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September 2017

News and Views for the clients of Universal Logistics

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Who needs cargo insurance? Everyone!
An open letter from two industry experts

Debbie McGuire, Manager – Freight Solutions
Debbie McGuire
Manager – Freight Solutions
David Lychek

To our valued clients:

With over 50 years of combined experience handling cargo insurance claims, Debbie McGuire, Manager – Freight Solutions and David Lychek, Manager – Ocean & Air Services have seen it all. Most importantly, they have seen first-hand what happens when importers and exporters fail to get the proper insurance. "The financial consequences can be disastrous," notes Ms. McGuire, "yet the cost of purchasing cargo insurance is fairly minimal. That’s why I always say the one area that you should never skimp on is cargo insurance."

Another key issue is the lack of understanding about who is responsible for losses or damages. "The parties involved in a freight move (carriers, warehouses and forwarders) have some liability in the event of a loss or damaged shipment," explains Mr. Lychek. "But the extent of this liability varies and it is typically much lower than the value of the actual goods. In addition, it takes a long time to be reimbursed, especially versus an insurance claim payment, which is usually made very quickly."

Yet another misconception is that the potential loss is limited to the value of goods that are damaged or lost. "If the vessel carrying your goods is damaged at sea or forced to jettison containers overboard to save the ship, every entity with a container on the ship has to cover the resulting costs, known formally as ‘General Average’. The cost could run into the millions. It is just not worth the risk.” (See Megaship pulled off sand bar by fleet of tug boats)

Look for our upcoming issue of Route (Fall 2017) which will be dedicated to this incredibly important topic.

Debbie McGuire
David Lychek

Megaship pulled off sandbar by fleet of tug boats

CSCL Jupiter

The grounding of a megaship caused a temporary, but very expensive, suspension of operations in the port of Antwerp, Belgium, the second largest container port in Northern Europe.

A fleet of sixteen tug boats was needed to free the stranded megaship, the CSCL Jupiter, which ran aground on a sandbar earlier this month while exiting the port.

The incident renews concerns about the high cost of megaship salvage operations, which in this case included not only the high cost of the salvage operation, but also the much larger losses absorbed by the port when it had to suspend operations.

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

What you need to know about the Canada-EU Free Trade Agreement

Timing –The Canada-EU Free Trade Agreement, formally known as CETA, was provisionally implemented on September 21st.

Impact – 98% of the commodities traded between Canada and the EU are immediately duty free with the required Origin Declaration.

Registration – EU exporters must register on the REX System to issue unsigned OriginDeclarations.

Proof of Origin – The required proof of origin is an Origin Declaration, which can be found in Annex2 of the Protocol on Rules of Origin and Origin Procedures, along with the various languages which can be used to complete the declaration. An Origin Declaration may be provided on an invoice or any other commercial document, including company letterhead,that describes the originating product in sufficient detail to enable its identification.

Blanket Declarations (valid for a 12 month period) –may be made on the exporter’s letterhead as long as all applicable wording is included and a detailed list of qualifying goods is provided.

Preferential Tariff Treatment – allowed if the CETA importer has an Origin Declaration completed by the exporter in the EU country or other CETA beneficiary of export, as well as any necessary permits referred to in paragraph 8.

Shipping Requirements – Goods may be shipped from an EU country or other CETA beneficiary, with or without transshipment, to Canada.The transshipment conditions are contained in Article14 of the Protocol on Rules of Origin and Origin Procedures.

Refunds – An application for a refund under paragraph 74(1)(c.11) of the Customs Act may be made within four years from the date the goods were accounted for under subsections 32(1), (3), or (5), provided the goods were imported on or after September 21, 2017.

Provisional Application –If a member country has not completed its domestic ratification process,CETA tariff treatment can still be applied as of September 21st to originating goods.

UK – CETA will apply to goods from the UK until Brexit comes into force.

Origin Declaration Without Exporter’s Customs Authorization Number –If an EU exporter elects to leave Field 2 blank, then Field 5 must be completed (i.e. contain the exporter’s signature) to gain validation by the CBSA.

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

Industry group calls for improved service at CN’s Toronto terminals


Continuing delays and congestion at CN’s Toronto terminals are creating a financial burden for freight shippers, says the Canadian International Freight Forwarders Association (CIFFA). In a letter sent to the rail operator on September 1st, CIFFA calls for the following corrective actions:

  • Monitor wait time outside gates and compensate trucking companies for wait time that exceeds 30-45 minutes
  • Extend the time before storage charges apply to perhaps 48 hours
  • Give free time for Saturdays, Sundays and Statutory holidays until operations return to normal
  • Do not charge storage for dray operations who miss their reservation window because they were forced to wait in-gate for several hours

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

Global Spotlight Quiz
Global Spotlight
The absence of high rises is a
distinguishing feature of the city skyline

Global Spotlight Quiz

How many clues do you need to name the city that contains 343lakes?

  • This city was founded in 1040 and became the country’s capital in1814.
  • This city’s port unloads about 125,000 containers each year.
  • More than half of this city’s territory is covered by forests.
  • Every year on December 10, the Nobel Peace Prize is awarded in this city.
  • The Trafalgar Square Christmas tree in London, England, is donated annually by the residents of this city in gratitude for their assistance during WW II.
  • This city hosted the 1952 Winter Olympics.
  • A city law prohibits hitting and shouting at children.

Click here to see the answer

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

Quick Tip

Carefully inspect all freight to identify deficiencies in packaging

Problems that seem small at the time of loading can get much worse in transit, sometimes resulting in damage to the entire load. For example, a small leak can contaminate the whole shipment; a collapsed carton can let the whole shipment move around enough to damage many othercartons.

Proper packaging helps protects your shipments from preventable cargo losses.

Rick Evans, Office Manager – Windsor

Rick Evans
Office Manager – Windsor

At Your Service: Rick Evans
Office Manager – Windsor

Rick Evans joined Universal Logistics in 1978 and is a Certified Customs Specialist (CCS), a designation he acquired in 2002.

Prior to attaining his current position of Office Manager – Windsor, Rick worked in different capacities at various Universal locations, including the Toronto head office, Fort Erie, Niagara Falls and Toronto Airport.

Rick can be reached by phone (519) 972-8050 or by email.

September 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

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