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.