COMPANY NEWS

Toronto and Vancouver office re-opens

May 25, 2020 – Today marks the return to full operational status for our office in Toronto and Vancouver. Our other offices remain on remote work status. In order to ensure our team member’s safety, safety measures have been taken to abide by local and federal guidelines with regard to social distancing and healthy workplace requirements. At this time, we would discourage any visitors other than couriers or delivery personnel and thank you for your patience as we adapt to this changing way of doing business post covid-19.

Near-shoring discussion continues

May 19, 2020 – As disruptions from the coronavirus pandemic continue to unfold, 64% of companies across the manufacturing and industrial sectors "are likely to bring manufacturing production and sourcing back to North America," to avoid similar difficulties in the future, according to a Thomas survey in April of 878 North American manufacturing and industrial sector professionals. The pandemic has highlighted how disruptions at suppliers and supply chain partners can cause production holdups and shortages for the purchasing business. Many Canadian and U.S. companies were unable to obtain parts from suppliers when factories in China shut down earlier in 2020. It remains to be seen how effective near shoring will be in the short term due to the tightly integrated global manufacturing ecosystem already in place.

Air cargo starting to show signs of stabilization

May 18, 2020 – Empirical evidence has suggested that air freight rates out of China are now starting to stabilize as the rush for medical PPE products is now switching to a new phase where most countries are now adequately stocked but are looking for continuous replenishment. As a result, air cargo rates are no longer being increased on a daily basis and more cargo is now moving to the more economical marine mode of transportation. With ocean freight rates at record low rates in the past month, many shippers are now taking advantage of this situation by shipping more via this method. However, as demand increases, ocean freight prices will inevitably rise. Canaan Transport continues to monitor the situation for our customers to minimize your shipping costs.

Air freight backlogs at Shanghai continue

May 11, 2020 – Freight gridlock at Shanghai Pudong International Airport is so bad that some cargo planes are being forced to leave nearly empty in the current week. Canaan Transport continues to recommend ocean transportation as a potential option for our customers. Airport authorities are claiming it is an operational meltdown, with trucks stuck in queues for two to three days to drop off shipments and boxes piling up in warehouses unable to get put on aircraft because Chinese customs officials and ground handlers are overwhelmed by the surge in export demand for face masks and other medical supplies. The volume of hospital gear, resumption of e-commerce and other trade following China’s coronavirus quarantine and new export restrictions are blamed for the massive backlog, which was compounded by factories rushing out extra shipments before closing for the May Day holiday. We have customers that are seeing delays of 2 – 3 weeks to get on board flights.

Canada has now waived tariffs and duties on certain medical PPE goods

May 7, 2020 – Today, the government of Canada has announced that it will waive duties and tariffs for certain medical PPE goods that have arrived on or after May 5, 2020. Remission is granted for goods listed in the Certain Goods Remission Order (COVID-19), SOR-2020-101, under the following conditions:a) the good was imported into Canada on or after May 5, 2020 and subject to customs duties;

  • b) no other claim for relief of the customs duties has been granted under the Customs Tariff in respect of the good;
  • c) the importer files, on request, the evidence or information that the Canada Border Services Agency requires to determine eligibility for remission;
  • d) the importer agrees that it is subject, at any time, including after remission relief is provided, to review by the Canada Border Services Agency for the purpose of determining whether the information supplied by the importer under paragraph (c) is accurate and complete and whether the facts on which the Canada Border Services Agency relied or intends to rely to determine the eligibility for remission remain unchanged in all material respects; and
  • e) at the time when the Canada Border Services Agency conducts the review referred to in paragraph (d), the Canada Border Services Agency must be able to conclude that the information supplied remains accurate and complete and that the facts remain unchanged in all material respects.

More information can be found on Customs Notice 20-19.

Ocean freight rates will likely rise in the short term due to low capacity

May 4, 2020 – As the European/Asia ocean trade lanes experience a large increase in rates in the past week, this looks to be the trend as the world slowly tries to navigate a way out of the Covid 19 pandemic that has effectively shuttered large parts of the global economy. On the transpacific, spot rates have spiked as a consequence of carrier GRIs introduced today. The US west coast component of the SCFI jumped 15.3% to $1,724 per 40ft, while spot rates for the east coast ports were up 5.8% to $2,773 per 40ft. Transpacific carriers have so far blanked around 20% of all scheduled headhaul sailings in May, according to data from eeSea, with the 2M alliance leading the way, withdrawing 17 sailings, or 31%, of its planned 55 voyages this month. This will undoubtedly lead to increase costs for all cargo moving towards and from Canada in the coming weeks.

CUSMA will go into effect on July 1, 2020

April 27, 2020 – The US has signaled that it has passed the necessary legislation to enact and initiate the new CUSMA agreement. More news as it develops.

Additional air freight capacity launched by Air Canada Cargo

April 27, 2020 – Air Canada Cargo has new scheduled cargo flights to/from Amsterdam, Copenhagen, Tel Aviv and Mexico and an additional flight to/from Frankfurt.

Toronto (YYZ) > Amsterdam (AMS) – 1 flight per week

Toronto (YYZ) > Copenhagen (CPH – 1 flight per week

Toronto (YYZ) > Frankfurt (FRA) – 3 extra flights per week + ongoing daily service

Toronto (YYZ) > Mexico City (MEX) – 3 flights per week

Montreal (YUL) > Tel Aviv (TLV) – 2 flights per week

Four flights a week have also been scheduled between Toronto and Los Angeles.

Canada US border closure extended for 30 days

April 20, 2020 – Canada and the U.S. will extend for 30 days the restrictions that closed their shared border to most travelers. Previously, Canada and the U.S. agreed to close the border to non-essential travelers in March. Saturday’s agreement extends the measures to May 20. It has the same terms as before and allows essential goods and services to move between countries.

New tariff classifications for medical devices and personal protective equipment

April 20, 2020 – The medical supplies list in Customs Notice 20-12 was updated on April 16 to cover a greater range of medical equipment and supplies that the World Health Organization (WHO) deems critical, such as oxygen concentrators and sample collection sets. A correction was also made for the tariff classification of plastic face shields. This change is revenue neutral, as the original classification and the new classification are both duty free. Please let us know if you have any questions about the importing and admissibility of any Covid-19 related goods into Canada.