Toronto, March 21, 2023
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, March 21, 2023:
CN and Unifor Reach Tentative Agreements, Avoiding a Potential Strike
CN announced on Monday that it has reached new tentative collective agreements with Unifor. The collective agreements cover approximately 3,000 CN employees working in various departments such as Mechanical, Intermodal, Facility Management, and in clerical positions in Canada.
No details of the tentative agreements will be released publicly until the agreements are ratified.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 13, 2023
As announced March 10, 2023, by The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, Canada has banned the import of Russian aluminum and steel products.
Through regulatory amendments under the Special Economic Measures (Russia) Regulations, the importation of all Russian aluminum products, such as unwrought aluminum, aluminum sheets, and finished products including containers and other household items made from aluminum, is now prohibited. Also banned are all primary Russian steel products, including iron and non-alloy steel, semi-finished, and finished products such as tubes and pipes.
This ban will further deny Russia the ability to generate the revenues it needs to pay for its war against Ukraine. Canada continues to work alongside its partners and allies to hold Russia accountable.
This import ban covers all noted Russian made goods, destined for Canada, regardless of the country of export.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, March 9, 2023
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, March 7, 2023:
CN workers backed a strike vote with negotiations set to resume on a contract for around 3,000 Canadian employees.
Unifor announced Sunday that workers with Local 100 are 98 percent in favour of a strike, while those with Council 4,000 voted 97 percent to back job action.
The union says the two sides are in the final stages of negotiations, with another round of talks set for next week.
Read more in an article from Global News.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, February 6, 2023
A powerful 7.8-magnitude earthquake that rocked southeastern Turkey and northern Syria early Monday, has caused operations at Iskenderun, a small Turkish port in the Gulf of Alexandretta, to shut down after docks collapsed at the terminal. At the same time, crews are dealing with a fire that broke out on the pier as well as a multitude of toppled and damaged ocean containers. Other commercial ports in the area and across Turkey appear not to have been affected, although delays are to be expected.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, December 20, 2022
The U.S. Trade Representative's (USTR) office has announced a nine month extension of 352 product exclusions in the China Section 301 Investigation that were scheduled to expire December 31, 2022. These Exclusions cover a wide variety of goods, from crab meat to garden furniture.
The extended exclusions are the same as those reinstated on March 28, 2022, as set out in the Federal Register notice, which can be viewed here.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, December 14, 2022
All Canadian offices of Universal Logistics will be closed from 2:00 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 3rd, 2023.
If, during this holiday period you require immediate assistance regarding a Canadian Customs Clearance matter please call (905) 882-4880, ext. 1214 for after hours instructions. For PARS tracking please visit our Website to utilize our PARS tracker.
Universal Logistics USA, Buffalo, New York will be closed from 6:00 pm on Saturday, December 24th and our office will also be closed on Sunday, December 25th. The office will reopen at 8:00 a.m. on Monday, December 26th.
On Saturday, December 31st, we will close at 6:00 p.m. and our office will also be closed on Sunday, January 1st. The office will reopen at 8:00 am on Monday, January 2nd, 2023.
If, during this holiday period, you require immediate assistance regarding a U.S. Customs Clearance matter please call (800) 767-8525 to reach Universal Logistics USA Inc. after hours. For PAPS tracking please visit our Website to utilize our PAPS Tracker.
Universal Logistics USA, Cleveland, Ohio will be closed on Monday, December 26th. Normal business hours will resume on Tuesday, December 27th from 7:30 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 3rd, 2023.
Season's Greetings from
Universal Logistics &
Universal Logistics USA!
Toronto, December 2, 2022
The U.S. Senate moved quickly yesterday to avert a rail strike that the Biden administration and business leaders warned would have had devastating consequences for the nation's economy.
The Senate passed a bill to bind rail companies and workers to a proposed settlement that was reached between the rail companies and union leaders in September. That settlement had been rejected by some of the 12 unions involved, creating the possibility of a strike beginning December 9.
The Senate vote came one day after the House voted to impose the agreement. The measure now goes to President Joe Biden's desk for his signature.
"I'm very glad that the two sides got together to avoid a shutdown, which would have been devastating for the American people, to the American economy and so many workers across the country," Senate Majority Leader Chuck Schumer (D-N.Y.) told reporters.
Schumer spoke as Labor Secretary Marty Walsh and Transportation Secretary Pete Buttigieg emphasized to Democratic senators that rail companies would begin shutting down operations well before a potential strike would begin. The administration wanted the bill on Biden's desk by the weekend.
Read more in an article from Transport Topics.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, November 22, 2022
Due to severe congestion issues in the GTA, the timely return of empty containers remains a serious problem. Empty return terminals are at over-capacity in most cases, resulting in limited options to return empty containers until space is available. As a result, drayage providers are forced to hold empty containers at their depots, awaiting a return time to become available. The end result is that the drayage companies are charging additional fees such as pre-pull and daily yard storage fees.
Coupled with this, steamship lines continue to charge daily detention fees once free time expires. All such additional fees are being passed onto shippers, who are bearing the brunt of these unanticipated costs, which in many cases are very significant. The issue is also compounding the existing problem of limited drayage availability, as cartage companies equipment is tied up, holding these empty containers on site.
We are monitoring the situation closely and will advise accordingly.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, September 29, 2022
The current industrial action and strike at the Port of Liverpool is due to end this Monday, October 3rd at 5:59a.m.. The union has now confirmed a further period of strike action, which will take place from 6:00a.m. on Tuesday, October 11th to 6:00a.m. on Monday, October 17th, 2022.
Thus far, the Port of Felixstowe has not formally announced any additional strike action. The strike in Felixstowe is to end on Wednesday, October 5th, 2022.
Below is a summary of the strike dates by port:
| Liverpool: | September 20, 2022 – October 3, 2022 | |
| Liverpool: | October 11, 2022 – October 17, 2022 | |
| Felixstowe: | September 27, 2022 – October 5, 2022 |
We will continue to keep you updated on this situation.
For more information, please feel free to contact me directly.
For more information, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, September 16, 2022
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, September 15, 2022:
U.S. Railroad Strike Averted as Unions, Companies Reach Tentative Deal
Major U.S. railroads and unions secured a tentative deal after 20 hours of intense talks brokered by the Biden administration to avert a rail shutdown that could have hit food and fuel supplies nationwide.
The tentative deal now goes to the unions to be voted on. Even if those votes fail, a rail shutdown that could have happened as soon as midnight Friday has been averted for several weeks due to the standard language included in such a deal.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, September 14, 2022
Business and government officials are bracing for the possibility of a nationwide rail strike at the end of this week, while talks carry on between the largest U.S. freight railroads and their unions.
The railroads have already started to curtail shipments of hazardous materials and have announced plans to stop hauling refrigerated products ahead of Friday's strike deadline. Businesses that rely on Norfolk Southern, Union Pacific, BNSF, CSX, Kansas City Southern and other railroads to deliver their raw materials and finished products have started planning for the worst.
Norfolk Southern and CSX said the embargoes were necessary to ensure that critical or even toxic freight is not left abandoned.
We are monitoring the situation very closely, and will advise as new developments unfold.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, September 8, 2022
Toronto Intermodal Terminal Update – September 8, 2022
Severe congestion issues continue to hamper the movement of intermodal containers in the Toronto area. Despite hope that the situation would begin to improve in the early fall, we have yet to see any noticeable changes, in fact, the issues remain and are actually getting worse. Many truck carriers are refusing to take on new business, as they are completely overwhelmed, and those that are attempting to move cargo are no longer able to pre-pull containers due to lack of available equipment. The inability to pre-pull containers means that the units will incur storage at the railyard, at rates that begin at CAD $200.00 per day, with daily rate increases typically after three days. On top of this, steamship lines will charge demurrage fees, also on a daily basis, with a similar fee structure in which the daily fees increase after a set number of days.
The main issues relate to less available drayage opportunities to move containers, as the number of carriers and owner operators involved in this business sector have been reduced. Severe congestion at inland rail terminals is also delaying the efficient collection of containers and the subsequent empty returns. What is unique in the case of this situation is that import volumes into Canada, that typically cause congestion issues, are actually lower than last year, so the issues clearly point to inefficiencies at inland terminals. Whatever the cause, the ripple effect of these ongoing issues is additional fees for shippers such as terminal storage, waiting time, chassis detention and steamship line detention and demurrage.
We are monitoring the situation very closely, and will advise as new developments unfold.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, September 7, 2022
More than 560 port operatives and maintenance engineers at the Port of Liverpool, one of the UK's largest container ports, will go on strike from September 19th to October 3rd over pay and working conditions. Workers will also strike over Mersey Docks and Harbour Company's (MDHC) failure to honour the 2021 pay agreement. This includes the company not undertaking a promised pay review, which last happened in 1995.
The strike action will severely disrupt both shipping and road transport in Liverpool and the surrounding areas, the Unite union warned, adding that more strikes are set to be scheduled in the coming weeks if MDHC fails to put forward an acceptable offer to the workers. The planned Liverpool strike comes on the heels of an eight-day walkout by 1,900 Unite members at Felixstowe, Britain's largest container port, last month, which congested supply lines, but failed to cause major disruption in an industry already under pressure.
For more information, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, August 17, 2022
Last week, workers at the port of Felixstowe failed to reach an agreement over the level of pay increase with their employer. As a result, they are holding a strike from August 21 – August 29, which is going to impact supply chains and cause disruption to maritime trade. Felixstowe, northeast of London, is a key hub for imports into the UK.
This week, more than 500 workers at the port of Liverpool are set to strike, again due to a dispute of the level of pay increase with their employers. The workers' Union has provided its full support behind its members to fight for a fair cost-of-living pay increase. Currently, dates are not known for the strike, however, the announcement has confirmed that no strike action will take place at the port of Liverpool before the third week of September.
We will continue to keep you updated as this situation unfolds.
For more information, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, August 16, 2022
Toronto Intermodal Terminal Update – August 16, 2022
The intermodal container terminals and cargo handling situation in Toronto remains extremely precarious as a recent surge of import containers has further contributed to the overcapacity at ports and inland terminals. The result is severe congestion, delays and additional costs to importers. Container hauliers are waiting upwards of 4 to 6 hours to collect loads from Toronto rail terminals. Empty returns are often not able to obtain reservations, as the return terminals are also at capacity. As such importers are faced with extra fees such as prep-pull, waiting time, chassis detention and steamship line detention.
How long this will last is somewhat unpredictable. Some indications suggest cargo volumes have peaked and will reduce in the following months, which should ease the pressure. However, given the supply chain is so severely compromised, improvements in overall service could take quite awhile.
Currently, many truck carriers are now refusing to take on new business as they do not have the capacity. As of this week, several carriers are stating their equipment is booked until September, which would mean containers could sit at terminal collecting storage and demurrage. At the same time many intermodal truck carriers are advising their yards are full, which means they are unable to pre-pull containers from terminals in order to avoid incurring storage fees which are charged daily after free time expires.
We are monitoring the situation very closely and will advise as new developments unfold.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, July 29, 2022
CN Rail Implements Measures to Deal with Congestion Issues in Toronto – July 29, 2022:
CN Rail has introduced additional measures at rail facilities in the Toronto area to keep the consumer goods supply chain moving, and maintain fluidity at our ports.
Effective July 18, 2022:
- CN opened a third relief container yard in the Toronto area:
Container Storage Solutions
8373 Mayfield Rd, Brampton, ON L6P 0H5
(24 hours, 7 days a week operation).Please note: CN Rail may arrange to shuttle containers from other Toronto terminals, such as CN Brampton and CN Malport, to this third location to deal with congestion issues. For example, if an inbound container is destined to CN Brampton, CN reserves the right to in turn transfer this unit to the relief container yard noted above, and there will be a fee associated with this service.
An update on related fees are outlined below:
- The container shuttle fee will increase from $150 to $300 per unit.
- The storage fees for units at Mississauga Intermodal Service Center will increase to be the same as storage fees in Brampton and Malport (Group 1).
- The storage fee for all other locations (Paul's Transport and Container Storage Solutions) is $300 per unit per day.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, June 21, 2022
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, June 21, 2022:
"CN announced yesterday that normal rail operations continue safely as it has implemented its operational contingency plan. The plan allows the company to maintain a normal level of safe rail operations across Canada and serve its customers for as long as required."
Following the International Brotherhood of Electrical Workers' (IBEW) rejection of CN's latest offer, CN Executive VP and COO Rob Reilly sent a letter to all employees represented by the union to inform them of CN's latest offer. The letter is available here.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, June 16, 2022
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, June 16, 2022:
Some 750 Canadian National Railway employees are threatening to walk off the job beginning on Saturday, June 18, 2022. The company announced Wednesday evening that it received a 72-hour strike notice from the International Brotherhood of Electrical Workers (IBEW), which represents about 750 employees in Canada.
CN says these employees intend to strike on June 18 at 11 am, despite its insistence that it has negotiated in good faith with the union.
The company says it has offered to resolve numerous issues, such as wages and benefits, through binding arbitration.
"CN remains optimistic that an agreement can be reached without a strike," the statement adds.
If an agreement is not reached by Saturday, Canadian National notes it believes it will be able to "safely continue normal operations for as long as necessary."
The above information is from CTV News.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, June 13, 2022
Congestion at ports and inland terminals across Canada remains an ongoing hurdle for importers anxious to receive their shipments. The Ports of Vancouver, Halifax and Montreal are all dealing with excessive volumes, resulting in the delay of cargo moving to inland terminals. Once cargo does arrive at destination terminals, cartage companies are also having difficulty efficiently handling the volume, resulting in a severely compromised logistic chain. Many trucking companies are overbooked and are only able to schedule deliveries 1-2 weeks from arrival date, and because of the long waiting time at terminals, carriers are increasing their hourly fees for waiting time. As a result, shippers' costs are increasing as their shipments are subject to waiting time, rail storage, yard storage and chassis detention fees due to the congestion issues now present across Canada.
There does not seem to be any relief in sight, as cargo volumes are expected to increase with the reopening of China after Covid-19 lockdowns, and the subsequent arrival of pent-up orders. Coupled with this is the typical summer/fall peak season, which occurs on an annual basis, as shippers stock up with inventory in advance of the busy fall/winter retail seasons. This sudden uptick in demand for freight services is expected to cause renewed pressure across the entire supply chain and exacerbate the congestion problems now being experienced.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, May 30, 2022
Upon implementation of Release 2 of the Canada Border Services Agency’s (CBSA) Assessment and Revenue Management (CARM) program, all importers must post security, for duty and GST, in order to obtain release of goods into Canada.
As per Ted Gallivan, Executive Vice President of the CBSA, May 25, 2022, “The CBSA plans to present a revised project plan to the Treasury Board that shows the Go-live date (for CARM R2) as being 1 of 2 dates in 2023, either May 2023 or October 2023, in order to lock down the related regulations, rules of engagement, and to be sure that onboarding is complete.”
CARM Release 2 – Scheduled for May or October 2023
Key Functionality for External Clients:
IMPORTANT:
All importers to Canada (whether resident or non-resident) must take certain steps – if not, they simply won't be able to import into Canada once CARM Release 2 comes into effect (May or October 2023).
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, May 24, 2022
With the surge in container volume for both inbound and outbound, CN and CP are facing severe congestion issues across Canada, with an upward wait time of between 2-8 hours on average to pick up loaded containers or drop empties depending on the arrival terminal. Although they are normally capable of handling this volume, the situation is being exacerbated by a shortage of dray carriers, which are not able to evacuate containers out of the terminals in an efficient manner. In view of this, many trucking companies are implementing additional charges to compensate for the waiting time at the rail. The surge in volume also affects the truckers' ability to pre-pull containers, which can result in detention and demurrage charges being incurred if the trucker is unable to perform pre-pull.
For more information, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, April 20, 2022
The Canada Border Services Agency (CBSA) issued the Certain Goods Remission Order (COVID-19): SOR/2020-101 with effect May 5, 2020, to remove import duty on a variety of HS tariff classifications during the COVID-19 pandemic. The Certain Goods Remission Order has now been repealed and will no longer be in effect after May 7, 2022.
Remission of duty was temporarily granted for classifications listed in the Certain Goods Remission Order (COVID-19) SOR-2020-101, under the following conditions:
| a) | the good was imported into Canada on or after May 5, 2020, and subject to customs duties; |
| b) | no other claim for relief of the customs duties has been granted under the Customs Tariff in respect of the good; |
| c) | the importer agrees that it is subject, at any time, including after remission relief is provided, to review by the Canada Border Services Agency for the purpose of determining whether the information supplied by the importer under paragraph (c) is accurate and complete and whether the facts on which the Canada Border Services Agency relied or intends to rely to determine the eligibility for remission remain unchanged in all material respects; and |
| d) | at the time when the Canada Border Services Agency conducts the review referred to in paragraph (d), the Canada Border Services Agency must be able to conclude that the information supplied remains accurate and complete and that the facts remain unchanged in all material respects. |
The relief of customs duties applies to eligible goods, as per the conditions found in SOR-2020-101, imported from May 5, 2020, to May 7, 2022, inclusively. This relief could be claimed at the time of importation or within two years of the date of importation. For clients of Universal Logistics, this relief was automatically applied at the time of import, based upon valid HS tariff classification.
If you have any questions, or feel your goods should have been imported under the provisions of the Certain Goods Remission Order, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, April 5, 2022
Unfortunately, due to the increased spread of the coronavirus in Shanghai, authorities at China's commercial hub have decided to extend the current lockdown. Shanghai now accounts for three out of every four local asymptomatic cases across the country. Currently, there is no confirmation as to how long the measures will stay in place. Factories are closed as is all public transport. The ports of Waigaoqiao and Yangshan are congested due to the reduction of longshoremen at the port, which impacts the efficiency of loading and offloading vessels. Some steamship lines have announced vessel delays or are omitting Shanghai port on some voyages. Shippers are sending cargo via Ningbo port as an alternative, which will ultimately cause congestion and lack of space in Ningbo, the longer the lockdown continues in Shanghai.
We will continue to monitor the situation and advise further.
For more information, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, March 28, 2022
The resurgence of COVID-19 in China has now affected Shanghai. The city of 26 million will be locked down in two phases for mass testing – the Pudong financial district and areas east of the Huangpu river from Monday, March 28 to Friday, April 1 in Phase 1, and west of the Huangpu River for five days from Friday, April 1 to Tuesday, April 5 in Phase 2. Residents will be barred from leaving their homes, and public transport is suspended, with private cars only allowed to make necessary journeys. All firms and factories are to suspend production, with people to work from home apart from those involved in essential services and food supply. Bloomberg reported that Tesla would be stopping operations at its plant. Shanghai International Port Group (SIPG) said that during the lockdown period, the port would ensure normal operations and provide 24 hours services at all its port production units. However, landside infrastructure and transport links to and from the port will be disrupted.
Container truck drivers must provide a negative COVID test result taken in the last 48 hours. Many expressway entries have also been locked down, and truck drivers have limited access to the city. During the recent lockdown in Shenzhen, South China ports remained operating relatively normally, however, experienced yard congestion and queues of ships built up due to landside transport and infrastructure restrictions similar to those now in place in Shanghai. While some FCL dray carriers are still operating within Shanghai, LTL trucks are not allowed to enter Pudong. As a result, we feel that there will likely be a significant impact on LCL cargo.
For more information, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, March 24, 2022
The U.S. Trade Representative's (USTR) office has announced it will be reinstating China Tariff Exclusions on 352 items which expired December 31, 2020. These Exclusions cover a wide variety of goods, from crab meat to garden furniture.
The reinstated product exclusions will be retroactive to October 12, 2021 and extend through December 31, 2022. The USTR may consider further extensions beyond December 31, 2022, as they deem appropriate. Once the Tariff Exclusions are implemented, refund claims may be submitted on qualifying imports to recover the applicable China Tariff paid.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, March 21, 2022
The Teamsters Canada Rail Conference (TCRC) – Train and Engine Negotiating Committee has agreed to enter into binding arbitration with Canadian Pacific (CP), ending the work stoppage that began over the weekend.
CP will immediately begin to execute a safe and structured start-up of its train operations in Canada. Effective immediately, CP has cancelled embargoes currently in place. This agreement will allow for CP's 3,000 locomotive engineers, conductors, train and yard workers in Canada to return to work at noon local time on March 22, 2022.
In a statement issued early Tuesday morning, Teamsters Canada Rail Conference spokesperson Dave Fulton said while arbitration was not the preferred method, TCRC was able to negotiate terms and conditions that were in the best interest of its members, with wages and pensions still stumbling blocks. He noted the decision to agree to final and binding arbitration was not taken lightly.
CP President and CEO Keith Creel said in a statement the railway company is pleased to have reached the agreement to enter into binding arbitration, enabling it "to resume our essential services for our customers and the North American supply chain."
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 21, 2022
Canadian Pacific Railway (CP) halted operations over a labour dispute early on Sunday, March 20, with CP and the Teamsters Canada Rail Conference (TCRC) each blaming the other for the stoppage that will likely disrupt shipments of key commodities at a time of soaring prices.
"We are very disappointed with this turn of events," said TCRC spokesperson Dave Fulton. The union said in a statement that it had begun to strike across the country in the dispute that it says affects 3,000 engineers, conductors and yard workers.
Canada's second-biggest railroad operator accused the union of misrepresenting the company's position, saying in a statement that the Teamsters were "well aware of the damage this reckless action will cause to the Canadian supply chain." Minister of Labour Seamus O'Regan Jr. said CP and Teamsters were still at the table with federal mediators. "We are monitoring the situation closely and expect the parties to keep working until they reach an agreement," he said in a tweet just after midnight.
Canada, the largest country by area after Russia, depends heavily on rail to move commodities and manufactured goods to port. CP's network runs across much of southern Canada and extends as far south as Kansas City in the United States.
The shutdown is the latest blow to Canada's battered supply chain, which last year weathered floods in British Columbia that washed out track and suspended access to Canada's biggest port. Such a stoppage would disrupt the movement of grain, potash, coal as well as intermodal containers. CP had notified the union on Wednesday that it would lock out employees on Sunday, barring a breakthrough in talks on a deal covering pensions, pay and benefits. It said the key bargaining issue is the union's request for higher pension caps.
The country's last major railway labour disruption was an eight-day Canadian National Railway Co (CNR) strike in 2019. However, in the past 12 years, there have been 12 stoppages due to poor weather, blockades or labour issues, according to the Western Canadian Wheat Growers Association.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 17, 2022
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, March 17, 2022:
CP Issues 72-Hour Notice to Lock Out TCRC-Train & Engine Employees
Canadian Pacific Railway has issued a 72-hour notice to the Teamsters Canada Rail Conference (TCRC)-Train & Engine of its plan to lock out employees at 00:01 ET on March 20, if the union leadership and the company are unable to come to a negotiated settlement or agree to binding arbitration.
"For the sake of our employees, our customers, the supply chain we serve and the Canadian economy that is trying to recover from multiple disruptions, we simply cannot prolong for weeks or months the uncertainty associated with a potential labour disruption," said Keith Creel, CP President and CEO. "The world has never needed Canada's resources and an efficient transportation system to deliver them more than it does today. Delaying resolution would only make things worse. We take this action with a view to bringing this uncertainty to an end."
Over the past week, CP and the TCRC leadership have been meeting daily with federal mediators to reach a new negotiated collective agreement in hopes of avoiding a labour disruption. Despite those talks, the two sides' positions remain far apart.
Read more in a press release from CP.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 15, 2022
The City of Shenzhen, China, is beginning a week-long lockdown due to high cases of the Omicron variant. The lockdown prevents residents from leaving their homes until Sunday, March 20th – with the only exception being to undergo three rounds of COVID testing. This will affect the world's third-largest port of Yantian and many of the tech companies who operate from Shenzhen such as Huawei and iPhone manufacturer Foxconn.
Carriers are still trying to navigate how they will deal with this, however, calls at the port will likely be discontinued this week and possibly next, as due to the lockdown, there will be no workforce to move freight, drive trucks and load containers. Analysts say that when Yantian port was shut down due to COVID last year, the disruptive impact on cargo flows was roughly twice the size of the blockage of the Suez Canal.
We will continue to monitor and update you on this situation.
For more information, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, March 8, 2022
The Teamsters Canada Rail Conference (TCRC), who represents approximately 3,000 Canadian Pacific's (CP) locomotive engineers and conductors, has voted to authorize strike action. A strike may occur as early as March 16, 2022. At this point CP and the TCRC are working to avoid any disruptions, with scheduled talks between both parties and federal mediators to be held between March 11 and March 16.
The key issue at the bargaining table is the TCRC leadership's demand to increase pension caps that were implemented in 2012 to put CP's Defined Benefit Pension Plan on a secure, sustainable footing. A work stoppage of any duration at CP will impact virtually all commodities within the Canadian supply chain, thereby crippling the performance of Canada's trade-dependent economy. The consequences of a work stoppage will be felt long after workers return to work and service resumes.
We will continue to monitor this situation and advise accordingly.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 3, 2022
In addition to other financial sanctions, Canada has revoked "Most-Favoured Nation status" for Russia and Belarus as trading partners, meaning imports into Canada will be subject to a 35 percent tariff, and making Canada the first country to do so since war broke out in Ukraine last week.
This Order results in the application of the General Tariff for goods imported into Canada that originate from Russia or Belarus. Under the General Tariff, a tariff rate of 35 percent will now be applicable on virtually all of these imports. Russia and Belarus will join North Korea as the only countries whose imports are subject to the General Tariff.
Quick facts
Canada is the first country to take this step, Deputy Prime Minister and Finance Minister Chrystia Freeland said Thursday, adding that the only other nation that Canada subjects to this high tariff and deprives of other associated benefits is North Korea.
"We are using tools which no one would even have imagined deploying just a week ago, and there's more to come," Freeland said.
The Minister of Transport, the Honourable Omar Alghabra, the Minister of Foreign Affairs, the Honourable Mélanie Joly, and the Minister of Fisheries, Oceans, and the Canadian Coast Guard, the Honourable Joyce Murray, announced that the Government of Canada intends to ban Russian-owned or registered ships and fishing vessels in Canadian ports and internal waters. The ban is expected to be in effect later this week through orders made pursuant to the Special Economic Measures Act.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, February 15, 2022
Yesterday, Prime Minister Justin Trudeau invoked Canada's Emergencies Act as an attempt to manage the border crisis.
Although a weeklong blockade of the vital Ambassador Bridge between Ontario and Michigan has been cleared, protesters are still obstructing crossings at Emerson, Manitoba (Pembina, North Dakota) and Coutts, Alberta (Sweet Grass, Montana). The most powerful tools presented yesterday were in the financial areas to follow and halt the flow of money from corporations and individuals funding the protests. The measure must be approved by the House and Senate within 7 days. The government likely has enough support for the Act to be implemented.
Financial institutions will now have the power to freeze personal or corporate accounts they believe are being used to fund the illegal protests. "This is about following the money. This is about stopping the financing of these illegal blockades. We are today serving notice: if your truck is being used in these protests, your corporate accounts will be frozen." Chrystia Freeland, Minister of Finance, said.
The public order emergency grants Government the authority to apply the following temporary measures:
For additional details, please click the following links:
Emergencies Act link here.
Press Release link here.
Canadian Chamber Statement link here.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, February 14, 2022
The Ambassador Bridge, one of the busiest international land border crossings in Canada linking Windsor, Ontario and Detroit, Michigan, has reopened after being closed for nearly a week due to protests against pandemic restrictions and mandates.
"The Ambassador Bridge is now fully open allowing the free flow of commerce between the Canada and U.S. economies once again," the Detroit International Bridge Company, which is responsible for maintaining the bridge, announced in a statement late Sunday.
Traffic was flowing normally across the bridge, as confirmed by the Canada Border Services Agency just before midnight on Sunday, February 13th.
"The Canada Border Services Agency (CBSA) can confirm that travellers and commercial carriers are now being processed entering Canada at the Ambassador Bridge port of entry," said Judith Gadbois-St-Cyr, a spokeswoman for the agency.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, February 9, 2022
Ambassador Bridge, one of the busiest international land border crossings in Canada linking Windsor, Ontario and Detroit, Michigan, and a major route for transport trucks, remains temporarily closed. The closure is due to continued protests against pandemic restrictions and mandates.
Please use the following links to check current border wait times:
Most traffic is currently being re-routed via the Blue Water Bridge (Port Huron, Michigan / Sarnia, Ontario), but that border crossing, which currently remains open, is becoming more congested with the additional truck volumes.
We will continue to monitor this situation and advise accordingly.
For more information, please call Chris Cartan, Director – Operations at (905) 882-4880, ext. 1237 or William Sanchez, Manager – Truck Services at (905) 882-4880, ext. 1224.
Toronto, February 8, 2022
2022 has not started off well, as shippers continue to face bottlenecks and service disruption related to global port congestion. The situation is particularly challenging at key hub ports and gateway terminals, as cargo volumes remain extremely high, affecting the fluid movement of cargo on land as well as disrupting vessel schedules worldwide.
North American ports continue to struggle with these issues, as rail movements inland are delayed, and the number of vessels waiting to berth at these destination ports remains high. We are also experiencing long delays in transit times, as vessels laden with containers destined to North America sit idle offshore or slow down the sea transit, awaiting a berthing window at the final port of arrival.
The situation in Vancouver, Montreal and Halifax remains precarious, as we are seeing significant delays in cargo moving inland from these key points of arrival in Canada. In terms of the U.S., the problems experienced in 2021, namely vessel bunching and extended dwell time at terminals remain. While the U.S. West Coast ports are dealing with the most serious issues, as the vast majority of inbound cargo from Asia arrives via this gateway, East Coast ports are also dealing with high volumes of cargo and the fallout from this.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, January 14, 2022
There has been some misinformation reported regarding the requirements for truckers entering Canada as of January 15, 2022. These requirements have been reconfirmed in a statement issued by the Public Health Agency of Canada on January 13th, as per the following link:
The key points of clarification are as follows:
A Canadian truck driver who is not fully vaccinated cannot be denied entry into Canada – Canadian citizens, persons registered under the Indian Act and permanent residents may enter Canada by right. As was announced in November, starting January 15th, unvaccinated Canadian truck drivers entering Canada will need to meet requirements for pre-entry, arrival and Day 8 testing, as well as quarantine requirements.
Also, as of January 15, 2022, unvaccinated or partially vaccinated foreign national truck drivers, coming to Canada from the U.S. by land, will be directed back to the United States.
