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July 2017

News and Views for the clients of Universal Logistics

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E-payments of Duty & GST preferred by CBSA

Online Banking

In an effort to ensure payments to the Canada Border Services Agency (CBSA) are received on time and without error, the CBSA is encouraging all importers to remit their payments of duty and GST by on-line banking or EDI payment. The payments will continue to be due on the last business day of the month, unless otherwise specified.

Universal Logistics strongly encourages all clients to opt in to one of the e-payment options as soon as possible. It is expected that e-payments of duty and GST will soon be a mandatory requirement.

For more information, contact your Client Care representative or Mark Glionna, Vice President – Client Relations & Business Development.

Canada-EU trade deal nearing completion

Canada-EU trade

The long delayed trade deal between Canada and the European Union (EU), known formally as the Comprehensive Economic Trade Agreement (CETA), will be provisionally implemented on September21.

The agreement will remove almost all tariffs on goods traded by Canada and the EU, which amounts to close to $88 billion a year. The Canadian Prime Minister said 98% of the trade deal will be implemented on the launch date.

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

What mega mergers of container lines means for shippers

OOCL container

COSCO Shipping Holdings has joined forces with Shanghai International Port Group (SIPG) to purchase Orient Overseas Container Line (OOCL), the world’s seventh largest container line for $6.3B USD. The deal is still subject to regulatory approval and consent from their shareholders.

The merged company willbecome the world’s third-largest container line after Denmark’s Maersk Line and Swiss based Mediterranean Shipping Co. (MSC), operating over 400 vessels with a market share of 11.6% and a totalcapacity exceeding 2.9M TEU.

OOCL will continue to operate as an independent brand with headquarters in Hong Kong.

This merger is just the latest in a string of big consolidations that will allow four carriers to control just over 50% of the market, a situation that some say could lead to higher shipping rates, primarily on the transpacific and intra-Asia trade lanes. The choice of and quality of service available is under threat in the wake of this unprecedented consolidation in container shipping services. Just two years ago, the top four ocean carrier’s controlled just over 40% of the global market.

Olaf Merk, the ports and shipping expert for The Organization for Economic Cooperation and Development (OECD), says "the shipping industry has officially become an oligopoly."

This may be the last of the mega mergers we see in the shipping industry as future deals may find difficulty receiving regulatory approval, but more minor intra-regional acquisitions are possible over the next 5-10 years.

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

Billion-dollar infrastructure plan

Truck on bridge

Bottlenecks at the Canada-U.S. border are the focus of a $2.1 billion infrastructure plan announced in early July by the federal government.

The U.S. may also contribute funds for projects that will help expand key transit points, including bridges, tunnels and ports. Canadian Transport Minister Marc Garneau said the goal is to ensure goods move across the border "efficiently and reliably".

For more information, contact Chris Barnard, Vice President – Projects & Market Development.

Canada-Ukraine free trade agreement

Canada-Ukraine free trade agreement

Almost all duties on imports from the Ukraine will be removed once the Canada-Ukraine Free Trade Agreement (CUFTA) is fully implemented. The only exception is a few agriculture goods. All other duties on qualifying goods will be removed on the implementation date, August 1, 2017, or through a tariff phase-out for passenger automobiles.

For more information, please go to theGlobal Affairs Canadawebsite or contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.

India completes major tax reform

A comprehensive dual Goods and Services Tax (GST) has been enacted by the government of India to achieve better alignment of supply chains and more transparency.

The destination based tax, which applies to both goods and services, will be administered by the Center and State Governments. More information is available in a GST handbook created by the Government of India for importers and exporters.

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

Global Spotlight Quiz
Global Spotlight
The distinctive architecture and historic
skyline offer more clues about the
identity of our mystery city.

Global Spotlight Quiz

What city with a population of less than one-half million is an economic powerhouse?

Learn more about this land-locked city, dating back to the fifth century BC, by reading the following clues:

  • This global city is one the world’s largest financial centers, home to a large number of financial institutions and banking giants despite having a relatively small population.
  • This city is rated as one of the best (and most expensive) places in the world tolive.
  • Local residents and tourists can shop on what some say is the most luxurious shopping mile in the world.
  • The over 1,200 fountains in this city produce drinking quality water.
  • This lake front city is the largest city in the country.
  • This city’s country has four national languages: German, French, Italian, and Romansh.
  • A city landmark is a medieval watchtower from 1366, with the largest church clock face inEurope.
  • This city is a hub for railways, roads, and air traffic within the country and Europe.

Click here to see the answer

For more information about freight to/from this city, contact Debbie McGuire, Manager – FreightSolutions.

Quick Tip

Maximize your load capacity by taking into account conveyance details and equipment specifications

Familiarize yourself with the specifications of:

  • Ocean freight container sizes, specialized equipment & dimensions
  • Airfreight container types (ULDs) and dimensions
  • Truck types and specialized equipment, lengths & dimensions
  • Pallet types, sizes anddimensions

Reduce your freight costs by taking advantage of loading the maximum allowable product in your chosen mode of transport.

At Your Service: Lukas Hamann, Customs Operations

Lukas Hamann, Customs Operations

Lukas Hamann,
Customs Operations

Since joining Universal Logistics in 2016 as a member of the Head Office Customs Operations Team, Lukas Hamann has demonstrated an unending commitment to deliver superior customer service while handling his primary responsibilities: processing releases and final accounting on truck, rail, air and courier shipments. He also has experience in handling ocean clearances and is currently enrolled in the Certified Customs Specialist (CCS) Program.

Lukas graduated from Seneca College in 2016, with an International Transportation and Customs Diploma and that same year obtained the Canadian International Freight Forwarders (CIFFA) Certificate.

Lukas can be reached by phone (905) 882-4880, ext. 235, or byemail.

July 2017

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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