COMPANY NEWS

May 6, 2018 – APL has issued a customer advisory stating that terminals in Shanghai, Ningbo and Qingdao have been affected for some weeks by heavy winds and intense fog, causing disruptions to port operations and vessel services.

The advisory notes the following conditions and delays:

· Shanghai: Port operations at Wai Gao Qiao and Yangshan are being delayed by at least 3 days and 1.5 days respectively, with delayed opening hours for container yards.

· Ningbo: Current waiting time for vessels is estimated at 3 days.

· Qingdao: Port operations are back to normal, but the current cargo backlog is expected to take 2 days to clear.

April 30, 2018 – Effective June 1, 2018, all shippers or parties with inbound cargo imports to China will be required to comply with the following additional regulatory requirements:

– Submission must be made at least 24 hours prior to loading, for all vessels which are going to, via or out of any of the mainland ports in China

– Submission must also include an accurate and a total representation of all goods under the Bills of Lading (BL)

As your service provider, Canaan Transport has already made changes in our process to ensure that these new rules are being followed.

April 26, 2018 – Thailand is preparing to join the new 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) free trade deal after it takes effect. The existing 11 member countries are seeking to have it take effect this year.

Thailand would be the first additional country to join the CPTPP, a move that could boost the deal’s prospects for further expansion.

Thailand’s exports to the 11 countries stood at $70.3 billion in 2017, about 30 percent of its total export value. In joining the CPTPP, Thailand would aim to increase its exports to those countries.

Additionally, Thailand had extra impetus to avoid being left out of the deal due to the prospects of foreign investments from nations being poured into member countries such as Vietnam and Malaysia.

April 23, 2018 – Canaan Transport Group and its employees mourn with the City of Toronto at the horrific tragedy today on Yonge Street that cost the lives of ten innocent people along with 15 injured. We thank our partners and customers worldwide for their ongoing support during this difficult time.

April 23, 2018 – As reported here on this blog, Canadian Pacific Railway Limited "reached an agreement" with the Teamsters Canada Rail Conference-Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW), on April 20th which averted the potential work stoppage of 12:01 am Eastern time on April 21.

A press release from CP indicated that, on the recommendation of federal mediators, the Minister of Labour would direct the Canadian Industrial Relations Board to administer a ratification vote on each of the company’s final offers to the TCRC and IBEW.

However, in their own press release, also issued on April 20, the two unions said they strongly recommend that their members reject the company offers. They said, "Because of this new development, the Teamsters and the IBEW will postpone a strike until their members have had a chance to vote on the agreement. Once CP’s offer is rejected, both unions will be free to exercise their rights to strike."

The date of the ratification vote has not yet been set. Therefore, there is still a possibility that a potential CP Rail strike could happen in the near future. Our blog will continue to be updated with all the news as it comes.

April 22, 2018 – CMA/CGM has announced it has reached an agreement to acquire an equity stake of nearly 25% of CEVA Logistics AG (“CEVA”), a large player in the logistics sector.

CMA/CGM has committed to subscribe for mandatory convertible securities of CEVA in an estimated amount between 380 and 450 million CHF. These securities will be convertible into CEVA common shares subject to obtaining all required regulatory approvals. This equity investment takes place in connection with CEVA’s planned initial public offering on the SIX Swiss Exchange, announced on 20th April 2018, and remains conditioned upon its successful completion.

Following this equity investment, CMA/CGM will nominate two members of CEVA’s Board of Directors. The two companies have agreed to explore potential opportunities to work together towards the development of joint commercial offerings, according to terms that will be defined in the coming months. The closing of the transaction remains subject to the completion of CEVA’s IPO as well as to the approval from regulatory authorities.

Canaan Transport Group Inc. is proud to remain an independent logistics firm in this era of consolidation. We urge our customers to verify that their freight and transportation partners have disclosed all potential conflicts of interests such as this case.

April 20, 2018 – Canadian Pacific Railway Limited has reached an agreement with both the Teamsters Canada Rail Conference-Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW), which averts the potential work stoppage of 12:01 am Eastern time on April 21.

On the recommendation of federal mediators, the Minister of Labour will direct the Canadian Industrial Relations Board to administer a ratification vote on each of the company’s final offers to the TCRC and IBEW.

Keith Creel, CP President and CEO, said, "This is tremendous news for our employees, our customers and the Canadian economy."

CP will immediately begin to execute a safe and structured start-up of its train operations in Canada. Canaan Transport will close its emergency plan for the weekend and will confirm that all shipments are back on schedule. Thank you for your patience.

April 20, 2018 – In the event of a labour disruption at CP, CN has advised that it will immediately take the following actions to avoid impacting its operational performance:

• Embargo all loads and revenue empties to and from all their interchanges.

• Continue to serve dual serve customers – based on its regular run rates. It will not accept additional empties or loads beyond the traffic that is being handled today.

• Continue to serve CN steamship lines at agreed-to allocation levels by port.

• Continue to directly serve the terminals of Vanterm and Centerm in the Port of Vancouver.

Further, it said, the co-production agreement in Southern British Columbia will not be in effect in the event of a strike. CN will continue to serve Vancouver exclusively on CN direct lines. Canaan Transport interprets these comments as an acknowledgement that CN will be affected by any strike at CP Rail.

April 19, 2018 – In a customer advisory sent Wednesday evening April 18, Canadian Pacific said it had received notice from the Teamsters Canada Rail Conference Train and Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW) that members of the respective unions would be withdrawing services to operate freight and passenger trains and to maintain CP’s signaling systems in Canada effective 0001, Saturday, April 21.

CP said it has commenced and will continue to execute a safe and structured shutdown of its train operations in Canada.

An embargo application for shipments routing to and from CP Canadian locations is in place to be effective 0001 Saturday April 21. The embargo applies to:

· All shipments originating in Canada that are billed to any Canadian or U.S. destination

· All shipments originating in the United States that are billed to any Canadian destination

· The embargo can be rescinded at any time

Canaan Transport has already received notices from carriers that they will stop accepting any containers for CP shortly. CP said it will continue to bargain in good faith with the TCRC and the IBEW and remains committed to achieving a win-win solution for the company and the two unions.

April 18, 2018 – Canadian Pacific Railway Limited (CP.TO) (CP) has received 72-hour strike notice from the Teamsters Canada Rail Conference-Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW) of their respective plans to strike at 12:01 a.m. eastern time on April 21, 2018 .

CP has been working closely with both the TCRC and the IBEW to reach a negotiated settlement in the best interests of the entire CP family, its customers, shareholders and the broader North American economy.

"Serving a strike notice is part of the bargaining process that unions must follow if they want to be able to strike," said Keith Creel , CP President and CEO. "We remain committed to achieving a win-win solution and urge the two unions to work closely with us and the federal mediators to achieve a positive outcome as soon as possible in the hours leading up to the deadline."

CP continues to work closely with the TCRC and made significant movement in bargaining Monday afternoon, presenting the TCRC with new progressive three- and five-year agreement options.

CP is meeting with the IBEW later today and is presenting the union with streamlined three-year and five-year agreements for consideration. Canaan Transport will keep you updated on the progress.