View All Route Newsletters

Take The Right Route Logo

November 2016

News and Views for the clients of Universal Logistics

arrow Visit the Universal Logistics web site

More questions than answers following election of Trump


The constantly shifting positions taken by President Elect Donald Trump make it difficult to predict what he will actually do when he moves into the White House in early 2017.

According to CNN, a leaked memo they obtained (not verified by Universal) suggests Trump would begin reshaping U.S. trade policy on day 1 by renegotiating or withdrawing (by 2020) from NAFTA. The memo reportedly states Trump will seek to negotiate a bilateral trade deal with Canada and other nations, which may go back to the days of the old Canada-USA Free Trade Agreement that preceded NAFTA.

Trump stated in his first 100 days speech that the U.S. will formally notify TPP (Trans-Pacific Partnership) members of the U.S. intent to withdraw. According to many sources the TPP, a point of contention for both Trump and Hillary Clinton, has been unofficially dead for some time but formal withdrawal by the U.S. will seal the fate of the proposed 12 Pacific Rim nation trade deal.

Paul Ashworth, chief U.S. economist for Capital Economics says, "we simply can’t know what type of President Trump will be".

Trump is on record as saying that he would increase tariffs on both Mexico and China by 35% and 45%, respectively. This suggests that he might also target other major trading partners, but some political observers say Canada-U.S. trade is not a priority for Trump.

Trade experts say Trump’s plans could trigger a trade war that hurts everyone, including the United States. However, Trump’s position on many issues is already softening and many observers expect that trend to continue after he takes office.

For more information, contact Brian Rowe, General Manager – Customs Consulting Services.

Major trade deal with Europe put on the fast track


The European Parliament has rejected an objection that could have delayed for up to two years implementation of the free trade deal between Canada and the European Union, known formally as the EU-Canada Comprehensive Economic and Trade Agreement (CETA).

This means partial implementation of CETA may begin in early 2017 if implemented.The objection was raised by 89 members of the European Parliament who felt that CETA did not comply with EU laws and gave multinationals the opportunity to dictate public policy on issues such as the environment, labour and health.

For more information, contact Brian Rowe, General Manager – Customs Consulting Services.

Understanding guidelines for container examinations


Here is what every Canadian importer and exporter needs to know about container examinations by the Canada Border Services Agency (CBSA):

  • No shipment should be subjected to separate examinations for "First Port of Arrival (FPOA)” exams and Commercial Examination.
  • If a Commercial Examination is required, it should happen at the same time as the FPOA.
  • If the CBSA wants to do both examinations on a single container, an application can be made to cancel the second examination.
  • If a second examination does take place, an application can be made to obtain reimbursement of the costs.
  • Containers that require fumigation should wait for no more than three days to be examined.
  • CBSA exams at the Container Examination Facility are completed within a 24 hour examination window, but it could take several days to move the container from the dock to the Examination Facility.

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

Four-point refresher on wood product regulations

Wooden bowl
  1. Three factors are considered by the Canadian Food Inspection Agency (CFIA) to determine whether a shipment containing wood products is admissible:
    • Is the wood material greater than, less than or equal to 1.5 cm thick?
    • Does the item contain bark?
    • Is the product made with "processed" or "unprocessed" wood?
  2. Do not assume that "finished" wooden articles are the same as a processed wooden article. Processed wood materials are defined as "products that are a composite of wood, constructed using some combination of glue, heat and pressure".
  3. Ensure invoices include complete information on any wooden commodity in the shipment. CFIA will request any missing information, which could mean that customs clearance is delayed until the information is supplied, resulting in additional costs.
  4. Obtain all required Fumigation and/or Phytosanitary Certificates prior to export to avoid refusal of the shipment in Canada.

Refer to the CFIA’s Plant Protection Directive for information on what is permissible into Canada.

For more information, contact Brian Rowe, General Manager – Customs Consulting Services.

Terminology Explained – 4PL vs. 3PL

Logistics images

Have you ever wondered what separates a 4PL (Fourth Party Logistics) from a 3PL (Third Party Logistics) company? It generally comes down to their control within the supply chain.

4PLs have a broader role and while they assume many of the same roles as 3PLs, they have much greater responsibility and accountability in assisting clients to reach their strategic goals.

A 4PL typically directs every moving part within the client’s supply chain and serves as a single point of contact for all parties and activities, including warehousing and distribution. In contrast, a 3PL has less accountability and control over the client’s supply chain.

Global Spotlight Quiz
Global Spotlight
The head offices of numerous leading corporations and banks are located in this city.

Global Spotlight Quiz

One of the Seven Wonders of the Modern World is in this mystery city

People have been coming to this city since habitation began just after the last Ice Age. Today, half the residents are from somewhere else. Keep reading to get more clues about a city that many experts say is among the best places in the world to live.

  • This city’s international airport is the country’s largest and the fourth-busiest port of entry into the United States among North American airports.
  • This city is home to the world’s tallest freestanding structure (one of the seven wonders of the modern world) which was built in 1976.
  • This city holds two Guinness Book of World Records:
    • the world’s longest street, stretching for 1,896 kms
    • the largest continuous underground pedestrian walkway, totalling 29 kms and connecting 1,200 stores & restaurants, 50 office towers, 5 subway stations, 6 hotels and 1 railway terminal
  • One quarter of the country’s population lives within a 160 km radius of this city which is astounding given the massive size of the country.
  • This city is the 4th largest in North America and one of mostmulticulturalcities in the world, with residents speaking over 140 languages and dialects.
  • This city is its nation’s financial and business capital and the third-largest North American financial services centre.
  • This city is strategically located only 150 kms from the U.S. border, with a sophisticated and integrated transportation infrastructure reaching over 158 million consumers within a day’sdrive.

Click here to see the answer

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

Quick Tip

Understanding Incoterms 2010

Wooden bowl

Whether you are buying or selling, negotiating favourable commercial terms of sale is the most effective way to cut costs and reduce transit times.

The word “Incoterms” is an abbreviation of International Commercial Terms. Incoterms are the key element of international contracts of sale as they indicate whether the seller or buyer is responsiblefor:

  • Arranging for carriage of the goods from seller tobuyer
  • Paying of the freight charges
  • Transferring risks from the seller to buyer, and
  • Performing export and import customs clearance

The wrong term is used almost 30% of the time, resulting in misunderstandings that almost inevitably lead to additional costs, most often for unwanted services.

For more information on Incoterms visit the International Chamber of Commerce’s (ICC) website

Arthur Chen, Ocean Imports

Arthur Chen, Ocean Imports

At Your Service: Arthur Chen, Ocean Imports

After joining Universal Logistics in 2014 to handle ocean imports from the United Kingdom, Arthur Chen’s responsibilities have expanded to include ocean imports from Europe.

Arthur’s professional qualifications include a diploma from Seneca College in International Transportation and Customs, his CIFFA Certificate and CCS (Certified Customs Specialist) designation, as well as a Bachelor of International Ocean Shipping Business and Nautical Science.

Arthur can be reached by phone (905) 882-4880, ext. 201 or by email.

November 2016

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
clients of Universal Logistics


Email to a friend

Opt Out

Professional business people team meeting and working in corporate office concept

Register now to learn more about our

101 Logistics Quick Tips

Available exclusively from Universal Logistics