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May 2019

News and Views for the clients of Universal Logistics

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Building on our strengths

CTN AGM 2019

Two of our most senior executives, Mark Glionna, Vice President – Clients Relations & Business Development and Paul Glionna, Vice President – Systems Development & Operations, attended the Certified Transportation Network(CTN) Annual General Meeting in Bangkok, Thailand, heldMay1-3.

Created and owned by international logistics providers, CTN is dedicated to delivering "the highest level of professional logistics services" for businesses involved in global trade. Universal Logistics is the only member from Canada.

"It’s a long trip to Bangkok, but well worth the effort because of the many opportunities to explore and establish business relationships that allow us to build on our existing strengths," said PaulGlionna.

For more information, contact Paul Glionna, Vice President – Systems Development & Operations.

U.S.-China trade war update

US-China Trade

On May 10, 2019, President Donald Trump implemented the China tariff increase, 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.

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.

On May 14, 2019, Trump 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 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 thenotice.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Canada and U.S. reach deal to lift metal and retaliatory tariffs


A long-awaited deal has been reached between Canada and the U.S. to end the steel and aluminum tariffs, referred to as the Section 232Duties.

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 other U.S. origin consumer products.

Formal announcements were published by both Canada and the U.S. to end the respective tariffs.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Lowering demand for Asian air cargo

Cargo Plane

Asian air cargo carriers are reporting a sharp decline in demand that could become even more steep if the U.S. follows through on threats to place higher tariffs on Chinese-made goods.Coupled with this is a drop off in intra-Asia cargo volumes, as components exported to China for assembly lines declined due to decreased production levels.

The trade war has also resulted in uncertainty and concerns over tariffs, leading to some manufacturing activities moving from China to other countries, such as Vietnam, Thailand and Malaysia. This is, however, a slow process as supply chains cannot adjust that quickly. While this may boost cargo volumes in the region, retaliatory tariffs by the U.S. against these nations will have negative effects on cargo volume.

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

Misidentification of dangerous goods a
big safety issue on container ships

Container ship fire

Fires on container ships, caused by incorrect handling, processing and labelling of dangerous goods, are estimated to be happening on average every 60 days. This year alone there have been three such major incidents.

These fires not only cost millions of dollars in cargo losses and damage to vessels, but can also result in loss of life to crew members who work on container ships.

Insurance providers say new legislation, enforcement and inspection are needed to improve safety.

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

Cargo movement delays at U.S.-Mexico border

US-Mexico Border

Moving freight across the U.S.-Mexico border is taking four to five times longer than usual because the handling of illegal immigration is now a higher priority than cargo processing.

Just over 500 U.S. Customs and Border Protection officers previously involved in cargo processing, are now involved in handling what is being called a "dramatic increase" in illegal immigration.

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

Global Spotlight Quiz
Global Spotlight

The local taxi is a three-wheeled
vehicle called a Tuk Tuk.

Global Spotlight Quiz

How many clues do you need to identify the city with the world’s
longest name?

  • Referred to as the ‘Venice of the East’ due to its active nightlife scene as well as having as many canals as Venice in Italy.
  • The official name of this city is Krung Thep Mahanakhon Amon Rattanakosin Mahinthara Ayuthaya Mahadilok Phop Noppharat Ratchathani Burirom Udomratchaniwet Mahasathan Amon Piman Awatan Sathit Sakkathattiya Witsanukam Prasit.
  • Attracts more tourists than Paris, France, a key reason why the airport is the 14th busiest in the world.
  • The world’s hottest city, with an annual mean air temperature of 28º Celsius.
  • Hosts a market considered among the world’s largest.
  • Anyone who goes into public without wearing underwear risks being put in jail.

See the answer

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

Quick Tip

Quick Tip

Make your freight forwarder part of the purchasing process

Save time and money by giving your freight forwarder a copy of your Purchase Order as early as possible. With that single step, your forwarder can:

  • Provide input on the best routing to expedite your order and cut transit times.
  • Follow up and make you aware of any complications or delays.
  • Ensure equipment and space are available, and in the process avoid delays or having to employ other options to meet delivery requirements.
Barbara Mulatinho, Customs Consulting Services

Barbara Mulatinho, Customs Consulting Services

At Your Service: Barbara Mulatinho, Customs Consulting Services

Typical of many Universal Logistics employees, Barbara Mulatinho brings many professional qualifications to her work, which focuses primarily on parts classification, NAFTA certificates and B2 adjustments. She is currently part of the head office Customs Consulting Services team.

Barbara graduated with honours from Seneca College (Global Logistics – 2018) and George Brown College (International Business – 2017), and has a Bachelor in International Commerce (graduated in 2013). She is now planning on taking the Certified Customs Specialist (CCS) course in October.

Barbara can be reached by phone (905) 882-4880, ext. 259 or by email.

May 2019

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

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