To qualify as a fully vaccinated traveller and to enter Canada, foreign national truck drivers must:
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, January 13, 2022
With just days to go before a federal vaccine mandate for truck drivers is set to come into effect, the federal government says Canadian truckers will be exempt from Canada's new rules but are still expected to face restrictions once the reciprocal American policy comes into effect. In a statement, the Canada Border Services Agency (CBSA) advised unvaccinated or partially vaccinated Canadian truck drivers arriving at the border will remain exempt from pre-arrival, on arrival and post-arrival testing and quarantine requirement. Previously it was understood that Canada's vaccine mandate would require all truckers entering Canada to be fully vaccinated against COVID-19 and that foreign nationals would be turned away, while unvaccinated Canadian truckers would have to quarantine upon arrival.
The CBSA has confirmed that the January 15 mandate will still come into effect for non-Canadian truckers coming into this country at the U.S. border. Unvaccinated or partially vaccinated foreign nationals, including American truck drivers, will be prohibited entry into Canada as of this date, however, if drivers are able to provide evidence confirming a contraindication to the COVID-19 vaccines, they may be granted an exemption.
On January 22nd, the U.S. will apply the same requirement on foreign nationals to Canadian truckers. All inbound non-U.S. persons crossing at U.S. land point of entries or ferry terminals – whether for essential or non-essential reasons – must be fully vaccinated for COVID-19 and provide related proof of vaccination.
We will continue to monitor this situation and advise accordingly.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, December 15, 2021
All Canadian offices of Universal Logistics will be closed from 2:00 p.m. Friday, December 24th through to Tuesday, December 28th. Normal business hours will resume on Wednesday, December 29th from 8:30 a.m. to 5:00 p.m..
We will also be closed on Monday, January 3rd and will resume normal business hours on Tuesday, January 4th, 2022.
If, during this holiday period you require immediate assistance regarding a Canadian Customs Clearance matter please call (905) 882-4880, ext. 1214 for after hours instructions. For PARS tracking please visit our Website to utilize our PARS tracker.
Universal Logistics USA, Buffalo, New York will be closed from 12:00 noon on Friday, December 24th and our office will also be closed on Saturday, December 25th. The office will reopen at 10:00 a.m. on Sunday, December 26th.
On Friday, December 31st, we will close at 5:00 p.m. and our office will also be closed on Saturday, January 1st. The office will reopen at 10:00 am on Sunday, January 2, 2022.
If, during this holiday period, you require immediate assistance regarding a U.S. Customs Clearance matter please call (800) 767-8525 to reach Universal Logistics USA Inc. after hours. For PAPS tracking please visit our Website to utilize our PAPS Tracker.
Universal Logistics USA, Cleveland, Ohio will be closed on Friday, December 24th. Normal business hours will resume on Monday, December 27th from 7:30 a.m. to 5:00 p.m.
We will also be closed on Friday, December 31st and will resume normal business hours on Monday, January 3, 2022.
Season's Greetings from
Universal Logistics &
Universal Logistics USA!
Toronto, December 7, 2021
Rail operations: Both CP and CN mainlines between Vancouver and Kamloops are fully operational. Rail traffic through the Fraser Canyon corridor has resumed in both directions. All eastbound trains are transiting via CP's line, and all westbound trains are transiting via CN's line. Enhanced track inspections and maintenance activities continue, and low-speed restrictions remain in place.
Truck operations: Restored highway routes include detours, intermittent closures and essential-traffic-only restrictions. Reconstruction and repairs continue on major roadways across the region.
Marine operations: Demand for anchorages continues to exceed the capacity.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, December 2, 2021
Lighter precipitation is forecast for Thursday and Friday across southwestern B.C. Evacuation orders for multiple communities impacted by flooding remain in place.
Rail operations: CP and CN eastbound and westbound trains continue to transit on CP's mainline between Vancouver and Kamloops. Enhanced track inspections and maintenance are ongoing and low-speed restrictions remain in place. Engineering teams continue to undertake repairs on CN's mainline between Kamloops and Boston Bar at a site impacted by heavy precipitation. A timeline for restored rail operations through the site is currently unavailable.
Truck operations: Container terminal truck activity remains steady. Restored highway routes include detours, intermittent closures and essential-traffic-only restrictions. Proactive closures may occur when heavy rainfall is forecast. Reconstruction and repairs continue on major roadways across the region.
Marine operations: Demand for anchorages currently exceeds capacity.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, November 29, 2021
Ongoing precipitation across southwestern B.C. has caused the closures of rail lines and highway routes servicing the West Coast.
Rail operations: CP's mainline between Kamloops and Vancouver is closed to enable engineering teams to conduct inspections and undertake repairs to stabilize sites impacted by rainfall. No new washouts have been reported. CN operated numerous trains over its mainline in the last 24 hours, but it has ceased operations to enable inspections and address ongoing water concerns. A timeline for fully restored rail operations to the West Coast is currently unavailable.
Truck operations: The Ministry of Transportation and Infrastructure proactively closed highways previously impacted by flooding and landslides due to worsening weather.
Marine operations: Demand for anchorages currently exceeds capacity. On Sunday morning there was a backlog of 54 ships at anchorage awaiting offloading, up from 40 on November 19. According to data from the Vancouver Fraser Port Authority, this includes nine container ships.
The provincial state of emergency declared by the British Columbia Minister of Public Safety remains in place.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, November 25, 2021
Restoration work continues on rail and road infrastructure to re-establish key connections between the B.C. interior and the West Coast. Increased precipitation across southwestern B.C. is forecast for the remainder of this week and over the weekend.
Rail operations: Four trains have transited across CP's mainline between Vancouver and Kamloops. Additional CP and CN trains were expected to transit yesterday. All trains are operating in accordance with low-speed restrictions to enable monitoring of rail infrastructure in recently repaired areas. Intermittent closures to address repairs and ensure safe operations may occur. CN anticipates the opening of its mainline on Thursday, November 25.
Truck operations: Truck operations at all four container terminals remain steady. Reconstruction and repairs continue on major roadways across the region, with some highway routes restored, including detours, intermittent closures and essential-traffic-only restrictions.
Marine operations: Anchorage demand is steady and remains high across all vessel types. Anchorages are assigned in a manner that ensures fluidity across all ship types and maintains essential services. Vessels in port can be viewed on the home page of the PortVan eHub app by selecting "Vessels in Port".
The provincial state of emergency declared by the British Columbia Minister of Public Safety remains in place.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, November 23, 2021
The Vancouver gateway continues to experience disrupted rail and truck movement due to flooding throughout the Metro Vancouver and Fraser Valley regions. Significant progress on repairs was made over the weekend on both rail and highway infrastructure.
Rail operations: CN and CP crews and engineering teams continue to make significant progress clearing debris and undertaking repairs to damaged rail infrastructure between Kamloops and Vancouver. CP anticipates having its mainline operational by late Tuesday. CN expects to open its mainline on Wednesday. Rail service on restored lines will resume when it is safe to do so.
Truck operations: Trucks are operating under normal conditions at all four container terminals. One highway route through the flood-impacted Fraser Valley is open for regular traffic between Metro Vancouver and the B.C. interior. Reconstruction and repairs on all major roadways continue. At the same time, U.S. Customs has also implemented interim measures to facilitate the movement of goods via the U.S. to avoid the flood-affected areas in Vancouver.
Marine operations: Anchorage demand is high and nearing capacity across all vessel types. Anchorages are assigned in a manner that ensures fluidity across all ship types and maintains essential services. The total number of containers on the dock has increased by almost 40,000 containers since Friday.
The provincial state of emergency declared by the British Columbia Minister of Public Safety and Solicitor General remains in place.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, November 18, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, November 18, 2021:
"The Vancouver gateway is experiencing significantly disrupted rail and truck movement due to widespread flooding throughout the Metro Vancouver and Fraser Valley regions. Despite these impacts, marine terminals at the Port of Vancouver are still operating.
Transport Canada is working closely with emergency services to ensure public safety and to assess infrastructure damage to impacted areas. Damage assessments have been hindered by logistical and safety concerns due to evacuation orders issued in multiple communities.
CN and CP main rail corridors are not currently operational between Vancouver and Kamloops due to washouts and landslides. Both CN and CP crews are clearing debris and conducting repairs at multiple sites with progress being made in restoring some impacted rail sections. A timeline for fully restored rail operations to the west coast is currently unavailable.
Vessel delays and heightened anchorage demand due to disrupted terminal operations are expected. Vessels in port can be viewed on the home page of the PortVan eHub app by selecting "Vessels in Port."
Flooding impacts on highways remain severe and widespread throughout southwestern B.C. All main highway routes to the Metro Vancouver area are closed. Resumption of traffic is expected to take two to three days. Damage assessments of roadway infrastructure are ongoing."
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, November 16, 2021
The complex problem of moving goods from Point A to Point B has been made even more complicated by record-breaking rainfall and flooding in B.C. that has washed out rail lines and highways in the lower mainland. Experts say the floods have taken an already tight supply chain and made it even tighter, at the worst possible time. Most highways in and out of Vancouver have effectively been shut down, bringing truck traffic to a crawl. While trucks are used for shorter haul distances of comparatively smaller loads, trains handle the bulk of transport, and both of Canada's major rail lines, CN and CP Rail have confirmed that their networks have been impacted.
The outage will only exacerbate the situation at the Port of Vancouver, which was already congested because of previous supply chain issues related to the pandemic, and the rail lines in question are the main arteries in and out of the port.
Depending on the extent of the damage, the rail companies expect to have most of their lines back up and running within a week or so, but clearing the global backlog in supply chains will take much longer.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207
Toronto, November 16, 2021
It came down to the wire, but the highly controversial Los Angeles & Long Beach congestion fee backed by the Biden administration is not happening – at least, not yet.
The ports were scheduled to begin charging ocean carriers $100.00 per import container starting Monday, November 15th for boxes moving by truck that dwelled for nine or more days, and for boxes dwelling for six or more days that move by rail. The charge was scheduled to escalate by $100.00 a day until the container left the property.
The ports announced Monday that they will "delay consideration" of the fee until November 22th citing a 26% reduction in long-dwelling containers since the plan was announced on October 25th.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, November 5, 2021
On October 22, 2021, the Zim Kingston vessel was engulfed in flames off the coast of Vancouver. Severe weather caused a collapse of containers, sweeping more than 100 containers overboard. Ensuing damage ignited a fire in other containers with hazardous materials that quickly spread throughout the vessel. The salvaging of lost containers and the assessment of damages has now begun.
Subsequent to this, on November 1st, the owners of the MV Zim Kingston, have declared "General Average". This is a principle of maritime law whereby all stakeholders in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency.
Examples of General Average include:
Losses covered by a General Average declaration are shared by every shipper that has freight on the on the vessel. The cost per uninsured shipper can be catastrophic. Moreover, uninsured shippers are unable to receive any surviving cargo until they have posted an Average Bond. In contrast, shippers with proper cargo insurance suffer little or no loss.
If you have questions about cargo insurance or if you want Universal Logistics to place cargo insurance on your behalf, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, November 4, 2021
The Port of Los Angeles & Long Beach Container Excess Dwell Fee that was introduced November 1, 2021, will penalize Ocean Carriers $100.00 US per container, increasing in $100.00 increments per day, for containers that sit too long at terminals.
This policy will begin counting storage days on November 1, with fines beginning November 15 and is scheduled to last 90 days. If there is significant progress made in clearing congestion, the Port Executive Director has the discretion to extend the November 15 assessment date. At present, this only applies to the Port of Los Angeles & Long Beach.
Ocean Carriers have already sent notices that they plan to pass these charges to importers. Penalties will be assessed after 9 days for containers being moved by truck and after 6 days for containers moving by rail. According to the compounding penalties schedule, the penalty will be $100 for the first day, $200 for the second day, $300 for the third day, and so on without a maximum penalty amount.
For example, if a container moving by truck remains at terminal for 15 days, the penalties would be $100 (Day 9) + $200 (Day 10) + $300 (Day 11) + $400 (Day 12) + $500 (Day 13) + $600 (Day 14) + $700.00 (Day 15) for a total of $2,800 US. Days are counted by calendar days and include weekends and holidays. These fees must be paid to the terminal before shipment will be released.
It is also the responsibility of the importer to return the empty container once offloaded. Due to these severe congestion issues, the empty return terminals are also operating at overcapacity, resulting in delays in accepting return containers. Truck carriers, awaiting empty return availability, are being forced to hold containers on their chassis and at their truck terminals. In such instances, additional daily fees are incurred for chassis detention and yard storage, which in turn are passed to importers.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, October 28, 2021
Logistics industry professionals say retailers and other cargo owners will ultimately bear the cost of drastic new fees announced Monday by the ports of Los Angeles and Long Beach in response to mounting congestion disrupting the entire U.S. economy. Under the new policy commencing November 1, the ports will charge ocean carriers, starting at US$100.00 per day and per container, for containers that fall into one of two categories; containers scheduled to move by truck and those moving by rail. In the case of containers scheduled to move by truck, ocean carriers will be charged for every container "dwelling" nine days or more, while for containers moving by rail, carriers will be charged if the container has dwelled for three days or more. Dwell times typically refer to the period between when the container is unloaded from a ship and the time when it is picked up.
The fees ostensibly penalize ocean carriers for not quickly clearing out imported containers piling up in their terminals, but a lack of details in the press release left freight industry stakeholders confused about how the rules will be applied. Within minutes of the announcement by the twin ports, container lines began sending letters to importers alerting them to be prepared for the new charges. Clearly, they are not just absorbing these costs as a part of doing business to get this cargo out, they are passing these costs on to the beneficial cargo owner.
Read more in an article from American Shipper.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, October 14, 2021
GTA dnata, which provides ramp, passenger and cargo warehousing services to airlines at Toronto Pearson International Airport (YYZ), has announced an update to their warehouse storage policies as outlined below.
"Effective 15th October 2021, there will be no extension of free storage over the first Weekend and Public holidays.
All general cargo will continue to have 48 hours free storage from the date of arrival without any further extension.
All special cargo will continue to have 24 hours free storage from the date of arrival without any further extension.The Change in policy will apply as below
For General Cargo:– Shipment arriving on Friday will need to be picked up by Sunday at the latest to avoid any storage charges.
For Special Cargo:– Shipment arriving on Friday will need to be picked up by Saturday at the latest to avoid any storage charges.This change in policy has been initiated after due consideration of upcoming increases in cargo volumes, 24 x 7 CBSA working hours and the e-Manifest initiative.
All customers will be able to process their shipments without any restrictions irrespective of Weekends or Public holidays.GTA dnata request all forwarders and import customers to make necessary arrangements to avoid any storage charges.
GTA dnata have also geared up operations to ensure quick delivery schedules are maintained throughout the weekends and public holidays."
Toronto, October 14, 2021
The U.S. Department of Homeland Security (DHS) has announced, beginning next month, the U.S. will allow non-essential Canadian and Mexican travelers, who have been fully vaccinated for COVID-19 and have the appropriate documentation, to enter the United States via land and ferry ports of entry (POEs) across the U.S. border (exact date in November to be advised).
Although the Canada-U.S. border restrictions into Canada had been eased in July 2021 to fully vaccinated U.S. non-essential visitors, restrictions into the U.S. had remained unchanged for non-essential travellers.
In a statement from U.S. Secretary of Homeland Security Alejandro N. Mayorkas "In alignment with the new international air travel system that will be implemented in November, we will begin allowing travelers from Mexico and Canada who are fully vaccinated for COVID-19 to enter the United States for non-essential purposes, including to visit friends and family or for tourism, via land and ferry border crossings," said Secretary Mayorkas. "Cross-border travel creates significant economic activity in our border communities and benefits our broader economy. We are pleased to be taking steps to resume regular travel in a safe and sustainable manner."
Beginning in early January 2022, the DHS will require that all inbound foreign national travelers crossing U.S. land or ferry POEs – whether for essential or non-essential reasons – be fully vaccinated for COVID-19 and provide related proof of vaccination. This approach will provide ample time for essential travelers such as truckers, students, and healthcare workers to get vaccinated.
This new travel system will create consistent, stringent protocols for all foreign nationals traveling to the United States – whether by air, land, or ferry – and accounts for the wide availability of COVID-19 vaccinations.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, October 1, 2021
Supply chain disruptions, which have greatly affected US bound cargo, are now starting to be felt in Canada. At the present time the situation is most severe in Vancouver, where the main problem relates to container chassis availability and warehouse overcapacity. Part of this issue stems from inbound containers being terminated at port, as many ocean carriers are not offering inland services at this time.
As a result, many Vancouver area warehouses are taking on cross docking services, causing much higher demand for container drayage and destuffing. This has resulted in a backlog of consolidated containers waiting to be offloaded, causing containers to be stored at warehouse yards or held at port terminals. The situation is compounded if containers remain on chassis at warehouse yards, as this reduces the supply of equipment required to handle other containers.
In many cases this is resulting in extra costs being incurred, which could include chassis detention as well as container demurrage and storage.
The situation in Toronto and Montreal, while not as dire as Vancouver, is getting worse as destuffing warehouses are faced with overcapacity, due to the sheer volume of inbound cargo. This is delaying the unloading of containers considerably and, as in Vancouver, is resulting in extra costs being incurred as the existing supply chain struggles with ongoing excessive volume.
At this point it is difficult to predict when these issues will be resolved, but as volume levels remain high, relief from this situation is not foreseen in the near future.
We will continue to monitor this situation and advise accordingly.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, August 25, 2021
Although the Canada-U.S. border restrictions into Canada had been eased in July 2021, restrictions into the U.S. remain unchanged for non-essential travellers.
Canada announced on July 19, 2021 that as a first step, starting August 9, 2021, Canada would begin allowing entry to American citizens and permanent residents, who are currently residing in the United States, and have been fully vaccinated at least 14 days prior, to enter Canada for non-essential travel.
The U.S. announced on August 23, 2021 that existing travel limitations will remain in place until at least September 21, 2021 - the U.S. does not have similar plans to allow fully vaccinated Canadians to enter for non-essential travel. The Department of Homeland Security filed the Federal Register notice, calling the extension of the border closure a public health decision.
Supply chains, including trucking, are not impacted by the current measures and the movement of commercial goods across the border is unaffected. "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.
All travellers, with limited exceptions, whether entering Canada by air, land or marine vessel, must use the Government of Canada's ArriveCAN web portal to provide mandatory travel information within 72 hours before entering Canada.
On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms. This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:
Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people. For example, this exemption would apply to:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 12, 2021
The Meishan International Container Terminal (MSICT) of the Ningbo-Zhoushan port complex, has started to turn vessels away yesterday morning after a dock worker tested positive for Coronavirus (COVID-19). Truckers are not able to pick up empty containers or gate-in loaded containers to the terminal.
Ningbo is the 3rd largest container port in the world and encompasses five container terminals. The shutdown of the Meishan Terminal for a day, eliminates 20% of the port's capacity. There are reportedly 140 containerships at anchor waiting for berth outside of the port which was already heavily congested due to the impact of typhoon In-Fa last month. Any lengthy closure will result in diversion of vessels to other terminals and ports – further exacerbating capacity and putting upward pressure on freight rates.
We are closely watching developments at the Ningbo port, and will keep you updated with any additional information.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, August 9, 2021
After 36 hours of intense negotiations, the Public Service Alliance of Canada (PSAC) and the Customs Immigration Union (CIU) reached a tentative agreement late Friday night to end the Canadian border workers strike.
The agreement means an immediate end to the work-to-rule strike action that started Friday morning by the more than 8,500 unionized staff with the Canada Border Services Agency (CBSA) as the border reopens today to fully vaccinated travellers from the USA.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 9, 2021
After 36 hours of intense negotiations, the Public Service Alliance of Canada (PSAC) and the Customs Immigration Union (CIU) reached a tentative agreement late Friday night to end the Canadian border workers strike.
The agreement means an immediate end to the work-to-rule strike action that started Friday morning by the more than 8,500 unionized staff with the Canada Border Services Agency (CBSA) as the border reopens today to fully vaccinated travellers from the USA.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 6, 2021
Many Canada/USA border ports are seeing long lineups this morning as the Canada Border Services Agency (CBSA) begins their work-to-rule action. The unions (PSAC and CIU) for 8,500 CBSA personnel have been in talks with the Treasury Board through the night and again this morning.
There are lengthy delays entering Canada at Windsor and Fort Erie/Niagara Falls. Live webcams are available at both ports; Windsor Cam, Fort Erie Cam.
Travellers should refer to CBSA's Border Wait Times listing for hourly updates on the status at each border crossing.
Although almost 90 percent of CBSA employees are identified as "essential" and would continue to work in the event of a strike, they have threatened a work-to-rule by refusing to do non-essential duties of collecting duties and taxes. The unions have warned this action could have a dramatic impact on supply chains.
We will continue to monitor the situation and advise accordingly.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 6, 2021
Many Canada/USA border ports are seeing long lineups this morning as the Canada Border Services Agency (CBSA) begins their work-to-rule action. The unions (PSAC and CIU) for 8,500 CBSA personnel have been in talks with the Treasury Board through the night and again this morning.
There are lengthy delays entering Canada at Windsor and Fort Erie/Niagara Falls. Live webcams are available at both ports; Windsor Cam, Fort Erie Cam.
Travellers should refer to CBSA's Border Wait Times listing for hourly updates on the status at each border crossing.
Although almost 90 percent of CBSA employees are identified as "essential" and would continue to work in the event of a strike, they have threatened a work-to-rule by refusing to do non-essential duties of collecting duties and taxes. The unions have warned this action could have a dramatic impact on supply chains.
We will continue to monitor the situation and advise accordingly.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 5, 2021
With more than 8,500 unionized staff with the Canada Border Services Agency (CBSA) positioned to go on strike Friday morning, their unions (PSAC and CIU) have stated work-to-rule action will take place to significantly disrupt travellers and commercial traffic entering Canada unless a deal is reached today.
"Shut this place down to a crawl and you let nothing through," CIU president Mark Weber told a crowd at the Windsor Ambassador Bridge, if there is no contract by Friday, when the two unions are in a legal strike position.
Although almost 90 percent of CBSA employees are identified as "essential" and would continue to work in the event of a strike, they have threatened a work-to-rule by refusing to do non-essential duties of collecting duties and taxes. The unions have warned this action could have a dramatic impact on supply chains.
We will continue to monitor the situation and advise accordingly.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 5, 2021
With more than 8,500 unionized staff with the Canada Border Services Agency (CBSA) positioned to go on strike Friday morning, their unions (PSAC and CIU) have stated work-to-rule action will take place to significantly disrupt travellers and commercial traffic entering Canada unless a deal is reached today.
"Shut this place down to a crawl and you let nothing through," CIU president Mark Weber told a crowd at the Windsor Ambassador Bridge, if there is no contract by Friday, when the two unions are in a legal strike position.
Although almost 90 percent of CBSA employees are identified as "essential" and would continue to work in the event of a strike, they have threatened a work-to-rule by refusing to do non-essential duties of collecting duties and taxes. The unions have warned this action could have a dramatic impact on supply chains.
We will continue to monitor the situation and advise accordingly.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 3, 2021
Effective October 1, 2021, there will be new minimums and maximums for U.S. Customs' Merchandise Processing Fee (MPF). The minimum will be $27.75 per transaction (previously $26.79) and the maximum will be $538.40 (previously $519.76). The Informal MPF (applies to shipments valued under $2,500 USD) will change from a flat rate of $2.14 to $2.22. The MPF rate of 0.3464% will not change. Goods of USMCA/CUSMA Preferential Origin are exempt from MPF. In addition to the MPF, various other U.S. Customs User Fees are also increasing – please see full list here.
The Merchandise Processing Fee is a fee imposed by U.S. Customs and Border Protection (CBP) to offset the cost of salaries and other expenses incurred in the processing of imports and release of merchandise into the United States.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, July 28, 2021
More than 8,500 unionized staff with the Canada Border Services Agency (CBSA) voted yesterday in favour of a strike mandate just days before Canada allows fully vaccinated U.S. citizens to cross the border. Although almost 90 per cent of CBSA employees are identified as "essential" and would continue to work in the event of a strike, slowdowns are expected.
In a joint statement the Public Service Alliance of Canada (PSAC) and the Customs and Immigration Union (CIU) said strike action could begin as soon as August 6 after their members, 5,500 border services officers, 2,000 headquarters staff and other workers at Canada Post facilities, voted overwhelmingly in favour of the action.
Risk of significant economic disruption
A labour dispute while borders begin to reopen could cause a significant disruption to the flow of goods, services and people entering Canada, and impact the Canadian economy by:
Contract talks reached an impasse in December 2020, "We're going to work with them and we're hopeful there won't be any disruptions," Prime Minister Justin Trudeau told reporters.
Last week, Canada announced plans to allow entry of fully vaccinated Americans beginning August 9, and fully vaccinated international travellers starting on September 7. The border has been shut for non-essential travel for more than 16 months because of the coronavirus pandemic. Strike action, as early as August 6 could throw these plans into jeopardy.
Dennis Darby, president of the Canadian Manufacturers & Exporters (CME), said Tuesday that the economy can't afford another trade disruption. He called on all parties to return to the table. "Any disruption will have significant impacts on our economic recovery and on the flow of essential goods into Canada," Darby said in a statement. "This situation will cripple manufacturers' ability to get the essential components and goods to sustain global supply chains, and threatens thousands of Canadian businesses."
We will continue to monitor the situation and advise accordingly.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, July 28, 2021
More than 8,500 unionized staff with the Canada Border Services Agency (CBSA) voted yesterday in favour of a strike mandate just days before Canada allows fully vaccinated U.S. citizens to cross the border. Although almost 90 per cent of CBSA employees are identified as "essential" and would continue to work in the event of a strike, slowdowns are expected.
In a joint statement the Public Service Alliance of Canada (PSAC) and the Customs and Immigration Union (CIU) said strike action could begin as soon as August 6 after their members, 5,500 border services officers, 2,000 headquarters staff and other workers at Canada Post facilities, voted overwhelmingly in favour of the action.
Risk of significant economic disruption
A labour dispute while borders begin to reopen could cause a significant disruption to the flow of goods, services and people entering Canada, and impact the Canadian economy by:
Contract talks reached an impasse in December 2020, "We're going to work with them and we're hopeful there won't be any disruptions," Prime Minister Justin Trudeau told reporters.
Last week, Canada announced plans to allow entry of fully vaccinated Americans beginning August 9, and fully vaccinated international travellers starting on September 7. The border has been shut for non-essential travel for more than 16 months because of the coronavirus pandemic. Strike action, as early as August 6 could throw these plans into jeopardy.
Dennis Darby, president of the Canadian Manufacturers & Exporters (CME), said Tuesday that the economy can't afford another trade disruption. He called on all parties to return to the table. "Any disruption will have significant impacts on our economic recovery and on the flow of essential goods into Canada," Darby said in a statement. "This situation will cripple manufacturers' ability to get the essential components and goods to sustain global supply chains, and threatens thousands of Canadian businesses."
We will continue to monitor the situation and advise accordingly.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, July 27, 2021
On Sunday July 25th, Typhoon In-Fa made landfall in Zhejiang Province, China with a second landfall near Shanghai on Monday July 26th, which has wreaked havoc on the ports of Shanghai and Ningbo. Large container ships were evacuated from Yangshan Port in Shanghai on Saturday in advance of the storm, as port operations have been suspended until further notice. Air cargo is also suffering delays, as hundreds of flights were cancelled Sunday and Monday, in addition to suspension of railway and subway lines. Some carriers will omit Shanghai due to operational constraints, and we expect more vessels will omit Shanghai and Ningbo in the coming days.
We will continue to monitor the situation and advise more updates as they become available.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, July 21, 2021
The Canada-U.S. border restrictions into Canada are being eased, however, restrictions into the U.S. remain unchanged for non-essential travellers.
Canada announced on July 19, 2021 that as a first step, starting August 9, 2021, Canada plans to begin allowing entry to American citizens and permanent residents, who are currently residing in the United States, and have been fully vaccinated at least 14 days prior, to enter Canada for non-essential travel.
The U.S. announced on July 21, 2021 that existing travel limitations will remain in place until at least August 21, 2021 - the U.S. does not have similar plans to allow fully vaccinated Canadians to enter for non-essential travel. The Department of Homeland Security filed the Federal Register notice, calling the extension of the border closure a public health decision.
Supply chains, including trucking, are not impacted by the current measures and the movement of commercial goods across the border is unaffected. "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.
On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms. This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:
Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people. For example, this exemption would apply to:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, July 16, 2021
We have received the following update in regards to the effect on rail and port operations in British Columbia from Hapag Lloyd:
Rail operations are currently suspended in BC wildfire areas. Both CN Rail and CP Rail main lines are again shutdown due to new wildfires that crossed both railways 6 miles east of Lytton, BC. The BC Wildfire Service has requested CP/CN temporarily suspend operations in the affected area. Several of the fires are east of Lytton BC and in a number of areas, the fires are near mainline rail tracks. For the safety of rail crews, trains between Kamloops and Lytton, BC are not running. At this time, we have no estimate on when CP/CN will be authorized to operate trains.
CP Rail (CPR):
- CPR mainline in British Columbia near Lytton is currently closed due to new wildfires.
- CP Edmonton – No empties/loads accepted bound to Delta Port.
- Acceptance of Export loads and empties destined to Ports in Vancouver continue to be restricted and will be reviewed on a case by case.
CN Rail (CNR):
- The CNR mainline outage in British Columbia near Lytton remains in place.
- Current gate restrictions for Intermodal traffic to Vancouver and BC South are still in effect.
Port Terminals (Vancouver):
- Port terminals in Vancouver remain congested and working at limited capacity due to rail/fire situation.
- GCT Delta Port outbound rail has temporarily ceased. Rail cargo dwell times will be above normal levels.
- GCT Delta Port berth congestion continues to impact vessel operations and schedules. As a result, on-going delays to scheduled vessels arrivals are anticipated.
We will continue to keep you posted of any further developments. We appreciate your patience and understanding.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, July 8, 2021
Numerous wild fires which are active across the province of British Columbia have severely impacted rail movement from and to Vancouver. These railway issues are also affecting terminal operations at the port of Vancouver, causing increased vessel delays and reduced ability for vessel berthing. CN and CP rail are working closely with Transport Canada and onsite inspectors to resume safe operation.
