches and Christmas tree lights.  These goods have been subject to the additional tariffs since 2018, and the temporary exclusions come as a result of over 1,000 requests made by U.S. companies.

The exclusions are retroactive to the dates of initial tariff implementation per the following lists:

• July 6, 2018: implementation of tariffs on $34 billion worth of goods.  This exemption will expire September 20, 2020.
• August 23, 2018: implementation of tariffs on $16 billion worth of goods.  This exemption will expire September 20, 2020.
• September 24, 2018: implementation of tariffs on $200 billion worth of goods.  This exemption will expire on August 7, 2020.

Goods identified under list four, implementation of tariffs on $300 billion worth of goods, have not yet been issued an exclusion process by the USTR in order to request exemption.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Higher U.S. Customs User Fees effective October 1, 2019

Toronto, September 23, 2019

Effective October 1, 2019, there will be new minimums and maximums for U.S. Customs' Merchandise Processing Fee (MPF).  The minimum will be $26.79 per transaction (previously $26.22) and the maximum will be $519.76 (previously $508.70).  The Informal MPF (applies to shipments valued under $2,500 USD) will change from $2.05 to $2.14.  The MPF rate of 0.3464% will not change.  Goods of NAFTA Preferential Origin are exempt MPF.  In addition to the MPF, various other U.S. Customs User Fees are also increasing – 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. 213.

Hurricane Dorian – Port Update

Toronto, September 11, 2019

Please note that all ports of call in the path of Hurricane Dorian are now open and fully functional:

• FREEPORT, BAHAMAS: Open
• MIAMI, FLORIDA – SOUTH FLORIDA CONTAINER TERMINAL: Open
• MIAMI, FLORIDA – POMTOC: Open
• PORT EVERGLADES, FLORIDA: Open
• JACKSONVILLE, FLORIDA: Open
• SAVANNAH, GEORGIA: Open
• CHARLESTON, SOUTH CAROLINA: Open
• WILMINGTON, NORTH CAROLINA: Open
• BALTIMORE, MARYLAND: Open
• NORFOLK, VIRGINIA: Open
• NEWARK, NEW JERSEY: Open
• HALIFAX, NOVA SCOTIA: Open

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

Hurricane Dorian Update

Toronto, September 5, 2019

Please note the latest updates regarding ports of call in the path of Hurricane Dorian:

• FREEPORT, BAHAMAS: Closed
• MIAMI, FLORIDA – SOUTH FLORIDA CONTAINER TERMINAL: Open
• MIAMI, FLORIDA – POMTOC: Open
• PORT EVERGLADES, FLORIDA: Open
• JACKSONVILLE, FLORIDA: Closed. Expected reopening September 6.
• SAVANNAH, GEORGIA: Closed. Expected reopening September 6.
• CHARLESTON, SOUTH CAROLINA: Closed. Expected reopening September 6.
• WILMINGTON, NORTH CAROLINA: Closed
• BALTIMORE, MARYLAND: Open
• NORFOLK, VIRGINIA: Open
• NEWARK, NEW JERSEY: Open

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. 207.

Canadian Aluminum and Steel Import Monitoring

Toronto, August 29, 2019

Global Affairs Canada have issued notices to importers of a new Aluminum Import Monitoring and a revision to the Steel Import Monitoring which are effective September 1, 2019.  The purpose of these programs is to enable Global Affairs Canada to monitor imports of certain aluminum and steel products and facilitate the collection of import data.  In addition, importers may be required, upon request, to provide to Global Affairs Canada documents and records for the purpose of identifying any errors in import data and determining the source of any inconsistencies in a targeted manner.

Notices to Importers

New - General Import Permit No. 83 – Aluminum Products
The import documentation for each shipment of aluminum products must state that it is being imported under the authority of General Import Permit (GIP) No. 83.  This requirement applies to all aluminum products in item 83 of the Import Control List:  Alloyed and not alloyed unwrought aluminum products, and wrought aluminum products limited to bars, rods, profiles, wires, plates, sheets, strips, foils, tubes and pipes, tube and pipe fittings and other articles of castings and forgings. The specific Harmonized System codes of the goods covered by this GIP are set out in the Commodity Codes Handbook.

Importers are required to ensure that quantity (in kilograms), value (in Canadian dollars and excluding freight costs), product classification, country of origin, U.S. state of export (if applicable), supplier name and address and importer name are given correctly, if necessary by amending the import documentation.

Revised - Steel General Import Permits No. 80 and 81 – Carbon and Specialty Steel Products
The import documentation for each shipment of carbon and specialty steel products must state that it is being imported under the authority of GIP No. 80 or 81.  This requirement applies to all steel products with Harmonized System headings 7206-7302, 7304-7306, 7308, 7312-13 and 7317.

Importers are required to ensure that quantity (in kilograms), value (in Canadian dollars and excluding freight costs), product classification, country of origin, U.S. state of export (if applicable), supplier name and address and importer name are given correctly, if necessary by amending the import documentation.

Potential Penalties under AMPS

Failure to cite the required GIP or not complying with the terms and conditions of the Permit may lead to the levying of penalties by the Canada Border Services Agency (CBSA) under the Administrative Monetary Penalty System (AMPS), which authorizes the CBSA to assess monetary penalties for non-compliance with customs legislative, regulatory and program requirements.  Importers may also face prosecution under the Export and Import Permits Act for contravening a provision of the Act or its regulations (section 19).  Compliance is monitored by the CBSA and Global Affairs Canada.

Terms and Conditions
A resident of Canada who imports goods under these Permits must retain, for a period of six years after the year in which the import is made, documents and records containing the following information:

• the name and the address of the importer or consignee;
• proof of Canadian residency;
• the date of entry of the goods into Canada;
• the quantity, expressed in kilograms, of the goods;
• the country from which the goods are imported;
• the country of origin of the goods;
• the shipping document with freight and other transportation costs indicated separately;
• the tariff classification of the goods indicated in the List of Tariff Provisions set out in the schedule to the Customs Tariff;
• the import value in Canadian dollars; and
• a detailed description of the goods.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Protests in Hong Kong disrupt cargo operations

Toronto, August 6, 2019

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, August 6:

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

Canadian West Coast Ports Update

Toronto, June 26, 2019

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Wednesday, June 26:

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

Canadian West Coast Ports Update – Tentative Deal Reached

Toronto, May 30, 2019

Vancouver port workers and the B.C. Maritime Employers Association reach tentative deal

A tentative agreement has been reached between the International Longshore and Warehouse Union (ILWU) Canada and the B.C. Maritime Employers Association (BCMEA), representing B.C. port employers.

Effective immediately, the lockout by the BCMEA has been lifted and operations are set to resume for the 4:30 p.m. shift today, Thursday, May 30, 2019.

The union said no details of the tentative agreement will be released pending ratification votes by its members.

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

Canadian West Coast Ports Update

Toronto, May 30, 2019

Vancouver port workers have been locked out by their employer as negotiations continue

The B.C. Maritime Employers Association (BCMEA) confirmed that 6,500 members of the International Longshore and Warehouse Union (ILWU) have been locked out as of 8:00 a.m. on Thursday, May 30. This action is expected to cripple port operations in Vancouver.

Both parties have been meeting to address outstanding issues, however, a final agreement has not been reached at this stage.  A federal mediator imposed a news blackout as the latest round of negotiations got underway Wednesday, May 29, less than 24 hours before the lockout notice issued by the association was due to take effect.

Please note the following updates regarding this situation.

• Vancouver terminals, Global Container Terminals – Deltaport and Vanterm, DPW World – Centerm and Fraser Surrey Docks Limited have closed their truck gates as of Thursday, May 30.
• CP Rail has initiated an embargo application effective Friday, May 31 at 12:01 a.m. for all cargo destined to affected West Coast terminals.  CN Rail will continue to accept cargo destined to this area until Sunday, June 2 at 4:00 p.m., however, they are monitoring the situation closely and will make necessary adjustments to cargo movement if need be.
• Steamship lines have commenced diverting vessels from Vancouver or in other cases, will go to anchorage until there are further updates on this situation.

We will continue to monitor this situation closely and advise accordingly.

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

Canadian West Coast Ports Update

Toronto, May 29, 2019

BCMEA to Lock Out ILWU Employees Effective 8:00 am May 30, however, both parties return to the bargaining table today

The British Columbia Maritime Employers Association (BCMEA) provided formal notice to the International Longshore and Warehouse Union – Canada (ILWU-Canada) today of its intention, given the strike action that is occurring in the industry, that customer members of the Association will lock out all longshore employees covered by the expired BCMEA/ILWU-Canada collective agreement effective 8:00 am on May 30.

The BCMEA did not arrive at this decision lightly, as it followed significant discussion understanding the economic impact this will have on the Canadian economy.  Their preference still remains to arrive at a negotiated settlement between the parties and they are committed and available to meet with Federal Mediation and Conciliation Service (FMCS) and ILWU-Canada to achieve this end.

The BCMEA announced there were further discussions with FMCS and the Ministry of Labour Tuesday, May 28 and as a result, the parties have agreed to return to the bargaining table Wednesday, although the lockout notice has not been lifted.

As further developments occur, the BCMEA said it would advise as to the progress made.

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

U.S. terminates Turkey's preferential trade status – India is pending

Toronto, May 28, 2019

U.S. President Donald Trump has terminated Turkey's preferential (duty-free) trade status under the Generalized System of Preferences (GSP) as a "developing nation", effective May 17, 2019.

Prior to removing a country from the GSP the President takes into account, among other factors, the level of economic development of such country, including its per capita gross national product, the living standards of its inhabitants, and any other economic factors that the President deems appropriate.

Trump had also filed Notice of Intent for the removal of India from the GSP, as they have also been deemed no longer a developing nation, but has delayed implementation until India's new government has been sworn-in.

Similarly, Canada removed both Turkey and India from the Generalized Preferential Tariff (GPT), the Canadian version of GSP, back on January 1, 2015.

Once a country has been removed from the GSP they will be subject to "General" rates of duty assessed by commodity into the U.S..

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Canadian West Coast Ports Update

Toronto, May 27, 2019

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, May 27:

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

Longshore workers are set to strike at key Vancouver container terminals on Monday, May 27

Toronto, May 24, 2019

Roughly two thousand workers will commence strike action at GCT Deltaport and GCT Vanterm on May 27, 2019 at 7:00 am.

Deltaport is the largest container terminal of the four in Vancouver, Canada's busiest port. If it and Vanterm are shut down, it would cripple most of the port's container traffic.  Depending on how the union's picket lines are set up, other terminals could be affected.

The Port of Vancouver is Canada's largest, and the third largest in North America by tonnes of cargo.  It handles the bulk of Canada's trade with Asia, including container terminals, grain terminals, coal terminals and a host of other facilities.

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

Canadian West Coast Ports Update

Toronto, May 14, 2019

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, May 14:

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

Canadian West Coast Ports Update

Toronto, May 10, 2019

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Friday, May 10:

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

Canadian West Coast Ports Update

Toronto, May 8, 2019

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Wednesday, May 8:

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

Strike or Lockout possible May 5 at Canadian West Coast Ports

Toronto, April 29, 2019

Negotiations between the British Columbia Maritime Employers Association (BCMEA) and the International Longshore and Warehouse Union (ILWU) Canada have moved into a 21-day cooling off period that expires on May 4, and would open the way for a strike or lockout at 12:01 a.m. on May 5.  The association said it remains "cautiously optimistic" that the parties will achieve renewal agreements.  Meetings are scheduled from April 29 to May 2; during this period port operations will continue as usual.

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. 207.

CITT issues steel safeguard ruling

Toronto, April 11, 2019

The Canadian International Trade Tribunal (CITT) has issued its awaited ruling in the steel safeguard inquiry.  This concerns the importation into Canada of seven categories of steel products which were assigned an import quota in October 2018, where imports beyond the quota were subject to 25% tariff surtax.

