November 2015

China bans ad hoc air charters until December

	This is the season for heavy airfreight shipments from China.

The main cargo airports in China (Beijing, Shanghai, Hong Kong, and Guangzhou) are facing airfreight backlogs as manufacturers are rushing to export their products to North America and Europe.

In addition to the normal peak season volumes, the Chinese Civil Aviation Administration has imposed a ban on the addition of charter capacity, extra flights or new lane applications, based on poor on-time performance by charter operators at these airports. This restriction has further compounded backlogs.

We are experiencing on average 3-4 day delays on uplift of cargo from these airports. This is also causing volatility in air rates which are changing on an almost daily basis.

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

China passes Canada to become largest U.S. trading partner

Canada is no longer the number one trading partner for the United States. That position is now held by China, which accounted for $441.6 billion (17.4%) of total U.S. trade in September 2015, versus $438 billion (15.3%) in Canada-U.S. trade.

Part of the decline is a result of lower oil prices and the reduced value of Canadian oil exports to the U.S.. However, trade experts say the more important trend is the growing importance of China in the global economy (China is now the largest or second-largest trading partner of about 100 countries around the world, including Canada).

Trade patterns will change even more if the Trans-Pacific Partnership Deal moves forward and more liberal trade is allowed by the signing countries, which include the U.S., Canada, Japan and several Pacific Rim countries.

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

What you don’t know about "Prepull" could
cost you
time and money

When an FCL container arrives at a rail yard depot and is grounded (removed from the rail car), you normally have one day to remove the container from the depot before storage charges commence. This 24-hour period is known as “free time” at the rail depot.

For example, if the container were to arrive late on Friday, and delivery could not be arranged until Monday, one option to avoid two days storage is to “prepull” the container from the rail depot, and store the unit at the truck carrier’s storage facility. There is a fee for a prepull, which on average is CAD $150.00, much less than paying for two days of storage at the rail yard, which would cost on average $400.00.

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

Newly elected Liberals plan to debate Trans-Pacific Partnership

Canada’s new trade minister, Chrystia Freeland, says the Liberal Government will hold a full and open debate on the Trans-Pacific Partnership (TPP) trade deal. Supporters and opponents of the TPP are already debating key elements of the deal, including worker conditions and intellectual propertyrights.

The text of the TPP is now available online.

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

	Ice-free conditions during winter months allow this mystery port to operate year round.

Global Spotlight Quiz

What city in Canada has one of the world’s deepest natural ports?

This mystery city could be on the west or east coast. See if you can name it after reviewing the following clues:

• This city’s port is big enough to accommodate the world’s largest vessels.
• Imports and exports from over 150 countries pass through this city’s port.
• The port is the first stop for any North American ocean freight originating from Europe and the Mediterranean/Suez – and the last stop for any freight heading in the opposite direction.
• When the Titanic sank in 1912, survivors were taken to New York City, but the dead were brought to this mystery city.
• The largest man-made explosion (prior to the Atomic Bomb) occurred in this city on December 6, 1917, when a French cargo ship carrying munitions collided with a Belgian vessel, killing 2,000 people and injuring 9,000 more.

Click here to see the answer

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

Quick Tip

How to avoid shipping mistakes

Avoid unnecessary shipping complications by following these simple tips:

• Carefully count every piece when loading or unloading shipments to ensure the order matches the paperwork.
• Document any visible damage on the sign-off receipt.
• When you receive a shipment, make sure you are getting what you paid for.
• When you send a shipment, avoid short payments of your invoices by ensuring every piece of cargo is shipped.

	Stephen Hatton, Customs Operations

At Your Service: Stephen Hatton, Customs Operations

Like many employees at Universal Logistics, Stephen Hatton, Customs Operations, has just the right mix of formal education and practical work experience.

Stephen obtained an Advanced Diploma in International Trade from Sir Sanford Fleming College, as well as the professional designation of Certified Customs Specialist (CCS) in September 2014. On the job, he has extensive experience handling air freight clearances, plus he has worked closely with our Distribution and Airfreight Operations teams to gain a working knowledge of these services.

Stephen can be reached by phone at (905) 676-2763, ext. 30 or by email.