CP Rail's mainline outage in British Columbia near Lytton is now cleared, however the backlog is significant. Delays are anticipated between 72 to 96 hours from resumption of service. It is anticipated that CN Rail will take a few more days to resume service. In the meantime, CP and CN will share the one rail line for both Westbound and Eastbound trains. The port of Vancouver is also working closely with the terminal operators, railways and government to develop a recovery plan.
Please find further updates below on North American ports, rail and intermodal services (as per Hapag Lloyd's Customer NEWS update):
Canadian Terminal and Rail Delays Update
Terminals: Vancouver, Prince Rupert:
High yard utilization at all terminals in Vancouver as a result of increased import volumes. Expected to last well into Q3. Vessels calling Vancouver are experiencing delays, resulting in increased vessel dwell time. Prince Rupert berth and yard productivity are stable. No delays to vessel berthing.
Terminals: Montreal
All terminals are experiencing a shortage of labor, resulting in delays to ship schedules. This is expecting to continue throughout the summer months.
USA Terminal Operations:
LAX/LGB Terminal Update:
There are currently 19 ships (+10) at anchor awaiting berths in LAX/LGB as of Friday, July 2nd. All terminals are extremely congested due to the spike in import volumes and based on current projections the congestion is expected to last until through the summer.
Changes of destination (COD's) and container "dig outs" are restricted due to lack of terminal space and customers are urged to continue to expedite the pickup of their import containers and inform any COD requests at least four working days before the start of vessel operations. The demand for available labor while improving, still affects all terminal operations, turnaround time for truckers, inter terminal transfers, the number of daily appointments available for gate transactions and delays in vessel operations.
The LAX/LGB rail operations from all terminals continue to deteriorate due lack of rail capacity and railcars from the UP rail. This is affecting all on/off dock intermodal moves. Skilled Labor Training ongoing in LA/LB resulting in steady improvements in availability.
Oakland Terminal Update:
Currently there are 18 ships (-8) at anchor or drifting in the San Francisco Bay area as of July 2nd. The three new shore cranes and berth are now fully operational at OICT (Oakland International Container Terminal). Massive import volumes combined with labor shortages are the biggest drivers of continued congestion and vessel operations delays. The Port of Oakland has had three consecutive months of import gains, setting a new record in May surpassing over 100,000 TEUs.
Export receiving windows are shrinking from 4 to 3 days in some cases to assist with volume on terminal. Alternative gate hours continue to have low trucker participation. Vessels will be delayed in order to decrease terminal dwell, make room for incoming imports and keep terminals fluid as possible. Yard re-handling and re-stows on vessels due to change of rotation and additional empty lift out of LAX/LGB is creating further delays. All berths remain occupied.
New York Terminal Update:
Berth utilization continues to be high through the first week of July, Terminal yard utilization has stabilized but expected to increase this week with all NY terminals, except PNCT (Port Newark Container Terminal), closed on July 5th in observance of the July 4th holiday. Terminal gate turn times are at acceptable service levels, but expected to increase this week due to 4-day work week. Select terminals are opening on Saturdays to facilitate increased import deliveries.
Savannah Terminal Update:
Currently 8 ships at anchor (+4) as of July 2nd. Continue to see delays at berth due to dredging. Dredging continues in berth 2, moving to berth 8 by the weekend. By mid-July all dredging at the berths should be complete. The main gates and rail operations are running fluid. Stacks behind berths 7-8-9 for additional empties is still in progress and should be complete early October. GPA (Georgia Port Authority) is investing in new RTG (mobile) cranes to increase yard capacity in the same terminal footprint.
Intermodal:
Capacity limitation in certain markets due to import volume spikes and severe drivers' shortage. Please find main markets, and estimate lead-time to secure capacity at the following link on our website. (Note: Lead time refers to timeframe to secure truck power, it is not dwell time):
https://www.hapag-lloyd.com/en/services-information/operational-updates/north-america.htmlChassis Pools:
With the recent unprecedented Import volumes, there is currently a historically high demand for chassis throughout the USA. This demand has shown to be persistent on 40ft chassis and intermittent on 20ft chassis. In order to minimize any negative impact on supply chains, customers are asked to take immediate steps to reduce container and chassis off terminal dwell time. This includes all inland terminals as well as port terminals. Without a significant reduction in the dwell times, truckers may face serious challenges and delays in securing good order chassis as long as this surge in imports continues.
- Minneapolis (USMES) – Constrained on 40' chassis.
- Chicago (USCHI) – Deficit on 40' chassis.
- Cincinnati (USCVG) – Constrained on 40' chassis.
- Louisville (USLUI) – Deficit on 40' chassis.
- Houston (USHOU) – Constrained on 40' chassis.
- Detroit (USDET) – Deficit on 40' chassis.
- Indianapolis (USIND) – Constrained on 40' chassis
- Denver (USDEN) – Constrained on 40' chassis.
- New York (USNYC) – Deficit on 40' chassis.
- Seattle (USSEA) – Constrained on 20' and deficit on 40' chassis.
- Tacoma (USTIW) – Deficit on 40' chassis.
- Los Angeles / Long Beach (USLAX/USLGB) – Deficit on 20' and 40' chassis.
Railway Operations:
Please Note: Current average dwell times for Hapag-Lloyd boxes at several terminals / ramps. Includes, MH, rail and truck moves.
- New York, NY – Average 5.8 days*
- MMR rail New York – Average 0.8 days
- Long Beach, CA – Average 8.9 days*
- Los Angeles, CA – Average 10.3 days*
- Charleston, SC – Average 6.9 days*
- Savannah, GA – Average 7.1 days*
- Norfolk, VA – Average 5.4 days*
- Kansas City, MO – Average 9.7 days*
- Chicago, IL – Average 8.7 days*
- Memphis, TN – Average 7.9 days*
- Detroit, MI – Average 6.3 days
- Dallas, TX – Average 2.8 days*
- Houston, TX – Average 6.7 days*
With the large number of congested ports and ships awaiting berths, please note that the dates for arrivals / departures and cut-offs for vessels are constantly changing.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, June 21, 2021
The Canada-U.S. border closure has once again been extended, to non-essential travel, for another 30 days and is now set to expire on July 21, 2021. The Canada-U.S. border will now have been closed to non-essential travel for 16-months.
Bill Blair, Minister of Public Safety, made the announcement on Twitter, saying "in coordination with the U.S., we are extending restrictions on non-essential international travel and with the United States until July 21, 2021." Blair added that "the government is planning measures for fully vaccinated Canadians, permanent residents, and others who are currently permitted to enter Canada." Those measures were announced today, June 21, 2021, with the Public Health Agency of Canada's Government of Canada's first phase to easing border measures for travellers entering Canada outlining the first phase of its approach to easing border measures for fully vaccinated travellers entering Canada.
Supply chains, including trucking, are not impacted by the current measures and the movement of commercial goods across the border is unaffected. "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.
On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms. This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:
Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people. For example, this exemption would apply to:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, June 11, 2021
Efforts to control the current Coronavirus outbreak in Southern China have resulted in massive delays at the port of Yantian where cases have been identified, and it is now affecting operations of terminals in the surrounding areas. The port of Yantian has just recently started to resume activity but is only operating at 15% of normal level. Workforce at the terminal has also been reduced by seventy percent due to quarantine restrictions and increased testing. There are currently 27 vessels waiting to berth at Yantian port since June 4th. As carriers are omitting Yantian, nearby ports such as Nansha and Shekou are under further stress to handle the shift of cargo volume. Not only is the uptick in cargo volume hampering the nearby ports, but Coronavirus outbreaks have also migrated into Nansha and Shekou. Hong Kong will be accepting re-routed vessels which were originally to go to the aforementioned ports, however, it is fully expected it too will start to face congestion issues shortly.
In Taiwan, the port of Kaohsiung has suffered damage to their operations last week when the 316-meter-long containership OOCL Durban, toppled two container cranes. This was due to a collision with another vessel which was anchored at pier. This caused one crane to collapse, severe damage to another crane and damage to 30-50 containers. As a result of this accident, there is also heavy congestion at the port of Kaohsiung which is the world's fourth largest container port.
Carriers have already announced significant disruptions to sailings and schedules due to the current situation in Southern China and Taiwan, with the Alliance cancelling or transferring 29 calls since the end of May and confirming omissions running up to June 25.
We will continue to monitor the situation and advise accordingly.
For more information, please call Paul Glionna, Vice President – Systems Development & Operations at (905) 882-4880, ext. 1220.
Toronto, June 11, 2021
Efforts to control the current Coronavirus outbreak in Southern China have resulted in massive delays at the port of Yantian where cases have been identified, and it is now affecting operations of terminals in the surrounding areas. The port of Yantian has just recently started to resume activity but is only operating at 15% of normal level. Workforce at the terminal has also been reduced by seventy percent due to quarantine restrictions and increased testing. There are currently 27 vessels waiting to berth at Yantian port since June 4th. As carriers are omitting Yantian, nearby ports such as Nansha and Shekou are under further stress to handle the shift of cargo volume. Not only is the uptick in cargo volume hampering the nearby ports, but Coronavirus outbreaks have also migrated into Nansha and Shekou. Hong Kong will be accepting re-routed vessels which were originally to go to the aforementioned ports, however, it is fully expected it too will start to face congestion issues shortly.
In Taiwan, the port of Kaohsiung has suffered damage to their operations last week when the 316-meter-long containership OOCL Durban, toppled two container cranes. This was due to a collision with another vessel which was anchored at pier. This caused one crane to collapse, severe damage to another crane and damage to 30-50 containers. As a result of this accident, there is also heavy congestion at the port of Kaohsiung which is the world's fourth largest container port.
Carriers have already announced significant disruptions to sailings and schedules due to the current situation in Southern China and Taiwan, with the Alliance cancelling or transferring 29 calls since the end of May and confirming omissions running up to June 25.
We will continue to monitor the situation and advise accordingly.
For more information, please call Paul Glionna, Vice President – Systems Development & Operations at (905) 882-4880, ext. 1220.
Toronto, May 21, 2021
The Canada-U.S. border closure has once again been extended, to non-essential travel, for another 30 days and is now set to expire on June 21, 2021. The Canada-U.S. border will now have been closed to non-essential travel for 15-months.
On Thursday, Prime Minister Justin Trudeau tweeted confirmation of the continued border closure: "Update on the Canada-US border: To protect your health and limit the spread of COVID-19, we're extending the measures currently in place by another 30 days. Non-essential travel between our two countries remains restricted until June 21st." Earlier in the week Trudeau said "Before we get back to normal, cases need to be under control and over 75 per cent of people need to be vaccinated for us to start loosening things in Canada.".
Supply chains, including trucking, are not impacted by this measure and the movement of commercial goods across the border is unaffected. "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.
On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms. This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:
Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people. For example, this exemption would apply to:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, May 3, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, May 3, 2021:
Full Resumption of Operations at the Port of Montreal and an End to the Uncertainty
Operations at the Port of Montreal will regain stability following passage by the House of Commons of an Act to provide for the resumption and continuation of operations at the Port of Montreal. This decision means that the operational and commercial uncertainty related to labour relations between the dockworkers' union CUPE Local 375 and the Maritime Employers Association (MEA) is now over.
The process established by the legislation will lead to a new collective agreement between the parties, with no possibility of work stoppages.
The resumption of operations and the return to the usual smooth flow of goods will take several days of work by port workers and supply chain stakeholders. Because of this, clients waiting to import or export goods can expect delays in the coming weeks.
Read more in a press release from the Montreal Port Authority.
Longshore Workers Will Challenge Back-to-Work Legislation in Court
The Montreal Longshore Workers Union (CUPE 375) announced Thursday evening that it would challenge the back-to-work legislation if it passed.
Michel Murray, union representative and spokesman for CUPE 375, said, "We will contest the bill before the courts, and we have already filed a complaint with the International Labour Organization."
Read more in a statement from CUPE.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, April 29, 2021
The strike at the Port of Montreal moved a step closer to ending after members of the House of Commons approved back-to-work legislation early Thursday.
The legislation, Bill C-29, will require longshoremen at the port to return to work immediately after it takes effect. That could come as early as 12:01 a.m. Saturday if the Senate approves the bill on Friday, which is likely.
The 1,150 longshoremen, Canadian Union of Public Employees Local (CUPE) 375, will be prohibited from further strikes until they reach a new collective bargaining agreement with the Maritime Employers Association (MEA).
The longshoremen began a general strike on Monday, which shut down most cargo operations at Canada's second-busiest port. It came less than a year after an 11-day strike, which ended in a truce.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, April 28, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Wednesday, April 28, 2021:
Ottawa Tables Legislation to Send Striking Port of Montreal Workers Back on the Job
Federal Labour Minister Filomena Tassi has tabled back-to-work legislation for the Port of Montreal's 1,150 dock workers, who have been on strike since Monday morning.
The legislation, debated yesterday afternoon, would require employees to return to work after the bill passes. It would also extend their previous collective agreement until a new one is negotiated.
The legislation would also prevent any strikes or lockouts until a new agreement is signed and impose a mediator-arbitrator on both parties if negotiations fail again.
Conservative Leader Erin O'Toole issued a statement, saying his party would support the back-to-work legislation.
"Canada's Conservatives believe that a general strike at an essential port should be avoided during a pandemic for the good of Canadians, port workers of all sectors, and businesses," O'Toole said in the statement.
Read more in an article from CBC News.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, April 26, 2021
On Sunday April 25, the federal government gave notice that it will table back-to-work legislation in response to a dockworkers' strike at Montreal's port that threatens to have widespread economic repercussions across the country.
The Government of Canada issued a Notice Paper indicating that it will introduce a bill entitled "An Act to provide for the resumption and continuation of operations at the Port of Montreal" this morning. The notice identifies a process that will avoid some of the usual legislative steps to ensure a quick response to the labour situation.
While the notice paper is dated for Monday April 26, a government spokesman says the legislation won't come before the House until at least Tuesday and could be shelved altogether if the dockworker's union and the Maritime Employers Association reach a deal before then.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, April 23, 2021
The Longshoremen's Union at the Port of Montreal has given a 72-hour notice to the Maritime Employers Association that as of April 26 at 7:00 a.m. the union will be in a legal strike position.
All work performed by the union members at the port will cease except for Oceanex services protected as essential.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, April 22, 2021
As of April 21, CIFFA is aware of the following developments on the Port of Montreal labour situation.
Last Thursday, April 15, the Maritime Employers Association presented a counter proposal to the Longshoremen's Union. The parties have not met since and nothing is currently scheduled in terms of further negotiations. The union, in accordance with their partial strike decision, did not work over the April 17-18 weekend.
The railways indicate they are operating as planned, but there is a current backlog due to increased imports (from 2 weeks ago) and the past weekend's strike action.
Cargo originating from the U.S. Midwest is in many cases diverting to other ports.
Truck productivity has increased approximately 18% as cargo is moving via road.
Next week is expected to be problematic, with potential for further backlog, as six vessels are scheduled to arrive at the Port of Montreal.
CIFFA members should start to expect congestion and further delays as the union's partial strike continues.
We will update members as further information becomes clear.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, April 13, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, April 13, 2021:
Updates from Both Sides on Port of Montreal Labour Situation
The Maritime Employers Association issued the following notice on Monday.
On Saturday evening, the union executive of the Port of Montreal Longshoremen issued a 72-hour notice of an indefinite strike to the Maritime Employers Association.
The planned pressure tactics, namely the stopping of overtime work, of docking activities, of training and of weekend work, are being presented as a response to the cessation of payment for the hours that are not worked.
This indefinite strike places the Montreal port industry in a precarious situation. This decision by the union will very quickly cause significant congestion and will have a major impact on the fluidity of the logistics chain, therefore undermining the economic recovery in Quebec and Canada.
The MEA is currently evaluating all of its options. We are eager for a speedy settlement and remain ready to continue the negotiations as soon as we are summoned by the mediators.
CUPE Local 375 held a news conference yesterday, in French only. Its main points were as follows:
- Union head Michel Murray said the union was surprised that, after four days of intense negotiations last week, the MEA issued the statement over the weekend of a 72-hour notice to the union of removing the income guarantee and stopping paying the hours that are not worked, in order to mitigate the adverse effects of an 11% volume drop in March, which the union disputes.
- Murray disputed the argument that urgently needed pandemic-related goods are transiting the Port of Montreal and stated that vaccines are transported by air and for the most part via Pearson International Airport.
- Murray noted rising costs to the worldwide transport of containers – and "exploding rates," as well as the profitability of ocean carriers, saying it's not the longshoremen who are causing this rise in costs to industry.
- The union's last contract was put together in 2013 following difficult economic circumstances (evolving after the Great Recession); considering ocean carrier profitability today, the circumstances during negotiation are very different.
- The union says it prefers and has always preferred to return to the negotiating table.
- During the Q&A period at the end of the session, Murray told reporters that manufacturers (industry) use the Port of Montreal because it is cost-effective and the shortest distance from Europe to North America. Instead of writing to elected officials or to the Minister of Labour in Quebec, he said industry should write to the employer (MEA) to ask them to come to the table with their "big boy pants on," and to negotiate properly instead of throwing fuel on the fire and scaring the entire population.
- The union says that, while there may be delays to picking up containers, there won't necessarily be an impact from their action. It's not going to impact Monday-to-Friday pickups.
- The union's two main issues are work-life balance accommodation in the contract and hours of work.
Both sides will meet today with the Federal Mediation and Conciliation Service: the MEA at 10:00 am, the union separately at 2:00 pm.
Further to the above, on Monday April 12, CIFFA sent a letter to Prime Minister Justin Trudeau, urging the government to take steps to ensure the threatening dispute at the Port of Montreal does not hit the Canadian economy.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 30, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, March 30, 2021:
Ships Moving in Suez Canal after Ever Given Freed
Ships were starting to move in the Suez Canal after the dislodging of the giant Ever Given container ship cleared the key trade route for traffic.
There were 437 ships waiting to transit through the waterway, shipping agent GAC said earlier, citing the canal authority. Container shipping company Hapag-Lloyd AG expects the backlog to be cleared within four days.
Although vessel traffic is now moving again, the incident is expected to have an ongoing impact on the already strained container shipping sector for weeks and months to come. The Asia-Europe trade lane will be hardest hit by the congestion, but the impact is anticipated to be felt in North America as well.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, March 26, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Friday, March 26, 2021:
It 'Might Take Weeks' To Free Ship Stuck In Suez Canal, Salvage Company Says
The Suez Canal Authority said in a statement Thursday that it had officially suspended traffic while efforts to dislodge the 1,300-foot Ever Given, stuck crossways in the canal, continued, raising the possibility of major new disruptions to global commerce just as supply chains have begun to recover from the COVID-19 pandemic.
Peter Berdowski, CEO of Dutch company Boskalis, which is trying to free the ship, said "it might take weeks" to get the vessel off, possibly necessitating "a combination of reducing the weight by removing containers, oil and water from the ship, tugboats and dredging of sand."
Meanwhile, shipping traffic is quickly backing up at both ends of the canal, which normally sees about 50 ships transit each day.
Shipping experts said that, if the canal can't be cleared in the next 24 to 48 hours, vessels plying routes between Europe and Asia may be forced to divert around Africa, adding up to 12 days to the journey.
Read more in an article from NPR.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, March 25, 2021
Port of Montreal – Federal Government planning back-to-work Legislation in the event of port strike.
An article in Quebec's La Presse newspaper on March 23rd suggests that the Trudeau government plans to react quickly to any strike action on the part of the longshoremen at the Port of Montreal. Filomena Tassi, the Minister of Labour, is preparing back-to-work legislation in the event a strike is declared. The two parties, the Longshoremen's Union Local 375 and the Maritime Employers' Association, are said to be heading back to the negotiating table this week after the union rejected the employer's so-called "final offer" on Sunday, March 21st. The office of Labour Minister Tassi told the Canadian Press that it is pleased with the parties return to the bargaining table and invites the parties to come to an agreement as soon as possible.
Despite continued negotiations and with the potential of back-to work legislation, the situation at the Port of Montreal continues to deteriorate. As noted previously, CN & CP Rail have extended their embargo on export cargo destined to the port and, at the same time, a shortage of empty railcars has resulted in significant delays in the movement of import containers inland.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 22, 2021
Port of Montreal Longshoremen vote 99.71% against MEA final offer.
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, March 22, 2021:
Longshoremen Vote 99.71% Against MEA Final Offer but Say They Will Ask MEA to Return to Negotiations
The Longshoremen's Union Local 375 held a press conference broadcast on its Facebook page on Sunday, March 21 at 4:00 pm.
After a special meeting of its members during the day on March 21 (from 7:00 am to 3:00 pm), at 3:00 pm, 91% of the union local members voted on the Maritime Employers' Association's final offer, which was presented to the union on March 12.
Of 1,023 total votes, 1,020 members refused the final offer, meaning that 99.71% voted no to the MEA offer.
During the press conference, the union cited hours of work, job security, ocean carrier profitability and the need for the "real decision-makers" to be at the table as issues.
Michel Murray, the CUPE union representative, said that, "Symbolically, the union also voted today to ask the employer to go back to the negotiation table. We intend to call the mediators this evening and our goal is to go back to the negotiation table to work on a collective agreement."
Murray also commented during the press conference that the union is aware of vessels already being diverted through the Port of Halifax even before the end of the truce and that this to them shows the employer is not playing fair.
In a release, the MEA told CIFFA that it acknowledges the employees' vote. MEA said it would have preferred a yes vote to the final job offer, but recognizes the will of the union to pursue further negotiations.
MEA said it is looking at its options and its priority is to have a decision as soon as possible. Beyond this, MEA said it would not comment further.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207
Toronto, March 18, 2021
Due to the ongoing labour negotiations at the Port of Montreal, as of March 16, 2021, CN and CP Rail are no longer accepting reservations for the Toronto – Montreal corridor for ocean export containers. Both carriers have advised they will not begin receiving cargo until a resolution is reached.
In terms of the negotiations, on February 1st, the Maritime Employers Association (MEA) filed a complaint to the Canada Industrial Relations Board (CIRB), alleging that the union had not bargained in good faith, and a CIRB decision was rendered March 17th of no impasse.
The MEA said it acknowledges this decision and said it will follow with the recommendations emanating from the CIRB. At the same time, as mentioned in a previous memo from the Longshoremen's Union, MEA submitted a final offer of settlement last Friday, March 12th. The unionized workers will vote on Sunday, March 21st in a general assembly, during which the port will be closed.
In order to comply with the truce concluded with the Port of Montreal Longshoremen's Union, the Maritime Employers Association said it will not comment on the final offer that was made nor on the ongoing negotiations.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 15, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, March 15, 2021:
"Port of Montreal Labour Dispute
The Freight Management Association of Canada provided the following information.
In a memo, the Canadian Union of Public Employees (CUPE) 375 informed its members on Sunday that the Maritime Employers Association (MEA) issued a final offer to the union late on Friday, March 12.
The union president stresses that this is an offer, not an agreement in principle between the parties. There are no details on the content of the MEA offer.
The memo says the union executive committee will undertake a detailed analysis of the offer and submit it for a vote by the members."
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 3, 2021
The Port of Montreal Longshoremen's Union and the Maritime Employers Association, in collaboration with the Federal Mediation and Conciliation Service, completed another continuous 4-day negotiation period on February 28.
Unfortunately, the parties did not reach an agreement. Mediators have contacted MEA representatives to summon them to a meeting on Friday, March 5. All options are under review and mediators remain ready and available to negotiate, with the priority of reaching a settlement.
In order to comply with the truce negotiated with the Port of Montreal Longshoremen's Union, the Maritime Employers Association will not comment on the ongoing negotiations. This truce will remain in effect until March 21, 2021.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, February 25, 2021
The Quebec Ministry of Transportation has released 2021 "Spring Thaw" dates and zones. These are container weight restrictions imposed every year to protect Quebec highways during the spring thaw.
|
Zone 1 |
Zone 2 |
Zone 3 |
Monday, March 08 (12:01 a.m.) |
Monday, March 15 (12:01 a.m.) |
Monday, March 22 (12:01 a.m.) |
The maximum recommended cargo weight carried during the thaw period is as follows:
| 20’ Std: | 47,900 lbs | |
| 40’ Std/HQ: | 50,000 lbs | |
| 45’ HQ: | 50,000 lbs | |
| 20’ Reefer: | 46,000 lbs | |
| 40’ Reefer: | 48,000 lbs |
The weight restrictions not only apply to the total cargo weight within the container, but also the distribution of weight over the axles of the chassis. If cargo weight is not distributed evenly across all axles, the container could be subject to additional fines.
Please note, these details are guidelines. The dates are subject to change by the Quebec Ministry of Transportation, depending on actual weather conditions. It is advisable that you visit the Ministry's website for complete updated details. We recommend that you ensure your shippers are aware of these cargo weight limits in order to prevent any additional costs/handling once containers arrive in Quebec during the thaw period.
Cargo that is deemed overweight may require the trucker to use extra axles which will incur additional costs.
If you have any questions concerning shipments booked with Universal Logistics and how they may be impacted by the above, please call (905) 882-4880, ext. 1308 Debbie McGuire, Manager – Freight Solutions.
Toronto, February 18, 2021
As the negotiation process is currently suspended and the truce between the dockworkers' union CUPE 375 and the Maritime Employers Association (MEA) draws to a close, the Montreal Port Authority (MPA) hopes that the parties will quickly reach an agreement to avoid a new work stoppage by the dockworkers
Nearly a month before the end of the truce between the employer and the union, scheduled for March 21 at 6:59 am, the MPA has found that several Quebec and Ontario businesses that use the Port of Montreal, including some that move critical cargo to combat COVID-19, are diverting containerized goods to other ports, and that others are planning to do so if a new work stoppage occurs soon.
While diversion to other ports is viewed as a way to bypass issues at the Port of Montreal, as was experienced during the last work stoppage in 2020, these ports of diversion became quickly overwhelmed and cargo movement stagnated. Coupled with this is the fact that existing liner service to such ports is at capacity at the moment, so the options of diverting to these ports will be limited.
This situation could result in major delays in the supply chain and higher freight costs, as the economic recovery and a broader reopening of the retail sector in Quebec and Ontario get under way.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, February 10, 2021
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Wednesday, February 10, 2021:
"Update on Labour Negotiations between Port of Montreal Longshoremen's Union and Maritime Employers Association
CIFFA has learned the following details about ongoing negotiations between the Port of Montreal Longshoremen's Union and the Maritime Employers Association.
Both parties have received a letter from the Federal Minister of Labour asking for 14 days of blitz negotiations.
The federal government has hired Peter Simpson as mediator.
CIFFA understands that there have been three days of meetings between the parties and the new mediators – February 6th, 7th and 8th.
While the priority remains a signed collective agreement before the end of the truce on March 21st, in order to comply with the truce concluded on August 21st, 2020, the parties involved cannot comment on the negotiations."
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, January 14, 2021
Your chances of being selected by the Canada Border Services Agency (CBSA) for trade compliance verification are higher if you import products on the following list of priorities, updated this month.
The latest semi-annual list identifies products that are of concern which, due to misclassification, have led to a loss of revenue for the CBSA. Non-compliant companies will have to pay retroactive duties and, potentially, Administrative Monetary Penalties.
All items on the list have appeared on previous lists for which new rounds have been implemented and no new products have been added. Examples of items on the list:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, January 13, 2021
Major rail providers in the Greater Toronto Area are experiencing high levels of volume and congestion at their local yards. The main concern at this point is the return of empty import containers, returned to terminals after unloading.
As the main terminals in Toronto reached capacity, secondary depots have had empty containers redirected to their yards. These depots are now reaching maximum capacity, resulting in longer wait times or the inability to accept empty import returns until space becomes available. In many cases empty containers are being held at truck carrier terminals, awaiting a return time to become available. As a result, extra costs related to chassis detention and yard storage, as billed by truck carriers, are being incurred.
We will continue to monitor this situation and advise accordingly.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, January 8, 2021
North American importers are facing unprecedented increases to the cost of freight in an effort to secure space for their shipments from China. Currently, all January space is fully booked no matter what the routing (via East Coast or West Coast). Carriers are reducing space capacity for general Rate / FAK cargo to accommodate premium space in order to increase their revenue. The cost for premium space is between USD 2,000 – 3,000 over the FAK rate. Many importers are begrudgingly paying this premium, as it guarantees space and equipment and enables them to get their freight moving.
Many experts are advising that after Chinese New Year, equipment will still be the problem and that we could be encountering this shortage until mid-2021. The equipment problem throughout Asia is so bad that some carriers in North America are not accepting export bookings, and are instead using their vessels to backhaul empty containers to China. In the current market situation, space and equipment has become the primary focus, with rates being tertiary.
We suggest that clients provide more lead time when placing orders with vendors, and to budget for additional costs as freight rates will not alleviate until possibly May.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, December 29, 2020
Effective January 1, 2021, importers of qualifying goods into Canada may cite the United Kingdom Trade Continuity Remission Order, 2021 #20-1135, in order to benefit from remission of duties.
The United Kingdom Trade Continuity Remission Order (the Order) provides the tariff benefits of the Canada-United Kingdom Trade Continuity Agreement (CUKTCA) as if it were in force as of January 1, 2021. It does so by remitting the difference between the Most-Favoured-Nation Tariff rate of customs duty and the rate of customs duty that would apply under the Comprehensive Economic and Trade Agreement (CETA). This replicates the tariff benefits that would have applied to eligible imports from the United Kingdom (UK) and certain associated territories under the CUKTCA as the tariffs and rules of origin are equivalent under the two agreements. The CETA is referenced because those preferential tariffs and rules of origin already exist in domestic law and the new CUKTCA agreement will mirror the CETA Rules of Origin.
This remission applies to goods imported on or after January 1, 2021, until the day on which the CUKTCA enters into force.
Importers should obtain documentation from UK exporters to identify goods meet the current CETA Rules of Origin in order for the remission order to apply for reduced duty at time of import to Canada after January 1, 2021.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, December 21, 2020
The Canada-U.S. border closure has once again been extended, to non-essential travel, for another 30 days and is now set to expire on January 21, 2021.
Prime Minister Justin Trudeau said "It will be a real shame to open things too quickly and see vulnerabilities, so I'm going to be very, very cautious when it comes to keeping Canadians safe, even if there's lots of pressure to allow international travel again,". On December 1, Trudeau said the ban on nonessential travel with the United States will not be lifted until COVID-19 is significantly more under control around the world.