It has been determined that safeguard measures were warranted for the following two steel product categories:

• Heavy steel plate (other than goods originating in Korea, Panama, Peru, Colombia and Honduras); and
• Stainless steel wire (other than goods originating in Korea, Panama, Peru, Colombia and Honduras).

The Minister of Finance and Cabinet only have a few weeks before the provisional duties expire (April 28, 2019) to decide whether to impose "definitive" long-term safeguard measures (i.e. for a period of three years) and, if so, how such measures should be implemented.

With respect to the other five product categories, the Tribunal concluded that safeguard measures are not warranted:

• Concrete reinforcing bar
• Energy tubular products
• Hot-rolled sheet
• Pre-painted steel
• Wire rod

It is reasonable to expect that the provisional safeguard measures will be discontinued and a process will be established for the prompt refund of import surtaxes that have been paid by importers during the provisional period.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

U.S. food importers require a DUNS number

Toronto, April 3, 2019

U.S. food importers need to ensure they are complying with the requirements of the Foreign Supplier Verification Program (FSVP) because enforcement by the U.S. Food and Drug Administration (FDA) is being stepped up in 2019.

One key requirement is that importers use the Data Universal Numbering System (DUNS), which as of 2017 is considered an acceptable Unique Facility Identifier (UFI) for the FSVP.  DUNS numbers, assigned and managed by Dun & Bradstreet, are available free of charge to importers.  They can be obtained by contacting D&B by phone at 866-705-5711, by email at govt@dnb.com, or by visiting D&B's website or fdadunslookup.com.  If the importer is a non-resident, the DUNS will also be required for the buyer or consignee in the U.S..

Importers are also mandated to provide their legal business name, electronic mailing address, and UFI recognized as acceptable by the FDA for each line entry of food product offered for importation into the United States.  This information should be stated on import documentation in order to avoid clearance delays.

All foreign food facilities will be required to provide a DUNS number for the 2020 FDA Food Facility Biennial Registration Renewal process.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Higher penalties coming soon for non compliance with trade regulations

Toronto, March 15, 2019

We are only a couple weeks away from higher Administrative Monetary Penalties (AMPS) for 22 contraventions related to commercial trade, implemented after a study showed the existing penalties were not in line with non-trade commercial offences. As an example, the revised penalty amounts will, where CBSA determine the importer had "reason to believe" an error occurred, increase from $150 per occurrence (i.e. shipment) to $500 each to a maximum of $25,000 for a 1st level penalty.

Details on the contraventions and the related penalties, which come into force April 1, 2019, are provided in a table issued by the CBSA (Canada Border Services Agency) with descriptions of each penalty listed below.

Table 1 – Changes to Select Administrative and Monetary Penalty Levels

In addition, the CBSA will reset the penalty level to the first level for contraventions mentioned above that occur on or after April 1, 2019. This is to avoid unanticipated impacts on industry that could occur by issuing second and third level penalties at higher levels than previously indicated.

The new AMPS regime takes into account feedback from several key stakeholder groups, including the Canadian Society of Customs Brokers, the Canadian Federation of Independent Business, the Canadian Association of Importers and Exporters, and the Association of International Customs and Border Agencies. Company representatives were consulted as well through the Border Commercial Consultative Committee.

C004: Person provided information to an officer that is not true, accurate and complete. When a Special Import Measures Act (SIMA) code was not completed correctly for goods imported seven days or more after a preliminary determination was made and after the importer was notified in writing, and ending when the SIMA action is terminated by Canada Border Services Agency (CBSA) or the Canadian International Trade Tribunal (CITT).

C080: Authorized person failed to make the required corrections to a declaration of origin of imported goods subject to a free trade agreement within 90 days after having reason to believe that the declaration was incorrect.

C081: Authorized person failed to make the required corrections to a declaration of origin of imported goods within 90 days after having reason to believe that the declaration was incorrect.

C082: Authorized person failed to make the required corrections to a declaration of tariff classification within 90 days after having reason to believe that the declaration was incorrect.

C083: Authorized person failed to make the required corrections to a declaration of value for duty within 90 days after having reason to believe that the declaration was incorrect.

C152: Importer or owner of goods failed to furnish the proof of origin upon request.

C157: Person who imports, or causes to be imported, commercial goods failed to make records and documents in respect of those goods available to an officer when requested.

C168: Person failed to report within 90 days a failure to comply with a condition imposed under a tariff item in the List of Tariff Provisions in the schedule to the Customs Tariff.

C169: Person failed to repay within 90 days duties and interest refunded under paragraph 74(1)(f) of the Customs Act after a failure to comply with a condition imposed under a tariff item in the List of Tariff Provisions in the schedule to the Customs Tariff.

C214: Person failed within 90 days or such other period as may be prescribed to report a failure to comply with a condition of a duties relief provision or remission order.

C215: Person failed within 90 days or such other period as may have been prescribed to pay the amount of duties in respect of which relief or remission was granted unless the provisions of subparagraph 118(1)(b)(i) or (ii) of the Customs Tariff were met.

C216: Person failed within 90 days after the date of the diversion to report diverted goods to a customs officer at a customs office.

C217: Person failed within 90 days after the date of the diversion to pay the amount of the drawback and the amount of any interest granted.

C218: Person failed to pay within 90 days duties relieved under section 89 of the Customs Tariff on the goods that entered into a process which produced by-product(s) not eligible for relief.

C223: Non Customs Self Assessment (CSA) importer failed to provide a detailed product description in respect of goods liable for review under the Special Import Measures Act (SIMA), after the importer has been notified in writing.

C224: Customs Self Assessment (CSA) importer failed to provide the detailed product description within the period specified in respect to goods liable to a Special Import Measures Act (SIMA) action.

C298: Person who imports commercial goods or causes commercial goods to be imported failed to provide records in respect of those goods to an officer when requested, within the time specified by the officer.

C350: Authorized person failed to pay duties as a result of required corrections to a declaration of origin of imported goods subject to a free trade agreement within 90 days after having reason to believe that the declaration was incorrect.

C351: Authorized person failed to pay duties as a result of required corrections to a declaration of origin of imported goods within 90 days after having reason to believe that the declaration was incorrect.

C352: Authorized person failed to pay duties as a result of required corrections to a declaration of tariff classification within 90 days after having reason to believe that the declaration was incorrect.

C353: Authorized person failed to pay duties as a result of required corrections to a declaration of value for duty within 90 days after having reason to believe that the declaration was incorrect.

C366: Person failed to pay duties on goods accounted for under subsections 32(2) and 32(3) of the Customs Act.

We offer professional Customs Consulting services to assist you in becoming fully compliant. Remember, investing in compliance is always less costly than paying for non-compliance.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Importers complain about container handling fees at U.S. West Coast ports

Toronto, March 8, 2019

Higher fees for container demurrage and detention at key U.S. West Coast ports (Los Angeles and Long Beach) is leading to rising tensions between logistics intermediaries (shipping lines/marine terminals) and the importers who have to pay the bills.

Importers say the fees are an unjustified profit centre for the shipping lines and terminals.

The U.S. Federal Maritime Commission (FMC) has commenced the final phase of an investigation, covering detention, demurrage, and free time practices of ocean carriers and marine terminal operators.  The FMC said "innovation teams" of industry experts would hold meetings "no later than mid-April" to review their findings.

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

Pakistan airspace closed in wake of clash with India

Toronto, March 1, 2019

Due to the ongoing political and military situation between India & Pakistan, Pakistan has closed its airspace, which has resulted in disruption of flights worldwide.  Air Canada has also suspended their flights between India and Canada. Other airlines are operating, however, the transit will be longer on flights which normally fly over Pakistan, as the airlines have to utilize different routes to avoid this airspace.  Airlines will also have to carry additional fuel for these longer flights, which will reduce the available cargo capacity.

It is unknown when Pakistan will reopen its air space.  India has not taken the same step, but it is restricting traffic to some airports.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.

Quebec Spring Thaw Restrictions for 2019

Toronto, March 1, 2019

The Quebec Ministry of Transportation has released its 2019 "Spring Thaw" dates and zones.  These are container weight restrictions imposed every year to protect Quebec highways during the spring thaw.

Extended dwell times at Canadian West Coast Ports

Toronto, February 27, 2019

Dwell times of 7-15 days are being reported for ocean freight containers transiting through Canadian West Coast ports. This is due to a number of factors, including (but not limited to), severe weather conditions, cargo volume surges, and ongoing rail car shortages.

We will continue to monitor this situation and update accordingly.

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

Port of Montreal Update

Toronto, February 26, 2019

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, February 26:

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

Severe conditions at the Port of Montreal compromising intermodal network

Toronto, February 15, 2019

The Port of Montreal is currently experiencing heavy congestion negatively affecting operations in and around the port.  This has been further exacerbated by recent weather conditions.

• On-dock dwell times have increased significantly, to the extent that some dray carriers are declining service to the Port of Montreal.
• CN Rail has advised they have been limiting empty in-gates into the Port as a result of production challenges that have led to a surplus of cars and limitation to inbound containers.
• In an effort to offset some of the additional costs associated with the Port's heavy congestion, Maersk and OOCL have announced a Congestion Fee Destination (CFD) surcharge for cargo discharging at Montreal, with implementation set for this month.  Other carriers are expected to follow suit.
• The Maritime Employers Association has announced that hearing dates have been scheduled in February 2019 regarding Port of Montreal labour disruptions.  The hearings are set to determine whether Montreal port workers have the right to strike, following the expiration of their collective agreement with the Maritime Employers Association in December 2018 and the launch of talks on a new agreement.  At this point, because of the request to maintain essential services, the parties do not have the right to strike or lockout.

We will continue to monitor this situation closely and advise accordingly.

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

Significant delays at two key U.S. west coast ports

Toronto, January 24, 2019

Extreme congestion caused by unprecedented pre-Lunar New Year inbound volumes is causing major delays at Los Angeles and Long Beach ports.  As a result, vessels generally have to wait two to three shifts after arrival to be unloaded.  This has triggered a cascade of related issues, including extended vessel queue at berth, trucking shortages, chassis supply constraints, increased average street dwell time (7 days versus 3 days), terminal congestion and a shortage of railcars.

We will continue to monitor the situation and advise accordingly.

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

What is open during the partial shutdown of the U.S. government?

Toronto, January 17, 2019

Following is a status summary of the U.S. government as it pertains to trade related departments during the shutdown:

CBP (Customs and Border Protection) – ACE entry processing is business as usual.  Entry teams are staffed as usual.  Staff of other departments that are not involved in the entry and release process have been furloughed (Refunds, Drawbacks, ACH Application Process, Binding Ruling Processing, Section 301 and USTR Exclusion Requests, Regulatory Audits).  CBP's web site and social media accounts have not been updated during the shutdown.

FDA (Food and Drug Administration) – Operations continue as usual with one exception: FDA in Champlain, NY will have limited staffing (one person) from Monday – Thursday 8 a.m. – 11 p.m. and Friday 8 a.m. – 4 p.m.  No staff on Sunday evenings, but the FDA office in VT will cover the port remotely for 4 hours (times aren't specified).

EPA (Environment Protection Agency) – Closed

CPSC (Consumer Product Safety Commission) – Closed (Port investigators are furloughed.)

FWS (U.S. Fish and Wildlife Service) – Open, but issuance of import/export licenses and Designated Port Exception Permits (DPEP) are suspended for now.

USDA (Department of Agriculture) – Open

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

New Canadian food regulations are now in force

Toronto, January 16, 2019

New outcome-based regulations are now in force for the importing, exporting or transport of food across provincial and territorial boundaries, under the Safe Foods for Canadians Regulations (SFCR). The new rules are focused on achieving a desired result, not a specific process.

Effective, January 15, 2019 import licenses are now required for a variety of food groups. Learn more about what that means for your business.

