Turning the page… Universal Logistics returns to
the London Book Fair!
Following a 2-year COVID induced hiatus, our Director – Client Relations, John Leis and International Business Development Representative, Andrew Doick, represented Universal Logistics and the BookFreight network at this year’s London Book Fair, held April 5-7 at the Olympia in West London, England.
With over 15,000 exhibitors and visitors in attendance, from more than 100 countries, our presence at events like the London Book Fair is essential.
“The opportunity to meet in person and re-unite with our clients, while gaining insight into the latest trends and specific challenges facing the book industry is invaluable. Our presence at this year’s event is both a strong indicator of our unwavering commitment to the book industry and enables us to better serve the needs of all our book publishing and book retail clients. Being afforded this in-person, networking opportunity offers tremendous value and stands as a healthy reminder of the importance of our human connections in life and in business.” said Mr. Leis.
For more information, contact John Leis, Director – Client Relations.
Air & Ocean Freight projections
Shortages of freight capacity, coupled with ongoing demand, continue to elevate shipping costs globally for both ocean and air cargo. The consensus is that freight rates will remain high throughout 2022 for both ocean and air carriers.
In terms of ocean freight, some industry experts are predicting a rapid recovery to 2019 rate levels, potentially in late 2022, however, this is contingent upon a number of factors such as no significant disruptions to logistics operations and a return to pre-pandemic demand trends. Other industry insiders suggest ocean freight rates look set to stay elevated for another two years, as logistics disruption continues to restrict capacity.
Things are expected to revert to some normalcy after 2022, as a flurry of new vessel orders in the last few months is set to change container shipping’s supply-demand dynamic. Even with the influx of new equipment coming on board, it is expected that ocean freight rates will not stabilize until 2024.
Recently we have seen ocean freight rates on a slight downswing, however, many view this as a short-term market adjustment. One reason for this “temporary” downturn relates to COVID shutdowns in various parts of China, affecting shipping volumes and reducing demand in the short term.
Similar to ocean freight, airfreight rates remain strong, with little relief in sight. The lingering effect of COVID is that a reduction in international passenger flights has also reduced availability of belly space for cargo. Since upwards of 50% of all air cargo moves this way, reduced capacity continues to keep rates high. Passenger demand remains far below pre-COVID levels. Numbers for February 2022 were down 45.5% compared to February 2019, with international traffic down 59.6% and domestic traffic down by 21.8%.
While demand for ocean and air cargo shipping is expected to continue, at least in the near term, ongoing external influences must be considered. For example, how will Omicron and future variants impact North American consumer demand as well as effective shipping capacity and factory output? Also, how much of rate strength is driven by higher import demand and how much is driven by lower effective shipping capacity? Finally, consumer spending appears to be returning to more typical pre-COVID levels, as people have resumed more normal daily routines, while strong inflation and higher gasoline prices also caused consumers to cut back on discretionary spending. All of the above will influence international shipping trends, but to what degree, remains unclear.
For more information, contact David Lychek, Director – Ocean & Air Services.
COVID-19 Duty Remission Order expires May 7, 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.
the good was imported into Canada on or after May 5, 2020, and subject to customs duties;
no other claim for relief of the customs duties has been granted under the Customs Tariff in respect of the good;
the importer files, on request, the evidence or information that the Canada Border Services Agency requires to determine eligibility for remission;
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
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 contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs. 1213.
Are you ready for CARM? Free CBSA webinars
As customs brokers we are used to managing change, especially new CBSA initiated programs. In most cases, we manage these changes behind the scenes. Our clients rightfully expect that we will take care of everything on their behalf – and we do.
CARM (CBSA Assessment and Revenue Management), however, is one of the first Customs’ initiatives that absolutely requires importer engagement. 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.
Universal Logistics will help our clients along the road to CARM to ensure a smooth transition. The CARM initiative will be implemented in phases (or releases). Release 1 went into effect on May 25, 2021.
For more information about shipping freight to or from this city, contact Debbie McGuire, Director – Freight Solutions.
Why theft is often a preventable loss
Thieves and pilferers identify high value shipments by looking for descriptive labelling, illustration or prominent trademarks and brand names. Protect your shipment from theft by using code marking, a quick and simple way to avoid a preventable loss (almost one-third of preventable losses are attributed to theft, pilferage and non-delivery).
At Your Service: William Liang, Customs Operations
William Liang joined Universal’s Head Office Customs Operations team in May 2021, handling truck and courier clearances. Shortly thereafter, William shifted his focus to full-load ocean container clearances and is a key member of our Ocean & Air Clearances team. With William’s understanding of the customs clearance process for all modes of transport, he has proven to be a valuable resource for all our clients.
William can be reached by phone (905) 882-4880, ext. 1228 or by email.
Route is produced by Universal Logistics. Editor: Bettina Scharnberg. Email: firstname.lastname@example.org 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
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