Supply chains, including trucking, are not impacted by this measure and the movement of commercial goods across the border is unaffected. "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.
On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms. This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:
Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people. For example, this exemption would apply to:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, December 18, 2020
All Canadian offices of Universal Logistics will be closed from 2:00 p.m. Thursday, December 24th through to Monday, December 26th. Normal business hours will resume on Tuesday, December 29th from 8:30 a.m. to 5:00 p.m.
We will also be closed on Friday, January 1st and will resume normal business hours on Monday, January 4, 2021.
If, during this holiday period you require immediate assistance regarding a Canadian Customs Clearance matter please call (905) 882-4880, ext. 1214 to reach Universal Logistics after hours. For PARS tracking please visit our Website to utilize our PARS tracker.
Universal Logistics USA, Buffalo, New York will be closed from 1:00 pm on Thursday, December 24th and our office will also be closed on Friday, December 25th. Normal business hours will resume on Saturday, December 26th from 7:00 a.m. to 12:00 midnight.
On Thursday, December 31st, we will close at 5:00 p.m. and our office will also be closed on Friday, January 1st. We will resume normal business hours on Saturday, January 2, 2021.
If, during this holiday period, you require immediate assistance regarding a U.S. Customs Clearance matter please call (800) 767-8525 to reach Universal Logistics USA Inc. after hours. For PAPS tracking please visit our Website to utilize our PAPS Tracker.
Universal Logistics USA, Cleveland, Ohio will be closed from 2:00 p.m. Thursday, December 24th and our office will also be closed on Friday, December 25th. Normal business hours will resume on Monday, December 28th from 7:30 a.m. to 5:00 p.m.
We will also be closed on Friday, January 1st and will resume normal business hours on Monday, January 4, 2021.
Season's Greetings from
Universal Logistics &
Universal Logistics USA!
Toronto, December 17, 2020
Due to the COVID-19 quarantine requirements for ships crews on the feeder service running between South China and Hong Kong, ocean carriers will suspend these feeder services from mid-January until the end of February. This is going to affect all cargo going to or sailing from the Pearl River Delta (PRD) Region of China (Dongguan, Guangzhou, Huangpu, Huizhou, Foshan, Zhongshan, Zhuhai, Xiamen, Fuzhou, etc.). The PRD ports use feeder services to connect with mother vessels departing from Yantian/Shekou and Nansha to Canada and the USA.
During the period from mid-January to end of February, the feeder service from the PRD ports will be suspended. If you have a shipment during this time frame which originates in one of the PRD ports, please contact us to discuss your options.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, November 23, 2020
Canada and the United Kingdom (U.K.) struck a transitional trade deal on Saturday, November 21, 2020, to protect the flow of goods, once Brexit takes place January 1, 2021, when the U.K. is no longer part of the European Union benefiting from the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).
The new deal, Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA), is an interim measure that will be in place as Canada and the U.K. work towards negotiating a comprehensive bilateral free trade agreement over the next year.
As CETA will no longer apply to the U.K. beginning January 1, 2021, this new agreement will provide continued access to the benefits of CETA on a bilateral basis, including the elimination of tariffs on 98% of Canadian products exported to the U.K.. This will provide a competitive edge to Canadian exporters and businesses who will maintain preferential access to the U.K. market, even as the country exits the EU.
It is likely the new transitional deal will require valid CETA Origin Declarations for 2021. More information will be provided as it becomes available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, November 12, 2020
Container shortages, space constraints and port/terminal issues have been plaguing importers from Asia since September, and are continuing to worsen. Sources say that container shortages at the ports of Xiamen, Ningbo, and Shanghai, are so serious that some vessels are leaving Asia without full loads as there is not enough equipment to be found. Not only is equipment an issue, but getting space is equally as challenging. Many carriers have their space full through to the second week of December.
This issue coupled with weather related problems at load ports throughout Asia have disrupted container schedules causing complications and delays at Canadian ports. The ports of Vancouver and Prince Rupert are expected to be dealing with vessel delays and longer container dwell time through to the end of the year. Container dwell time is the average number of days it takes for the container to load to rail once discharged from the vessel. We are also seeing delays at the Port of Montreal and to a lesser extent in Halifax, as well as congestion issues at destination rail terminals, most notably Toronto which receives a high amount of import volume cargo destined to Canada.
We urge clients to be prepared for delays and allow for longer transit times than normal for their orders to arrive.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, October 22, 2020
The Canada-U.S. border closure has once again been extended, to non-essential travel, for another 30 days and is now set to expire on November 21, 2020.
Prime Minister Justin Trudeau said “We will continue to make sure that Canadian safety is top of mind when we move forward. We see the cases in the United States and elsewhere around the world, and we need to continue to keep these border controls in place” during an interview with a radio station in Winnipeg, Manitoba.
Supply chains, including trucking, are not impacted by this measure and the movement of commercial goods across the border is unaffected. "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.
On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms. This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:
Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people. For example, this exemption would apply to:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, October 2, 2020
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, October 1, 2020:
"Following the strike by dockworkers that paralyzed operations at the Port of Montreal in August and September, Resilience360 research indicates that major ports on both the west and east coasts of Canada continue to experience disruption ranging from port congestion to rail car shortages.
"While the strike ended more than four weeks ago, ocean- and rail-dependent supply chain operations across Canada are unlikely to fully normalize before November 2020," says Neža Kričaj, Supply Chain Risk Analyst, Resilience360.
Read more in an article from Logistics Management."
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, September 16, 2020
The U.S. Trade Representative's office announced September 15, 2020 it will not proceed with the 10% tariff on Canadian origin aluminum, for which Canada was ready to implement retaliatory countermeasure tariffs effective September 16, 2020.
A statement from the USTR said after "consultations with the Canadian government, the United States has determined that trade in non-alloyed, unwrought aluminum is likely to normalize in the last four months of 2020, with imports declining sharply from the surges experienced earlier in the year." The announcement also stated, "Six weeks after the end of any month during this period, the United States will determine whether actual shipments met expectations. If actual shipments exceeded 105 percent of the expected volume for any month during the four-month period, then the United States will impose the 10 percent tariff retroactively on all shipments made in that month." Expected monthly volumes are laid out in the statement.
Based on this announcement, the corresponding Canadian retaliatory countermeasure tariffs will not be imposed at this time.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 26, 2020
Canadian ports on the East and West Coast of Canada are dealing with cargo backlogs, which are delaying the movement of shipments inland. The recent strike at the Port of Montreal has created a severe backlog of containers at both Halifax and Montreal, the two main ports of arrival in Eastern Canada. At the same time, ports on the West Coast of Canada are dealing with high levels of import volume, resulting in cargo movement delays.
It is expected it will take some time to clear the volume at these ports.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, August 21, 2020
The striking longshoremen at the Port of Montreal have reached an agreement Friday with the MEA to end an 11-day-old strike and to resume work at the port. Exact details on when the work will restart is yet to be confirmed.
Carriers are currently reviewing current vessel operations and making the necessary adjustments in light of this news, and we will communicate the details as soon as they are available.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, August 18, 2020
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, August 18, 2020:
Quebec and Ontario Governments Send Letter to Ottawa over Port of Montreal Strike
The Quebec and Ontario governments sent a joint letter to the federal government asking it to "exercise its leadership" regarding the general unlimited strike among the Port of Montreal longshore workers that began last week.
Ottawa must continue its efforts "aimed at promoting dialogue between the parties so that they can quickly reach a negotiated agreement," said Labour Minister Jean Boulet, Economics Minister Pierre Fitzgibbon and their Ontario counterparts, Monte McNaughton and Victor Fedeli.
In their letter to the federal Labour Minister Filomena Tassi and the Minister of Innovation, Science and Industry, Navdeep Bains, the ministers say they are "concerned" by the labour dispute's effects on the economic supply chain of Quebec, Ontario and eastern Canada.
Read more in an article from CTV News.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, August 17, 2020
Public Safety Minister Bill Blair tweeted Friday, August 14, 2020, “We are extending the reciprocal restrictions at the Canada-US border for another 30 days, till Sept. 21, 2020. We will continue to do what’s necessary to keep our communities safe”. The mutual agreement, which was introduced in March to help stop the spread of COVID-19, was set to expire on August 21, 2020.
Supply chains, including trucking, are not impacted by this measure and the movement of commercial goods across the border is unaffected. “Non-essential” travel pertains to travel that is considered tourism or recreational in nature.
On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms. This 14-day self-isolation does not pertain to trans-border truck drivers, and the full exceptions are:
Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people. For example, this exemption would apply to:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 14, 2020
Since July, rates on the Trans-Pacific trade lane from Asia to North America have increased substantially due to strong consumer demand. We have seen volumes rise steadily, even with the reinstatement of void sailings which had enabled the lines to keep rates stable while demand was low during the early months of Coronavirus (COVID-19).
The steamship lines have announced GRIs (General Rate Increases) for August 15, September 1 and September 15. Many analysts contribute this high demand to shippers who are moving as much cargo as possible ahead of the holiday season, in anticipation that COVID outbreaks may prompt more lockdowns later this quarter.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, August 13, 2020
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, August 13, 2020:
Ottawa Won't Intervene to End Strike at Port of Montreal, Says Labour Minister
Canada's labour minister has rejected requests to intervene in a strike launched Monday by Port of Montreal workers.
"We have faith in the collective bargaining process, as we know the best deals are made at the table," Filomena Tassi said in a statement.
"Our government's clear expectation is for both parties to work together to resolve their differences quickly. We will be monitoring the situation closely, and looking into how to support the ongoing mediation efforts."
Read more in an article from Global News.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, August 12, 2020
Effective September 25, 2020, goods produced in Hong Kong may no longer be marked to indicate their origin as Hong Kong, but must be marked to indicate China. This change from U.S. Customs and Border Patrol (CBP), published in the Federal Register August 11, 2020, is due to a determination by the U.S. that Hong Kong is no longer sufficiently autonomous and will, therefore, be subject to the same requirements as China.
These goods will also be subject to the additional China Tariff (where applicable), based on the origin change requirement upon entry to the U.S..
At this time it is not known whether Canada will assume the same position with respect to Hong Kong. Where goods are produced in Hong Kong for multiple markets, the origin marking must adhere to regulations of the country of import.
We will provide details as they are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 10, 2020
As a result of the ongoing strike at the Port of Montreal, several carriers have diverted vessels to other ports of arrival such as Halifax, New York City and Saint John, N.B.. In doing so, these carriers are applying additional costs to offset the difference in landed fees between Montreal and the revised port of arrival.
The situation is very fluid. In some cases vessels have been diverted on route, resulting in these additional costs being applied with little warning.
Aside from this, some carriers are offering an option to route containers via other ports prior to shipping. In these cases the costs will be confirmed prior to departure.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, August 7, 2020
In response to yesterday’s measures by the U.S. to impose a 10% tariff on Canadian aluminum, the Government of Canada is seeking comments on a proposed list of 10% countermeasure tariffs to take effect by September 16, 2020.
The countermeasures will apply only to goods originating from the U.S., which shall be considered as those goods eligible to be marked as a good of the U.S. in accordance with the Determination of Country of Origin for the Purposes of Marking Goods (CUSMA Countries) Regulations. Once implemented, the countermeasures will remain in place until the U.S. eliminates its tariffs against Canada. The countermeasures will not apply to U.S. goods that are in transit to Canada on the day on which they come into force.
Written comments should be provided no later than September 6, 2020. Submissions, at a minimum, should include the following information:
All comments and general inquiries should be sent to the following email address: fin.tariff-tarif.fin@canada.ca. Only submissions by email will be accepted. Please include the term “Aluminum countermeasures” in the subject line of your submission.
We will provide updates as details are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 7, 2020
The Canadian Union of Public Employees (CUPE), representing dock workers at the Port of Montreal, says it will launch an indefinite strike without an end date starting Monday, August 10th.
The move expands the pair of four-day strikes by CUPE that have diverted several ships to ports in Halifax, New York City and Saint John, N.B.. The announcement by CUPE follows escalating tensions between the union and the Maritime Employers Association amid a labour action revolving around wages and scheduling.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, August 7, 2020
The United States once again imposed a tariff on Canadian aluminum to take effect August 16, 2020. The 10% tariff will apply to non-alloyed unwrought aluminum of HS tariff classification 7601.10.
Following is an excerpt from the Presidential Proclamation on Adjusting Imports of Aluminum into the United States:
(5) Any imports of non-alloyed unwrought aluminum articles from Canada provided for in subheading 7601.10 that were admitted into a United States foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41 prior to 12:01 a.m. eastern daylight time on August 16, 2020, shall be subject upon entry for consumption on or after such time and date to the 10 percent ad valorem rate of duty imposed by Proclamation 9704, as amended.
The Proclamation also confirms no drawback will be available for these goods upon export from the United States:
(7) No drawback shall be available with respect to the duties imposed pursuant to this proclamation.
In a statement issued by Deputy Prime Minister of Canada, Chrystia Freeland, she said, “In response to the American tariffs, Canada intends to swiftly impose dollar-for-dollar countermeasures.”
We will provide updates as details are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, July 31, 2020
This morning, the Maritime Employers Association (MEA) received a 72-hour strike notice from the Canadian Union of Public Employees (CUPE) Local 375 informing them of a strike at Termont (Montreal) beginning Monday August 3, at 7:00 am until Friday August 7, at 06:59 am, a period of four days.
The strike will target operations at Termont's two terminals, Viau and Maisonneuve.
This action follows previous work stoppages this week at the Port of Montreal, initiated by CUPE Local 375 as well as the International Longshoremen's Association (ILA) Local 1657.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, July 28, 2020
The Canada Border Services Agency (CBSA) has announced that the Single Window Initiative (SWI), scheduled to become mandatory as of April 1, 2020 but delayed due to the COVID-19 pandemic, will become effective August 17, 2020.
As of this date, the existing OGD PARS and RMD service options will be decommissioned and any import declarations submitted via OGD PARS and RMD will be rejected.
CBSA created the SWI in order to electronically communicate with Participating Government Agencies (PGAs) to better identify goods with import requirements, and exchange that information with the PGA at time of release.
Universal Logistics has continued to use SWI for all PGA release requests since October 2018, however, because the program was not mandatory during that period CBSA did not require complete information for all areas. Effective August 17, 2020 importers will be required to provide all required information at time of import.
As noted in our February 2020 issue of Route, additional fees will be implemented once SWI becomes mandatory.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, July 24, 2020
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Friday, July 24, 2020:
"72-Hour Strike to Begin July 27 at Port of Montreal
The Maritime Employers Association has announced that the longshoremen's union will apply pressure tactics via a 72-hour general strike that will take place at the Port of Montreal next week, from July 27 to July 31, ending at 6:59 on July 31.
All terminals will be affected except for Oceanex services and the grain terminals.
No employees will post for new jobs and training will be blocked during this action.
The MEA noted it was surprised and disappointed by the notice.
Negotiations will continue today and the MEA is hopeful there will be further confirmed bargaining dates next week."
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, July 16, 2020
If you are a food business, a Safe Food for Canadians Regulations (SFCR) Licence may now be required (with certain exceptions) to import food into Canada.
The SFCR came into force January 15, 2019, with a phased in approach based upon food commodity, type of activity and business size. After the initial January 2019 implementation, the next phases are July 15, 2020 (most importers) and July 16, 2021 (for companies with annual food sales of $100,000 or less or that have 4 or less employees).
Most businesses will require a licence effective July 15, 2020. In order to apply for a SFCR licence, businesses will need to attest that they have preventive controls in place.
The timelines for complying with licensing, preventive controls, preventive control plan and traceability requirements vary by food, activity and size of the food business. For information relevant to your food business, select the SFCR timelines that apply to you from the list below:
Food businesses must enrol at My CFIA to apply for a licence. The Canadian Food Inspection Agency (CFIA) will not accept SFCR licence applications sent by email or fax. Once your application is submitted, CFIA will generally issue a licence in approximately 15 days.
The CFIA has also created an advanced search tool called the Guidance Finder, which lets users find information about SFCR requirements by specifying activity type, food commodity, method of production and document type, along with interactive tools and timelines.
Although the CFIA announced on April 7, 2020 that due to COVID-19 they would not be prioritizing compliance activities for SFCR, they have not yet determined a firm date by which imported shipments will be rejected without a valid SFCR Licence. CFIA are recommending all importers (where required) obtain their SFCR Licence in order to avoid delays once the regulations are enforced.
For more information about the Safe Food for Canadians Regulations, visit inspection.gc.ca/safefood or call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, July 9, 2020
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, July 9, 2020:
"Port of Montreal Labour Negotiations Update
After five days of intensive negotiations, the Maritime Employers Association and CUPE 375 agreed to a break and to resume talks on Monday, July 13. The negotiations process went well, with the help of a mediator.
There will be no work stoppage this week. The two sides are focused on reaching an agreement."
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, June 30, 2020
The union representing longshoremen at the Port of Montreal confirmed Tuesday that some of its members will strike later this week. The strike is being carried out as part of the negotiations for the renewal of the longshoremen's collective agreement with the Port, which expired December 31, 2018.
The 1,125 longshoremen, members of the Canadian Union of Public Employees, have been engaged in ongoing labour negotiations with the Maritime Employers Association (MEA). These negotiations resumed recently after a ruling by the Canada Industrial Relations Board to deny the MEA request to designate port services as essential services.
The strike is expected to last from Thursday, July 2 at 3:00 p.m. until Saturday, July 4 at 6:59 a.m.. It will mainly affect union members who work at the two Montreal Gateway Terminals (MGT) at the Port of Montreal.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, June 5, 2020
On July 1, 2020, the new CUSMA/USMCA/T-MEC agreement will replace the existing NAFTA free trade agreement for imports into Canada, USA and Mexico.
In order to continue to benefit from duty free entry, of qualifying goods, existing Blanket NAFTA Certificates of Origin must be replaced with valid Blanket Certifications for the period of July 1, 2020 – December 31, 2020.
It’s important to remember the new agreement isn’t just a name change, the Rules of Origin have changed for many commodities.
Not sure where to start? We can review your existing NAFTA Certificates with the new Rules of Origin to determine if your products still qualify. Furthermore, we can also assist with preparation of the new Blanket Certification, and contact your vendors directly, so you’re ready for July 1, 2020. Contact Universal Logistics for a quote.
Proof of Origin Requirements
Importers should obtain valid Blanket Certifications of Origin under the new regulations, or ensure exporters are prepared to include the applicable 9 data elements on shipping documents as outlined in the Origin Procedures Annex 5-A:
The Certification must be signed and dated by the Certifier and accompanied by the following statement:
“I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification.”
Although the new agreement does not have a formal Blanket Certification form, Universal Logistics has prepared a template for your use:
For detailed information on the new agreement:
For more information or to engage Universal’s full CUSMA/USMCA/T-MEC Management Service, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, May 28, 2020
On May 7, 2020 we advised that the Government of Canada waived tariffs on a vast array of Personal Protective Equipment (PPE) and medical goods to provide relief during the COVID-19 crisis. Both the Canada Border Services Agency (CBSA) and the Department of Finance have now confirmed this relief goes well beyond the intended PPE and, in fact, includes all imported goods falling within the stated HS tariff classifications.
Remission of duty is temporarily granted for classifications listed in the Certain Goods Remission Order (COVID-19) SOR-2020-101, under the following conditions:
| a) | the good was imported into Canada on or after May 5, 2020 and subject to customs duties; | |
| b) | no other claim for relief of the customs duties has been granted under the Customs Tariff in respect of the good; | |
| c) | the importer files, on request, the evidence or information that the Canada Border Services Agency requires to determine eligibility for remission; | |
| d) | the importer agrees that it is subject, at any time, including after remission relief is provided, to review by the Canada Border Services Agency for the purpose of determining whether the information supplied by the importer under paragraph (c) is accurate and complete and whether the facts on which the Canada Border Services Agency relied or intends to rely to determine the eligibility for remission remain unchanged in all material respects; and | |
| e) | at the time when the Canada Border Services Agency conducts the review referred to in paragraph (d), the Canada Border Services Agency must be able to conclude that the information supplied remains accurate and complete and that the facts remain unchanged in all material respects. |
As the validity of the remission relies on the importer to prove the declared classification is correct upon request by CBSA, we would recommend obtaining Binding Rulings, where applicable, in order to avoid potential re-assessment of duty and associated penalties.
Contact us if you would like to ensure the benefits of this duty-free Remission Order are applied to your qualifying imports, and Universal Logistics will request Binding Rulings from the CBSA on your behalf (Consulting fees will apply).
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, May 19, 2020
Prime Minister Justin Trudeau stated today during his daily COVID-19 update that Canada and the U.S. had come to an agreement to further extend the border closure to non-essential travel by another 30 days. The mutual agreement, initially put in place in March and extended in April, was set to expire May 21, 2020, but has now been extended until June 21, 2020.
Supply chains, including trucking, are not impacted by this measure and the movement of commercial goods across the border is unaffected. “Non-essential” travel pertains to travel that is considered tourism or recreational in nature.
On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms. This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:
Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people. For example, this exemption would apply to:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, May 7, 2020
To provide further relief during the COVID-19 crisis, the Government of Canada is waiving tariffs on certain medical goods and Personal Protective Equipment (PPE), imported on or after May 5, 2020. Following are the product categories eligible for relief:In the News release, Finance Minister Bill Morneau announced the action is to keep Canadians safe by further ensuring access to Personal Protective Equipment and other necessary medical equipment. This tariff relief will reduce the cost of necessary supplies for Canadian businesses, which face tariffs of up to 18 per cent in some instances, help protect workers and ensure our supply chains can keep functioning well. Mr. Morneau stated, “Our first priority is the health and safety of Canadian Businesses. By removing financial barriers, we’re making sure Canadians and Canadian businesses can access the critical medical goods they need during the COVID-19 crisis. Our government remains focused on making sure workers have the protective equipment they need, that our supply chains continue to work well, and that Canadians remain safe and healthy.”
Tariff relief for these goods will remain in place for as long as necessary to deal with the COVID-19 crisis.
The Canada Border Services Agency (CBSA) issued Customs Notice 20-19 “Certain Goods Remission Order (COVID-19)”, to outline the additional tariff relief to importers of eligible goods (list reproduced below) on or after May 5, 2020. This remission of duty does not apply to goods imported prior to May 5, 2020.
All imports utilizing this remission order for relief of customs duties must also include all relevant documents (e.g. copy of original Form B3-3, bill of lading, sales invoice, waybill, sales contract, etc.) that demonstrate that the imported good matches the list of goods in Appendix A, was imported into Canada on or after May 5, 2020, and is subject to customs duties.
Remission is granted under the following conditions:
a) the good was imported into Canada on or after May 5, 2020 and subject to customs duties;
b) no other claim for relief of the customs duties has been granted under the Customs Tariff in respect of the good;
c) the importer files, on request, the evidence or information that the Canada Border Services Agency requires to determine eligibility for remission;
d) the importer agrees that it is subject, at any time, including after remission relief is provided, to review by the Canada Border Services Agency for the purpose of determining whether the information supplied by the importer under paragraph (c) is accurate and complete and whether the facts on which the Canada Border Services Agency relied or intends to rely to determine the eligibility for remission remain unchanged in all material respects; and
e) at the time when the Canada Border Services Agency conducts the review referred to in paragraph (d), the Canada Border Services Agency must be able to conclude that the information supplied remains accurate and complete and that the facts remain unchanged in all material respects.
Examinations and Verifications
Importations may be subject to examination at the time of importation and to post-release verification for compliance with the Tariff Classification, Valuation, Origin and Marking programs, and any other applicable programs or provisions administered by the CBSA. If non-compliance is encountered by the CBSA, in addition to assessments of any applicable customs duties and taxes, penalties may be imposed and interest will be assessed, where applicable.
Following is the list with description of goods, based on tariff classification, which are eligible for relief under this Order.
Goods eligible for relief under the Certain Goods Remission Order (COVID-19)
*The descriptions below are for illustrative purposes only. Customs duty relief is applicable to all goods under these tariff items.
| Tariff Item | Description* |
Face and eye protection |
|
3926.90.99 |
Plastic face-masks, without mechanical parts, with or without a replaceable non-woven filter |
6307.90.99 |
Face-masks of other textile materials |
Gloves |
|
3926.20.91 |
Other disposable plastic gloves |
3926.20.92 |
Non-disposable plastic gloves |
4015.11.00 |
Surgical rubber gloves |
4015.19.90 |
Other rubber gloves |
6116.10.00 |
Knitted or crocheted gloves which have been impregnated, coated or covered with plastics or rubber |
6216.00.00 |
Textile work gloves that are not knitted or crocheted |
Protective Garments and the Like |
|
3926.20.93 |
Other articles of apparel and clothing accessories, of plastics, containing not more than 25% by weight of woven fabrics of man-made fibres, coated on both sides with polymers of vinyl chloride |
3926.20.94 |
Other articles of apparel and clothing accessories, of plastics, combined with knitted or woven fabrics, bolducs, nonwovens or felt, containing woven fabrics of more than 50% by weight of silk |
3926.20.95 |
Other articles of apparel and clothing accessories, of plastics, combined with knitted or woven fabrics, bolducs, nonwovens or felt |
3926.20.99 |
Other articles of apparel and clothing accessories, of plastics |
4015.90.90 |
Other garments made of rubber sheeting |
6113.00.90 |
Other garments, made up of knitted or crocheted fabrics of heading 59.03, 59.06 or 59.07 |
6114.20.00 |
Other garments, knitted or crocheted, of cotton |
6114.30.00 |
Other garments, knitted or crocheted, of man-made fibres |
6114.90.00 |
Other garments, knitted or crocheted, of other textile materials |
6210.10.90 |
Other garments made up of felt or nonwovens whether or not impregnated, coated, covered or laminated (fabrics of heading 56.02 or 56.03) |
6210.40.90 |
Other men’s or boys’ garments of woven fabrics that are impregnated, coated, covered or laminated (fabrics of headings 59.03, 59.06 or 59.07) |
6210.50.90 |
Other women’s or girls’ garments of woven fabrics that are impregnated, coated, covered or laminated (fabrics of headings 59.03, 59.06 or 59.07). This includes unisex garments. |
6211.32.00 |
Coveralls (men's or boys' - of cotton) |
6211.33.00 |
Coveralls (men's or boys' - of man-made fibres) |
6211.39.90 |
Other garments (men's or boys' - of other textile materials) |
6211.42.00 |
Other garments of cotton (women's or girls') |
6211.43.90 |
Other garments of man-made fibres (women's or girls') |
6211.49.99 |
Other garments of other textile materials (women's or girls’) |
6217.10.00 |
Other made up clothing accessories |
6505.00.10 |
Hair-nets |
Disinfectants / Sterilization products |
|
2208.90.29 |
Alcohol solution - undenatured, 75% ethyl alcohol |
3808.94.10 |
Hand sanitizer, in liquid or gel form, or rubs and wipes impregnated with alcohol or other disinfectants, if in packages <1.36 kg each; Other disinfectant preparations put up in forms or packings for retail sale in packages <1.36 kg each, containing alcohol, benzalkonium chloride solution or peroxyacids, or other disinfectants such as hydrogen peroxide. This includes sodium dichloroisocyanurate (NaDCC) and calcium hypochlorite (65-70% active chlorine). |
Wipes |
|
6307.10.10 |
Industrial shop towels, hemmed, of a width of 43 cm or more but not exceeding 56 cm and a length of 43 cm or more but not exceeding 61 cm, of unbleached woven fabrics solely of cotton or of cotton and man-made fibres, measuring per single yarn 420 decitex to 1,000 decitex and having not less than 78 yarns but not more than 133 yarns per 10 cm in the warp and not less than 78 yarns but not more than 137 yarns per 10 cm in the weft, of a weight of 135 g/m2 or more but not exceeding 203 g/m2 |
6307.10.90 |
Other floor-cloths, dish-cloths, dusters and similar cleaning cloths |
Medical Consumables |
|
3926.90.99 |
Plastic urine bags, with outlet tap and non-return valve |
6307.90.93 |
Other made up articles of textile (swabs), of cotton or other vegetable textile fibres, except solely of jute |
6307.90.99 |
Other made up articles of textile (swabs), of other textile materials |
Other Products |
|
3401.11.90 |
Soap (in bar form) |
3401.20.90 |
Soap (in liquid, powder or other forms) |
3401.30.00 |
Organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap |
3923.21.90 |
Sacks and bags (including cones), of polymers of ethylene |
7324.90.00 |
Sanitary ware, Kidney basins (stainless steel) |
For more information please visit our web site for Coronavirus (COVID-19) Alerts along with COVID-19 trade related FAQs.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, May 1, 2020
The U.S. Department of Commerce is requesting public comments on the establishment of an Aluminum Import Monitoring and Analysis (AIM) system.
A Proposed Rule was published in the U.S. Federal Register on Wednesday, April 29 seeking comments by May 29. The new system would replicate the current Steel Monitoring system which requires an import license to be obtained and the license number stated on the import CF7501 customs entry.
This rule, if implemented, would require importers, or their customs broker, to obtain the required license prior to import (up to 60 days in advance of shipment) for aluminum falling under one of the following HTS codes: 7601, 7604, 7605, 7606, 7607, 7608, 7609, 7616.99.51.60, and 7616.99.51.70. These are the same HS classifications which are subject to the additional 10% Aluminum Tariff (Section 232) upon import to the U.S..
An import license will not be required on informal entries of aluminum products, such as merchandise valued at less than $2,500. For shipments containing less than $5,000 worth of aluminum, applicants can apply for a reusable Low-Value License instead of obtaining a single-entry license for each import.
Following is additional information, along with the required data needed, to obtain the import license:
(a) In general. Aluminum import licenses will be issued to registered importers, customs brokers or their agents through an automatic aluminum import licensing system. The licenses will be issued automatically after the completion of the form.
(b) Customs entry number. Filers are not required to report a Customs entry number to obtain an import license but are encouraged to do so if the Customs entry number is known at the time of filing for the license.