Businesses should consult the CFIA's interactive tools and sector-specific timelines for more detailed information on which requirements apply to them and when, based on the activities they conduct. To balance the need to protect Canada's food safety system while supporting food businesses in their efforts to comply with the new regulations, the CFIA's enforcement approach at coming into force will emphasize working with businesses to help them understand the new requirements.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

How to minimize forecasted delays during the 2019 Chinese New Year

Toronto, January 9, 2019

Please note the following dates when the 2019 Chinese Lunar New Year will be celebrated in China and Hong Kong:

It is recommended that your suppliers and associates make booking arrangements for impending shipments as early as possible to avoid delays.  In addition, shippers should place their bookings at least 10 days prior to vessel departure time.

Other recommended steps include:

• make early arrangements on original bills of lading to avoid any storage charges
• where feasible, arrange express B/Ls or telex release to prevent any stress or late deliveries and storage fees

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.

Canada Imposes 25% Surtax on Imports of 7 Steel Products

Toronto, October 23, 2018

Effective October 25, 2018, a 25% safeguard surtax is applicable to the following imported steel goods that exceed a new tariff rate quota (TRQ) for each class of goods set out in the Order.

• Heavy plate
• Concrete reinforcing bar
• Energy tubular products
• Hot-rolled sheet
• Pre-painted steel
• Stainless steel wire
• Wire rod

Please refer to Global Affairs Notice to Importers of October 11, 2018 which identifies import TRQ quantities, i.e. the amount of the above noted steel products which may enter Canada without the 25% surtax as along as an import permit has been obtained.

There are seven provisional TRQs.  The commodity goods (HS Codes) covered by each TRQ are set out in the Commodity Codes Handbook.

The TRQs will be administered in four consecutive periods of fifty days, as follows:

• October 25 to December 13, 2018
• December 14, 2018 to February 1, 2019
• February 2 to March 23, 2019
• March 24 to May 12, 2019

The Order applies to certain steel goods imported from all countries except for the exclusions listed below:

• The Order does not apply to goods originating in and imported from the U.S., Chile and Israel or another CIFTA beneficiary.
• For goods originating in and imported from Mexico, this Order only applies to energy tubular products and wire rod.
• Additionally, the Order does not apply to goods originating in and imported from developing countries which are beneficiaries to the General Preferential Tariff (GPT) with one exception: concrete reinforcing bar originating in and imported from Vietnam are not exempt.  A list of GPT beneficiaries is included in Appendix A.

Note: Goods eligible for these exemptions must both originate in and be imported from the same country.

Origin of the goods is determined in accordance with the rules of origin set out in the Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations or the Determination of Country of Origin for the Purpose of Marking Goods (Non-NAFTA Countries) Regulations, as the case may be.

Importers may request shipment-specific import permits (specific permits) from Global Affairs Canada, which will be valid for 14 days.  Goods for which an importer obtained a specific permit, valid at the time of accounting, are exempt from the applicable safeguard surtax.  Imports of goods that do not have a specific permit, or are in excess of the quantity of an import permit at the time of accounting, are subject to the safeguard surtax.

If the above applies to your imported goods, please contact our office in order to ensure you have an Import Permit File Number activated with Global Affairs and to discuss how Universal Logistics will obtain the necessary import permits on your behalf with applicable shipment documentation.

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Three months until your food business may need a licence in Canada

Toronto, October 15, 2018

In three months, many businesses will require a licence when the Safe Food for Canadians Regulations (SFCR) come into force.  In order to apply for a SFCR licence, businesses will need to attest that they have preventive controls in place.

Food businesses can enrol now in My CFIA to apply for a licence, once licence applications are available.  The Canadian Food Inspection Agency (CFIA) will not accept SFCR licence applications sent by email or fax.

Find out if your business will need a licence or be required to meet other SFCR requirements by January 15, 2019 by visiting the CFIA's interactive tools and timelines. The CFIA has also created a new 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.

If you currently hold a registration or licence issued under the Canada Agricultural Products Act, Fish Inspection Act, or Meat Inspection Act and it is expiring soon, continue your normal process to renew your registration, as needed.  It will remain valid until it expires, provided there is a statement on it that it is also a licence issued under the Safe Food for Canadians Act.  Once expired, you will be required to apply for a licence under the SFCR.

The CFIA has proposed a $250 fee for the SFCR licence.  The fee amount will be confirmed prior to coming into force on January 15, 2019.

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. 213.

Good-bye NAFTA, hello USMCA

Toronto, October 3, 2018

The recently announced new trade agreement between Canada and the U.S. has a new name, United States-Mexico-Canada Agreement (USMCA), and some new provisions, but it is not a new deal.  Both countries had "wins" and both made concessions.

Canada's Foreign Affairs Minister, Chrystia Freeland, and U.S. Trade Representative, Robert Lighthizer, praised the agreement, saying it will "strengthen the middle class and create good, well-paying jobs and new opportunities for the nearly half billion people" in North America.

Here are the highlights:

• To qualify for preferential treatment, automobiles will require 75% North American content, up from the existing 62.5% (by 2020, in all countries);
• At least 30% of the workers producing a vehicle must earn $16.00 USD per hour (by 2020); by 2023, this raises incrementally to 40% (in all countries);
• The U.S. is introducing a quota system to protect Mexico and Canada from any future tariffs applied to vehicles and parts.  Each country has a "side letter agreement";
• Canadian supply management continues to exist but U.S. dairy producers will have greater market access in Canada;
• Chapter 11 is gone; Chapter 19 (now Chapter 31) remains for dispute settlements;
• U.S. steel and aluminum tariffs remain in place;
• Chapter 7 introduces new de minimis levels for all three countries: U.S. and Mexico, at least $100 USD; Canada, at least C$150 for customs duties and C$40 for taxes;

The new deal is expected to come into effect late-2019 or 2020.  Importers should obtain valid NAFTA Certificates of Origin for 2019 to ensure there is no lapse in preferential trade status prior to the new deal taking effect.

Read the entire agreement.

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Canada and the U.S. announce new free trade agreement

Toronto, October 1, 2018

After 13 months of negotiation, Canada and the U.S. have agreed on an updated North American free trade agreement that offers significant benefits for both countries.  Canadian Prime Minister Justin Trudeau said it is "a good day for Canada," while a trade representative for the U.S. said the new agreement is a "big win" for U.S. President Donald Trump.

Details have not been released, but it is clear the new deal, called the United States-Mexico-Canada Agreement, or USMCA, will have an impact on dozens of industries and the customers who buy products ranging from medicine to milk.

The U.S. accepted two provisions it had previously said it would not accept: the "Chapter 19" dispute-resolution system and the cultural exemption, both of which were called "red lines" by Trudeau.  Canada, in turn, agreed to give U.S. farmers more access to the protected Canadian market.  It also accepted new provisions related to:

• "review and termination" of the agreement
• investor-state dispute settlement
• copyright protection of intellectual property
• duties on U.S. products purchased online by Canadians

Trump has agreed that no hard limit will be placed on Canadian auto exports to the U.S., though if the U.S. moves forward with the imposition of worldwide Section 232 tariffs on autos, those would also apply to Canada.  However, what Ottawa has negotiated is effectively an exemption, because it would still be able to export cars and parts tariff-free up to a certain amount well above what Canada currently sends south of the border.

The new deal would also give American farmers greater access to Canada's dairy industry, worth about 3.6 per cent of Canada's current dairy market, according to the Dairy Farmers of Canada.  The U.S. had negotiated access worth about 3.25 per cent of Canada's market in the Trans-Pacific Partnership, but then withdrew, leaving that share of Canada's market now available to dairy products from the countries that remain in the agreement, like New Zealand and Australia.

U.S. tariffs on Canadian steel and aluminum are not part of the deal.  It is hoped the tariffs will be gone by the time the deal is signed, but they are subject to separate negotiations.

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905 882-4880, ext. 213.

Severe congestion at Port of Montreal

Toronto, September 21, 2018

The Port of Montreal has been experiencing severe congestion issues due to high container volumes and a lack of labour available to handle this peak.

Container imports increased 7.8 percent, to nearly 4.33 million tonnes, in the first seven months of this year versus the same period in 2017, with the bulk of that traffic coming from Europe.  Montreal port officials feel the free trade deal between Canada and the European Union is one explanation for this increase in container shipping via the port.

In response to this situation, the Maritime Employers Association (MEA) just announced the creation of 65 new full-time positions at the Port of Montreal.  These new positions are in addition to the extension of the terminal gate opening hours, however, it takes time to hire and train employees, so impacts will not be immediate.

Shippers will also face increased fees for cargo transiting Montreal terminals via truck.  Termont Terminal has assessed a flat rate of $35.00 per loaded container going through its terminals, which was implemented starting September 17th, billed to the trucking companies, mirroring fees assessed by Montreal Gateway Terminals earlier.

We will continue to monitor this situation and advise accordingly.

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

Hurricane Florence Update

Toronto, September 18, 2018

Hurricane Florence's destructive path will leave North Carolina's main ports offline until mid-week.  The Ports of Wilmington and Morehead City incurred structural damage and are dealing with a significant number of drowned empty containers to be cleared.  Other main ports in the region such as Charleston, Savannah and Norfolk are open and fully functional.  Rail and truck operations in the area have been compromised due to inland flooding, however service is slowly starting to improve.

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

Huge storm approaches South East Asia

Toronto, September 14, 2018

Nations across East and South East Asia are issuing emergency alerts and ordering evacuations as Super Typhoon Mangkhut and a second storm, Typhoon Barijat, hit the region.  Current wind speeds are up to 285 kilometers per hour (180 mph), equivalent to a Category 5 Hurricane and stronger than Hurricane Florence, which is currently tracking over the U.S. East Coast.  Port closures in Hong Kong and other coastal ports nearby are a certainty, even if the storm passes without causing any lasting damage.  Super Typhoon Mangkhut, is expected to be the strongest storm to hit that city in over six decades.

We will continue to monitor this situation and update accordingly.

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

Limited capacity in advance of China Mid-Autumn Festival and Golden Week

Toronto, September 13, 2018

Government agencies and businesses in mainland China will be closed for the Mid-Autumn Festival from September 22 to 24 and for the Golden Week Holiday from October 1 to 7.

Space availability on sailings from China is tightening as importers rush to avoid the closure of factories during these holidays.  There is a high possibility that overbooked carriers may be forced to roll shipments (delay shipments to the next sailing date).  Carriers may also implement "blank sailings" (cancelled sailings) after the holiday to optimize vessel utilization.  Major ocean freight carriers are advising shippers to place their bookings at least 14 days in advance of vessel departure.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.

U.S. East Coast ports threatened by Hurricane Florence

Toronto, September 11, 2018

With Hurricane Florence just days away from hitting the Carolinas as a major hurricane (Category 3-4), port, rail and marine terminals are preparing for a complete shutdown.  It may also be necessary to restrict export shipments at inland rail terminals, as the impact of the storm could spread far beyond the coastline.

Weather experts are forecasting a storm surge of up to 13 feet along the coastlines of South Carolina, North Carolina and Virginia, along with freshwater flooding due to heavy rainfall and hurricane force winds along the coast and inland.

It is now almost a certainty that the hurricane will hit the U.S. East Coast.  The only uncertainty is the exact point of landfall.

We will continue to monitor this situation closely and advise accordingly.

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

Tentative Agreement Reached for GCT Canada Planners

Toronto, September 6, 2018

The following message was issued by the Canadian International Freight Forwarders Association on Friday, September 7:

"On Thursday, following 15 months of negotiations and with the assistance of federal mediators, GCT Canada and International Longshore and Warehouse Union (ILWU) Local 502 reached a tentative five-year collective agreement for GCT Canada Planners and Assistant Planners.  ILWU Local 502 withdrew its strike notice that was issued September 3, and is recommending that members vote in favour of the agreement."

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

Operations at key West Coast terminals threatened by pending strike action

Toronto, September 6, 2018

Planners and Assistant Planners at two container terminals in the Port of Vancouver have announced they will go on strike September 7, if negotiations on a new work agreement are not successful.  The work stoppage would lead to a suspension of all operations at the affected terminals, GCT Deltaport & GCT Vanterm, due to the essential nature of this service.

