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June 2018

News and Views for the clients of Universal Logistics

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Tariffs and counter tariffs impact global trade

Global Network

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 $100billion worth of additional tariffs against products from China. The EU implemented their tariffs against the U.S. on June22.

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:


The Canadian government is imposing tariffs against select

U.S. made goods

at either 25% (Table 1) or 10% (Table 2), effective July1 (Canada Day). They will apply to $12.8billion 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. June1 on Canadian-made

Steel and



The European Commission in Brussels has approved a 25% duty on 2.8billion euros (US$3.2billion) of U.S. made products the EUimports, 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


it is moving some manufacturing out of the U.S. to avoid the new tariffs applied bytheEU.


In direct response to U.S. tariffs on Chinese products, China’s Ministry of Commerce has announced it will impose, effective July6, a 25%tariff on U.S. products with a total value of US$34 billion. The targeted products include auto and dairy products.


on oil, chemical and medical equipment, totaling US$16billion, could follow, but the date of implementation has not been announced. U.S. exports $1billion worth of crude oil to Chinamonthly.


After hearing about the Chinese tariffs on U.S. products, President Trump promised to implement in July retaliatory tariffs on

Chinaproducts, with an additional


to undergo public comment, having a total value of $50billion. The proposed tariffs have already been countered and re-countered and the U.S. is now threatening an additional $200billion in tariffs if China does not backdown.

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 areenacted.

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

New Regulatory Changes to China Customs Advance Manifest Rule

China World Gears

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 aircargo.

The adjusted rules are in effect from June 1, 2018. Advance Manifest must be submitted 24hours prior to container loading at port of loading. Based on this order, the following additional information will be required on all shipping instructions:

For Imports from China to Canada or the U.S.:

Shipper’s Details:

  1. Shipper Name
  2. Detailed Shipper’s Address
  3. Shipper’s USCI (China Uniformed Social Credit Index)
  4. Shipper’s contact info, including Telephone No. or Email Account

Consignee’s Details:

  1. Consignee Name
  2. Detailed Consignee Address
  3. Consignee’s EIN/Business Number
  4. Consignee’s contact info, including Telephone No. or Email Account

For Exports to China from Canada or the U.S.:

Shipper’s Details:

  1. Shipper Name
  2. Detailed Shipper’s Address
  3. Shipper’s EIN/Business Number
  4. Shipper’s contact info, including Telephone No. or Email Account

Consignee’s Details:

  1. Consignee Name
  2. Detailed Consignee Address
  3. Consignee’s USCI (China Uniformed Social Credit Index)
  4. Consignee’s contact info, including Telephone No. or Email Account

Note: For “To Order” bills of lading, the consignee section should be filled as “To Order” and the details of the Notify Party should be filled out as per the above requirements for the consignee.

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 are required to provide this additional information in order for your shipments to continue without delay.

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

Ocean freight lines announce emergency fuel surcharges

Container ship

Due to rising fuel costs, most of the major shipping lines are implementing an emergency fuel surcharge this month. This surcharge will be a separate fee, imposed on top of the existing Bunker Adjustment Factor (BAF) surcharge, and will vary according to the carrier and tradelane.

The majority of the lines are calling this emergency fuel surcharge EBAF (Emergency Bunker Adjustment Factor), however, some carriers are using different terms, such as Supplemental Bunker Surcharge (SBS) and Operations Cost Recovery(OCR).

For FCL, the fee ranges from $45.00 – $65.00 USD per 20’ and $90.00 – $130.00 USD per 40’. The LCL fee is approximately $3.00 USD per cbm.

Carriers say this latest wave of fuel surcharges is necessary, as the price of maritime bunker has now reached a critical level. Further adjustments are possible if the price of bunker fuel goes up or downdramatically.

For more information, contact Cathy Fong, Manager – Freight Pricing.

CN hikes rates for dwell times


CN is introducing new storage tariffs that dramatically increase the rates it charges after extended dwell times.

For example, at CN Brampton the rate after the first three days jumps to $350.00 per day, a $150.00 increase, and on the eighth day the rate increases to $500.00 per day. Shippers should also take note of other key changes introduced by CN on May15:

  • Introduction of three distinct terminal groups
  • Elimination of an additional free day on Sunday at U.S. terminals (no change for Canadian terminals, where CN has never offered a free day on Sunday)
  • Introduction of an additional free day for a Holiday

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

We speak your language

White House

Our talented employees speak 20 different languages, which can be very helpful if you have trading partners who do business in a language other than English. The list of languages spoken in our offices includes Cantonese, Farsi, French, German, Hindi, Hungarian, Ilocano, Italian, Kannada, Korean, Laos, Mandarin, Portuguese, Russian, Sakha, Sinhala, Spanish, Tagalog, Tamil andTelugu.

We also have access to a worldwide agent network, a key competitive advantage because each of our agents knows the local language and the market nuances that can make the difference between success and failure.

Global Spotlight Quiz
Global Spotlight
This distinctive building, located in the heart of the business district, is the headquarters of a national TV network.

Global Spotlight Quiz

How many clues do you need to name the
world-famous city that has been renamed 16 times?

  • The history of this city dates back approximately 3000 years, about as old as London and six times older than NewYork
  • This city will be the first to host both Summer and Winter Olympics
  • This city has the 2nd busiest airport in theworld
  • 11% of the population have the same surname
  • Home to headquarters of 52 Fortune Global 500 companies
  • One of the bicycle capitals of the world
  • 2nd largest city in the country

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

The link between insurance premiums and risk

There are many factors which affect the pricing of your insurance premium, but all revolve around the risk involved. For example, the longer the transit time, the more time available for something negative to happen. Shipping to certain countries or areas of the world involves greater risk. Lesser developed countries might have political unrest or port loading/unloading facilities not up to standard. Perishable or certain products prone to theft both involve higher risk. The higher the risk, the higher the cost of your insurance premium.

When requesting a cargo insurance rate for your product, provide as much information as possible with the key points being:

  • Cargo type (full product description of the goods, value, perishable, etc.)
  • Packaging detail (loose cartons, pallets, bulk, reefer, full container load or truck load or less than container or truck load, etc.)
  • Method of transport & transit time (air, ocean or truck)
  • Routing information (origin, destination, port facilities, etc.)
  • Security detail (package markings, warehouse security measures, etc.)
  • Past experience of both the shipper and consignee (cargo claims history, past record of damages or theft, etc.)

With this information, the insurer will be able to properly assess the level of risk (susceptibility to damage, loss and theft) associated with your product and offer the best possible cargo insurance premium rate.

Brian Rowe, Director – Customs Compliance & Regulatory Affairs

Brian Rowe, Director – Customs Compliance & Regulatory Affairs

At Your Service: Brian Rowe, Director – Customs Compliance & Regulatory Affairs

As Director – Customs Compliance & Regulatory Affairs, Brian Rowe is one of the few people in Canada who has read – and understands – the fine print in the Customs regulations governing freight shipments in Canada and theU.S..

This means our clients can focus on what they do best, while enjoying the peace of mind that comes with knowing their interests are being protected by a compliance specialist with over 30 years of industry experience and two key designations – Certified Customs Specialist (CCS) and Certified Trade Compliance Specialist (CTCS).

Brian Rowe can be reached by phone (905) 882-4880, ext.213 or by email.

June 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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