(c) Information required to obtain an import license. (1) The following information is required to be reported in order to obtain an import license (if using the automatic licensing system, some of this information will be provided automatically from Start Printed Page 23753information submitted as part of the registration process):
(i) Filer company name and address;
(ii) Filer contact name, phone number, fax number and email address;
(iii) Entry type (i.e., Consumption, FTZ);
(iv) Importer name;
(v) Exporter name;
(vi) Manufacturer name (filer may state "unknown");
(vii) Country of origin;
(viii) Country of exportation;
(ix) Expected date of export;
(x) Expected date of import;
(xi) Expected port of entry;
(xii) Current HTS number (from Chapter 76);
(xiii) Country where aluminum was smelted and poured;
(xiv) Quantity (in kilograms) and
(xv) Customs value (U.S. $).
You may submit comments through the Federal eRulemaking Portal at https://www.Regulations.gov, Docket ITA-2020-200408-0103. Comments may also be submitted by mail or hand delivery/courier, addressed to Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance, Room 1870, Department of Commerce, 1401 Constitution Ave. NW Washington, DC 20230.
As with the existing Steel Import Monitoring, should the Aluminum Import Monitoring become effective, Universal Logistics may obtain the required license needed for our clients, as required.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, April 28, 2020
As the Coronavirus (COVID-19) outbreak continues to evolve, Universal Logistics is doing everything we can to support our clients and to keep you informed of the ever changing business environment and how it is impacting our industry.
The following information has been gathered by mode of transport from news sources as of Tuesday, April 28, 2020:
COVID-19 – Universal Logistics Fully Operational
Further to the recent Canadian and U.S. government announcements regarding non-essential business closures, supply chain support services (transportation/distribution/logistics) have been declared essential services/businesses in the Canadian Provinces and U.S. States where we operate our own offices (Ontario, Quebec, New York and Ohio). As such, Universal Logistics Canada and Universal Logistics USA will continue to be in full operation.
BORDER UPDATES:
China Crackdown on Shoddy PPE Exports Pushing Air Cargo Rates Even Higher (Ciffa, April 28, 2020)
A Beijing crackdown on shoddy medical exports has led to surging air cargo costs and congestion in South China.
Following widespread complaints of defective personal protective equipment (PPE), the Chinese authorities have tightened quality controls and increased customs inspections.
“In Shanghai, customs brokers have raised rates for export clearance by up to six times, due to extra paperwork and processing time,” according to Norman Global Logistics.
The company said: “So far this is impacting the Hong Kong, Guangzhou and Shenzhen regions, but we expect it to happen in the rest of the country, as at least 90% of all medical cargo will require customs inspection.”
Canada-U.S. Border Closed to Non-Essential Travel; Trade Will Keep Moving
The closure of the Canada-U.S. border to non-essential travel has been extended to May 20, 2020. All persons seeking entry into Canada for the purpose of commerce, trade, economic services and supply chains are being processed. This travel is essential and is not to be restricted.
Non-essential travel includes, but is not limited to: tourism; recreation; shopping for non-essential goods; and/or sightseeing.
AIR UPDATES:
Air Freight Market Continues its Dramatic Evolution
There appears to be no end in sight
for soaring air freight rates as demand for freighters rises
in response to the surge in demand for Personal Protective Equipment (PPE). And there are fears, with the next Chinese holiday due from May 1-5, that prices might go even higher in the last week of April and into early May.
Freighters are flying maximum hours, and available capacity is selling out almost immediately. Most freighter carriers are sold out through May and there is little room to add additional flights. For comparison, recent data from Seabury showed that the global widebody freighter fleet is flying close to 17% more block hours than it did in January. So aircraft are going to require maintenance in the coming months which will pinch capacity ever further.
Air Canada Route Updates
In a positive sign for the airline industry, Air Canada has begun to launch new scheduled flights within North America and between North America and Europe which will add some much needed capacity to the overall market.
For a full list of Air Canada’s operating routes and route suspensions, please click here.
OCEAN UPDATES:
Carriers may have hit peak capacity reductions on main trades (Lloyd’s Loading List, April 28, 2020)Container lines have been blanking (cancelling) large numbers of sailings to cater to reduced demand, which continues to be a huge issue for cargo planning for importers and exporters alike. But new figures show the worst of the cutbacks may now be passing. The volume of capacity withdrawn from container lines’ capacity may be about to peak, according to analysis.
With some lockdown restrictions starting to lift, especially across much of Europe, there is hope in the market that there could be a boost in container freight demand, but this is likely to be a short-term rather than a more comprehensive outlook, as many importers and retail outlets are wary of a potential second-string of lockdown measures should coronavirus case numbers start to see more increases.
PORT & RAIL UPDATES:
Port and Rail systems across North America are generally reporting smooth operations, with little disruption to services. Container dwell times at the docks and truck processing times at the majority of terminals are normal.
TRUCK UPDATES:
Tight capacity will drive year-end snapback in trucking markets (Freightwaves, April 28, 2020)The “snapback” in freight markets is going to be hard and fast, driven by tighter capacity as drivers leave the current falling market, according to the chief economist of the leading third-party logistics providers’ (3PLs) trade association.
Long-time industry economist Noel Perry, now chief economist of the Transportation Intermediaries Association (TIA), advised this week that he sees a recovery in which volumes fall off sharply this quarter and into the third quarter, climb back slowly, but face a capacity crunch because of the number of trucks put “on the fence” by owners beaten down by low rates and volumes now.
And although he doesn’t see the volumes of the fourth quarter of 2019 returning for a few years, they will increase enough that he described a marketplace that “jumps up” later this year. “It usually takes us a quarter or two until we realize the need to change something, and by the time we start adding drivers, the marketplace is already tight,” he said.
“Trucks are parked and won’t be manned, so pricing should be relatively attractive once we get into late this year and next year,” Perry added. The impact from these developments, without putting a number on it, is that prices will “drop badly in 2020,” according to Perry. But he said he expected prices to move up “strongly” late this year and into next year “because they are making up the capacity pressures of two downward years.”
But looking into the future is particularly difficult this time around, he added, because “we just haven’t had a shock of this magnitude before.”
“I can tell you the industry will be surprised by the snapback,” he said. “There will be a time when there will be scrambling for trucks.”
For more information, please feel free to contact us directly.
COVID-19 Response Team
Mark Glionna, Vice President – Client Relations & Business Development
Tel. (905) 882-4880, ext. 1212 Email: markglionna@universallogistics.ca
John Leis, Director – Client Relations
Tel. (905) 882-4880, ext. 1215 Email: jleis@universallogistics.ca
Paul Glionna, Vice President – Systems Development & Operations
Tel. (905) 882-4880, ext. 1220 Email: pglionna@universallogistics.ca
Chris Cartan, Director – Operations
Tel. (905) 882-4880, ext. 1237 Email: ccartan@universallogistics.ca
David Lychek, Manager – Ocean & Air Services
Tel. (905) 882-4880, ext. 1207 Email: dlychek@universallogistics.ca
Debbie McGuire, Manager – Freight Solutions
Tel. (905) 882-4880, ext. 1308 Email: dmcguire@universallogistics.ca
William Sanchez, Manager – Truck Services
Tel. (905) 882-4880, ext. 1224 Email: wsanchez@universallogistics.ca
Vickey Ison, Office Manager – Cleveland
Tel. (440) 360-7850, ext. 100 Email: vison@universallogisticsusa.com
Toronto, April 27, 2020
U.S. Trade Representative Robert Lighthizer notified U.S. Congress on Friday that the new NAFTA deal will enter into force July 1st, 2020, a month later than initially proposed. The deal is referred to as CUSMA (Canada-United States-Mexico Agreement) in Canada and USMCA (United States-Mexico-Canada Agreement) in the U.S..
Certain requirements need to be wrapped up in the next two months, but Lighthizer said his office would work to ensure a smooth implementation of the new rules. North American business leaders have been pushing for a delay until 2021, due to the COVID-19 pandemic.
Importers should begin obtaining valid Blanket Certifications of Origin (or ensure exporters are prepared to include the applicable certification of origin data elements on shipping documents) under the new regulations. This will ensure there is no lapse in preferential trade status prior to the new deal taking effect. Between now and July 1, 2020, NAFTA Certificates of Origin will still be required to obtain preferential trade status. Once the new trade agreement becomes effective, NAFTA Certificates of Origin will no longer be valid and must be replaced with CUSMA/USMCA Certifications of Origin or specified certification of origin data elements on shipping documents.
For clients who are currently enrolled in Universal's NAFTA Project Management Program (Service Option 2 – Universal Logistics obtains Blanket Certificates for Client), we will contact your vendors directly to obtain the required Blanket CUSMA/USMCA Certifications of Origin. For those clients not enrolled in this Service Option and who would like Universal Logistics to obtain the required Blanket Certifications of Origin directly from your vendors, please let us know.
To download Universal's CUSMA/USMCA Certification of Origin template click here.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, April 21, 2020
Prime Minister Justin Trudeau stated during his daily COVID-19 update on Saturday April 18, 2020, that Canada and the U.S. had come to an agreement to extend the border closure to non-essential travel by another 30 days. The mutual agreement put in place last month was set to expire on April 21, 2020.
Supply chains, including trucking, are not impacted by this measure and the movement of commercial goods across the border is unaffected. "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.
On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms. This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:
Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people. For example, this exemption would apply to:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, April 16, 2020
Due to the COVID-19 pandemic, the Canadian Border Services Agency (CBSA) has delayed the decommissioning date of the Canadian Automated Export Declaration (CAED) system from June 30, 2020 to September 30, 2020. The Canadian Export Reporting System (CERS) will replace CAED, which is the existing electronic export filing system.
Paper-based reporting, via the B13A – Export Declaration Form, will no longer be permitted as of June 30 2020. Anyone presently using the paper reporting process will have to start using CERS on June 30, 2020. However, anyone who now uses CAED will have until September 30, 2020 to switch to CERS.
The CBSA strongly encourages exporters and Customs service providers to activate their Canadian Export Reporting System (CERS) accounts as soon as possible.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, April 7, 2020
As the Coronavirus (COVID-19) outbreak continues to evolve, Universal Logistics is doing everything we can to support our clients and to keep you informed of the ever changing business environment and how it is impacting our industry.
The following information has been gathered by mode of transport from news sources as of Tuesday, April 7, 2020:
COVID-19 – Universal Logistics Fully Operational
Further to the recent Canadian and U.S. government announcements regarding non-essential business closures, supply chain support services (transportation/distribution/logistics) have been declared essential services/businesses in the Canadian Provinces and U.S. States where we operate our own offices (Ontario, Quebec, New York and Ohio). As such, Universal Logistics Canada and Universal Logistics USA will continue to be in full operation.
BORDER UPDATES:
Canada Seeking to Keep Cross-Border Supply Chains Open in Face of Growing COVID-19 Export Controls (Ciffa, April 1, 2020)
One casualty of the COVID-19 crisis has been the international supply chain for medical supplies and medical products. To date, governments of at least 68 countries have enacted restrictions on the export of medical supplies and devices.
In particular, China is enforcing stringent new export requirements on medical products being used to respond to the COVID-19 pandemic. Specifically, exports of the following products require certification from authorized testing laboratories, copies of the manufacturer’s business license and the manufacturer’s certificate from China’s National Medical Products Administration.
Canada-U.S. Border Closed to Non-Essential Travel; Trade Will Keep Moving
All persons seeking entry into Canada for the purpose of commerce, trade, economic services and supply chains are being processed. This travel is essential and is not to be restricted.
Non-essential travel includes, but is not limited to: tourism; recreation; shopping for non-essential goods; and/or sightseeing.
AIR UPDATES:
Air Freight Market ‘Evolving Dramatically’ (Ciffa, April 7, 2020)
Medical supplies, pharmaceuticals and perishables are keeping air cargo markets afloat, supporting freight rates and charter prices, even as demand for many consumer products and manufacturing supplies nosedives due to economic shutdowns in many parts of the world. But the air freight market is also evolving rapidly and dramatically, with the demand and supply dynamics changing so fast that one of the biggest battles for freight forwarders is impressing upon customers the need to make quick decisions to secure capacity.
Air Canada Route Updates
Air Canada will continue to operate domestic and international flights with a reduced schedule for the month of April. For a full list of operating routes and route suspensions, please click here.
OCEAN UPDATES:
European and North American Ports Face Increasing Box Congestion (Ciffa, April 1, 2020)
Container ports across the world aside from China are set to face imminent congestion as a swathe of boxes sent for shipment from factories in Asia arrive at their import destinations.
Shipping lines started calling at Chinese ports again three weeks ago as the infection rate in China declined and production resumed. A lot of boxes stranded during the initial lockdown finally sailed.
However, over the past 10 days the COVID-19 impact has dramatically hit consumer demand in North American and European markets, as non-essential retail outlets closed and commerce generally shut-down.
“This leaves a fair tonnage of goods already on the water on their way to western markets, most bought FOB or FCA, which means the buyer will need to manage them once they arrive,” said James Hookham, secretary general of the Global Shippers Forum.
The inbound unwanted containers are triggering forecasts of congestion in port stacking yards and sparking debate about demurrage charges and storage policies.
Reliability to Suffer as Void Sailings Multiply (Lloyd’s Loading List, April 2 2020)
Shippers should be prepared for longer transit times, direct connections suddenly becoming transhipment connections, congestion issues in ports and terminals and the potential of a shortage in trucking capacity.
Late notice changes to schedules are already impacting carrier service reliability. According to Sea-Intelligence, global schedule reliability dropped by a further 3.4 percentage points month-on-month in February 2020 to 65.1%, the lowest recorded global score since the analyst introduced its coverage of reliability in 2011.
Not only do blanked sailings directly impact shippers with space booked on a specific service, they also affect the schedule reliability of services still in operation, as inducement calls and other tactical measures become harder to implement within existing schedules.
Carriers may have to tranship in unfamiliar ports and terminals, and the massive amount of blank sailings will lead to inland supply chain disruptions, which will lead to pile-ups and challenges in container repatriation, and thus to equipment shortages.
Port of Vancouver Update
On-dock and off-dock operations throughout the Port of Vancouver remain fluid. Weather storage capacity and export container and bulk cargo movement continue to be favourable. High anchorage demand continues while vessel activity remains fluid.
Port of Montreal Update
All Port of Montreal terminals are running at full capacity. Container dwell times at the docks and truck processing times at the terminals are normal.
Port of Halifax Update
The movement of containerized cargo vessels through the Port of Halifax has not been affected by the COVID-19 pandemic outbreak. Currently, there are no restrictions on container cargo vessel operations at the Port.
RAIL & TRUCK UPDATES:
Ontario Officials, Unions Call on Business Support to Keep Goods moving (Canadian Shipper April 2, 2020)
The Ontario Government has called on businesses to support truck drivers as they travel on provincial roads working long hours delivering food, equipment and other essential supplies for Ontario families.
“Our truck drivers deserve our respect, our support, our thanks and our best efforts to help them as they continue to make sure we can put food on our tables and pick up other necessary items.”
The statement was issued in response to the treatment some working within the trucking industry have faced and the Ministers called on business owners to support drivers when they are stopping to rest, get gas or use washrooms.
The government said it is providing more safe places for truck drivers to stop and rest across the province and are keeping all 23 ONroute travel plazas open for take-out, grab and go and drive-through services, including washrooms with enhanced cleaning, as well as also providing portable washrooms at 32 truck inspection stations so trucks have a place to stop and rest safely.
CN Update
While non-essential travel over the U.S./Canadian border has been temporarily closed, the transportation of goods by train between the two countries is open & protected. CN is reporting a fluid rail network, border crossings, inland terminal operations, and port gateways on the West and East coasts of Canada, and Southern U.S..
CP Update
CP’s network remains fluid. The Canada-U.S. border is open for commerce, with both national governments recognizing the necessity for ongoing cross-border trade. Similarly, whether it is transporting fuel, oil and propane, or foods, pharmaceuticals and disinfectants or moving grain to our ports, CP’s trains are continuing to move in Canada and the U.S. The supply chain supporting essential railway operations also remains strong.
For more information, please feel free to contact us directly.
COVID-19 Response Team
Mark Glionna, Vice President – Client Relations & Business Development
Tel. (905) 882-4880, ext. 1212 Email: markglionna@universallogistics.ca
John Leis, Director – Client Relations
Tel. (905) 882-4880, ext. 1215 Email: jleis@universallogistics.ca
Paul Glionna, Vice President – Systems Development & Operations
Tel. (905) 882-4880, ext. 1220 Email: pglionna@universallogistics.ca
Chris Cartan, Director – Operations
Tel. (905) 882-4880, ext. 1237 Email: ccartan@universallogistics.ca
David Lychek, Manager – Ocean & Air Services
Tel. (905) 882-4880, ext. 1207 Email: dlychek@universallogistics.ca
Debbie McGuire, Manager – Freight Solutions
Tel. (905) 882-4880, ext. 1308 Email: dmcguire@universallogistics.ca
William Sanchez, Manager – Truck Services
Tel. (905) 882-4880, ext. 1224 Email: wsanchez@universallogistics.ca
Vickey Ison, Office Manager – Cleveland
Tel. (440) 360-7850, ext. 100 Email: vison@universallogisticsusa.com
Toronto, April 1, 2020
The Canada Border Services Agency (CBSA) have issued Customs Notice 20-12 "COVID-19: Tariff Classification and Other Information to Import Medical Supplies", to provide useful information relating to the commercial import of medical supplies, as defined by the World Customs Organization (WCO).
This notice provides a detailed list of COVID-19 medical supplies along with available duty and tax relief, in certain circumstances, and how to assess the value for duty of donated supplies:
In addition, the CBSA have requested that all customs release requests for these COVID-19 medical supplies include a notation of "URGENT – COVID-19" in the description of goods. For Canadian customs clients of Universal Logistics, we have updated all applicable lines in our client databases to include this notation on release requests to the CBSA.
For more information please visit our web site for Coronavirus (COVID-19) Alerts along with COVID-19 trade related FAQs.
Brian Rowe
Director – Customs Compliance & Regulatory Affairs
Toronto, March 31, 2020
As the Coronavirus (COVID-19) outbreak continues to evolve, Universal Logistics is doing everything we can to support our clients and to keep you informed of the ever changing business environment and how it is impacting our industry.
The following information has been gathered by mode of transport from news sources as of Tuesday, March 31, 2020:
COVID-19 – Universal Logistics fully operational
Further to the recent Canadian and U.S. government announcements regarding non-essential business closures, supply chain support services (transportation/distribution/logistics) have been declared essential services/businesses in the Canadian Provinces and U.S. States where we operate our own offices (Ontario, Quebec, New York and Ohio). As such, Universal Logistics Canada and Universal Logistics USA will continue to be in full operation.
BORDER UPDATES:
Canada-U.S. Border Closed to Non-Essential Travel; Trade Will Keep Moving
All persons seeking entry into Canada for the purpose of commerce, trade, economic services and supply chains are being processed. This travel is essential and is not to be restricted.
Non-essential travel includes, but is not limited to: tourism; recreation; shopping for non-essential goods; and/or sightseeing.
U.S.-Mexico Border Closed; Trade Will Keep Moving
Following similar action along the Canadian border, the White House has closed the United States’ border with Mexico to non-essential traffic, but is exempting trade and commerce from the ban.
Canada Border Services Agency (CBSA) Update
CBSA COVID-19 Commercial Update to Industry Stakeholders as of March 30, 2020.
AIR UPDATES:
General Notice for Airfreight Rates
Air freight rates continue to soar upwards as demand outstrips capacity. However, stabilization may be in sight as an increasing number of airlines are redeploying their passenger aircraft (PAX) to cargo-only services. This should add some much needed supply into the strained airfreight industry.
UK Update – Critical Airport Services Under Threat of Collapse
Cargo and ground handling companies warned of the imminent collapse of their sector, which would bring airports across the UK to a halt and severely impact the UK’s supply chain.
The ground handling industry is a critical part of the UK aviation system, providing 90% of cargo handling at all UK airports and essential services like the handling and security processing of cargo and aircraft fuelling. Without these services, aviation as a whole cannot function, and supply chains will collapse.
Currently, as more than 95% of flights are not operating, ground handling companies are not being paid. While the industry has welcomed the UK Chancellor’s work retention package, low margins and staff comprising 70% of costs mean that the viability of the industry remains immediately unsustainable.
Countries around the world are facing similar drastic cuts to their domestic aviation industry and related businesses. The threats seen in the UK are expected to spread to the global industry as a whole if a return to near-normal operations does not come soon.
Air Canada Route Updates
Air Canada will continue to operate domestic and international flights with a reduced schedule for the month of April. For a full list of operating routes and route suspensions, please click here.
OCEAN UPDATES:
Shippers Shocked by Scale and Speed of Blanked Sailing Announcements
Carriers are rushing through blanked sailing announcements on a scale and speed never seen before, giving shippers very little chance to make alternative plans.
Last week, carriers had blanked two sailings due to the pandemic spread. As of Sunday, this had increased to 45 blank sailings, according to data carried in the latest report from Sea-Intelligence Consulting.
It is not just the scale of the blanked sailings, but the speed with which they are being announced that is expected to create supply chain troubles for many clients.
Port of Vancouver COVID-19 Update
On-dock and off-dock operations throughout the Port of Vancouver remain fluid.Weather, storage capacity and export container and bulk cargo movement continue to be favourable. High anchorage demand continues while vessel activity remains fluid.
Port of Montreal COVID-19 Update
Freight transport operations are running at full capacity. No cancellations have occurred, and rail transport continues as scheduled. Road transport and terminal operations are ongoing.
Port of Halifax COVID-19 Update
There are currently no restrictions at any terminals under Halifax Port Authority jurisdiction, and no operational changes have been required.
RAIL & TRUCK UPDATES:
Trucking Demand that was Surging Last Week, Now “Falling Off a Cliff”
Truck freight volumes had been surging in Canada as the spread of COVID-19, and efforts to contain it, intensified. But as businesses across North America slow and even halt operations, the entire trucking industry is staring down an implosion in large parts of the Canadian and U.S. freight market.
Fighting mass layoffs across the industry, the newly announced Canadian wage subsidies could potentially help keep thousands of trucking companies in business, particularly small carriers that work exclusively with automakers and other manufacturers that have temporarily closed operations.
CN COVID-19 Update
Canada - United States Border Remains Open to Rail
While non-essential travel over the U.S./Canadian border has been temporarily closed, the transportation of goods by train between the two countries is open & protected.
Port Gateways Remain Fluid for Import and Export Trade
All CN served port gateways on the West and East coasts of Canada, and Southern U.S., remain fluid:
CP COVID-19 Update
CP’s network remains fluid. The Canada-U.S. border is open for commerce, with both national governments recognizing the necessity for ongoing cross-border trade. Similarly, whether it is transporting fuel oil and propane, or foods, pharmaceuticals and disinfectants or moving grain to our ports, CP’s trains are continuing to move in Canada and the U.S. The supply chain supporting essential railway operations also remains strong.
For more information, please feel free to contact us directly.
COVID-19 Response Team
Mark Glionna, Vice President – Client Relations & Business Development
Tel. (905) 882-4880, ext. 1212 Email: markglionna@universallogistics.ca
John Leis, Director – Client Relations
Tel. (905) 882-4880, ext. 1215 Email: jleis@universallogistics.ca
Paul Glionna, Vice President – Systems Development & Operations
Tel. (905) 882-4880, ext. 1220 Email: pglionna@universallogistics.ca
Chris Cartan, Director – Operations
Tel. (905) 882-4880, ext. 1237 Email: ccartan@universallogistics.ca
David Lychek, Manager – Ocean & Air Services
Tel. (905) 882-4880, ext. 1207 Email: dlychek@universallogistics.ca
Debbie McGuire, Manager – Freight Solutions
Tel. (905) 882-4880, ext. 1308 Email: dmcguire@universallogistics.ca
William Sanchez, Manager – Truck Services
Tel. (905) 882-4880, ext. 1224 Email: wsanchez@universallogistics.ca
Vickey Ison, Office Manager – Cleveland
Tel. (440) 360-7850, ext. 100 Email: vison@universallogisticsusa.com
Toronto, March 31, 2020
On Friday March 27, Canadian Prime Minister Justin Trudeau announced the extension of timeframes for the payment of customs duties and the Goods and Services Tax (GST) until June 30, 2020. This includes importers' March Statements of Account (SOA), which are otherwise payable April 1.
Extension timeframes and the Prime Minister's announcement are outlined in Customs Notice 20-11.
If you are already registered for a CBSA duty and/or GST deferral program with Universal Logistics (i.e. through a Release of Goods bond or a GST Letter of Undertaking) then you are already set to take advantage of this further deferral option. You may choose to continue with monthly scheduled payments to CBSA, or you may choose to defer your duty and GST payments up to June 30, 2020. Specific details of deferral options were sent to these clients on the afternoon of March 27.
If you have not yet done so and would like to take advantage of these deferral options, Universal can help. The deferral of duty needs to be secured through a Release of Goods bond, while the deferral of GST can be secured with a Letter of Undertaking (no bond required to secure GST for Canadian importers). Non-resident Importers can also take advantage of these deferral options; however, a bond is required to secure both duty and GST.
To learn more about CBSA's direct payment options for duties and GST, visit our website or contact your Client Care representative.
Mark Glionna
Vice President – Client Relations & Business Development
Toronto, March 27, 2020
Looking to keep abreast of issues impacting your freight movement during the COVID-19 pandemic? Visit our enhanced web site. Universal Logistics has added a new web page under Client Care dedicated solely to this critical topic: COVID-19 – Keeping your freight moving in uncertain timesYou will find a list of FAQs covering the many issues you are facing during this ever-changing trade environment, and an inventory of all Coronavirus (COVID-19) Alerts sent to clients.
Click on our COVID-19 FAQ page to view the contents, and do not hesitate to contact us with questions or concerns. Remember, we're here to help.
Mark Glionna
Vice President – Client Relations & Business Development
Toronto, March 24, 2020
As the Coronavirus (COVID-19) outbreak continues to evolve, Universal Logistics is doing everything we can to support our clients and to keep you informed of the ever changing business environment and how it is impacting our industry.
The following information has been gathered by mode of transport from news sources as of Tuesday, March 24, 2020:
COVID-19 – Universal Logistics fully operational
Further to the recent Canadian and U.S. government announcements regarding non-essential business closures, supply chain support services (transportation/distribution/logistics) have been declared essential services/businesses in the Canadian Provinces and U.S. States where we operate our own offices (Ontario, Quebec, New York and Ohio). As such, Universal Logistics Canada and Universal Logistics USA will continue to be in full operation.
BORDER UPDATES:
Canada-U.S. Border to Close to Non-Essential Travel; Trade Will Keep Moving
Non-essential travel includes, but is not limited to: tourism; recreation; shopping for non-essential goods; and/or sightseeing. All persons seeking entry into Canada for the purpose of commerce, trade, economic services and supply chains are being processed. This travel is essential and is not to be restricted.
U.S.-Mexico Border to Close; Trade Will Keep Moving
Following similar action along the Canadian border, the White House has closed the United States' border with Mexico to nonessential traffic, but is exempting trade and commerce from the ban.
Read more in an article from Transport Topics.
AIR UPDATES:
General Notice for Airfreight Rates & Storage
Airfreight rates have been soaring upwards as demand outstrips capacity. Airlines have been forced to ground aircraft due to a collapse of passenger traffic across the globe, which has drastically cut the available volume for cargo.
In response to the current announcement requiring non-essential Canadian companies to close their facilities, Air Canada Cargo has extened the current free time allotted to General Cargo storage in Canada from 2 to 10 days. Other airlines are expected to follow suit.
Air Canada Route Updates
Air Canada will continue to operate domestic and international flights with a reduced schedule for the month of April. For a full list of operating routes and route suspensions, please go to:
https://www.aircanada.com/ca/en/aco/home/book/travel-news-and-updates/2020/china-travel.html#/na
This schedule is subject to change, as Air Canada continues to monitor demand and government restrictions on travel.
Air Canada Cargo Restrictions on Live Animal Shipments during Pandemic
Due to flight schedule changes and cancellations, Air Canada Cargo will not accept live animal bookings effective today until further notice.
Current bookings will be honoured when possible, depending on flight capabilities.
OCEAN UPDATES:
Port of Vancouver COVID-19 Update
On-dock and off-dock operations throughout the Port of Vancouver remain fluid. Weather, storage capacity and export container and bulk cargo movement continue to be favourable.
High anchorage demand continues while vessel activity remains fluid.
Port of Montreal COVID-19 Update
Freight transport operations are running at full capacity. No cancellations have occurred, and rail transport continues as scheduled. Road transport and terminal operations are ongoing. We will continue to follow Transport Canada guidelines and monitor the impact of COVID-19 on Port operations.
Port of Halifax COVID-19 Update
The Halifax Port Authority is in close contact with partners and health agencies following the novel coronavirus pandemic. There are currently no restrictions at any terminals under Halifax Port Authority jurisdiction. As a Canadian Port Authority, we take our direction from the Public Health Agency of Canada and Transport Canada and will provide any updates as required. At this stage there are no operational changes. Click here for more information.
RAIL AND TRUCK UPDATES:
Trucking Demand Surges as Retailers Restock
Demand is spiking for inland trucking capacity, as grocers and retailers look to restock their shelves with critical goods amid the COVID-19 outbreak. DAT's load-to-truck ratio, a measure of demand, was up 31% for vans and 33% for reefers between March 9 and March 15.
The trucking spot market has seen an increase in demand that is "directly attributable" to the outbreak and the resulting consumer buying response, said Ken Adamo, chief of analytics at DAT.
Industry leading carriers are setting new protocols for the physical handling of freight, and we expect carriers as a whole to start to implement similar procedures with immediate effect:
To learn more of what carriers are implementing to stop the spread of Covid-19 please refer to:
CN COVID-19 UPDATE
Canada - United States Border Remains Open to Rail
While non-essential travel over the U.S./Canadian border has been temporarily closed, the transportation of goods by train between the two countries is open & protected.
Port Gateways Remain Fluid for Import and Export Trade
All CN served port gateways on the West and East coasts of Canada, and Southern U.S., remain fluid:
CP COVID-19 UPDATE
CP's service is not currently impacted by COVID-19; its trains continue to operate throughout North America.
For more information, please feel free to contact us directly.