Measures are already underway to arrange a safe and efficient closure of the terminals.

Every option, including mediation and binding arbitration, is being considered to break the impasse.

We will continue to monitor the situation and advise as new information is received.

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

U.S. and Canada reach final phase of NAFTA negotiations

Toronto, August 31, 2018

Negotiations on NAFTA between Canada and the U.S. are moving into the final phase, with both sides having moved far off their original negotiating positions.  Prime Minister Trudeau says Canada remains committed to achieving an updated agreement that is "constructive, positive, serious and creative."  He brushed off reports suggesting that the U.S. is not prepared to make any concessions, but was quick to add that Canada's negotiators are "going to be unequivocal about always standing up for Canadians' rights and Canadians' interests."

A key remaining point of contention is Chapter 19, which allows companies hit with anti-dumping or countervailing duties to request international arbitration.  Canada and Mexico want it retained, the U.S. wants it removed.

Watch for updates, as there could be significant developments in the coming days.

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Many steps remaining in NAFTA negotiations

Toronto, August 29, 2018

U.S. President Donald Trump is expected to announce this Friday, August 31 that he is launching the lengthy process required to transform NAFTA into a bilateral deal between the U.S. and Mexico.  The many provisions cover key issues such automobile manufacturing (75 percent of auto content must be made in the U.S. and Mexico), labour costs for auto workers (40-45 percent of auto content must be made by workers earning at least $16 per hour), and stronger rules of origin, including for industrial products such as chemicals, steel-intensive products, glass and optical fiber.

Ratification is likely not possible until March 2019 – or later – as multiple steps still need to be completed.  For example, under the rules of NAFTA, the U.S. must give leaders of Canada and Mexico 6 months notice of the plan to withdraw from the trade agreement.  The U.S. Congress also requires 90 days advance notice.

An added complicating factor is the upcoming mid-term elections, which many observers are forecasting will lead to a Democrats majority firmly against the proposed trade deal between the U.S. and Mexico.  In addition, Mexico is on record as saying it favours a trilateral deal that includes Canada.

Watch for updates on the latest developments and remember we are here to help if one of the many trade disputes has had a negative impact on your business.

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Multiple disruptions affect the supply chain into the U.S. and Canada

Toronto, August 29, 2018

Freight moving through the supply chain into the U.S. and Canada is being delayed by the combined impact of the following events:

• A sharp increase in demand for freight between the U.S. and China, as shippers attempt to get their goods moved before the already hot trade war between the U.S. and China gets even hotter (U.S. is threatening a second round of tariffs with a total value of $200 billion, and China has promised to retaliate in kind).
• Draft issues, feeder misconnection and port congestion at ports in Asia have caused a cascading roll over, growing from one week to the other.  Coupled with this is a massive backlog at many of these ports due to the disruptive impact of five typhoons in six weeks.  These issues at point of loading disrupt vessel schedules leading to multiple vessels arriving at destination ports simultaneously, resulting in extended birthing times, increased congestion and dwell time.
• Disruptions at Canada's major West Coast ports, where operations have been slowed by terminal congestion, labour shortages, and a shortage of rail cars.  Some terminals, including Centerm, have suspended ERS (Expedited Rail Service) because of congestion.  The resulting backlog could extend to the first week of October.
• Limits placed on rail car velocity due to excessive heat throughout Canada this past summer, resulting in increased transit times for rail moves across the entire network.

We will continue to monitor this situation and advise as new updates are provided.

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

Customs compliance priorities updated for 2018

Toronto, July 24, 2018

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 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.

See below for more details on each new commodity:

Other Mountings and Fittings, Suitable for Furniture (new)
Harmonized System Number(s): Heading 83.02

• The risk identified is that imported goods could be incorrectly classified as mountings and fittings, suitable for furniture, within Heading 83.02, instead of being properly classified.
• This verification priority was released in June 2018.
• Results are not yet available.

Air Heaters and Hot Air Distributors (new)
Harmonized System Number(s): Heading 73.22

• The risk identified is that imported goods could be incorrectly classified as air heaters and hot air distributors within Heading 73.22, instead of being properly classified elsewhere within the same chapter, and be subject to duty rates up to 7.5%.
• This verification priority was released in June 2018.
• Results are not yet available.

Flashlights and Miners' Safety Lamps (new)
Harmonized System Number(s): Heading 85.13

• The risk identified is that imported goods could be incorrectly classified as flashlights and miners' safety lamps within Heading 85.13, instead of being properly classified elsewhere within the same heading, and be subject to a duty rate of 7%.
• This verification priority was released in June 2018.
• Results are not yet available.

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

New Regulatory Changes to China Customs Advance Manifest Rule

Toronto, June 1, 2018

China Customs has just announced the implementation of Order No. 56 [2017] to modify their Advance Manifest rules of import and export in the country.  In order to comply with the new China Customs Advance Manifest (CCAM) requirements, all importers and exporters will be required to provide additional information when booking marine cargo or completing 'Shipper's Letter of Instruction' for air cargo.

The adjusted rules will be in effect from June 1, 2018. Advance Manifest must be submitted 24 hours prior to container loading at port of loading. Based on this order, the following additional information will be required on all shipping instructions:

For Imports from China to Canada or the U.S.:

Shipper's Details:

1. Shipper Name
2. Detailed Shipper's Address
3. Shipper's USCI (China Uniformed Social Credit Index)
4. Shipper's contact info, including Telephone No. or Email Account

Consignee's Details:

1. Consignee Name
2. Detailed Consignee Address
3. Consignee's EIN/Business Number
4. Consignee's contact info, including Telephone No. or Email Account

For Exports to China from Canada or the U.S.:

Shipper's Details:

1. Shipper Name
2. Detailed Shipper's Address
3. Shipper's EIN/Business Number
4. Shipper's contact info, including Telephone No. or Email Account

Consignee's Details:

1. Consignee Name
2. Detailed Consignee Address
3. Consignee's USCI (China Uniformed Social Credit Index)
4. Consignee's contact info, including Telephone No. or Email Account

Note: For "To Order" bills of lading, the consignee section should be filled as "To Order" and the details of the Notify Party should be filled out as per the above requirements for the consignee.

Commodity:
General descriptions for commodities will not be accepted. Specific commodity names should be shown on your Shipping Instructions. For example, "Wooden Products" will be rejected but "Wooden Photo Frames" will be accepted.

It is highly recommended that importers should obtain the required data from their suppliers when placing their initial purchase orders. Exporters should obtain the information from their buyers when (or before) orders are confirmed.

Please note that when you are placing your bookings with Universal Logistics, you will be required to provide this additional information in order for your shipments to continue without delay.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.

CP Rail Strike Ends

Toronto, May 30, 2018

CP Rail strike ends as company reaches deal with union

The strike by 3,000 locomotive engineers and conductors at Canadian Pacific Railway Ltd. is over, as per the Teamsters Canada Rail Conference and CP Rail.

A tentative four-year agreement with Canada's second-largest railway will see freight resume by Thursday morning.

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

CP train operators go on strike

Toronto, May 30, 2018

More than 3,000 train operators employed by Canadian Pacific Rail went on strike last night (May 29, 2018) while a second group of rail workers, including 360 signal workers, reached a tentative contract settlement.  The union representing the striking workers said it is "willing to remain at the bargaining table during the strike".

During the strike, CP plans to keep intermodal terminal gates open, in so far as practical and so long as capacity permits, in order to reduce the impact of the work stoppage.

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

CP Rail Update

Toronto, May 28, 2018

The following message was issued by the Canadian International Freight Forwarders Association on Monday, May 28:

TCRC – Train & Engine and IBEW Issue Strike Notice to CP Rail

Canadian Pacific Railway Limited was advised by the Canada Industrial Relations Board (CIRB) on Friday that members of both the Teamsters Canada Rail Conference – Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW) voted down CP's contract offers in a CIRB-administered vote, which closed on Friday at noon Eastern time.

On Saturday, the TCRC and the IBEW issued notice to CP advising of their respective plans to strike at 22:00 Eastern time on Tuesday, May 29.  In both cases, the parties have given more than the required 72-hour notice.

After meetings between CP and the unions on Friday, "significant outstanding issues" remain, according to a statement issued by TCRC. Both the company and the unions have said they are committed to continuing negotiations, but have also noted they are making necessary preparations in case of a work stoppage.

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

CP Rail Update

Toronto, May 24, 2018

The following message was issued by the Canadian International Freight Forwarders Association on Thursday, May 24:

CP Rail Union Will Call for Talks to Resume if Contract Rejected Friday

The union representing Canadian Pacific Railway train operators says it will immediately ask for negotiations to resume once the company's three-year contract offer is rejected by members on Friday afternoon.  Teamsters Canada spokesman Christopher Monette says the union expects CP's offer will be soundly rejected since the negotiating committee recommended that action.

Monette says the union, armed with a rejection from its members, will try to negotiate a deal without resorting to a strike, but would give 72 hours' notice if they proceed with a strike.

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

Rail workers to vote on CP proposal

Toronto, May 10, 2018

A work stoppage by CP rail workers could be averted if they approve the latest proposal from the company, which comes up for a vote on May 14.  If the proposal is rejected, there will be no immediate disruption of operations as the unions involved must first issue a 72-hour strike notice.

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

Vessel delays at key Chinese ports

Toronto, May 8, 2018

High winds and fog have disrupted operations at three key Chinese ports: Shanghai, Ningbo and Qingdao.  Shanghai and Ningbo are reporting delays varying from 1.5 - 3 days.  Qingdao has returned to normal operations, but has a backlog that will take a few days to clear.

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

CP Rail strike averted, but dispute continues

Toronto, April 23, 2018

A strike against CP Rail, scheduled to start April 21, was called off at the last minute after unions representing rail workers agreed to vote on the company's latest offer.  "This is tremendous news for our employees, our customers and the Canadian economy," said CP's Chief Executive Officer Keith Creel.

Any steps the company has already taken to prepare for the strike, will now be reversed as part of a "safe and structured start-up of operations".  However, ratification of CP's offer is unlikely, as union leaders say it should be rejected because the key issues for rail workers – fatigue and wages – are not addressed.  "The government will bring this ridiculous offer to our members and we strongly recommend that members vote against it," said Doug Finnson, President of the Teamsters Canada Rail Conference, which represents about 3,000 train conductors and engineers.  More than 8,000 grievances have been filed against CP by the two unions representing the workers: Teamsters Canada and the International Brotherhood of Electrical Workers.

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

CP Rail Update

Toronto, April 20, 2018

The following message was issued by the Canadian International Freight Forwarders Association on Friday, April 20:

In a customer advisory sent Wednesday evening, April 18, Canadian Pacific said it had received notice from the Teamsters Canada Rail Conference Train and Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW) that members of the respective unions would be withdrawing services to operate freight and passenger trains and to maintain CP's signaling systems in Canada effective 0001, Saturday, April 21.

CP said it has commenced and will continue to execute a safe and structured shutdown of its train operations in Canada.

Any containers on rail at time of a work stoppage will be stopped at a safe intermediary point and remain there until rail service resumes. Containers that arrive at their destination intermodal terminal will be available to be picked up, as CP's intermodal terminals will be open during any stoppage.

An embargo application for shipments routing to and from CP Canadian locations is in place to be effective 0001 Saturday, April 21. The embargo applies to:

• All shipments originating in Canada that are billed to any Canadian or U.S. destination
• All shipments originating in the United States that are billed to any Canadian destination

The embargo can be rescinded at any time.

CP said it will continue to bargain in good faith with the TCRC and the IBEW and remains committed to achieving a win-win solution for the company and the two unions.

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

CP workers announce strike plans

Toronto, April 19, 2018

Two unions representing Canadian Pacific (CP) rail workers have announced they will go on strike April 21 if their demands for a new contract are not met. The workers, including engineers and conductors, want more flexible work schedules.  CP wants job cuts and other concessions.

CP is preparing for the work stoppage by executing a "safe and structured" shutdown of its train operations in Canada, which will slow freight movement significantly.  It is also urging the unions to continue negotiating with CP and federal mediators assigned to this work dispute.

