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April 2018

News and Views for the clients of Universal Logistics

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Billion-dollar trade war between the U.S. and China all talk for now

U.S. China Trade

After threatening to impose billion-dollar tariffs on each other’s imports, China and the U.S have announced that they want to avoid a trade war and have opened back channel talks to find a solution that is acceptable to both countries. A top economic adviser to U.S. President Donald Trump says the threatened tariffs are a last resort that will only go forward if America is unable to achieve "fair trade" with China. The potential list of tariffs (over and above the existing Steel and Aluminum tariffs currently in effect) is available here.

The Trump administration is particularly concerned about restricted access to the Chinese market and the theft of American intellectual property. China believes these concerns are unfounded and has promised to retaliate if the U.S. follows through on its threat to impose tariffs of up to $150 billion on Chinese imports.

For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.

Trucking shortage pushes up prices


Sharply increased rates for U.S. truck freight could rise even higher as nation-wide enforcement of driver time limits, now monitored electronically with Electronic Logging Devices (ELDs), is forcing many drivers off the road.

Most major trucking companies have added ELDs to their rigs, but smaller, independent drivers are against the technology. Analysts say ELDs will reduce trucking capacity by 2-5percent.

For more information, contact William Sanchez, Manager – Truck Services.

Meeting strict security standards on both sides of the border

Choosing Universal Logistics USA means you have the peace of mind that comes with knowing we meet the demanding criteria of the Customs Trade Partnership Against Terrorism (C-TPAT) program. Introduced in 2001 by the U.S. Customs and Border Protection Agency (CBP), C-TPAT now has 11,400 certified partners globally, all of whom must be revalidated every 3-4years.

Universal Logistics USA Inc., a member of C-TPAT since 2007, was recently revalidated after meeting the following security criteria:

  • Supply Chain Security Risk Assessment
  • Business Partner Requirements
  • Cargo and Conveyance Security
  • Physical Security
  • Physical Access Controls
  • Security Training and Threat Awareness
  • Personnel Security
  • Information Technology Security
  • Security Training and Threat Awareness
  • Annual Security Profile Review

Universal Logistics Inc. meets a similar standard in Canada, administered by the Canada Border Services Agency (CBSA) through the Partners-in-Protection (PIP) program.

For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.

Avoid the risks of letting suppliers control freight movement

Allowing a supplier to handle your freight forwarding is risky for more reasons than you can imagine. For example, most suppliers will mark up the cost of freight forwarding to pad their profits. Or they will charge the rate for a premium shipping company, but employ a low cost alternative, and pocket the difference in cost. You will also have no control over routing, and may find your cargo moving via a slower route, again typically at a cheaper cost benefitting the shipper. Settling damage/insurance claims can be very difficult, as the shipping contracts were completed at origin and if cargo is compromised at destination, you are relying on parties based in foreign countries to settle an issue that is locallyfocused.

Your problems multiply if there are extra costs for storage, demurrage or special charges due to negligence. Because you are not controlling the freight and do not have an arrangement with the carrier and/or forwarder, you will have little negotiation power in dealing with such issues.

Remember this the next time a supplier offers to handle shipping. The smarter alternative is to take control of your freight by appointing a freight forwarder who offers the full service – communication, tracking, shipment updates, expediting and customs clearance – which you will never get when your supplier calls the shots.

For more information, contact David Lychek, Manager – Ocean & Air Services.

Three Japanese shipping lines form joint venture

The "Big Three" Shipping lines in Japan – Kawasaki Kisen Kaisha, Mitsui OSK Lines and Nippon Yusen Kabushiki Kaisha – have formed a joint venture called ONE (Ocean Network Express).

The combined operations of the three lines makes ONE the 6th largest in the world, with 240 vessels, including 31 super-large 20,000 TEU container ships, serving 90 countries around the world. As with any joint venture, there have been many ‘growing pains’ for ONE to conquer in the initial stages of operation.

For more information, contact Debbie McGuire, Manager – Freight Solutions.

Global Spotlight Quiz
Global Spotlight

Global Spotlight Quiz

How many clues do you need to name a city that has one of the world’s largest spice markets?

  • There are multiple historic sites within the city, including a one-of-a-kind brick tower, part of a bigger location now designated a UNESCO World HeritageSite
  • This city is #7 on Canada’s list of top trading export partners, contributing $2.6 billion by dollar value in 2017; one of the main products exported is edible vegetables.
  • Founded in 1911, this city became the capital of the country where it is located in1931.
  • Named the world’s most polluted city in a May 2014 report by The World Health Organization, even though about 20% of the landmass is covered by forests, and the city’s entire public transport system runs on environment-friendly Compressed NaturalGas.
  • Tourist attractions include a museum of toilets.

Click here to see the answer

For more information about shipping freight to or from this city, contact Debbie McGuire, Manager – Freight Solutions.

Quick Tip

Quick Tips

Know the risk and responsibility assumed when booking direct with carriers

If you are not careful, the money you save in one area may be exceeded by the extra costs you incur in another area.

To save money, your suppliers will often forgo the services of a freight forwarder and work directly with the carrier to arrange your shipments.

When this is done, you are not in control of your freight. Understand that this decision impacts you, as their choice of carrier will affect the service you receive. Worse still, poor performing carriers can cost you money at destination with unexpected storage and demurrage costs due to poor communication.

By employing the services of a freight forwarder, you will improve communication, tracking, shipment updates, expediting, and customs clearance.

William Sanchez, Manager – Truck Services

William Sanchez,
Manager – Truck Services

At Your Service: William Sanchez,
Manager – Truck Services

Our in-house expert in Canada on all aspects of truck freight (FTL, LTL, Domestic, Transborder) is William Sanchez, Manager – Truck Services, a position he has held since March 2010.

William’s team arranges thousands of truck shipments annually. "We are in a challenging market right now, with declining capacity and rising prices," says Mr. Sanchez, "but we are very good at finding the best option for any shipment, large or small.”

William can be reached by phone (905) 882-4880, ext. 224 or byemail.

April 2018

is produced monthly for the clients of Universal Logistics. Reader comment and story ideas are welcome. Comments of general interest to all Route readers will, with the permission of the writer, be published. Copyright ©
Universal Logistics Inc. All rights reserved. Reproduction for any commercial use is strictly prohibited.

Route is produced by Universal Logistics. Editor: Bettina Scharnberg. While every effort has been made to ensure the accuracy of information contained herein, Universal Logistics accepts no responsibility or liability for errors or omissions. Written correspondence should be forwarded to:

Universal Logistics Inc.
125 Commerce Valley Drive West
Suite 750, Thornhill, Ontario L3T 7W4
Tel: 905-882-4880 Fax: 905-882-2250
Attention: Bettina Scharnberg
Universal Logistics

News and Views for the
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