COVID-19 Response Team
Mark Glionna, Vice President – Client Relations & Business Development
Tel. (905) 882-4880, ext. 1212 Email: markglionna@universallogistics.ca
John Leis, Director – Client Relations
Tel. (905) 882-4880, ext. 1215 Email: jleis@universallogistics.ca
Paul Glionna, Vice President – Systems Development & Operations
Tel. (905) 882-4880, ext. 1220 Email: pglionna@universallogistics.ca
Chris Cartan, Director – Operations
Tel. (905) 882-4880, ext. 1237 Email: ccartan@universallogistics.ca
David Lychek, Manager – Ocean & Air Services
Tel. (905) 882-4880, ext. 1207 Email: dlychek@universallogistics.ca
Debbie McGuire, Manager – Freight Solutions
Tel. (905) 882-4880, ext. 1308 Email: dmcguire@universallogistics.ca
William Sanchez, Manager – Truck Services
Tel. (905) 882-4880, ext. 1224 Email: wsanchez@universallogistics.ca
Vickey Ison, Office Manager – Cleveland
Tel. (440) 360-7850, ext. 100 Email: vison@universallogisticsusa.com
Toronto, March 24, 2020
Further to the recent Canadian and U.S. government announcements regarding non-essential business closures, supply chain support services (transportation/distribution/logistics) have been declared essential services/businesses in the Canadian Provinces and U.S. States where we operate our own offices (Ontario, Quebec, New York and Ohio). As such, Universal Logistics Canada and Universal Logistics USA will continue to be in full operation.
Universal's priority continues to be the safety of our employees and a commitment to ensure the resources and services we provide our clients are uninterrupted. We have a comprehensive work-from-home program currently in effect. Where a physical employee presence is required, a skeleton staff is on site. At our offices and warehouses, we are following all safety, hygiene and social distancing guidelines.
We are committed to helping our clients in these uncertain times. Stay safe!
Michael J. Glionna
President
Toronto, March 19, 2020
As the Coronavirus (COVID-19) outbreak continues to evolve, Universal Logistics is doing everything we can to support our clients and to keep you informed of the ever changing business environment and how it is impacting our industry.
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, March 19, 2020:
AIR UPDATES:
Air Canada Update on COVID-19 Response
Air Canada said yesterday that it will gradually suspend the majority of its international and U.S. transborder flights by March 31. Subject to further government restrictions, the airline intends to continue to serve a small number of international and U.S. trans-border destinations from select Canadian cities after April 1.
In order to support the essential movement of needed goods and cargo during the crisis, Air Canada intends to continue to operate a limited number of international "air bridges" between one or more of its Canadian hubs and the cities of London, Paris, Frankfurt, Delhi, Tokyo and Hong Kong from April 1 until at least April 30. This will reduce its international network from 101 airports to six.
As to U.S. transborder services, from April 1, Air Canada will reduce its transborder network from 53 airports to 13, subject to further reductions based on demand or government edicts. The cities with continued service will be: New York (LGA and EWR), Boston, Washington, D.C. (IAD and DCA), Chicago, Houston, Seattle, San Francisco, Los Angeles, Denver, Orlando and Fort Lauderdale.
Airports Urge Governments to Rethink Flight Bans
The Airport Council International (ACI) has voiced concerns over the effectiveness of imposing travel bans. “Besides ... worsening the economic fallout of COVID-19, the fact that these measures do not appear aligned with WHO recommendations raises serious doubts as to their effectiveness,” Olivier Jankovec, director general of ACI Europe has said.
The WHO continues to advise against travel restrictions to countries experiencing COVID-19 outbreaks, stating that “in general, evidence shows that restricting the (international) movement of people during public health emergencies is ineffective in most situations.”
Read more in an article from Air Cargo Week.
OCEAN UPDATES:
Shipping Federation of Canada Launches COVID-19 Information Compendium
The Shipping Federation of Canada is working to provide marine stakeholders with information specific to their sector in response to the rapidly evolving COVID-19 situation. It is liaising with key authorities to ensure the delivery of streamlined information and timely updates on protocols and practices.
The organization has developed a webpage, the COVID-19 Resource Center, which provides a compendium of information on measures implemented by Canadian authorities and other entities in response to the COVID-19 situation and its impacts on international shipping in Canadian waters.
The webpage includes information on COVID-19 measures, practices and guidance developed by Transport Canada, the Public Health Agency of Canada and other federal departments, as well as the ports, Seaway, pilotage authorities, terminal operators and others. The Federation will update this page on a regular basis as it gathers additional information.
Chinese Port Restricts Ships from Virus-Hit Nations for 14 Days
The port of Fuzhou in eastern China is restricting vessels arriving from nine countries in an effort to limit the spread of coronavirus by visiting ships and their crew.
Vessels arriving from Japan, South Korea, Iran, France, Germany, Spain, Italy, the U.S., and Singapore won’t be allowed entry into the port until they’ve completed a mandatory 14-day quarantine; the countdown begins when ships depart from those nations.
The mandatory quarantine will particularly hit cargoes from Asian countries that typically take a week or less to sail to China. It also raises fears of similar steps by much bigger ports in China, notably the major cargo hubs of Guangzhou, Shanghai and Tianjin.
Read more in an article from Transport Topics.
As the World's Borders Close, Crew Changes Become a Serious Challenge
Maersk has suspended all crew changes aboard its container ships through April 14, the company said on Tuesday. Chile, Argentina, Ecuador, El Salvador, Guatemala, Malaysia, Canada, Denmark and the 27 nations of the European Union have temporarily closed their external borders to most foreign nationals, and the list is growing rapidly.
"Given the current situation we can better protect our seafarers by suspending the exchange of crew, as this lessens the number of social interactions they need to have. Secondly, the rapid changes to global travel poses a risk of stranding seafarers in transit, in locations from where they are unable to leave or get sufficient assistance," Maersk said in a statement.
On Tuesday, dry bulk shipping association INTERCARGO called upon port states to continue to permit crew changes as an exception to the rising number of national travel bans.
Read more in an article from The Maritime Executive.
Port of Montreal COVID-19 Update
Freight transport operations at the Port of Montreal are running at full capacity. No cancellations have occurred, and rail transport continues as scheduled. Road transport and terminal operations are ongoing.
Since March 16, the vast majority of administrative staff are working from home, if and when appropriate, until further notice.
DP World Canada COVID-19 Update
In a notice to customers issued yesterday, DP World Canada informed that there has been no significant impact from COVID-19 to its operations in B.C.
The company is working closely with its supply chain partners to minimize potential operational impacts.
RAIL AND TRUCK UPDATES:
Trucking Demand Surges as Retailers Restock
Demand is spiking for inland trucking capacity, as grocers and retailers look to restock their shelves with critical goods amid the COVID-19 outbreak. DAT's load-to-truck ratio, a measure of demand, was up 31% for vans and 33% for reefers between March 9 and March 15.
The trucking spot market has seen an increase in demand that is "directly attributable" to the outbreak and the resulting consumer buying response, said Ken Adamo, chief of analytics at DAT.
Read more in an article from Supply Chain Dive.
CP COVID-19 Update
CP's service is not currently impacted by COVID-19; its trains continue to operate throughout North America.
The company's COVID-19 preparedness planning team has enacted pandemic planning actions to facilitate business continuity across its network.
For more information, please feel free to contact us directly.
COVID-19 Response Team
Mark Glionna, Vice President – Client Relations & Business Development
Tel. (905) 882-4880, ext. 1212 Email: markglionna@universallogistics.ca
John Leis, Director – Client Relations
Tel. (905) 882-4880, ext. 1215 Email: jleis@universallogistics.ca
Paul Glionna, Vice President – Systems Development & Operations
Tel. (905) 882-4880, ext. 1220 Email: pglionna@universallogistics.ca
Chris Cartan, Director – Operations
Tel. (905) 882-4880, ext. 1237 Email: ccartan@universallogistics.ca
David Lychek, Manager – Ocean & Air Services
Tel. (905) 882-4880, ext. 1207 Email: dlychek@universallogistics.ca
Debbie McGuire, Manager – Freight Solutions
Tel. (905) 882-4880, ext. 1308 Email: dmcguire@universallogistics.ca
William Sanchez, Manager – Truck Services
Tel. (905) 882-4880, ext. 1224 Email: wsanchez@universallogistics.ca
Vickey Ison, Office Manager – Cleveland
Tel. (440) 360-7850, ext. 100 Email: vison@universallogisticsusa.com
Toronto, March 19, 2020
As the COVID-19 outbreak continues to evolve, we want you to know Universal Logistics is doing everything we can to support our clients through this difficult time.
Given this unprecedented situation, creative logistics solutions are needed to navigate the new obstacles you are facing.
Here are some examples of how we can help:
As previously advised in our client Email Alert! of March 12th, Universal's priority is the safety of our employees and ensuring that the resources and services we provide our clients are uninterrupted.
We know you have a lot of questions – please remember we're here to help. Contact us with any inquires and we'll assist you in any way we can.
For more information, please call Mark Glionna, Vice President – Client Relations & Business Development at (905) 882-4880, ext. 1212.
Toronto, March 18, 2020
Canada and the United States are finalizing the details to close the northern border to all non-essential travel. The intention is to find an agreement that will restrict the flow of people across the border without disrupting the movement of goods.
Canadian Prime Minister Justin Trudeau stated this morning, "Travellers will no longer be permitted to cross the border for recreation and tourism", while U.S. President Donald Trump tweeted, "We will be, by mutual consent, temporarily closing our Northern Border with Canada to non-essential traffic. Trade will not be affected."
We will provide updates as details are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, March 17, 2020
On Monday afternoon, Prime Minister Justin Trudeau advised Canada will be closing its borders to most foreign travellers to enhance screening and limit the spread of the Coronavirus (COVID-19). Exceptions will be made for air crews, diplomats, immediate family members and at this time, U.S. citizens.
Only four Canadian airports will receive international flights as of Wednesday March 18, 2020 – Vancouver International Airport, Pearson International Airport (Toronto), Calgary International Airport and Pierre Elliott Trudeau International Airport (Montreal).
Trudeau said the new border control restrictions will not apply to trade and commerce in order to keep Canada's supply chains open.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, March 12, 2020
With the spread of the coronavirus across more than 100 countries, The World Health Organization yesterday declared it a global pandemic. In the past months COVID-19 has created a great deal of confusion and disruption throughout the world to business and to people's day-to-day lives. Although this is a rapidly evolving situation, it appears likely the virus will be part of our personal and professional lives for the foreseeable future.
Universal Logistics' priority is the safety of our employees and ensuring that the resources and services we provide our clients are uninterrupted. Our response team is meeting daily to assess the impact across our business and to ensure our contingency planning meets this challenge.
We have a company-wide contingency plan in place and are working with our partners to ensure that we advance best practices to continue serving you under various scenarios, including our employees working remotely.
In terms of prevention, we are reiterating the importance to our employees of following the recommended best practices of Health Canada for health and hygiene.
With our established protocols and processes and our commitment to the well-being of our employees, we anticipate that we will continue to meet the needs of our clients. We thank you for your trust and confidence in us as we work together to address this situation.
We will continue to communicate with you on developments as applicable.
Michael J. Glionna
President
Toronto, March 4, 2020
With the removal of rail blockades across Canada, rail operations are slowly returning to normal.
CN Rail has started calling back many of its temporarily laid-off employees in Eastern Canada. The significant backlog of trains parked on CN's tracks and in its yards is being processed through a methodical recovery plan. Rail cars that have been sitting idle at various marshalling yards across Eastern Canada are now starting to move to their final destination.
CP Rail, while not significantly affected by rail blockades, is dealing with a surge in volume as shippers switched to their services in light of the CN Rail blockades. CP Rail is also working on clearing this high level of volume presently distributed throughout its system.
Despite the progress being made to resolve this ongoing issue, it is expected to take some time to clear the backlog of cargo and have both services running at normal operational levels.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 2, 2020
The Quebec Ministry of Transportation has released 2020 "Spring Thaw" dates and zones. These are container weight restrictions imposed every year to protect Quebec highways during the spring thaw.
The maximum recommended cargo weight carried during the thaw period is as follows:
|
Zone 1 |
Zone 2 |
Zone 3 |
Monday, March 09 (12:01 a.m.) |
Monday, March 16 (12:01 a.m.) |
Monday, March 23 (12:01 a.m.) |
| 20’ Std: | 47,900 lbs | |
| 40’ Std/HQ: | 50,000 lbs | |
| 45’ HQ: | 50,000 lbs | |
| 20’ Reefer: | 46,000 lbs | |
| 40’ Reefer: | 48,000 lbs |
The weight restrictions not only apply to the total cargo weight within the container, but also the distribution of weight over the axles of the chassis. If cargo weight is not distributed evenly across all axles, the container could be subject to additional fines.
Please note, these details are guidelines. The dates are subject to change by the Quebec Ministry of Transportation, depending on actual weather conditions. It is advisable that you visit the Ministry's website for complete updated details. We recommend that you ensure your shippers are aware of these cargo weight limits in order to prevent any additional costs/handling once containers arrive in Quebec during the thaw period.
Cargo that is deemed overweight may require the trucker to use extra axles which will incur additional costs.
If you have any questions concerning shipments booked with Universal Logistics and how they may be impacted by the above, please call (905) 882-4880, ext. 1308 Debbie McGuire, Manager – Freight Solutions.
Toronto, February 27, 2020
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, February 27, 2020:
Rail Blockades Updates
CP
The blockade on CP's mainline near Chase, B.C., has ended and CP is resuming operations on its Shuswap Subdivision. Customers should expect near-term delays of 24 to 36 hours.
In Eastern Canada, CP's rail network has been blockaded by protesters since February 8 at the Kahnawake Mohawk territory, south of Montreal. This blockade has severed rail connections into Atlantic Canada and the U.S., and is preventing CP from serving carload customers in the area. The embargo (CPRS000520) to control the flow of shipments over this part of our network remains in place.
CP is reviewing options to reroute traffic where possible.
CN
CN has posted information about blockades on its rail network on its website.
As of yesterday afternoon, all blockade locations, except for Caledonia, Ont., had active train movement, although in Tyendinaga, east of Belleville, Ont., its operations remain disrupted and limited. CN is working with the Ontario Provincial Police on resuming normal operations on this part of its network.
For more information, please call David Lychek, Manager &ndash Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, February 24, 2020
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, February 24, 2020:
" Some protesters are in custody after Ontario Provincial Police officers moved against the rail blockade near Belleville, Ont. this morning – where protests by the Mohawks of Tyendinaga have crippled passenger and freight train traffic for more than two weeks in solidarity with anti-pipeline protests in northern B.C..
Police and CN Rail had warned protesters to clear their encampments by midnight Sunday. Hours after the deadline passed, provincial police moved in and arrested several protesters.
Two industrial-sized tow trucks were brought in to haul away a snow plow from the protest site Monday afternoon. CN Rail crews also have been spotted inspecting and working on the train tracks since mid-morning.
A second encampment set up by the protesters nearby remains in place.
Prime Minister Justin Trudeau convened the Incident Response Group today to discuss ongoing work to end the blockades and restore fully functional rail service across Canada. Deputy Prime Minister Chrystia Freeland, Minister of Crown-Indigenous Relations Carolyn Bennett, Minister of Transport Marc Garneau, Leader of the Government in the House of Commons and Quebec Lieutenant Pablo Rodriguez, Minister of Public Safety and Emergency Preparedness Bill Blair, and Minister of Indigenous Services Marc Miller participated in the meeting, along with RCMP Commissioner Brenda Lucki and Government of Canada officials.
The Prime Minister and ministers will continue to work directly with premiers and Indigenous leaders to resolve the situation as soon as possible. The Government of Canada remains focused on finding a peaceful and lasting resolution with the objective of ending the blockades in a way that protects the rule of law and builds trust and respect among all parties involved.
Read more in an article from CBC News and in a press release from the Prime Minister's Office."
We are continuing to monitor this situation and will advise accordingly.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, February 21, 2020
As a result of the ongoing rail disruption in Eastern Canada, Montreal Gateway Terminal (MGT) declared 'Force Majeure' on February 20, 2020, as there is no immediate resolution in sight and a prolonged recovery period is being anticipated.
All inland rail cargo must be evacuated immediately from the Port of Montreal. Import rail containers dwelling more than five calendar days will be charged terminal storage effective Tuesday, February 25th. MGT will offer storage compensation for all current grounded containers which are diverted to truck. This compensation will be applicable only to units diverted through Monday, February 24th, 15:00 hrs.
Please be advised that on top of the additional fee to move cargo by truck, shifting and handling costs at the terminal will apply as well.
We are reviewing all affected cargo and will advise accordingly.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, February 21, 2020
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Friday, February 21, 2020:
"CN Blockades Update
The court has issued an injunction for the blockade in Saint Lambert, Que., east of Montreal, which has been served on the protesters. CN continues to work with local enforcement agencies to enforce the orders.
The blockade in Tyendinaga, Ont., east of Belleville, is ongoing.
In the east, CN has adjusted its operations, but can run only limited service in the impacted areas until the blockades end.
With the end to the blockade west of Edmonton, CN's Western Canada service levels are improving daily."
We are continuing to monitor this situation and will advise accordingly.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, February 18, 2020
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, February 18, 2020:
"Blockade Updates
CN
- A blockade established on February 15 on CN's main line in Vaughan, Ont. (Greater Toronto) was removed on February 16.
- Train service resumed on the CN north line serving the Port of Prince Rupert on February 13.
- CN continues to recover in the west from earlier blockades in New Hazelton, B.C. and Headingley, Man.
- The blockade in Tyendinaga, Ont., is ongoing and CN's network east of Belleville, Ont., remains shut down.
- The blockade in Vancouver has been removed.
- A new blockade has been set up south of Winnipeg, affecting some rail traffic moving south into the United States.
CP
- The blockade on CP's main line south of Montreal is impacting train movements between Montreal and Albany, N.Y. Traffic is building in and around St. Luc with no practical re-routing alternatives. CP has issued an embargo, effective February 17, to control the flow of shipments over this part of network. It affects all shipments routing over the interchanges of St. Jeans, Que., Albany, N.Y.; Whitehall, N.Y.; Schenectady, N.Y.; and Bellows Falls. N.Y."
"CIFFA, Other Supply Chain Associations Urge Government to End Rail Blockades
On February 14, CIFFA joined the Association of Canadian Port Authorities, the Freight Management Association of Canada and the Shipping Federation of Canada in sending a letter to Minister of Transport Marc Garneau to "urge the government to do everything in its power to find a long-term resolution" to the CN rail blockades."
"Industry Warns of Empty Shelves as CN Rail Blockade Continues
Sectors from retail to oil and gas are calling on governments to resolve the dispute with anti-pipeline protesters as the rail blockade threatens shortages of groceries, propane, drinking water and other goods.
Canadian Propane Association CEO Nathalie St-Pierre says wholesalers in the Maritimes have already begun to ration distribution, while truck line-ups for the fuel in Sarnia, Ont., are now up to 10 hours long as water treatment plants, hospitals, farmers and rural residents await more shipments.
Drinking water could also fall into short supply if chlorine for water treatment stays off the tracks, according to chemical distribution trade group Responsible Distribution Canada.
"If something doesn't happen now, we're going to start seeing municipalities in Ontario beginning to have boil-water advisories going out," said president Cathy Campbell.
Read more in an article from CityNews."
"Trudeau Confers with Cabinet Ministers as Rail Blockades Continue
Prime Minister Justin Trudeau was in talks over the weekend with federal cabinet ministers, as protesters opposed to a pipeline project in British Columbia continued to halt train service across parts of the country.
Indigenous Services Minister Marc Miller said during an appearance on CTV's "Question Period" on Sunday that he believes a peaceful resolution can be reached, as he pointed to the Oka and Ipperwash crises as reasons why dialogue is preferable over police intervention.
Miller said the economy is suffering as a result of the blockades, but the government's response is a test of Canada's ability to find peaceful resolutions to such disputes.
The PMO announced that Trudeau was to convene the Incident Response Group on Monday. The group was described upon its inception in 2018 as a "dedicated, emergency committee that will convene in the event of a national crisis or during incidents elsewhere that have major implications for Canada."
Read more in an article from Canadian Shipper."
We are continuing to monitor this situation and will advise accordingly.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, February 13, 2020
Anti-pipeline protesters who are demonstrating around rail lines near Belleville, Ontario and New Hazelton, British Columbia have prompted CN Rail to temporarily shut down parts of its network. There is currently no movement of any trains – freight or passenger – at both those locations, crippling the ability to move goods and facilitate trade.
Transport Minister Marc Garneau has called the two blockades near Belleville "illegal" and "dangerous", noting their impact on economic activity, and said enforcing injunctions against protesters is a provincial responsibility, not a federal one.
According to CBC News, Indigenous Services Minister Marc Miller has offered to meet with the Mohawks of Tyendinaga if they end an eight-day demonstration that has shut down passenger and freight rail traffic through southern Ontario.
A new blockade has been set up on the CN main line in Headingley, Manitoba approximately 14 km west of Winnipeg, Manitoba. The blockade is affecting traffic in all directions, including Western to Eastern Canada and Western Canada to the United States. It is becoming increasingly difficult to add traffic to the network due to this rapidly changing situation.
We will continue to monitor this situation and advise accordingly.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, February 12, 2020
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Wednesday, February 12, 2020:
"CN May Be Forced to Shut Down Parts of Network Due to Blockades
CN announced that it will be forced to shut down significant parts of its Canadian network imminently unless the blockades on its rail lines are removed.
"It's not just passenger trains that are impacted by these blockades, it's all Canadian supply chains," said JJ Ruest, president and chief executive officer at CN. "We are currently parking trains across our network, but due to limited available space for such, CN will have no choice but to temporarily discontinue service in key corridors unless the blockades come to an end.
"Intermodal containers carrying perishable goods including food and consumer items, Canadian grain, deicing fluid at airports, construction materials, propane to Quebec and Atlantic Canada, natural resources creating rural jobs across Canada such as lumber, aluminum, coal and propane; all of these commodities are already impacted and will see their movements even more diminished. Factories and mines will be soon faced with very difficult decisions. The Port of Prince Rupert is effectively already shutdown. The Ports of Montreal and Halifax are also already feeling the impact of these blockades which will have a trickledown effect on consumer goods in the next few weeks," added Ruest."
Read more in a CN press release.
CN encourages stakeholders to contact their government representatives to explain how these blockades impact their businesses, employees and customers.
We are continuing to monitor this situation and will advise accordingly.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, February 10, 2020
Protesters have established blockades and protest camps across Canada, in support of the Wet'suwet'en Nation bid to halt construction of a natural gas pipeline in northern British Columbia. The hereditary chiefs of Wet'suwet'en Nation are protesting against the Coastal GasLink project, the $6-billion, 670 km pipeline, that would see natural gas flow from the Dawson Creek area to the west coast of the province.
Tensions have ramped up considerably in the past few days. Last week, the RCMP began enforcing a B.C. Supreme Court injunction, establishing a protest "exclusion zone" to allow construction to proceed. RCMP tactical units are currently in an operation against numerous protest camps built to block construction of the pipeline.
In British Columbia, protesters have continued to block workers from entering the Port of Vancouver and Deltaport. The protestors were served with a court injunction ordering them to stop blocking access to the ports late Sunday. The injunction, granted by the B.C. Supreme Court, says they must leave the Vancouver Fraser Port Authority lands and stop blockading the port's access points, however, protesters say they intend to stand their ground. Coupled with this, a rail blockade has been affecting all traffic in and out of the Port of Prince Rupert since February 8.
Protests in Ontario have halted rail traffic between Toronto and both Ottawa and Montreal since February 6. Members of the Tyendinaga Mohawk Territory have been protesting along the rail lines that cut along the territory's border near Belleville, Ontario, in support of the Wet'suwet'en Nation. CN Rail has obtained a court injunction to end the demonstration, which was served to demonstrators by CN police Saturday afternoon, however, rail traffic along these corridors remains at a standstill.
We will continue to monitor this situation and advise accordingly.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, February 7, 2020
The spread of the Coronavirus has had a significant impact on air and ocean carriers as well as importers.
The list of air carriers suspending services to China continues to grow and includes carriers such as Air Canada, Air France, Lufthansa, British Airways and Delta Airlines. It is anticipated that flight schedules will be affected up until March. At this point, airfreight is limited to freighters only, which are typically more expensive than general airfreight as there are no passengers to contribute to the flight costs.
In addition, Chinese ports are taking strict precautionary measures which is likely to impact the rate at which ocean containers are loaded or discharged, while the lack of stevedores and truck drivers is contributing to slow vessel turnaround times. With the extension of Lunar New Years and closure of Chinese factories for an additional 2 weeks, the cancellation of a number of sailings is expected to counter the lack of demand over the first few weeks of February. The overall disruption to the industry is expected to extend into March.
We will closely monitor this situation and provide more information when available.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, February 3, 2020
The United Kingdom (UK) officially left the European Union (EU) on January 31, 2020, and is now in a transition period with the EU until at least December 31, 2020.
Both Global Affairs Canada (GAC) and the Canada Border Services Agency (CBSA) have confirmed there will be no impact on UK originating goods under the Comprehensive Economic Trade Agreement (CETA) during the transition period.
Canada and the EU have completed informal preliminary talks about rolling over elements of CETA into a bilateral deal, but no date for formal negotiations has been set. In addition to negotiating with the EU and Canada, the UK is also planning to negotiate a series of bilateral deals with the United States, Australia, Japan and New Zealand before the end of the year.
The UK and EU now have 11 months to negotiate a deal to avoid a "hard Brexit" which many predict would have dire economic consequences. Reportedly, the UK has said it would offer tariff-free access to trading partners starting for one year in 2021 to insulate the British economy.
Today, British Prime Minister Boris Johnson called for a Canada-style free trade deal, saying the UK would return to the Withdrawal Agreement if such a deal was not reached. The PM also tweeted today "We are re-emerging, after decades of hibernation, as a campaigner for global free trade".
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, January 30, 2020
The Chinese Government is extending their National New Year Holiday to try and contain the spread of Novel Coronavirus infections. Normal operations should resume on the dates outlined below:
We will continue to monitor this situation and advise if there are any further developments.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, January 17, 2020
The U.S. Senate approved, by a vote of 89-10 on January 16, legislation to implement the new USMCA (USA-Mexico-Canada) Trade Agreement updating the current NAFTA.
It will now go to President Donald Trump for his signature, which is expected next week. The deal is expected to be ratified by Canada at the end of January, when Parliament is back in session, and will likely not take effect until mid-2020 at the earliest.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, January 16, 2020
Due to the recent cold weather conditions in Western Canada, we want to remind everyone that this has a severe impact on rail movements. Shipments moving by rail through these regions can anticipate delays of up to 48 hours. Severe cold and high snowfall present challenging conditions to safe railway operations, primarily to rail braking systems. As part of winter preparedness plans to ensure safe train operations, train length is restricted limiting the number of containers that can be accommodated, which results in longer transit times and congestion at railyards.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, December 23, 2019
On December 19, 2019, the U.S. House of Representatives voted in favour of the new North American trade agreement, referred to as USMCA (United States-Mexico-Canada Agreement) in the U.S. and CUSMA (Canada-United States-Mexico Agreement) in Canada. Amendments to the agreement were signed by Canada, U.S. and Mexico on December 10, 2019. The new deal will replace the existing North American Free Trade Agreement (NAFTA) which was implemented in 1994.
The trade agreement will now move to the U.S. Senate for ratification in the U.S. in the new year. Mexico has already ratified the deal and ratification is expected in Canada after the parliamentary winter break ending January 27, 2020.
Importers should obtain valid Certificates of Origin for both trade agreements for 2020, to ensure there is no lapse in preferential trade status, prior to the new deal taking effect. Once the new trade agreement becomes effective, NAFTA Certificates of Origin will no longer be valid and must be replaced with USMCA/CUSMA Certificates of Origin.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, December 16, 2019
All Canadian offices of Universal Logistics will be closed from 2:00 p.m. Tuesday, December 24th through to Thursday, December 26th. Normal business hours will resume on Friday, December 27th from 8:30 a.m. to 5:00 p.m.
We will also be closed on Wednesday, January 1st and will resume normal business hours on Thursday, January 2, 2020.
If, during this holiday period you require immediate assistance regarding a Canadian Customs Clearance matter please call (519) 566-4157 to reach Universal Logistics after hours. For PARS tracking please visit our Website to utilize our PARS tracker.
Universal Logistics USA, Buffalo, New York will be closed from 1:00 pm on Tuesday, December 24th and our office will also be closed on Wednesday, December 25th. Normal business hours will resume on Thursday, December 26th from 7:00 a.m. to 12:00 midnight.
On Tuesday, December 31st, we will close at 5:00 p.m. and our office will also be closed on Wednesday, January 1st. We will resume normal business hours on Thursday, January 2, 2020.
If, during this holiday period, you require immediate assistance regarding a U.S. Customs Clearance matter please call (800) 767-8525 to reach Universal Logistics USA Inc. after hours. For PAPS tracking please visit our Website to utilize our PAPS Tracker.
Universal Logistics USA, Cleveland, Ohio will be closed from 2:00 p.m. Tuesday, December 24th and our office will also be closed on Wednesday, December 25th. Normal business hours will resume on Thursday, December 26th from 7:30 a.m. to 5:00 p.m.
We will also be closed on Wednesday, January 1st and will resume normal business hours on Thursday, January 2, 2020.
Season's Greetings from
Universal Logistics &
Universal Logistics USA!
Toronto, December 13, 2019
The United States Trade Representative (USTR) has announced the U.S. have reached a Phase One agreement with China and the additional tariffs scheduled to become effective December 15, 2019 will not be implemented.
The notice also advises tariffs imposed on $250 Billion of China origin goods will remain in effect at 25%, however, the remaining tariffs ($120 Billion) will be reduced to 7.5% from the current rate of 15%. Those tariffs being reduced were implemented effective September 1, 2019 and referred to as List 4A.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, December 10, 2019
We are excited to announce that effective December 9, 2019, our Toronto Airport office has moved to a larger facility just blocks away from our previous location. Following is our new address:
Universal Logistics Inc.
Toronto Airport (Pearson)
3380 Airway Drive, Suite 106
Mississauga, Ontario
L4V 1T3
Contact: Grace Barnard, Client Relations (gbarnard@universallogistics.ca)
www.universallogistics.ca
Our Airport branch telephone and fax numbers remain the same:
Tel: (905) 676-2763
Fax: (905) 676-9952
This requirement for an expanded facility is the direct result of our dramatic growth in warehousing and distribution services, and the need to be better positioned to handle our clients' increased demand for these services in future.