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

Trucking issues continue to compromise supply chains across North America

Toronto, March 15, 2018

Freight movement across the U.S. and Canada is being slowed by shortages of truckers and other constraints, including reduced productivity due to the U.S. government implementation of Electronic Logging Device (ELD) regulations and capacity shortages at rail and port facilities.  Many trucking companies in the U.S. and Canada are increasing rates with little warning, in some cases doubling delivery fees.  Others are introducing surcharges to deal with delays in accessing cargo at rail terminals and/or ports.  Some steamship lines have even suspended inland haulage altogether, mainly in the U.S. Midwest, because of these issues.

In terms of ELD implementation, legislators in at least four U.S. States have introduced proposals that aim to reconsider the mandated enforcement of these regulations, citing the cost of compliance and ELD requirements which they contend are an invasion of privacy, as reasons to appeal the mandate.

We will continue to monitor this situation, but do not foresee any improvement in the near future.

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

Canadian rail services struggling with significant backlog

Toronto, March 14, 2018

Operational issues, led by high demand and insufficient network resiliency, coupled with severe winter weather conditions, have created serious delays in the movement of freight by rail across Canada.  Dwell times, particularly at West Coast ports, have increased substantially this past winter, as weather related reduction in train lengths and corresponding decreased capacity has led to increased port congestion.

Extended severe winter weather also slowed the rail shipment of prairie commodities to a point where only a third of the available product is getting through the increasingly strained supply chain.  CN hopes to relieve the rail shortage by acquiring an additional 130 short-term leased locomotives and 400 qualified conductors.

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

New information required for shipments of imported cheese

Toronto, March 12, 2018

Effective April 3, 2018, Canadian importers will be required to identify if imported cheese (excluding processed cheese of HS 0406.30) is manufactured from pasteurized or unpasteurized milk.  Shipments could be delayed if this information is not on shipping documents.

The affected HS Tariff Classifications are:

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Quebec Spring Thaw Restrictions for 2018

Toronto, February 23, 2018

The Quebec Ministry of Transportation has released its 2018 "Spring Thaw" dates and zones. These are container weight restrictions imposed every year to protect Quebec highways during the spring thaw.

NAFTA negotiations: Ignore the thunder, wait for the light

Toronto, January 25, 2018

An early resolution of trilateral NAFTA negotiations between Mexico, the United States and Canada is not expected as major issues remain unresolved, while the sixth round of negotiations are underway in Montreal.

Canadian Minster of Foreign Affairs, Chrystia Freeland, says Canadian negotiators are entering this round of NAFTA talks with a slate of "creative proposals" to counter some of the demands made by the U.S..

U.S. representatives had pushed back against the progressive trade agenda being proposed by Canada – entrenching Indigenous, gender and workers' rights issues in the pact.  Canada, in turn, is not willing to accept four controversial U.S. demands some are calling "poison pills": raising continental content provisions on automobiles, scrapping a dispute resolution mechanism, limiting Canadian access to U.S. procurement and instituting a five-year sunset clause.

Neutral observers have pointed out that millions of jobs on both sides of the border will be at risk if the U.S., or more precisely President Donald Trump, follows through on threats to pull out of the trade deal.

"We can expect to hear a fair bit of bluster from the U.S. negotiators," says Brian Rowe. "They will suggest the agreement is not fair, yet Canada is the number one import market for 32 of 50 States and as a whole, we buy 15% of the U.S.'s exports.  The U.S. cannot afford to just walk away.  The backlash from affected U.S. States would be devastating.  Whether U.S. threats to scrap NAFTA are just bargaining chips remains to be seen."

There is room, however, for changes that benefit all three countries.  No country will get everything they want.  There will be give and take.  That is the nature of trade deals.

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Winter storms slow movement of freight across Canada

Toronto, January 18, 2018

Supply chain routes on both coasts have been hit hard by extreme freeze/thaw cycles, wind, rain and flooding, leading to significant congestion at many key points in the Canadian supply chain.  Specific problem areas include delayed ship dockings, berth congestion, lack of railcar availability and shorter trains.  The results are already being felt:

• In Halifax, the departure of some vessels has been delayed by 7-8 days.
• Container exam waits at West Coast Vancouver terminals are 15 days longer than usual.

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. 308 – Debbie McGuire, Manager – Freight Solutions.

Reduced Free Time at CP Vaughan Terminal - Update

Toronto, January 8, 2018

CP has advised that they are delaying the change in the free time at their Vaughan terminal from 48 hours to 36 hours.  Originally scheduled to commence on January 1, 2018, CP acknowledged that they did not give adequate notice to customers, and will now implement the free time change on January 15, 2018.

For more information, please call (905) 882-4880, ext. 308 – Debbie McGuire, Manager – Freight Solutions.

Reduced CP Rail Free Time at Vaughan Terminal

Toronto, January 5, 2018

Effective January 1, 2018, free time at CP's Group Five Terminals (Vaughan) was reduced from 48 hours to 36 hours.  The reduction was first announced last year, but implementation was deferred until the start of this year.  CP Customer Service says the 36-hour Vaughan window has been in place "for some time", but a 48-hour grace period was enacted to give everyone involved time to adjust.

For more information, please call (905) 882-4880, ext. 308 – Debbie McGuire, Manager – Freight Solutions.

CETA Origin Declaration update

Toronto, December 18, 2017

The Canada Border Services Agency (CBSA) has advised that Field 3 of the CETA Origin Declaration can be completed with any one of the following preferential origin indications:

• Canada
• EU
• Canada/EU
• CM

This update overrides an earlier decision that Field 3 needed to specifically indicate "Canada/EU" if the products qualified as originating under the CETA Rules of Origin.  The only exception was for products originating in Ceuta or Melilla, in which case CM would have been the correct indication.  This was in accordance with the instructions in Annex 2 of the CETA Protocol on ROO and OP.

CETA Origin Declaration wording:

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Port Dwell Times & Inland Congestion Delaying Transit Across Canada

Toronto, December 15, 2017

High volumes and bad weather are slowing the movement of freight out of the Port of Vancouver and across Canada.  Significant delays are being reported at the Port of Vancouver, where the peak season for inbound containers has come early and shows no signs of slowing.

Many customers are experiencing on-dock dwell times of up to two and, in some cases, three weeks for containers destined to inland terminals via rail.  Once rail equipment is available and trains are moving, they face winter conditions – meaning shorter trains and delays due to freezing and snow (see CN's excellent video).

Heavy traffic and increasing wait times are being reported at rail terminals in Edmonton and Calgary, similar to issues experienced at Toronto and Montreal rail terminals since the spring.

We will continue to monitor this situation closely, as we approach the Christmas holiday season and Canadian cargo volumes remain very strong.

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. 207 – David Lychek, Manager – Ocean & Air Services.

Holiday Hours for Universal Logistics Offices

Toronto, December 14, 2017

All Canadian offices of Universal Logistics will be closed from 2 p.m. Friday, December 22nd through to Tuesday, December 26th.  Normal business hours will resume on Wednesday, December 27th from 8:30 a.m. to 5:00 p.m.

We will also be closed on Monday, January 1st and will resume normal business hours on Tuesday, January 2, 2018.

If, during this holiday period you require immediate assistance regarding a Canadian Customs Clearance matter please call (519) 566-4157 to reach Universal Logistics after hours.  For PARS tracking please visit our Website to utilize our PARS tracker.

Universal Logistics USA, Buffalo, New York will be closed at 8:00 p.m. on Friday, December 22nd and open from 8:00 a.m. to 12:00 noon on Saturday, December 23rd.  The office will be closed on Sunday, December 24th and Monday, December 25th.  Normal business hours will resume on Tuesday, December 26th from 7:00 a.m. to 12:00 midnight.

On Saturday, December 30th and Sunday December 31st, we will close at 5:00 p.m. and our office will also be closed on Monday, January 1st.  We will resume normal business hours on Tuesday, January 2, 2018.

If, during this holiday period, you require immediate assistance regarding a U.S. Customs Clearance matter please call (800) 767-8525 to reach Universal Logistics USA Inc. after hours.  For PAPS tracking please visit our Website to utilize our PAPS Tracker.

Universal Logistics USA, Cleveland, Ohio will be closed from 2:00 p.m. Friday, December 22nd through to Monday, December 25th. Normal business hours will resume on Tuesday, December 26th from 9:00 a.m. to 5:00 p.m.

We will also be closed on Monday, January 1st and will resume normal business hours on Tuesday, January 2, 2018.

Season's Greetings from
Universal Logistics &
Universal Logistics USA!

Higher US Customs user fees coming soon

Toronto, December 13, 2017

Effective January 1, 2018, there will be new minimums and maximums for U.S. Customs' Merchandise Processing Fee (MPF).  The minimum will be $25.67 USD, a $0.67 USD increase, the maximum will be $497.99 USD, a $12.99 USD increase.  The Informal MPF (applies to shipments valued under $2,500 USD) will change from $2.00 USD to $2.05 USD.  Goods of NAFTA Preferential Origin are exempt MPF.

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. 213.

Ground handlers at Toronto Pearson Airport end strike

Toronto, October 17, 2017

Striking ground handlers at Toronto Pearson Airport have ended their strike, which began on July 27, and agreed to return to work on October 18. The workers, including some 700 ramp equipment operators, baggage handlers, cabin cleaners and ground crews employed by Swissport, voted 63 percent in favour of a three year agreement that included minor improvements in wages, benefits and scheduling.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.

Recommendations presented to correct 'Rail Service Failures'

Toronto, September 26, 2017

On September 1, the Canadian International Freight Forwarders Association (CIFFA) sent a letter to CN to address delays and congestion at Toronto rail terminals.  "After months of long wait times to get in at the gate and long delays in service once in the gate, the drayage community and the customers they serve are reaching the end of their ability to cope," said the association.

Currently drivers are waiting between 4-8 hours to be served after gating in at the rail terminals in the GTA, which is hampering their ability to meet specific appointment times.  In addition, Canada's mining, agriculture and forestry companies say the poor service offered by Canada's two main rail carriers, CN and CP, is costing them millions of dollars.

CIFFA has urged CN to take five corrective actions:

• compensate trucking companies for wait times that exceeds a reasonable period (30 to 45 minutes)
• establish a reasonable service time from in-gate to exit (90 minutes)
• allow a reasonable time before storage applies (48 hours)
• give free time for Saturdays, Sundays and statutory holidays, which means the storage timer would only apply after the free time and weekend days have expired
• no charge storage for dray operators who have been waiting to in-gate for several hours and missed their reservation window through no fault of their own, and back-date this change to at least the beginning of August, when delays at the gates became unreasonable

We will continue to monitor this situation closely and advise accordingly.

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. 308 – Debbie McGuire, Manager – Freight Solutions.

Hurricane Irma update

Toronto, September 19, 2017

Most major ports, including Freeport, Miami, Jacksonville, Savannah, Charleston and Wilmington are now open and have resumed normal operations.

Among the major rail operators, CSX has resumed operations in Savannah, Tampa and Jacksonville, however, an embargo for containers routed via Savannah remains, as the terminal tries to clear a backlog of freight.  Norfolk Southern is also now operational and has lifted its embargo on containers routing via Charleston, Savannah and Jacksonville.

Residual delays are expected throughout the Southeastern U.S. until the congestion subsides.

A new threat has emerged with the formation of Hurricane Maria, however, it will be several days before it can be determined how this storm will affect the U.S. mainland.

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. 207 – David Lychek, Manager – Ocean & Air Services.

Limited capacity in advance of China Golden Week

Toronto, September 15, 2017

Space availability on sailings from China is tightening as importers rush to avoid the closure of factories during the Golden Week holiday (October 1-8).  There is a high possibility that overbooked carriers may be forced to roll shipments (delay shipments to the next sailing date).  Carriers may also implement "blank sailings" (cancelled sailings), after the holiday to optimize vessel utilization.

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. 308 – Debbie McGuire, Manager – Freight Solutions.

Aftermath of Hurricane Irma affects transportation across U.S. Southeast

Toronto, September 11, 2017

Freight movement across the U.S. Southeast has been severely disrupted by the continuing impact of Hurricane Irma.  Flooding caused by the storm surge is a major problem in many parts of Florida.  Many major airports remain closed, while certain roads and highways are not passable.

The list of major ports closed by the storm includes Freeport, Miami, Jacksonville, Savannah, Charleston, and Wilmington.  The U.S. Coast Guard has also placed vessel movement restrictions in around many ports affected by Irma.

Among the major rail operators, CSX is reporting closure of its operations in Savannah, Tampa and Jacksonville, while Northern Southern has an embargo on containers from Charleston, Savannah and Jacksonville.

Watch for more updates as the impact of the hurricane is expected to last for many weeks and in some areas may not be resolved for months.

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. 207 – David Lychek, Manager – Ocean & Air Services.

Cheese import quotas increased

Toronto, August 3, 2017

For the first time since the 1970s, Canadian import Tariff Rate Quotas (TRQ) for fine cheese and industrial cheese have been increased.  The 16,000 tonne increase for fine cheese will be divided equally between Canadian cheese manufacturers and cheese retailers/distributors.  The 1,700 tonne increase for industrial cheese goes entirely to food production companies (excluding restaurants).

The changes are part of the recently concluded Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union. Qualifying parties must apply for a portion of the new quota allocation to Global Affairs Canada on/before September 8, 2017.

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Strike slows cargo movement at Toronto Pearson Airport

Toronto, August 1, 2017

A strike by more than 700 airport workers at Toronto Pearson Airport is causing delays of up to three hours.  The main trouble spot is the cargo terminal gate, where picketers have successfully slowed the movement of vehicles carrying not only cargo, but also packages destined for export.

The striking employees, members of Teamsters Local Union 419, handle baggage and cargo, tow planes, clean cabins and perform flight operations tasks for more than 45 airlines, including UPS Canada, Nolinor Aviation and Cathay Pacific Cargo.

The strikers walked off the job on July 27, after failing to reach an agreement with their employer, Swissport.  There are also delays at the Vista Terminal.  It is unknown when negotiations to end the strike could resume.

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. 308 – Debbie McGuire, Manager – Freight Solutions.

Delays at Toronto Pearson Airport - possible ground handlers strike

Toronto, July 27, 2017

Ground handlers working for Swissport at Toronto Pearson Airport (YYZ) are poised to go on strike this afternoon.

If the labour interruption proceeds as planned, passenger and cargo operations for all wide-bodies at the airport, except Air Canada, WestJet and Emirates, will be affected.  Moreover, some Asian carriers have announced that they will stop flights to YYZ.  There will likely be picket lines at entrances to the Vista Building, which will delay carriers from entering or departing.  Shippers should be advised to prepare for delays, and to add extra time to normal cut-offs to ensure that export cargo can be delivered within required carrier cut-offs.

Swissport says it will try to maintain passenger and cargo operations while its employees, members of Teamsters Local 419, are on strike.

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. 308 – Debbie McGuire, Manager – Freight Solutions.

Merger leads to formation of world's third largest container line

Toronto, July 13, 2017

COSCO Shipping Holdings has joined forces with Shanghai International Port Group (SIPG) to purchase Orient Overseas International Ltd. (OOIL), the world's seventh largest container line.

The merged company will become the world's third-largest container line, with a market share of 11.5% and total capacity of 2.42m TEU.

OOIL will continue to keep their shipping subsidiary OOCL liner brand, along with its headquarters in Hong Kong.

This merger is just the latest in a series of consolidations that has left the top six shipping lines controlling 63 percent of the market.

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. 308 – Debbie McGuire, Manager – Freight Solutions.

Canada-Europe trade deal moves forward

Toronto, July 12, 2017

Provisional application of The Comprehensive Economic and Trade Agreement (CETA), a major trade deal between Canada and the European Union, will begin on September 21, 2017.  Under the rules-based international trading agreement, 98% of qualifying goods traded by the participating countries will be immediately duty free.  Prime Minister Justin Trudeau said "it is important that our companies and citizens, the real winners with this agreement, start reaping its benefits."

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Cyber attack forces Maersk to close terminals

Toronto, June 29, 2017

A worldwide ransomware cyber attack is disrupting the operations of many major institutions and businesses, including Maersk, which has responded in two ways:

• closing 17 terminals
• not accepting bookings while the company's IT infrastructure is being shut down for security reasons

Confusion and congestion is being reported at the impacted Maersk terminals, which include operations at Los Angeles, Rotterdam and Jawaharlal Nehru Port Trust in Mumbai.  It is unknown when the company will be able to accept bookings.

The cyber attack, which some have called "shipping's Y2K moment", is prompting calls for tighter IT security throughout the entire logistics chain.

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. 308 – Debbie McGuire, Manager – Freight Solutions.

Airlines cutting flights from Asia to North America due to volcanic ash

Toronto, June 27, 2017

Safety concerns created by a volcanic ash cloud have forced airlines serving the Asia to North America trade lane to cut numerous flights, leading to reduced capacity and increased rates.  Bad weather in Shanghai and Hong Kong is causing further complications.  It is unknown when the affected airline operations will return to normal.

We will continue to monitor this situation closely and advise accordingly.

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. 308 – Debbie McGuire, Manager – Freight Solutions.

CN averts strike by conductors

Toronto, May 30, 2017

CN and the union representing CN's conductors in Canada have reached a tentative labour agreement, subject to ratification by the union's membership.  This will ensure continued service to all CN customers.  CN also announced that the notice of Force Majeure, provided earlier this week, has been withdrawn.

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

CN negotiating with conductors to avert strike

Toronto, May 26, 2017

The union representing 3000 CN conductors will be in a legal strike position as of 00:01 hours on Tuesday, May 30.  The company, however, is confident that it can reach a mutually satisfactory collective agreement without a labour disruption.  If a strike takes place, CN would have to stop its Canadian rail operations as it does not have enough non-union personnel to replace the conductors.  The U.S. network and the non-rail-terminal operations (Intermodal, Autoport, Transload) would continue with the inventory they would have on hand.

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

CBSA eManifest initiative delayed

Toronto, May 26, 2017

It will be at least a year before freight forwarders are required to transmit advance house bill data on consolidated freight electronically to the Canadian Border Services Agency (CBSA) – known formally as eHBL.  During this period, penalties for non-compliance will not be issued for pre-arrival submission of house bills.  Freight forwarders who transmit electronic house bills may receive report cards from the CBSA on the data quality of their transmissions, however, until systems enhancements are completed and tested, eHBL remains voluntary.

We will continue to monitor the implementation of this program and advise accordingly.

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

CETA receives Royal Assent

Toronto, May 17, 2017

The Canada-European Comprehensive Economic and Trade Agreement (CETA), a key Canadian trade agreement, may be just weeks away from provisional implementation (possibly July 1, 2017).  This means 98% of the Agreement (including duty reductions) will move forward. The final step in the approval process was Royal Assent by Canada's Parliament, which was given May 16.

Updates will be provided as more information becomes available.

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

China box congestion spreads to other ports

Toronto, May 1, 2017

Container port congestion in China is rapidly expanding, as new liner-alliance schedules, added to poor weather, cause disruption to container shipping operations.

As previously reported, Shanghai's Yangshan terminals are experiencing lengthy delays and vessel queues.  The most congested facilities at Shanghai are now suffering from berthing delays of at least two days, which is having a serious impact on feeder service schedules.

Terminals in Qingdao and Ningbo are also now facing congestion and high yard density, and it is expected that delays at these Chinese ports could continue for a prolonged period.

We will continue to monitor this situation closely and advise accordingly.

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. 308 – Debbie McGuire, Manager – Freight Solutions.

Canadian lumber producers face U.S. duties as high as 24 per cent

Toronto, April 26, 2017

The U.S. Department of Commerce has confirmed that duties will be placed on Canadian lumber imports, beginning next week.  The duties, ranging from 3 to 24 per cent, are being applied because the U.S. believes Canadian lumber mills are subsidized by the Canadian government.  The U.S. Lumber Coalition believes Canada's timber pricing policies "give Canadian producers an unfair cost advantage that injures U.S. producers and their workers."

Canada has responded directly, with a Statement by Canada from the Honourable Jim Carr, Minister of Natural Resources and Honourable Chrystia Freeland, Minister of Foreign Affairs.  "The Government of Canada disagrees strongly with the U.S. Department of Commerce's decision to impose an unfair and punitive duty.  The accusations are baseless and unfounded."  Ms. Freeland also stated in an interview "... when it comes to defending Canada's interests, we're going to play hard".

The merchandise subject to this investigation is softwood lumber, siding, flooring and certain other coniferous wood ("softwood lumber products").

The scope includes:

• Coniferous wood, sawn, or chipped lengthwise, sliced or peeled, whether or not planed, whether or not sanded, or whether or not finger-jointed, of an actual thickness exceeding six millimeters.
• Coniferous wood siding, flooring, and other coniferous wood (other than mouldings and dowel rods), including strips and friezes for parquet flooring, that is continuously shaped (including, but not limited to, tongued, grooved, rebated, chamfered, V-jointed, beaded, molded, rounded) along any of its edges, ends, or faces, whether or not planed, whether or not sanded, or whether or not end-jointed.
• Coniferous drilled and notched lumber and angle cut lumber.
• Coniferous lumber stacked on edge and fastened together with nails, whether or not with plywood sheathing.
• Components or parts of semi-finished or unassembled finished products made from subject merchandise that would otherwise meet the definition of the scope above.

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Major delays at Shanghai port

Toronto, April 20, 2017

Port congestion at Shanghai's Yangshan Port is causing massive delays.  It is unclear when the port will return to normal as the port operators are unsure how to address a "perfect storm of problems", including bad weather, a container shortage and rampant overbooking by carriers (as a result of the new vessel sharing alliances).

Some carriers are responding by re-routing ships, and others are waiting outside the port for conditions to improve.

The situation is anticipated to normalize only around the end of May as announced by Port Authorities in Shanghai.

We will continue to monitor this situation closely and advise accordingly.

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. 308 – Debbie McGuire, Manager – Freight Solutions.

India port workers postpone strike

Toronto, April 19, 2017

Trade unions representing dockworkers at various major ports in India reportedly agreed to defer a nationwide indefinite strike scheduled for April 19 until May 12, following preliminary talks with officials from the Ministry of Labour on Monday.

At the meeting, the chief labour commissioner suggested union representatives have another round of negotiations with officials from the Indian Ports Association (IPA) on April 21, in an attempt to reach a settlement.  The IPA is the umbrella body for all major ports in the country.

We will continue to monitor this situation closely and advise accordingly.

For more information, please call (905) 882-4880, ext. 308 – Debbie McGuire, Manager – Freight Solutions.

India port workers poised to strike

Toronto, April 18, 2017

The unions representing workers at several major ports in India have announced that they will go on indefinite strike tomorrow.  The strike action is a result of the restructuring of the country's port system, as well as the unions demands for improved job security and enhanced retirement benefits.  The affected ports include Kolkata, Paradip, Visakhapatnam, Chennai, Tuticorin, Cochin, New Mangalore, Mumbai, Jawaharlal Nehru Port Trust (JNPT), Kandla and Marmugao.

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. 308 – Debbie McGuire, Manager – Freight Solutions.

CN reaches tentative labour agreement with IBEW

Toronto, March 22, 2017

A threatened strike by CN signal and communications employees has been called off after the union representing the workers agreed to a tentative agreement.  Details are being withheld until the workers ratify the agreement.

We will continue to monitor this situation closely and advise accordingly.

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. 207 – David Lychek, Manager – Ocean & Air Services.