Our Toronto Airport branch office is a full service operation, including air freight, customs brokerage, warehousing and distribution services. We look forward to handling your logistics requirements at this new location, and thank you for your continued support of our services.
For more information, please call Mark Glionna, Vice President – Client Relations & Business Development at (905) 882-4880, ext. 212.
Toronto, December 9, 2019
The next round of China tariffs, scheduled to go into effect December 15th, 2019 at 15%, includes cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing. This round covers goods listed in Annex C, also referred to as List 4B of the $300 Billion Trade Action.
As a reminder, importers may request product exclusions from List 4A of the $300 Billion Trade Action until January 31, 2020.
The United States Trade Representative (USTR) have also issued (2) retroactive exclusion lists to the $200 Billion Trade Action in November:
Exclusions Granted November 13, 2019
Exclusions Granted November 29, 2019
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, November 26, 2019
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, November 26, 2019:
CIFFA Special Bulletin:
CN has released the following announcement related to a tentative agreement for a new collective agreement it has reached with its 3,200 CN conductors and yard crews.
Read full details here.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.
Toronto, November 25, 2019
Negotiations between the union and federal mediators to reach an agreement in the ongoing CN Rail strike have continued through the weekend.
CN calls on the union leaders to consider voluntary binding arbitration by an independent third party, selected by the Minister of Labour, as a means to end this labour dispute and return to the business of moving the Canadian economy safely and efficiently. CN has a small pool of qualified managers that allows the company to operate safely at approximately 10% of normal service across its extensive 22,000 kilometer long Canadian network. Currently, very limited amounts of various commodities are moving across the country.
We are continuing to see containers load to rail from Vancouver, Montreal and Halifax ports, as CN has prioritized moving container traffic to keep Canada's ports fluid so that they can return to normal operations once the strike has ended.
We will continue to monitor the situation and advise accordingly.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.
Toronto, November 19, 2019
More than 3,000 Canadian National Railway Co. (CN) train operators went on strike just past midnight on Tuesday morning, shutting down Canada's largest rail network.
The workers, represented by the Teamsters Canada Rail Conference, and CN failed to reach an agreement on a new contract after several months of mediated talks, the union said.
CN has advised they will be forced to wind down rail operations as they do not have sufficient qualified managers to safely maintain normal freight operations during this strike.
The two sides failed to reach an agreement despite the urging of two federal ministers on Monday night. Transport Minister Marc Garneau and Labour Minister Patty Hajdu met with CN and union representatives separately in Montreal to try to settle their differences.
Via Rail, Canada's passenger train service that operates mainly on CN lines, will not be adversely affected by the strike, the union has said. Similarly, commuter rail operations in Vancouver, Toronto and Montreal will be unaffected.
We will continue to monitor the situation and advise accordingly.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.
Toronto, November 18, 2019
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Sunday, November 17, 2019:
The Teamsters Canadian Rail Conference – Conductors, Trainpersons and Yardpersons (TCRC-CTY), which represents approximately 3,200 CN employees working as train conductors and railyard coordinators in Canada, issued a strike notice on Saturday, putting them in a position to strike as early as 00:01 hours Eastern time on Tuesday, November 19.
CN advises that it will continue to negotiate in good faith to reach a fair agreement before the strike deadline and remains committed to constructive talks to reach an agreement without a work stoppage. In a notice to stakeholders, James Cairns, Senior Vice-President, Rail Centric Supply Chain and Keith Reardon, Senior Vice-President, Consumer Product Supply Chain, said they believe that, with the assistance of federal mediators, CN and the Teamsters can avoid a labour dispute that would be "very disruptive to the Canadian economy."
In the event of a work stoppage, said the notice, CN does not have a sufficient number of qualified managers to maintain safe operations across its Canadian network. Should employees decide to strike, customers should anticipate service disruptions.
The Freight Management Association of Canada shared that it was informed of the involvement of Labour Canada's mediators in the negotiations.
In other CN-related news, the company announced last week that it will "lay off an unspecified number of workers and take other measures to reflect demand," as reported by Global News.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.
Toronto, October 4, 2019
The Office of the U.S. Trade Representative (USTR) has issued their final list of European Union (EU) origin goods to be subject to additional tariffs effective October 18, 2019.
The tariffs are in response to a 15-year battle over aviation subsidies in a World Trade Organization (WTO) dispute against the EU which was awarded to the U.S. this week. The EU is not allowed to retaliate against WTO-authorized countermeasures, however, a similar case filed by the EU against the U.S. is expected to receive a decision in the coming months.
The tariffs being imposed will be 10% on large civil aircraft and 25% on agricultural and other products. The bulk of the tariffs are being applied to goods of France, Germany, Spain and the United Kingdom. The U.S. has the authority to increase the tariffs or products affected at any time.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, September 26, 2019
The United States Trade Representative (USTR) has announced that temporary exclusions to the China Tariffs have been granted to 437 products from China. The goods range from printed circuit boards and dog leashes to winches and Christmas tree lights. These goods have been subject to the additional tariffs since 2018, and the temporary exclusions come as a result of over 1,000 requests made by U.S. companies.
The exclusions are retroactive to the dates of initial tariff implementation per the following lists:
Goods identified under list four, implementation of tariffs on $300 billion worth of goods, have not yet been issued an exclusion process by the USTR in order to request exemption.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, September 23, 2019
Effective October 1, 2019, there will be new minimums and maximums for U.S. Customs' Merchandise Processing Fee (MPF). The minimum will be $26.79 per transaction (previously $26.22) and the maximum will be $519.76 (previously $508.70). The Informal MPF (applies to shipments valued under $2,500 USD) will change from $2.05 to $2.14. The MPF rate of 0.3464% will not change. Goods of NAFTA Preferential Origin are exempt MPF. In addition to the MPF, various other U.S. Customs User Fees are also increasing – see full list here.
The Merchandise Processing Fee is a fee imposed by U.S. Customs and Border Protection (CBP) to offset the cost of salaries and other expenses incurred in the processing of imports and release of merchandise into the United States.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, September 12, 2019
In a tweet yesterday, U.S. President Donald Trump said the pending China tariff increase from 25% to 30% on roughly $250 billion of China products set to go into effect October 1st, has been postponed until October 15th.
The affected goods may be found on Lists 1, 2 and 3 from the United States Trade Representative (USTR).
The USTR have not yet issued a formal notice of the revised implementation date.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, September 11, 2019
Please note that all ports of call in the path of Hurricane Dorian are now open and fully functional:
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, September 5, 2019
Please note the latest updates regarding ports of call in the path of Hurricane Dorian:
We will continue to monitor this situation and advise accordingly.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, August 29, 2019
Global Affairs Canada have issued notices to importers of a new Aluminum Import Monitoring and a revision to the Steel Import Monitoring which are effective September 1, 2019. The purpose of these programs is to enable Global Affairs Canada to monitor imports of certain aluminum and steel products and facilitate the collection of import data. In addition, importers may be required, upon request, to provide to Global Affairs Canada documents and records for the purpose of identifying any errors in import data and determining the source of any inconsistencies in a targeted manner.
Notices to Importers
New - General Import Permit No. 83 – Aluminum Products
The import documentation for each shipment of aluminum products must state that it is being imported under the authority of General Import Permit (GIP) No. 83. This requirement applies to all aluminum products in item 83 of the Import Control List: Alloyed and not alloyed unwrought aluminum products, and wrought aluminum products limited to bars, rods, profiles, wires, plates, sheets, strips, foils, tubes and pipes, tube and pipe fittings and other articles of castings and forgings. The specific Harmonized System codes of the goods covered by this GIP are set out in the Commodity Codes Handbook.
Importers are required to ensure that quantity (in kilograms), value (in Canadian dollars and excluding freight costs), product classification, country of origin, U.S. state of export (if applicable), supplier name and address and importer name are given correctly, if necessary by amending the import documentation.
Revised - Steel General Import Permits No. 80 and 81 – Carbon and Specialty Steel Products
The import documentation for each shipment of carbon and specialty steel products must state that it is being imported under the authority of GIP No. 80 or 81. This requirement applies to all steel products with Harmonized System headings 7206-7302, 7304-7306, 7308, 7312-13 and 7317.
Carbon steel products include semi-finished products (ingots, blooms, billets, slabs and sheet bars), plate, sheets and strip, wire rods, wire and wire products, railway-type products, bars, structural shapes and units, pipes and tubes made of carbon steel. These items are covered by Harmonized System (HS) headings 7206-7229.
Specialty steel products include stainless steel flat-rolled products (sheet, strip and plate), stainless steel bar, stainless steel pipe and tube, stainless steel wire and wire products, alloy tool steel, mold steel and high-speed steel. These items are covered by HS headings 7301-7302, 7304-7306, 7308, 7312-7313 and 7317.
Importers are required to ensure that quantity (in kilograms), value (in Canadian dollars and excluding freight costs), product classification, country of origin, U.S. state of export (if applicable), supplier name and address and importer name are given correctly, if necessary by amending the import documentation.
Potential Penalties under AMPS
Failure to cite the required GIP or not complying with the terms and conditions of the Permit may lead to the levying of penalties by the Canada Border Services Agency (CBSA) under the Administrative Monetary Penalty System (AMPS), which authorizes the CBSA to assess monetary penalties for non-compliance with customs legislative, regulatory and program requirements. Importers may also face prosecution under the Export and Import Permits Act for contravening a provision of the Act or its regulations (section 19). Compliance is monitored by the CBSA and Global Affairs Canada.
Terms and Conditions
A resident of Canada who imports goods under these Permits must retain, for a period of six years after the year in which the import is made, documents and records containing the following information:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 26, 2019
The United States Trade Representative (USTR) has announced all existing and pending China tariffs are being increased in retaliation of China's response to the next round of tariffs being implemented on $300 billion worth of products imported to the U.S..
Current additional tariffs of 25% on roughly $550 billion of China products will increase to 30%, effective October 1, 2019. The scheduled tariffs of 10% on $300 billion will be assessed at 15%, effective on the already scheduled dates (September 1st and December 15th) for tariff increases on these imports.
The USTR's notice in the link above is reproduced below:
Washington, DC – Today, China announced it will impose unjustified tariffs targeting U.S. products. In response to China's decision, and in order to achieve the objectives of the China Section 301 investigation, President Trump has instructed the United States Trade Representative (USTR) to increase by 5% the tariffs on approximately $550 billion worth of Chinese imports. For the 25% tariffs on approximately $250 billion worth of Chinese imports, USTR will begin the process of increasing the tariff rate to 30%, effective October 1 following a notice and comment period. For the 10% tariffs on approximately $300 billion worth of Chinese imports that the President announced earlier this month, the tariffs will now be 15%, effective on the already scheduled dates for tariff increases on these imports.
The United States Trade Representative (USTR) has not yet issued a Federal Register Notice.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 14, 2019
The U.S. has announced some of the new 10% tariffs on $300 billion of Chinese imports, scheduled to become effective September 1, 2019, will be delayed until December 15, 2019.
Products being postponed until December include cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.
The list of tariffs on the $300 billion has now been split into the following:
List 4A (Effective September 1, 2019)
List 4B (Effective December 15, 2019)
Meanwhile, certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face the additional tariffs of 10% – the list is pending issuance by the USTR.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 6, 2019
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, August 6:
Hong Kong Strikes Hit Cargo Operations
Hundreds of flights from Hong Kong, the world's busiest cargo airport, have been cancelled as protesters continue coordinated strikes that are bringing chaos to the city.
Pilots, flight crews and air traffic controllers are all reported to have joined city wide demonstrations.
Read more in an article from Air Cargo News.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, August 2, 2019
In a series of tweets yesterday, President Donald Trump said the U.S. will impose a 10% tariff on the remaining $300 billion worth of imports from China, known as list four, beginning September 1st.
"Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25 per cent," Trump tweeted.
The United States Trade Representative (USTR) has not yet issued a Federal Register Notice.
Trump said the negotiations between the two nations will continue, however, China has vowed to retaliate if the additional tariffs are implemented.
We will provide updates as details are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, July 3, 2019
In a sideline meeting at the G-20 summit in Osaka, Japan this past weekend, U.S. President Donald Trump and Chinese President Xi Jinping agreed to resume trade talks that had broken down in May.
Trump and Xi have reached a temporary agreement that the U.S. will not put additional tariffs on another $300 billion worth of goods pending quality trade negotiations. It is anticipated that Trump will provide a six month deadline to reach an agreement, which would not see the additional tariffs being imposed until the end of the year.
Updates will be issued as the situation evolves.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, July 2, 2019
The Office of the U.S. Trade Representative (USTR) will hold a public hearing on August 5, 2019 concerning the addition of a supplemental list of proposed tariffs against the European Union (EU). The tariffs are proposed in order to enforce U.S. rights in the World Trade Organization (WTO) dispute against the EU regarding their subsidies on large civil aircraft.
The additional list adds 89 tariff subheadings with an approximate trade value of $4 billion to the initial $21 billion list published on April 12, 2019. USTR is adding to the initial list with the supplemental list in response to public comments and additional analysis.
The due date for submission of requests to appear is July 24, 2019, with written comments due on August 5, 2019. The hearing is to take place at the U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, June 26, 2019
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Wednesday, June 26:
BCMEA and ILWU-Canada Ratify New Collective Agreement
The British Columbia Maritime Employers Association (BCMEA) and The International Longshore and Warehouse Union – Canada (ILWU-Canada) have formally ratified a new five-year collective agreement.
"Through a collaborative effort, and with both sides having worked hard to reach a tentative collective agreement on May 30, 2019, we have now ratified that agreement and are looking forward to next steps in our working relationship and to continue to bring stability to the West Coast of Canada for the next 5 years," said Jeff Scott, Chair of the BCMEA Board.
The BCMEA said it is grateful to the Federal Mediation and Conciliation Services (FMCS) and, in particular, Peter Simpson and Kathy Peters, as well as the Minister of Labour, The Honourable Patty Hajdu, for their assistance in this process, and to ILWU-Canada for its commitment to work together.
The BCMEA said it is confident that this agreement, now ratified, "will secure a positive long-term outlook for trade and operations at local terminals, for the province and for the country." With ratification of the ILWU-Canada agreement now formalized, the BCMEA will be reaching out to FMCS to arrange further meeting dates to resume bargaining with Local 514 Ship and Dock Foremen.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, June 18, 2019
The Office of the U.S. Trade Representative (USTR) will hold public hearings from June 17 to June 21, 2019 and, next week, from June 24 to June 25, 2019, regarding proposed tariffs on approximately $300 billion worth of Chinese products.
The hearings are taking place at the U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.
The proposed tariffs are a supplemental action in response to China's unfair trade practices related to technology transfer, intellectual property, and innovation, based on the findings in USTR's investigation of China under Section 301 of the Trade Act of 1974.
The list of hearing dates and scheduled witnesses can be viewed here.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, June 10, 2019
President Donald Trump tweeted Friday night that the U.S. and Mexico had reached a deal on immigration and security and the Mexico tariffs of 5%, due to take effect today, have been indefinitely suspended.
In another tweet this morning, Trump advised the deal needs to pass a vote by Mexico's legislative body and if not approved, the tariffs will be forthcoming.
Updates will be issued as the situation evolves.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 31, 2019
U.S. President Donald Trump has threatened to impose escalating tariffs on all imports from Mexico to the U.S.. A 5% tariff will take effect on June 10, 2019, with the rate increasing the first of each month until October 1, 2019, to a final rate of 25%.
The tariffs will be reduced or removed if Mexico takes action to "reduce or eliminate the number of illegal aliens" crossing into the U.S., the White House said in a statement.
The official statement from the White House, issued May 30, 2019, outlines the tariff structure along with detailed measures which must be implemented in order for the tariffs to be reduced or removed.
We will provide updates as details are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 30, 2019
Vancouver port workers and the B.C. Maritime Employers Association reach tentative deal
A tentative agreement has been reached between the International Longshore and Warehouse Union (ILWU) Canada and the B.C. Maritime Employers Association (BCMEA), representing B.C. port employers.
Effective immediately, the lockout by the BCMEA has been lifted and operations are set to resume for the 4:30 p.m. shift today, Thursday, May 30, 2019.
The union said no details of the tentative agreement will be released pending ratification votes by its members.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, May 30, 2019
Vancouver port workers have been locked out by their employer as negotiations continue
The B.C. Maritime Employers Association (BCMEA) confirmed that 6,500 members of the International Longshore and Warehouse Union (ILWU) have been locked out as of 8:00 a.m. on Thursday, May 30. This action is expected to cripple port operations in Vancouver.
Both parties have been meeting to address outstanding issues, however, a final agreement has not been reached at this stage. A federal mediator imposed a news blackout as the latest round of negotiations got underway Wednesday, May 29, less than 24 hours before the lockout notice issued by the association was due to take effect.
Please note the following updates regarding this situation.
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.
Toronto, May 29, 2019
BCMEA to Lock Out ILWU Employees Effective 8:00 am May 30, however, both parties return to the bargaining table today
The British Columbia Maritime Employers Association (BCMEA) provided formal notice to the International Longshore and Warehouse Union – Canada (ILWU-Canada) today of its intention, given the strike action that is occurring in the industry, that customer members of the Association will lock out all longshore employees covered by the expired BCMEA/ILWU-Canada collective agreement effective 8:00 am on May 30.
The BCMEA did not arrive at this decision lightly, as it followed significant discussion understanding the economic impact this will have on the Canadian economy. Their preference still remains to arrive at a negotiated settlement between the parties and they are committed and available to meet with Federal Mediation and Conciliation Service (FMCS) and ILWU-Canada to achieve this end.
The BCMEA announced there were further discussions with FMCS and the Ministry of Labour Tuesday, May 28 and as a result, the parties have agreed to return to the bargaining table Wednesday, although the lockout notice has not been lifted.
As further developments occur, the BCMEA said it would advise as to the progress made.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, May 28, 2019
U.S. President Donald Trump has terminated Turkey's preferential (duty-free) trade status under the Generalized System of Preferences (GSP) as a "developing nation", effective May 17, 2019.
Prior to removing a country from the GSP the President takes into account, among other factors, the level of economic development of such country, including its per capita gross national product, the living standards of its inhabitants, and any other economic factors that the President deems appropriate.
Trump had also filed Notice of Intent for the removal of India from the GSP, as they have also been deemed no longer a developing nation, but has delayed implementation until India's new government has been sworn-in.
Similarly, Canada removed both Turkey and India from the Generalized Preferential Tariff (GPT), the Canadian version of GSP, back on January 1, 2015.
Once a country has been removed from the GSP they will be subject to "General" rates of duty assessed by commodity into the U.S..
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 27, 2019
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Monday, May 27:
ILWU to take "Limited job action" today at GCT Deltaport and Vanterm
The International Longshore and Warehouse Union – Canada (ILWU-Canada) issued a notice Sunday, indicating the Union will take targeted job action on Monday, May 27, 2019 at 7 am at Vancouver's GCT terminals, Deltaport and Vanterm, however, there will be no picket lines and all ports and terminals will remain open.
ILWU-Canada President Rob Ashton said that, "Contrary to comments made by employers to the media, all terminals will remain open for business and ILWU-Canada and its locals will not put up picket lines at this time. Our goal is to keep the ports open with minimal disruption to trade."
The British Columbia Maritime Employers Association (BCMEA) said it remains committed to the collective bargaining process, having continued discussions throughout the weekend, and will continue to bargain in an effort to reach a collective agreement that is in the interests of both parties
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, May 24, 2019
Roughly two thousand workers will commence strike action at GCT Deltaport and GCT Vanterm on May 27, 2019 at 7:00 am.
Deltaport is the largest container terminal of the four in Vancouver, Canada's busiest port. If it and Vanterm are shut down, it would cripple most of the port's container traffic. Depending on how the union's picket lines are set up, other terminals could be affected.
The Port of Vancouver is Canada's largest, and the third largest in North America by tonnes of cargo. It handles the bulk of Canada's trade with Asia, including container terminals, grain terminals, coal terminals and a host of other facilities.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, May 17, 2019
A long-awaited trilateral deal has been reached between Canada, the U.S. and Mexico to end the steel and aluminum tariffs, referred to as the Section 232 Duties.
The deal applies to the tariffs the U.S. imposed last June (25% on imports of steel and 10% on aluminum) by citing national security, as well as Canada's retaliatory tariffs on steel, aluminum and as other U.S. origin consumer products.
Prime Minister Justin Trudeau and President Donald Trump are expected to issue formal announcements today with the tariff elimination to become effective 48 hours after Trump signs the official U.S. Proclamation.
We will provide updates as details are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 14, 2019
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, May 14:
"ILWU-Canada Strike Vote Results – Port of Vancouver
ILWU Local 500 posted the results of the strike vote held on May 8 and 9 on its website. More than 98 percent of the union's members voted in favour of supporting strike action against the member companies of the B.C. Maritime Employers Association, if necessary.
As noted in bulletins last week, BCMEA is "cautiously optimistic" that the two sides will come to an agreement, and further meetings have been scheduled."
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, May 14, 2019
In the latest round of the trade war between the USA and China, President Donald Trump has issued the $300 billion list of proposed goods for comment prior to implementation of a 25% China tariff. The official notice, complete with a list of HS tariff classifications, has been issued by the United States Trade Representative (USTR).
This round of potential tariffs covers most remaining un-tariffed goods from China, e.g. food, books, glassware, computers, clothing, toys, etc.. If this list goes through, 96% of Chinese origin goods entering the USA will have become subject to a 25% tariff.
Interested parties may submit written comments to the USTR by June 17, 2019 as outlined in the notice.
After U.S. tariffs were raised on Chinese products with a value of $200 billion last week, China retaliated with increased tariffs against 5,140 U.S. products entering China, such as honey, vegetables, coffee and various meats representing $60 billion of goods. A representative for Beijing says, "We are determined and capable of safeguarding our legitimate rights and interests. We hope the United States will meet China halfway to address each other's legitimate concerns. Further retaliation is expected from China. Updates will be issued as the situation evolves.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 10, 2019
President Donald Trump implemented the China tariff increase at 12:01 am today raising the 10% Section 301 Tariffs on $200 billion of Chinese goods to 25%. The official notice was issued by the United States Trade Representative (USTR).
The increased tariff applies to a specific list of China origin goods exported to the U.S. on or after May 10, 2019.
Goods that were exported to the U.S. prior to May 10, 2019, will be subject to the 10% tariff, in effect at time of shipping, as long as they are entered into the U.S. prior to June 1, 2019. Should these shipments enter the U.S. after June 1, 2019, they will be subject to the higher 25% tariff.
Additionally, in a tweet this morning, Trump stated "the process has begun to place additional tariffs at 25% on the remaining $325 billion dollars" referencing the remaining imports of China origin goods entering the U.S. not currently subject to tariffs. Beijing vows to retaliate against the U.S.. Updates will be issued as the situation evolves.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 10, 2019
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Friday, May 10:
"Further Negotiation Dates Set for BCMEA and ILWU – Canada
The B.C. Maritime Employers Association has advised that further meetings have been scheduled with the International Longshore and Warehouse Union – Canada, beginning Tuesday, May 21 and continuing on May 22, 23 and 24. The meetings will be facilitated by the Federal Mediation and Conciliation Service (FMCS)."
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, May 8, 2019
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Wednesday, May 8:
"BCMEA Update: ILWU – Canada Strike Vote Today and Tomorrow
The B.C. Maritime Employers Association yesterday provided notification that, over the course of two days, today and Thursday, the International Longshore and Warehouse Union – Canada is planning a strike vote and all Locals have been directed to take a "yes vote."
BCMEA presumes that ILWU – Canada will receive a majority "yes vote" for its strike mandate; however, such an outcome does not mean that the Union will exercise its right to strike.
A strike could occur only if the Union:
- receives a mandate to strike;
- chooses to exercise that mandate within 60 days of obtaining it; and
- provides 72-hour strike notice.
BCMEA remains cautiously optimistic that the two sides will come to an agreement, as the Federal Mediation and Conciliation Service (FMCS) is in the process of scheduling further dates."
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, May 6, 2019
U.S. President Donald Trump is threatening to raise U.S. tariffs on China imports, effective Friday May 10. That means China imports currently assessed a 10% tariff would increase to 25%. Trump is also threatening to apply a 25% tariff on a widened range of Chinese products with a total value of $325 billion. China is now considering cancelling trade talks which were set to resume Wednesday in Washington D.C.. Updates will be issued as the situation evolves.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, April 29, 2019
Negotiations between the British Columbia Maritime Employers Association (BCMEA) and the International Longshore and Warehouse Union (ILWU) Canada have moved into a 21-day cooling off period that expires on May 4, and would open the way for a strike or lockout at 12:01 a.m. on May 5. The association said it remains "cautiously optimistic" that the parties will achieve renewal agreements. Meetings are scheduled from April 29 to May 2; during this period port operations will continue as usual.
We will continue to monitor this situation and advise accordingly.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, April 11, 2019
The Canadian International Trade Tribunal (CITT) has issued its awaited ruling in the steel safeguard inquiry. This concerns the importation into Canada of seven categories of steel products which were assigned an import quota in October 2018, where imports beyond the quota were subject to 25% tariff surtax.
It has been determined that safeguard measures were warranted for the following two steel product categories:
The Minister of Finance and Cabinet only have a few weeks before the provisional duties expire (April 28, 2019) to decide whether to impose "definitive" long-term safeguard measures (i.e. for a period of three years) and, if so, how such measures should be implemented.
With respect to the other five product categories, the Tribunal concluded that safeguard measures are not warranted:
It is reasonable to expect that the provisional safeguard measures will be discontinued and a process will be established for the prompt refund of import surtaxes that have been paid by importers during the provisional period.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, April 10, 2019
The United States Trade Representative (USTR) has proposed $11 billion in tariffs against the European Union in an announcement made April 8, 2019. The tariffs are in response to the EU's Airbus subsidies which have been deemed to be unfair to the United States by the World Trade Organization (WTO).
The USTR released for public comment a preliminary list of EU products to be covered by additional duties. The amount is subject to an arbitration at the WTO, the result of which is expected to be issued this summer.
This preliminary list of goods, covering a wide range of items from seafood to jets, has been issued for public consultation. For example, the following are being considered for additional tariffs if they come from any of the 28 EU states.
Also, additional import duties are being considered on some goods if they are produced in France, Germany, Spain or the UK. They include:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, April 3, 2019
U.S. food importers need to ensure they are complying with the requirements of the Foreign Supplier Verification Program (FSVP) because enforcement by the U.S. Food and Drug Administration (FDA) is being stepped up in 2019.
One key requirement is that importers use the Data Universal Numbering System (DUNS), which as of 2017 is considered an acceptable Unique Facility Identifier (UFI) for the FSVP. DUNS numbers, assigned and managed by Dun & Bradstreet, are available free of charge to importers. They can be obtained by contacting D&B by phone at 866-705-5711, by email at govt@dnb.com, or by visiting D&B's website or fdadunslookup.com. If the importer is a non-resident, the DUNS will also be required for the buyer or consignee in the U.S..
Importers are also mandated to provide their legal business name, electronic mailing address, and UFI recognized as acceptable by the FDA for each line entry of food product offered for importation into the United States. This information should be stated on import documentation in order to avoid clearance delays.
All foreign food facilities will be required to provide a DUNS number for the 2020 FDA Food Facility Biennial Registration Renewal process.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, April 1, 2019
Higher Canadian tariffs on U.S. made products could be coming soon if the Trump administration refuses to end the additional tariffs on Canadian made steel (25%) and aluminum (10%), introduced last June.
Prime Minister Justin Trudeau and Foreign Affairs Minister Chrystia Freeland say the U.S. tariffs should be removed because they are both "illegal" and "unjust". U.S. President Donald Trump says the tariffs are necessary to correct a trade imbalance between Canada and the U.S.. When Canada first retaliated, the government described the counter-measures as "dollar-for-dollar" when compared with the U.S. tariffs, but sources say the dollar value actually falls significantly short of that threshold.
Even bigger problems could be ahead if the impasse on tariffs causes law makers on both sides of the border to vote against approval of the NAFTA update, a necessary step to implement the new trade agreement.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, March 15, 2019
We are only a couple weeks away from higher Administrative Monetary Penalties (AMPS) for 22 contraventions related to commercial trade, implemented after a study showed the existing penalties were not in line with non-trade commercial offences. As an example, the revised penalty amounts will, where CBSA determine the importer had "reason to believe" an error occurred, increase from $150 per occurrence (i.e. shipment) to $500 each to a maximum of $25,000 for a 1st level penalty.
Details on the contraventions and the related penalties, which come into force April 1, 2019, are provided in a table issued by the CBSA (Canada Border Services Agency) with descriptions of each penalty listed below.
Table 1 – Changes to Select Administrative and Monetary Penalty Levels
| Contravention Code |
Penalty Level |
Current PENALTY Amount | PENALTY Amount EFFECTIVE April 1, 2019 |
| C004, C152, C168, C169, C223, C224 | 1st | $150 | $500 |
| 2nd | $225 | $750 | |
| 3rd and subsequent | $450 | $1,500 | |
| C080, C081, C082, C083, C350, C351, C352, C353 | 1st | $150 to a maximum of $5,000 (per issue) or $25,000 (per occurrence) | $500 to a maximum of $5,000 (per issue) or $25,000 (per occurrence) |
| 2nd | $225 to a maximum of $200,000 (per occurrence) | $750 to a maximum of $200,000 (per occurrence) | |
| 3rd and subsequent | $450 to a maximum of $400,000 (per occurrence) | $1,500 to a maximum of $400,000 (per occurrence) | |
| C157, C214, C215, C216, C217, C218, C298 | 1st | $300 | $600 |
| 2nd | $450 | $1,200 | |
| 3rd and subsequent | $900 | $2,400 | |
| C336 | Flat Rate | $100 per instance | $200 per instance |
In addition, the CBSA will reset the penalty level to the first level for contraventions mentioned above that occur on or after April 1, 2019. This is to avoid unanticipated impacts on industry that could occur by issuing second and third level penalties at higher levels than previously indicated.
The new AMPS regime takes into account feedback from several key stakeholder groups, including the Canadian Society of Customs Brokers, the Canadian Federation of Independent Business, the Canadian Association of Importers and Exporters, and the Association of International Customs and Border Agencies. Company representatives were consulted as well through the Border Commercial Consultative Committee.