CN optimistic about labour negotiations

Toronto, March 20, 2017

Negotiations are continuing between CN and its signal and communications employees, who have given notice that they will go on strike at 12:01 am, Tuesday, March 21, if a negotiated settlement is not reached by that time.  CN expects to reach an agreement, but is nevertheless ready to maintain operations if the 700-member union, known formally as the International Brotherhood of Electrical Workers System Council No. 11 (IBEW), goes on strike.

We will continue to monitor this situation closely and advise accordingly.

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. 207 – David Lychek, Manager – Ocean & Air Services.

Labour protests at U.S. East Coast ports called off

Toronto, March 10, 2017

Union leaders representing workers at U.S. East Coast ports have postponed labour protests and are now planning for "emergency talks" with U.S. congress.  The key issue is hiring practices at various ports that the union says has resulted in lost jobs.

We will continue to monitor this situation and update accordingly.

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. 207 – David Lychek, Manager – Ocean & Air Services.

Canada and European Union move closer to final approval of trade deal

Toronto, February 24, 2017

A port workers union is threatening to shut down major ports on the U.S. Atlantic Coast next week if long standing grievances are not resolved.  The threatened action, announced earlier this week by the International Longshoremen's Association (ILS), would impact ports from Texas to Maine.

The ILS has made two demands:

• eliminate the Waterfront Commission of New York Harbour
• end the use of state workers by the South Carolina Port Authority

The union has not announced the actual date of the strike and a supporting march in Washington.

We will continue to monitor this situation closely and advise accordingly.

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. 207 – David Lychek, Manager – Ocean & Air Services.

Quebec Spring Thaw Restrictions for 2017

Toronto, February 23, 2017

The Quebec Ministry of Transportation has released its 2017 "Spring Thaw" dates and zones. These are container weight restrictions imposed every year to protect Quebec highways during the spring thaw.

Canada and European Union move closer to final approval of trade deal

Toronto, February 17, 2017

A major trade agreement between Canada and the European Union (EU), called the Comprehensive Economic and Trade Agreement (CETA), has moved closer to implementation with positive votes by both sides this week.  The deal would create common certification for goods and services while decreasing or eliminating existing tariffs on a variety of products, including agricultural products.  It would also harmonize environmental and labour standards between the two trading partners.

About 90% of CETA (including tariff reductions) could be implemented as early as April 1, 2017.

The final step for CETA is approval by national and regional parliaments across the EU in order to fully implement the remaining provisions of the Agreement.

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Blizzard closes U.S. ports

Toronto, February 9, 2017

A major winter storm has closed down ports in New York and New Jersey.  Limited operations are expected to resume tomorrow, however, vessel loading/unloading and container movements will be delayed for the next few days.

We will continue to monitor this situation closely and advise accordingly.

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. 207 – David Lychek, Manager – Ocean & Air Services.

Anti-dumping ruling made against three countries

Toronto, January 27, 2017

On January 25, 2017, the Canada Border Services Agency (CBSA) made a determination that provisional duties are payable on selected fabricated industrial steel components originating in or exported from China, Korea and Spain.  The list of products includes steel beams, columns, braces, frames, railings, stairs, trusses, conveyor belt frame structures and galleries, bents, bins, chutes, hoppers, ductwork, process tanks, pipe racks and apron feeders.

These fabricated structural steel and plate-work components are only subject to the additional duties when for use in structures for:

1. oil and gas extraction, conveyance and processing;
2. mining extraction, conveyance, storage, and processing;
3. industrial power generation facilities;
4. petrochemical plants;
5. cement plants;
6. fertilizer plants; and
7. industrial metal smelters;

The provisional duties (ranging from 0.2% to 54.5%), effective January 1, 2017, were applied after the CBSA made a preliminary anti-dumping ruling against China, Korea and Spain that included a determination of subsidizing from China.  A final determination is expected on or before April 25, 2017. Similar investigations involving United Arab Emirates, the UK and Northern Ireland were dropped.

For more information please call Brian Rowe, General Manager – Customs Consulting Services at (905) 882-4880, ext. 213.

Backlogs at port of Vancouver terminals

Toronto, December 16, 2016

Problems at the Vanterm, Centerm and Deltaport terminals are causing major backlogs in the port of Vancouver.  The biggest issue is the inability of the railway service to provide efficient switching at the terminals.

Switching is the process of moving empty and laden rail cars in and out of the port's container terminals.  This backlog in rail switching has resulted in significant delays to ship arrivals and unloading operations, and has negatively impacted the flow of intermodal cargo out of Vancouver.

The carry-on impacts of the backlogs are expected to last until the Chinese New Year at the end of January.

If you have any questions concerning shipments booked with Universal Logistics and how they may be impacted by the above, please call Debbie McGuire, Manager – Freight Solutions (905) 882-4880, ext. 308.

Holiday Hours for Universal Logistics Offices

Toronto, December 14, 2016

All Canadian offices of Universal Logistics will be closed from 2 p.m. Friday, December 23rd through to Tuesday, December 27th.  Normal business hours will resume on Wednesday, December 28th from 8:30 a.m. to 5:00 p.m.

We will also be closed on Monday, January 2nd and will resume normal business hours on Tuesday, January 3, 2017.

If, during this holiday period you require immediate assistance regarding a Canadian Customs Clearance matter please call (519) 566-4157 to reach Universal Logistics after hours.  For PARS tracking please visit our Website to utilize our PARS tracker.

Universal Logistics USA, our U.S. office, will be closed at 8:00 p.m. on Friday, December 23rd and open from 8:00 a.m. to 12:00 noon on Saturday, December 24th.  The office will be closed on Sunday, December 25th & Monday, December 26th.  Normal business hours will resume on Tuesday, December 27th from 7:00 a.m. to 12:00 midnight.

On Saturday, December 31st, we will close at 5:00 p.m. and our office will also be closed on Sunday, January 1st & Monday, January 2nd.  We will resume normal business hours on Tuesday, January 3rd.

If, during this holiday period, you require immediate assistance regarding a U.S. Customs Clearance matter please call (800) 767-8525 to reach Universal Logistics USA Inc. after hours.  For PAPS tracking please visit our Website to utilize our PAPS Tracker.

Season's Greetings from
Universal Logistics &
Universal Logistics USA!

Court rejects objection to free trade deal between Canada and Europe

Toronto, November 24, 2016

The European Parliament has rejected an objection that could have delayed for up to two years implementation of the free trade deal between Canada and the European Union, known formally as the EU-Canada Comprehensive Economic and Trade Agreement (CETA).  This means partial implementation of CETA may begin in early 2017 if implemented.  The objection was raised by 89 members of the European Parliament who felt that CETA did not comply with EU laws and gave multinationals the opportunity to dictate public policy on issues such as the environment, labour and health.

For more information, please call Brian Rowe, General Manager – Customs Consulting Services at (905) 882-4880.

Merger creates the "largest shipping alliance in the world"

Toronto, November 11, 2016

The four founding members of the Ocean Alliance – CMA CGM, COSCO Container Lines, Evergreen Line and Orient Overseas Container Line (OOCL) – say their newly announced joint operations will make them the world's largest shipping network.  Operations are scheduled to begin April 1, 2017, with service provided by a fleet of nearly 350 vessels offering 3.5 million EU of capacity.

Container shipping analyst Alphaliner says the Ocean Alliance will have:

• slightly more capacity than the next largest container network, created by combining the operations of Maersk and Mediterranean Shipping Co..
• the largest share (39%) of the Asia – North America trade lane.

The Ocean Alliance will have nine Pacific Southwest services, four Pacific Northwest services, seven Asia – East Coast North America and U.S. Gulf services, six Asia – Europe services, five Asia – Mediterranean services, three Transatlantic services and two Asia – Red Sea services.

The Ocean Alliance will continue to work closely with all the authorities to ensure full compliance with applicable laws and regulations, and secure the necessary regulatory approvals to commence operations from April 1, 2017.

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

Three major Japanese steamship lines announce plans to merge

Toronto, November 3, 2016

Facing a shrinking market for container shipping, three of the largest steamship lines in Japan, NYK, MOL, and K-Line, have decided to merge their containerized shipping operations.  The joint venture, including both land and sea operations, will create the sixth largest steamship line in world, controlling about seven percent of the global container shipping market.

All three companies say they are committed to maintaining "business as usual" until the merger is completed in early 2018.

The merger comes after the unprecedented financial challenges which have faced the container shipping industry over the last five years.  Global trade growth has slowed as a result of decline in Asia manufacturing at the very same time as supply is increasing due to the launch of new mega container ships.  This has undermined the financial stability of the steamship lines and has forced mergers and acquisitions in order to seek long term sustainability.

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

REMINDER: Updated Transport Canada Air Cargo Security Program Coming Into Force October 17, 2016

Toronto, October 17, 2016

October 17th marks the start of Transport Canada's changes to the Air Cargo Security Program (ACS).  There are 2 designations in the ACS Program in which participants can enrol - "Account Consignor" or "Known Consignor".

Under the Air Cargo Security Program, existing registered shippers with updated Air Cargo Security (ACS) profiles will automatically receive the new Account Consignor status.  Air freight originated by Account Consignors will be fully screened by the airline before loading onto aircraft as of October 17th, with applicable screening charges applied.  Also note, if you require an airline to screen cargo on your behalf, you may face much earlier cut-off times and possible delays.

Shippers have the additional option to apply for the new Known Consignor category.  Cargo originating from Known Consignor's will be treated as secure as long as the secure chain of custody is maintained.

If you are not registered as either Known Consignor or Account Consignor, please contact Transport Canada immediately.  The links to Transport Canada's presentation of the new Air Cargo Security Program and the Air Cargo Security Fact Sheet are below:

Transport Canada Presentation: http://wwwapps.tc.gc.ca/saf-sec-sur/2/sscimsa-sgicasa/regmod/regpres.aspx

Air Cargo Security Fact Sheet: Air Cargo Fact Sheet

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

High praise for CETA from European Commission head at G20

Toronto, September 8, 2016

The president of the European Commission told the G20 summit that Europe's free trade deal with Canada, the Comprehensive Economic and Trade Agreement (CETA), is the "best and most-progressive" trade agreement the EU has ever negotiated.

Speaking at the G20 on Sunday in China, Jean-Claude Juncker said the agreement deserved the full support of the EU's member states and rapid ratification.

"Our new trade deal with Canada – CETA – is the best and most-progressive agreement we have ever, as a European Union, negotiated," Juncker told reporters in Hangzhou.  After the meeting Juncker tweeted:

"w/JustinTrudeau at #G20. #CETA is best agreement we ever negotiated. It deserves full support of our Member States."

Prime Minister Justin Trudeau responded to Juncker's tweet:

"Thank you, Jean-Claude. Canada is ready to work with the EU to build strong economies on both sides of the Atlantic."

Ahead of the G20, Prime Minister Justin Trudeau urged his peers to be open to trade as isolationism does nothing to create economic growth.  Canada and the EU have committed to signing the agreement this year with ratification in 2017, however, Austria, Germany and other EU countries are opposed to the agreement.  If a provisional agreement is signed, 90% of CETA could be implemented before member states have an opportunity to vote on the deal.

International Trade Minister Chrystia Freeland has stated once ratified, the agreement will provide better access to more than 400 million people in the EU.  The Minister also tweeted earlier this week:

"#Canada and #EU are committed to passing #CETA, a progressive example for the world."

Following are key upcoming events pertaining to CETA:

For more information please call Brian Rowe, General Manager – Customs Consulting Services at (905) 882-4880.

Hanjin Ships Stranded at Major Ports

Toronto, September 1, 2016

Three Hanjin Shipping vessels have been reported as stranded off the Ports of Los Angeles and Long Beach due to the company's bankruptcy, with another anchored and held at the Port of Prince Rupert.

The Port of Prince Rupert has confirmed the vessel Hanjin Scarlet is in port but work has been halted and containers are not being offloaded by the terminal (DP World).  Port and rail charges have presumably not been paid for working the Hanjin vessel.  The Port of Prince Rupert, together with its partners DP World and Canada National (CN) are in communication and are actively working together to find a resolution to the situation.

The Port Authority said in a statement: "All Hanjin export units currently at CN inland terminals will not be loaded onto trains and can be picked up from the CN origin terminal."

DP World and CN will not be accepting any new Hanjin orders or shipments destined for Hanjin vessels.

Importers with product on any Hanjin vessel should be analyzing their current inventory levels to assess whether it is prudent to arrange a replacement shipment to be sent from suppliers in case of lengthy delays.  At this point it remains uncertain how long it will take for these containers to be released.

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, Debbie McGuire, Manager – Freight Solutions.

Container shipping market in turmoil after major Korean carrier applies for court receivership

Toronto, August 31, 2016

South Korea's largest container shipping group – Hanjin Shipping Co., has filed for court receivership after losing the financial support of its creditors.  Shippers with freight on vessels operated by Hanjin should expect significant delays and added costs as interim provisions are made.

The negative impact will be industry wide as Hanjin has many vessel sharing agreements.  Reports have been received that Hanjin vessels are already being refused entry into ports, or held at ports by the request of the Korean courts/receivers.

Containers scheduled for Hanjin vessels that have not yet departed are being held at port of origin so that alternative arrangements can be made.

CN has advised that Hanjin containers that are on ground at CN inland terminals, as well as containers currently moving on the CN network to CN destination terminals, will be released for pick up.  CN will not accept any additional Hanjin export loads at their inland terminals moving forward and until further notice will not accept any bookings from other steamship lines destined for Hanjin owned vessels.

Based on this development, shippers should expect significant delays, higher prices and space issues as the marketplace adjusts to the loss of a major container carrier.

We will continue to keep you updated as developments occur and are working closely with our partners overseas on contingency plans to minimize delays.

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, Debbie McGuire, Manager – Freight Solutions.

Canada and Ukraine sign Free Trade Agreement

Toronto, July 20, 2016

The Canada-Ukraine Free Trade Agreement (CUFTA) was signed, July 11, 2016, by the respective Prime Ministers of Canada and the Ukraine.

The agreement is expected to promote trade and create jobs in both countries.  Canada is also interested in supporting the Ukraine's efforts to build a stable, democratic and prosperous country.

Legislative approval is required in both countries to ratify and implement CUFTA.

For more information please call Brian Rowe, General Manager – Customs Consulting Services at (905) 882-4880.

Duty savings on tech and information related products

Toronto, July 7, 2016

Tariff rate reductions are being phased in on tech and information related products, including audiovisual products and parts, vacuum parts, flight simulators, telecommunication products, software, media-storage devices, medical devices, touch-screen devices and medical equipment.  The phase in period, which commenced July 1, 2016, will continue until July 1, 2018.

The tariff reductions, listed on Customs Notice 16-16, are part of the Information Technology Agreement (ITA), announced by International Trade Minister Chrystia Freeland on July 4, 2016.

Clients of Universal Logistics can request a Tariff Impact Study, based on 2015/2016 imports, to identify duty savings resulting from the tariff cuts.

To learn more or request a Tariff Impact Study, please contact Brian Rowe, General Manager – Customs Consulting Services at (905) 882-4880.

More questions than answers following Brexit vote

Toronto, July 5, 2016

Although the United Kingdom has decided (by a very narrow vote) to leave the European Union, it is not clear how the separation will proceed.  Some are even suggesting that the decision could be reversed with a second referendum.  It is also possible that the decision to separate could have devastating unintended consequences up to and including the break-up of the United Kingdom (one of many reasons why there is rising support for a second referendum).  However, anyone concerned about the direct or indirect trade impacts of the Brexit decision would be well advised to take a wait-and-see approach as more developments are likely in the coming months.

For more information, please call Chris Barnard, Vice President – Projects & Market Development at (905) 882-4880.

Public feedback requested on proposed food industry tariff cuts

Toronto, June 10, 2016

The federal government is inviting public input on the planned elimination of tariffs applied to certain ingredients used by Canadian food manufacturers.  It is hoped that the tariff cuts will help reduce the cost of production for Canadian food manufacturers.  Tariff elimination would apply to all tariffs listed in Table 1 of the Canada Gazette notice.   All tariffs of Chapter 20 of the Customs Tariff will also be eliminated, but only when used in Canadian manufacturing. 

The tariff items in Table 1 have been selected based on the following factors:

• Goods covered by these tariff items are used in agri-food processing;
• Eliminating the tariff on these goods will reduce production costs for Canadian industry; and
• There is interest from stakeholders in eliminating MFN tariffs on some of these goods to enhance competitiveness.

The descriptions of the tariff items in Table 1 can be found in the current consolidated version of the Customs Tariff or on a recent USDA Gain Report of June 3, 2016.

Submissions should be sent directly to the International Trade Policy Division (email: fin.tariff-tarif.fin@canada.ca; Fax: 613-369-4024) or the Tariff and Trade Policy Section, Department of Finance (Telephone: 613-369-4034 or 613-369-4075) by June 21, 2016.

For more information, please call Brian Rowe, General Manager – Customs Consulting Services at (905) 882-4880.

SOLAS Requirements – Get ready for container weight verification

Toronto, May 24, 2016

Effective July 1, shippers worldwide must provide documentation that indicates the verified gross mass (VGM) of a loaded ocean container (total weight of the container and contents).  This is a new requirement of the International Convention for the Safety of Life at Sea (SOLAS).  Two methods can be used to determine VGM:

Method 1: After packing/sealing a container and using calibrated/certified equipment, the shipper may weigh, or arrange to have a third party weigh the packed container.

Method 2: The shipper may weigh the contents (including cargo, dunnage & bracing material) and then add this weight to the tare weight of the container.  The tare weight of each container is clearly marked on the container CSC plate located on the door panel.

If a packed container is found to have an incorrectly declared VGM, Transport Canada will detain the container on site and liaise with the shipper for appropriate, corrective action.  This may result in missed sailings and/or extra handling fees.  If there is a safety issue, monetary penalties, ranging from $600 – $12,000, could also apply.

For compliance and enforcement purposes, a 5% variation in VGM of a loaded container will be accepted, up to a maximum of 500 kg, without penalty.

Similar measures will come into effect at ports throughout the world in countries that choose to adopt these new provisions.

Transport Canada has announced the release of its Ship Safety Bulletin RDIMS No.: 11733860.

To help shippers comply with these new requirements, Transport Canada, Marine Safety and Security (TCMSS), in consultation with Measurement Canada, various stakeholder's groups and associations, has developed and published the final version of the Canadian Procedure for Obtaining the Verified Gross Mass of Packed Containers as Required by Solas VI/2 (TP 15330E).

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

De Minimis limit for goods entering U.S. rises to $800 USD

Toronto, April 5, 2016

The value threshold of articles that may be entered into the U.S. (De Minimis) by one person on one day informally and free of duty has been increased to $800 USD (effective March 10, 2016).  The old limit was $200 for shipments not requiring a formal Customs entry.  This provision (commonly referred to as a Section 321 Release), does not pertain to consolidated/multiple shipments or to one of several lots covered by a single order or contract, which have been sent separately in order to obtain free entry as a Section 321

U.S. Customs and Border Protection (CBP) will allow most cargo to be cleared as Section 321 for values under $800 USD.  However, the regulations on De Minimis do not extend Section 321 clearance to all products.  For example, certain products regulated by Participating Government Agencies, such as the Food and Drug Administration (FDA), Consumer Product Safety Commission (CPSC), and National Highway Transportation and Safety Administration (NHTSA) cannot be cleared under Section 321.

If the carrier does not report manifest information to CBP as a Section 321 Release, then a formal Customs entry must be presented by the customs broker to avoid shipment delays and additional costs (e.g. bond fees, re-manifest fees, waiting time, etc.).

To avoid clearance delays and extra costs for our clients, Universal will prepare formal Customs entries for all carrier manifested freight (even if the value declared is less than $800 USD).

These De Minimis rules apply for U.S. customs clearances only.

In Canada, the De Minimis threshold is $20 CAD (i.e. goods imported into Canada with a declared value of $20 or less do not require a formal entry and are imported duty and GST free).  The De Minimis threshold in Canada remains unchanged as confirmed by the Federal Budget of March 22, 2016.

For more information, please call Brian Rowe, General Manager – Customs Consulting Services at (905) 882-4880.

Air Cargo Security Program Update – March 31st deadline for submitting your application to become a Known Consignor

Toronto, March 3, 2016

As of October 17, 2016, the category of Registered Shipper will no longer exist in Canada. If you wish to be able to secure your own cargo through a screening process applied at the time of packing, you can apply to the Air Cargo Security Program to become a Known Consignor. Otherwise, your cargo will need to be screened prior to being uplifted on certain domestic, trans-border and international aircraft as of October 17, 2016.

If you have not already submitted a Known Consignor application to the Air Cargo Security Program, your company would need to submit one by 11:59 pm (local time) on March 31, 2016 in order to allow for it to be processed and approved before next fall. Applications received after this date will continue to be processed, but will not likely be finalized before the October 17, 2016 regulatory changes go into effect. As a result, your company could experience additional delays and fees associated with the screening of your cargo until such time as your application has been approved.

Your status as a Registered Shipper will remain until October 16, 2016, at which time you will be automatically transitioned to the Account Consignor category with the Air Cargo Security Program. The Account Consignor status is necessary for those wishing to ship to the United States, however, note that your cargo will still have to be screened before it can be uplifted onto a trans-border flight.

Please visit the Air Cargo Security Program website if you wish to apply as a Known Consignor:

     www.tc.gc.ca/eng/aviationsecurity/asc-41.htm

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

Quebec Spring Thaw Restrictions for 2016

Toronto, March 2, 2016

The Quebec Ministry of Transportation has released its 2016 "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:

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 (available only in French), 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 Debbie McGuire, Manager – Freight Solutions.

Universal Logistics' offices open on Family Day

Toronto, February 9, 2016

Normal operations will continue on Family Day (Monday, February 15, 2016) as Universal Logistics' offices and the offices of the Canada Border Services Agency (CBSA) will be open. Our U.S. office location will also be open for business on February 15th.

Please note, this notice applies only to the offices of Universal Logistics, as many of our outside vendors (e.g. carriers, couriers, warehouses) may be closed on the Family Day holiday.

Enjoy the Family Day weekend!

Mark Glionna
Vice President – Client Relations

Operations at U.S. East Coast ports returning to normal

Toronto, February 1, 2016

After being temporarily shut down over the weekend by a longshoremen walkout, key U.S. East Coast ports are back in operation.  However, it will take some time to clear the backlog created by the labour interruption.

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 David Lychek, Manager – Ocean & Air Services.

How to minimize forecasted delays during the 2016 Chinese Lunar New Year

Toronto, January 21, 2016

Please note the following dates when the 2016 Chinese Lunar New Year will be celebrated in China, Hong Kong and Taiwan:

It is recommended that your suppliers and associates make booking arrangements for impending shipments as early as possible to avoid delays.  In addition, shippers should place their bookings at least 10 days prior to vessel departure time.

Other recommended steps include:

• make early arrangements on original bills of lading to avoid any storage charges
• where feasible, arrange express B/Ls or telex release to prevent any stress or late deliveries and storage fees

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 Debbie McGuire, Manager – Freight Solutions.

Historic free-trade agreement signed by Canada and 11 other countries

Toronto, October 8, 2015

Canada and 11 other countries have struck a deal to create the world’s largest free-trade area.  Called The Trans-Pacific Partnership (TPP), the free-trade zone includes 12 nations around the Pacific that account for 40 per cent of the world’s economic output.  The signatories include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the United States.  It’s hoped that the agreement will support job creation, drive sustainable growth, foster inclusive development and promote innovation across the Asia-Pacific region.

The TPP must still be ratified by parliaments in each member country which could take several years to complete.  The agreement is expected to surpass the North American Free Trade Agreement (NAFTA) in economic importance to Canada and includes two of the world’s three largest economies (the U.S. and Japan).

For more information please call Brian Rowe, General Manager – Customs Consulting Services at (905) 882-4880.