C004: Person provided information to an officer that is not true, accurate and complete. When a Special Import Measures Act (SIMA) code was not completed correctly for goods imported seven days or more after a preliminary determination was made and after the importer was notified in writing, and ending when the SIMA action is terminated by Canada Border Services Agency (CBSA) or the Canadian International Trade Tribunal (CITT).
C080: Authorized person failed to make the required corrections to a declaration of origin of imported goods subject to a free trade agreement within 90 days after having reason to believe that the declaration was incorrect.
C081: Authorized person failed to make the required corrections to a declaration of origin of imported goods within 90 days after having reason to believe that the declaration was incorrect.
C082: Authorized person failed to make the required corrections to a declaration of tariff classification within 90 days after having reason to believe that the declaration was incorrect.
C083: Authorized person failed to make the required corrections to a declaration of value for duty within 90 days after having reason to believe that the declaration was incorrect.
C152: Importer or owner of goods failed to furnish the proof of origin upon request.
C157: Person who imports, or causes to be imported, commercial goods failed to make records and documents in respect of those goods available to an officer when requested.
C168: Person failed to report within 90 days a failure to comply with a condition imposed under a tariff item in the List of Tariff Provisions in the schedule to the Customs Tariff.
C169: Person failed to repay within 90 days duties and interest refunded under paragraph 74(1)(f) of the Customs Act after a failure to comply with a condition imposed under a tariff item in the List of Tariff Provisions in the schedule to the Customs Tariff.
C214: Person failed within 90 days or such other period as may be prescribed to report a failure to comply with a condition of a duties relief provision or remission order.
C215: Person failed within 90 days or such other period as may have been prescribed to pay the amount of duties in respect of which relief or remission was granted unless the provisions of subparagraph 118(1)(b)(i) or (ii) of the Customs Tariff were met.
C216: Person failed within 90 days after the date of the diversion to report diverted goods to a customs officer at a customs office.
C217: Person failed within 90 days after the date of the diversion to pay the amount of the drawback and the amount of any interest granted.
C218: Person failed to pay within 90 days duties relieved under section 89 of the Customs Tariff on the goods that entered into a process which produced by-product(s) not eligible for relief.
C223: Non Customs Self Assessment (CSA) importer failed to provide a detailed product description in respect of goods liable for review under the Special Import Measures Act (SIMA), after the importer has been notified in writing.
C224: Customs Self Assessment (CSA) importer failed to provide the detailed product description within the period specified in respect to goods liable to a Special Import Measures Act (SIMA) action.
C298: Person who imports commercial goods or causes commercial goods to be imported failed to provide records in respect of those goods to an officer when requested, within the time specified by the officer.
C350: Authorized person failed to pay duties as a result of required corrections to a declaration of origin of imported goods subject to a free trade agreement within 90 days after having reason to believe that the declaration was incorrect.
C351: Authorized person failed to pay duties as a result of required corrections to a declaration of origin of imported goods within 90 days after having reason to believe that the declaration was incorrect.
C352: Authorized person failed to pay duties as a result of required corrections to a declaration of tariff classification within 90 days after having reason to believe that the declaration was incorrect.
C353: Authorized person failed to pay duties as a result of required corrections to a declaration of value for duty within 90 days after having reason to believe that the declaration was incorrect.
C366: Person failed to pay duties on goods accounted for under subsections 32(2) and 32(3) of the Customs Act.
We offer professional Customs Consulting services to assist you in becoming fully compliant. Remember, investing in compliance is always less costly than paying for non-compliance.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, March 8, 2019
Higher fees for container demurrage and detention at key U.S. West Coast ports (Los Angeles and Long Beach) is leading to rising tensions between logistics intermediaries (shipping lines/marine terminals) and the importers who have to pay the bills.
Importers say the fees are an unjustified profit centre for the shipping lines and terminals.
The U.S. Federal Maritime Commission (FMC) has commenced the final phase of an investigation, covering detention, demurrage, and free time practices of ocean carriers and marine terminal operators. The FMC said "innovation teams" of industry experts would hold meetings "no later than mid-April" to review their findings.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, March 1, 2019
Due to the ongoing political and military situation between India & Pakistan, Pakistan has closed its airspace, which has resulted in disruption of flights worldwide. Air Canada has also suspended their flights between India and Canada. Other airlines are operating, however, the transit will be longer on flights which normally fly over Pakistan, as the airlines have to utilize different routes to avoid this airspace. Airlines will also have to carry additional fuel for these longer flights, which will reduce the available cargo capacity.
It is unknown when Pakistan will reopen its air space. India has not taken the same step, but it is restricting traffic to some airports.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.
Toronto, March 1, 2019
The Quebec Ministry of Transportation has released its 2019 "Spring Thaw" dates and zones. These are container weight restrictions imposed every year to protect Quebec highways during the spring thaw.
|
Zone 1 |
Zone 2 |
Zone 3 |
Monday, March 11 (12:01 a.m.) |
Monday, March 18 (12:01 a.m.) |
Monday, March 25 (12:01 a.m.) |
| 20’ Std: | 47,900 lbs | |
| 40’ Std/HQ: | 50,000 lbs | |
| 45’ HQ: | 50,000 lbs | |
| 20’ Reefer: | 46,000 lbs | |
| 40’ Reefer: | 48,000 lbs |
The weight restrictions not only apply to the total cargo weight within the container, but also the distribution of weight over the axles of the chassis. If cargo weight is not distributed evenly across all axles, the container could be subject to additional fines.
Please note, these details are guidelines. The dates are subject to change by the Quebec Ministry of Transportation, depending on actual weather conditions. It is advisable that you visit the Ministry's website (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, ext. 308 Debbie McGuire, Manager – Freight Solutions.
Toronto, February 27, 2019
Dwell times of 7-15 days are being reported for ocean freight containers transiting through Canadian West Coast ports. This is due to a number of factors, including (but not limited to), severe weather conditions, cargo volume surges, and ongoing rail car shortages.
We will continue to monitor this situation and update accordingly.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, February 26, 2019
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, February 26:
"MEA Issues Update on Negotiations with Longshoremen's Union, Montreal
The Maritime Employers Association (MEA) issued a communication yesterday regarding ongoing negotiations of the collective agreement with the Longshoremen's Union, CUPE Local 375 in Montreal. The letter constitutes the second communication, following the one sent on January 10, 2019.
As of this update, the MEA and the union are in mediation.
The MEA has presented a request to maintain essential services with the Canada Industrial Relations Board (CIRB). There were hearings in the first two weeks of February 2019. More hearings at the CIRB are expected during the months of March and April. In view of the request to maintain essential services, the parties do not have the right to strike or lock out."
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
Toronto, February 25, 2019
There will be no increase in U.S. tariffs on China imports, U.S. President Donald Trump has announced. This means the additional U.S. tariff on $200 billion of Chinese-made products will remain at 10%, pending a meeting between the national leaders at a Trump vacation property in Florida. No date has been announced. The plan was to hike the rate to 25% on March 1.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905 882-4880, ext. 213.
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.
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.
Toronto, February 12, 2019
A solution to the current trade dispute between the United States and China is uncertain with just two weeks left before the U.S. increases tariffs on China that would raise the duty on $200 billion worth of Chinese goods to 25% from 10%, effective March 2.
Negotiations continue, but a rumoured meeting between the respective heads of state is not going to happen, according to U.S. President Donald Trump. Trump told reporters on Tuesday during a cabinet meeting that he would consider extending a March 1 deadline to close a trade deal before raising tariffs on Chinese products. "I could see myself letting that slide for a while if we're close to a deal."
China has promised to retaliate if the U.S. goes ahead with the tariff increases, sparking fears that both countries are on the road to a
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, February 8, 2019
Approval of the USMCA/CUSFTA should only happen if Section 232 tariffs on imports of steel and aluminum products from Canada and Mexico are eliminated, says Canadian Foreign Affairs Minister Chrystia Freeland. The Provinces are taking the same position as they are very concerned about the negative impacts of the tariffs on Canadian workers and industry.
Opposition is also growing in the U.S., where U.S. trade associations say the tariffs – and Canada's retaliatory duties – are causing more harm than good.
Some have suggested progress would be possible if Canada agreed to drop its retaliatory tariffs first, but Freeland said this is unlikely.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
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.
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.
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.
Toronto, January 9, 2019
Please note the following dates when the 2019 Chinese Lunar New Year will be celebrated in China and Hong Kong:
| China: | February 4 – 11 |
| Hong Kong: | February 5 – 7 |
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:
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 308.
Toronto, December 21, 2018
The Government of Canada has provided additional relief for Canadian manufacturers who now have to pay more for U.S. steel and aluminum because of tariffs Canada imposed in response to U.S. tariffs on Canadian steel and aluminum. The relief, known formally as the United States Surtax Remission Order, covers certain steel, aluminum and other goods as identified in the list provided by the Department of Finance.
A second form of relief allows Canadian importers of seven steel products to apply for remission of "provisional safeguard surtaxes" imposed by the Canadian government on October 25, 2018. The applicable products include heavy plate, concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel, stainless steel wire and wire rod that was in transit to Canada prior to October 25, 2018. Please refer to CBSA's Customs Notice 18-24 "Provisional Safeguards – In-transit Steel Goods Remission Order" for additional details.
Learn more by reading the following pages on our website:
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, December 3, 2018
U.S. President Donald Trump has postponed a planned tariff increase on Chinese products. In exchange, China will buy more U.S. made farm, energy and industrial goods.
The change in plans means U.S. tariffs on $200 billion in Chinese products will not jump from 10% to 25% on January 1, 2019. This decision could be reversed, however, if there are no changes in Chinese trade policy, with the top U.S. priorities being elimination of forced technology transfers, trade secret theft and non-tariff trade barriers, to which President Trump and President Xi have agreed to immediately begin negotiations.
Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10% tariffs will be raised to 25%.
The full list of goods subject to the 10% tariff are available here along with Saturday's statement from the White House.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
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.
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:
The Order applies to certain steel goods imported from all countries except for the exclusions listed below:
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.
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.
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:
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.
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:
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.
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.
Toronto, September 18, 2018
The U.S. has announced it will implement tariffs on roughly $200 billion of imports from China, effective September 24 2018. The 10% tariff will last until January 1, 2019, when the tariff rate will increase to 25%. An additional list of tariffs, covering imports worth $267 billion, will be enacted if China follows through on its promise to retaliate against the U.S. with $60 billion in tariffs effective the same date.
The White House says the tariffs are necessary because China has refused to stop its "unfair policies and practices relating to United States technology and intellectual property – such as forcing United States companies to transfer technology to Chinese counterparts. These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy."
The current list of tariffs being implemented against Chinese goods imported into the U.S. on September 24th, 2018 are available here.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
Toronto, August 23, 2018
As U.S. and Chinese officials are currently conducting mid-level trade talks in Washington D.C., the list of 25% tariffs, announced by the Trump Administration on August 10th, were implemented today on roughly $16 billion of Chinese goods.
The list of 279 HS tariff classifications includes plastics, semiconductors, electronic integrated circuits, motorcycles, and railway and farm equipment.
The Chinese government has imposed a 25% tariff on $16 billion of U.S. imports today as well.
The world's two largest economies have now slapped tit-for-tat tariffs on a combined $100 billion in products since early July, with more in the pipeline, adding to risks to global economic growth.
Updates will be issued as new information becomes available.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 20, 2018
The Federal Government is asking for input, by August 29, 2018, on emergency safeguards it is considering to stop a surge of cheap foreign steel imports entering Canada. The products in question include:
They are flooding into the Canadian market because the makers want to avoid tariffs imposed by the U.S..
The proposed safeguards would give the Federal Government the power to stop the surge by imposing limits on the amount of steel imported into Canada. The impact would be immediate because the government could enact the restrictions without first getting a ruling by the International Trade Tribunal on the legitimacy of the tariffs, which would happen at some later date.
Some stakeholders, including the construction industry, downstream fabricators and manufacturers, oppose the safeguards, mainly because they believe the new trade restrictions will lead to higher prices.
Canada's approach may be similar to the European Union which set import quotas on 23 types of steel products last month. In the EU, a tariff of 25% will be applied when the volume of imports exceeds the average amount of imports in the preceding three years. The quota is allocated on a first-come-first served basis, rather than discriminating against any individual country.
Canadian Finance Minister Bill Morneau says the Federal Government will do whatever is necessary to protect Canadian steel makers against unfair competition. He added that the dispute is not directly related to the ongoing NAFTA renegotiation. Canada wants to avoid being accused by the U.S. of being a back door for cheap steel, where the true origin of steel is hidden by moving it to another country before it enters the U.S.. For example, steel made in China could be shipped to Canada, where it is disguised or falsified prior to being shipped in to the U.S..
Updates will be issued as the situation develops.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 15, 2018
The United States has doubled its tariffs on steel and aluminum made in Turkey after that country refused to release a detained American pastor. The pastor, who has lived in Turkey for two decades, was arrested in 2016 for being a "terrorist" and participating in the failed coup against President Recep Tayyip Erdogan.
U.S. President Donald Trump said he authorized the new duties, 20% for aluminum and 50% for steel, to punish Turkey for refusing to release the pastor. Turkey has responded with increased tariffs on U.S. products (120% on American cars, 140% on alcoholic drinks, and 60% on leaf tobacco). Tariffs on rice, cosmetics and coal will also be doubled.
The U.S. was the fourth largest source of imports to Turkey last year, accounting for $12 billion of imports, while Turkey's exports to the United States last year amounted to $8.7 billion, making it Turkey's fifth-largest export market.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 10, 2018
The Trump administration has announced a new list of tariffs on roughly 16 billion Chinese goods to take effect August 23.
Only five product items were deleted from what was initially proposed on June 15. Semiconductors, among the largest categories, remain on the list. Other products that will be subject to the hefty duties include electronic integrated circuits, motorcycles, and railway and farm equipment.
A trade representative for U.S. President Donald Trump also said the $200 billion proposed list of tariffs , of June 20, is being increased from 10% to 25% to heighten pressure on China to drop "its harmful policies and behavior."
In response, the Chinese government said it will impose a 25% tariff on 333 categories of U.S. products, including coal, bicycles, trucks and vehicle engines and chemicals, that will go into effect the same day.
Updates will be issued as new information becomes available.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
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
Air Heaters and Hot Air Distributors (new)
Harmonized System Number(s): Heading 73.22
Flashlights and Miners' Safety Lamps (new)
Harmonized System Number(s): Heading 85.13
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, July 12, 2018
The Trump administration is threatening to launch a second round of tariffs on Chinese goods, with a total value of $200 billion.
On July 10th, U.S Trade Representative Robert Lighthizer released a list of thousands of additional goods that could face 10% tariffs after a public comment period, which includes fruit and vegetables, handbags, refrigerators, furniture, baseball gloves and automotive parts and accessories.
The tariffs will not go into effect immediately but will undergo a two-month review process, with hearings August 20-23 at the U.S. International Trade Commission in Washington, DC.
The move comes after the United States imposed 25% tariffs on Chinese goods worth $34 billion last Friday. Beijing immediately responded with its own tariffs on U.S. goods worth $34 billion. Tuesday's action makes good on a statement President Donald Trump made last month. He directed Lighthizer to identify $200 billion in Chinese goods for tariffs that would significantly impact China's economy, if China retaliated against U.S. penalties that are meant to punish the country for intellectual property theft.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, June 29, 2018
On June 29, 2018, the Government of Canada released its final list of tariff items that will be applied as retaliatory tariffs to U.S. steel, aluminum and other products. These countermeasures are in response to the 25% Steel Tariff and the 10% Aluminum Tariff applied by the U.S. to Canadian origin goods. The countermeasures will come into effect on July 1 and remain in place until the U.S. removes its trade measures against Canada.
The list is a must-read for all importers as the "other products" range from yogurt to ball point pens and not just steel and aluminum.
This final list has been issued after the Canadian Government took into consideration feedback received from Canadians through over 1,000 submissions during public consultations. The countermeasures being imposed amount to C$16.6 billion in imports of steel, aluminum, and other products from the U.S., representing the value of 2017 Canadian exports affected by the U.S. tariffs.
The Canada Border Services Agency (CBSA) have issued Customs Notice 18-08, United States Surtax Order (Steel and Aluminum) and United States Surtax Order (Other Goods) to provide detailed information concerning the application and administration of the surtaxes.
Of particular note:
As well, Global Affairs Canada released Canada stands up for our steel and aluminum workers and industry providing statements, facts, and additional background information on today's announcements.
The House of Commons Standing Committee on International Trade held a hearing on June 26, 2018 regarding the impacts of US tariffs on steel and aluminum on Canadian businesses and workers, including steel companies, trade associations, and representatives from organized labour.
As a result of limited time for witnesses to be heard, the House of Commons Standing Committee on International Trade is asking that interested parties submit a brief through their online form by July 31, 2018, outlining thoughts about the impacts of US Section 232 tariffs on Canadian businesses and workers.
If you would like to engage our Customs Consulting team, please contact me at (905) 882-4880, ext. 213 to discuss available services, including a Duty Impact Study.
Toronto, June 26, 2018
A worldwide trade war is just days away as the U.S. and its major trading partners impose – or threaten – ever widening tariffs.
Canada and China are both set to impose additional tariffs against the U.S., while the U.S. is promising to implement $100 billion worth of additional tariffs against products from China. The EU implemented their tariffs against the U.S. on June 22.
Tariffs impede global trade by making goods more expensive. But it appears the U.S. is committed to forcing the hand of its greatest allies and competition alike, in an effort to either strengthen American manufacturing or negotiate better trade deals.
Here is a breakdown of the new tariffs by country/region:
| Canada | The Canadian government is imposing tariffs against select U.S. made goods at either 25% (Table 1) or 10% (Table 2), effective July 1 (Canada Day). They will apply to $12.8 billion worth of products, ranging from raw steel to chocolate, produced in pro Trump states. Canada says the tariffs are necessary to counter balance the impact of tariffs applied by the U.S. June 1 on Canadian-made Steel and Aluminum. |
| EU | The European Commission in Brussels has approved a 25% duty on 2.8 billion euros (US$3.2 billion) of U.S. made products the EU imports, including Harley-Davidson Inc. motorcycles, Levi Strauss & Co. jeans and bourbon whiskey. A separate 10% levy is being applied to U.S. playing cards imported into the bloc. The impact was almost immediate as Harley Davidson has already announced it is moving some manufacturing out of the U.S. to avoid the new tariffs applied by the EU. |
| China | In direct response to U.S. tariffs on Chinese products, China's Ministry of Commerce has announced it will impose, effective July 6, a 25% tariff on U.S. products with a total value of US$34 billion. The targeted products include auto and dairy products. Additional tariffs on oil, chemical and medical equipment, totaling US$16 billion, could follow, but the date of implementation has not been announced. U.S. exports $1 billion worth of crude oil to China monthly. |
| USA | After hearing about the Chinese tariffs on U.S. products, President Trump promised to implement in July retaliatory tariffs on China products, with an additional list of products to undergo public comment, having a total value of $50 billion. The proposed tariffs have already been countered and re-countered and the U.S. is now threatening an additional $200 billion in tariffs if China does not back down. |
U.S. President Trump says he is imposing tariffs to correct unfair trade practices and protect U.S. jobs. Critics say his actions will lead to the opposite: the loss of U.S. jobs, particularly in states that make products subject to counter tariffs.
More developments are likely as we get closer to the date when pending tariffs are enacted.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
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:
Consignee's Details:
For Exports to China from Canada or the U.S.:
Shipper's Details:
Consignee's Details:
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.
Toronto, May 31, 2018
Exemptions for Canada, Mexico and the European Union to the U.S. Steel and Aluminum Tariffs will expire at midnight tonight and are not being extended as per U.S. Secretary of Commerce Wilbur Ross' announcement earlier today.
U.S. Steel (25%) and Aluminum (10%) Tariffs apply to the following imports into the U.S. from Canada, Mexico and the EU beginning at 12:01 am June 1st, 2018:
The steel duties will be applied at the six digit level to the following tariff numbers: 7206.10 through 7216.50, 7216.99 through 7301.10 (includes ingots, bars, rods, sheets and wire), 7302.10, 7302.40 through 7302.90 and 7304.10 through 7306.90 (includes rails, pipes, and tubes).
The aluminum duties will be applied to the following tariff numbers: (a) unwrought aluminum (HTS 7601); (b) aluminum bars, rods, and profiles (HTS 7604); (c) aluminum wire (HTS 7605); (d) aluminum plate, sheet, strip, and foil (flat rolled products) (HTS 7606 and 7607); (e) aluminum tubes and pipes and tube and pipe fittings (HTS 7608 and 7609); and (f) aluminum castings and forgings (HTS 7616.99.5160 and 7616.99.5170).
In the wake of this announcement, Canada, Mexico and the EU have all issued retaliatory measures against the U.S.
Canada:
Tariffs of 25 per cent or similar "trade-restrictive measures" to the following list of items, which includes:
And a 10 per cent surtax or similar "trade-restrictive measures" will be added to the following list of items, which includes:
Mexico:
Will impose measures equivalent to various products such as flat steels (hot and cold laminates, including coated and various tubes), lamps, legs and pork vanes, sausages and food preparations, Apples, grapes, blueberries, various cheeses, among others, up to an amount comparable to the level of the affectation.
EU:
A 10-page list of products subject to additional duties, including:
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
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.
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.
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.
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.
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
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.
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.
Toronto, May 1, 2018
Temporary tariff exemptions on imports of steel and aluminum into the U.S. from multiple countries, including Canada, have been extended for 30 days. The other countries involved include Mexico and the member countries of the European Union (EU). The White House's original plan, announced in March, was to apply tariffs of 25 per cent on imported steel and 10 per cent on imported aluminum from all countries. However, the announcement was quickly revised after the stock market dropped 2% and many influential U.S. politicians spoke out against the tariffs, suggesting that Canada, Mexico and the EU be made exempt.
Varying degrees of progress is being made with other countries:
Canada and EU countries have announced that they will retaliate if the threatened U.S tariffs are implemented.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905 882-4880, ext. 213.
Toronto, April 30, 2018
The countdown is on to find out whether Canada will face steep U.S. tariffs on steel and aluminum.
U.S. President Donald Trump imposed a 25 per cent tariff on steel imports and a 10 per cent tariff on aluminum in March, but granted temporary exemptions to certain countries. In the case of Canada and Mexico, Trump's administration tied the issue to the North American Free Trade Agreement.
That exemption period officially ends May 1, and it is not clear whether the White House will extend Canada's exemption.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905 882-4880, ext. 213.
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.
Toronto, April 20, 2018
The following message was issued by the Canadian International Freight Forwarders Association on Friday, April 20:
Intermodal Terminals to Be Open During Any Stoppage; Containers on Rail Will Be Stopped at Safe Intermediary Point
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:
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.
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.
Toronto, April 6, 2018
As part of the U.S. response to China's unfair trade practices related to the forced transfer of U.S. technology and intellectual property, the Office of the U.S. Trade Representative (USTR) published a proposed list of products, imported into the U.S. from China, that could be subject to additional 25% import tariffs.
The proposed list covers approximately 1,300 separate tariff lines and will undergo further review in a public notice and comment process, including a hearing. After completion of this process, the USTR will issue a final determination on the products subject to the additional duties.
Additionally, President Trump announced last night the U.S. is considering additional tariffs on another $100 Billion of Chinese goods. "In light of China's unfair retaliation, I have instructed the [United States Trade Representative] to consider whether $100 Billion of additional tariffs would be appropriate," the President said in a statement. The Chinese government responded by reiterating that it does not want "to fight a trade war, but we are not afraid of fighting it."
Watch for updates on this once further details from the USTR are issued.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, March 22, 2018
U.S. President Donald Trump signed a memorandum this afternoon, announcing trade actions against China, invoking Section 301 of the 1974 Trade Act, which formed the basis for the Administration's investigation.
If implemented, the tariff package would be one of the broadest sets of economic actions imposed by a modern U.S. President against China and could draw retaliation, fraying the trade partnership between two of the world's largest economies.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
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.
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.
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:
0406.10 – Fresh (unripened or uncured) cheese, including whey cheese, and curd
0406.20 – Grated or powdered cheese, of all kinds
0406.40 – Blue-veined cheese and other cheese containing veins produced by Penicillium roqueforti
0406.90 – Other cheese
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, March 9, 2018
Tariffs announced last night by the U.S. government, on imports of certain steel and aluminum products into the USA, will apply to all countries except Canada and Mexico. They could still be implemented, however, if negotiations on NAFTA are not concluded in a manner that satisfies the U.S.. Earlier announcements had indicated that the tariffs, 25% on steel and 10% on aluminum, would be applied globally with no exception, sparking fears of a worldwide trade war.
Affected countries have indicated they will retaliate by placing their own tariffs on iconic U.S. products manufactured in key Republican states. There is wide spread domestic and international opposition to the tariffs, set for implementation on March 23, 2018, with most critics saying the effort to protect U.S. manufacturers of steel and aluminum will ultimately lead to higher prices and job losses – not the reverse.
Following are excerpts from each of the Presidential Proclamations identifying the HS Tariff Classifications which will be subject to the new tariffs (watch for future notices once the 2018 U.S. Customs Tariff has been updated with specific origin requirements):
Presidential Proclamation on Adjusting Imports of Steel into the United States:
(1) For the purposes of this proclamation, "steel articles" are defined at the Harmonized Tariff Schedule (HTS) 6 digit level as: 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90, including any subsequent revisions to these HTS classifications.
(2) In order to establish increases in the duty rate on imports of steel articles, subchapter III of chapter 99 of the HTSUS is modified as provided in the Annex to this proclamation. Except as otherwise provided in this proclamation, or in notices published pursuant to clause 3 of this proclamation, all steel articles imports specified in the Annex shall be subject to an additional 25 percent ad valorem rate of duty with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018. This rate of duty, which is in addition to any other duties, fees, exactions, and charges applicable to such imported steel articles, shall apply to imports of steel articles from all countries except Canada and Mexico.
Presidential Proclamation on Adjusting Imports of Aluminum into the United States:
(1) For the purposes of this proclamation, "aluminum articles" are defined in the Harmonized Tariff Schedule (HTS) as: (a) unwrought aluminum (HTS 7601); (b) aluminum bars, rods, and profiles (HTS 7604); (c) aluminum wire (HTS 7605); (d) aluminum plate, sheet, strip, and foil (flat rolled products) (HTS 7606 and 7607); (e) aluminum tubes and pipes and tube and pipe fitting (HTS 7608 and 7609); and (f) aluminum castings and forgings (HTS 7616.99.51.60 and 7616.99.51.70), including any subsequent revisions to these HTS classifications.
(2) In order to establish increases in the duty rate on imports of aluminum articles, subchapter III of chapter 99 of the HTSUS is modified as provided in the Annex to this proclamation. Except as otherwise provided in this proclamation, or in notices published pursuant to clause 3 of this proclamation, all imports of aluminum articles specified in the Annex shall be subject to an additional 10 percent ad valorem rate of duty with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018. This rate of duty, which is in addition to any other duties, fees, exactions, and charges applicable to such imported aluminum articles, shall apply to imports of aluminum articles from all countries except Canada and Mexico.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, March 5, 2018
Plans to introduce new tariffs on imports of steel and aluminum into the U.S. were announced last week by U.S. President Donald Trump. The proposed tariffs would be 25% for steel and 10% for aluminum. No other details were released, but the President did indicate the tariffs will be implemented "for a long time" to protect U.S. manufacturers of steel and aluminum.
The announcement raised fears of a trade war as several affected countries, including Canada, have already indicated that they will retaliate if the tariffs are implemented.
Canada is the number one supplier of steel to U.S. importers, accounting for 16 per cent of total imports, or more than four million tonnes. But Canada has not been targeted by Commerce Secretary Wilbur Ross, the architect of the proposed tariffs.
Opposition is building worldwide, as many organizations believe the tariffs are a counterproductive measure that will lead to higher prices and lost jobs.
While there does not yet appear to be any exemption to the tariffs for Canada, United Steelworkers (USW) International President Leo W. Gerard issued this statement following a session the President hosted at the White House:
"Canada is not the problem. The United States and Canada have integrated manufacturing markets and our union represents trade-impacted workers in both nations. In addition, the defense and intelligence relationship between the countries is unique and integral to our security. Any solution must exempt Canadian production. At the same time, Canada must commit to robust enforcement and enhance its cooperation to address global overcapacity in steel and aluminum."
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
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.
|
Zone 1 |
Zone 2 |
Zone 3 |
Monday, March 05 (12:01 a.m.) |
Monday, March 19 (12:01 a.m.) |
Monday, March 26 (12:01 a.m.) |
| 20’ Std: | 47,900 lbs | |
| 40’ Std/HQ: | 50,000 lbs | |
| 45’ HQ: | 50,000 lbs | |
| 20’ Reefer: | 46,000 lbs | |
| 40’ Reefer: | 48,000 lbs |
The weight restrictions not only apply to the total cargo weight within the container, but also the distribution of weight over the axles of the chassis. If cargo weight is not distributed evenly across all axles, the container could be subject to additional fines.
Please note, these details are guidelines. The dates are subject to change by the Quebec Ministry of Transportation, depending on actual weather conditions. It is advisable that you visit the Ministry's website (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, ext. 308 Debbie McGuire, Manager – Freight Solutions.
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.
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:
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.
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.
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.
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:
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:
"The exporter of the products covered by this document (customs authorization No ...) declares that, except where otherwise indicated, these products are of ...(3) preferential origin."
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
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.
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!
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.
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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."
Hamburg, Germany
July 8, 2017
The Prime Minister, Justin Trudeau, and the President of the European Commission, Jean-Claude Juncker, today issued the following joint statement:
"The Comprehensive Economic and Trade Agreement marks a new chapter in the relationship between the European Union (EU) and Canada.
"It is by opening up to each other, by working closely with those who share the same values that we will shape and harness globalisation.
"It is important that our companies and citizens, the real winners with this agreement, start reaping its benefits without further ado.
"Both at the EU level and in Canada, the necessary steps were taken to ratify the agreement.
"Meeting at the G20 in Hamburg, reconfirming our joint commitment to the rules-based international trading system, we agreed to set the date of September 21, 2017 to start the provisional application of the agreement, thus allowing for all the necessary implementing measures to be taken before that date.
"The agreement will now be provisionally applied and will enter definitively into force once the parliaments in all Member States of the EU ratify the text according to their respective domestic constitutional requirements."
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
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:
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.
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.
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.
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.
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.
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.
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