March 8, 2018 – Canada is expected to announce today the start of formal free trade negotiations with the four-country South American trade bloc known as Mercosur. That announcement will come after Canada formally signs the reconstituted and much larger Trans-Pacific Partnership agreement later today in Santiago, Chile. The signing of the new 11-country TPP marks the culmination of a massive salvage operation that kicked into gear after Trump pulled the United States out of the deal immediately after being sworn into the Oval Office last January. The new TPP — known as the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership — will give Canada access to a market of 1.7 billion people, comprising 13 per cent of the world’s gross domestic product. Mercosur is much smaller — just 260 million consumers — but would deliver Canada a deal with Brazil, the biggest country in the Mercosur bloc, which also includes Argentina, Paraguay and Uruguay.
March 7, 2018 – Working with third-party consultants and seeking input from every Canadian logistics professional, the Canadian Institute of Traffic and Transportation (CITT) is developing a competency profile that will standardize the profession across the country. All professionals are invited to give their input in the current phase of the research. Once completed, the Canadian logistics professional competency profile will be an invaluable tool for individuals to assess themselves when planning for professional development and exploring the various career paths in industry. The profile will enable businesses to respond to ever-increasing organizational challenges, which demand new knowledge and skills from employees. And it will inform HR and management in advance their human capital strategies.
In addition to standardizing the profession across Canada, the competency profile will elevate it by clearly defining the aspects of a logistics professional’s work – the skills they need to be efficient, the knowledge they must possess and the different contexts and environments in which they work. Source: Canadian Shipper
March 5, 2018 – CN and CP rail services continue to struggle this winter causing a significant backlog of cargo throughout the supply chain and creating a heavy demand on anchorages throughout the west coast. The excessive delays to shipments is preventing prairie growers from getting their crops to market. The current AG Transport Coalition reports indicate that CN and CP combined only supplied 32 percent of the hopper cars ordered last week. CN supplied 17% while CP supplied 50%. All commodities and container movements are impacted and fluidity of the gateway is challenged. CN is hopeful that an additional 130 short-term leased locomotives and a 400 qualified conductors to be hired and trained during the first quarter will provide some relief. This has also spilled over onto the intermodal transportation and containers moving in and out of Canada are also being delayed. Please contact us if you have any questions about your specific shipment. Source: Chamber of Shipping
February 24, 2018 Our trucking partners, and by extension, our customers, have been experiencing wait times, congestion and terminal dwells at the Port of Montreal this winter.
For the last few months, but most severely in the last few weeks, there have been above-average delays at all terminals on the Island of Montreal.
Weather has been a contributing factor, along with road repairs across the city, according to our trucking partners. But the situation appears to have gotten worse.
We have received notification that a number of our trucking partners are now considering an increase to their charges to compensate for the waiting time in the terminals and the daily traffic congestion.
As of March 1st, they will start charging for waiting time in the terminal after one hour. Some are putting in place a congestion surcharge per container for each pickup or delivery.
In some cases, there has been a doubling of delivery charges or extra charges for container drops for local delivery, not seen before.
Pre-pull surcharges are also being applied in some cases.
If truckers start applying additional surcharges, we have little choice but to recover costs by adding on to drayage charges to our customers.
We have already informed CIFFA and they have requested an update and statement from the Port of Montreal and will keep us apprised of any new information.
The Port Authority plans to start construction on a new container terminal in the South Shore town of Contrecur in 2020. The initial phase is scheduled to be completed by 2023.
The new terminal will increase the container capacity of the port by a third, in anticipation of future needs. The ports current growth rate is pegged at 3.9%, but traffic has grown faster than that over the past two years, the ports vice-president of operations, Daniel Dagenais, told the Montreal Gazette recently.
The Port of Montreal can currently handle the equivalent of 2.1 million containers a year; the new terminal will add 1.15 million containers to that capacity.
Source: CIFFA
February 15, 2018 – The Canadian government plans to open free trade talks with the four-nation Mercosur trading bloc in South America, an official said on Friday, at a time when the future of NAFTA is facing increasing uncertainty. Canada sends around 75 percent of its goods exports to the United States and is looking for new markets to reduce the reliance on its southern neighbour.
Trade Minister Francois-Philippe Champagne is set to arrive in Paraguay on March 9 to launch talks with Mercosur, which also includes Argentina, Brazil and Uruguay.
Canada’s overall bilateral trade with Mercosur is worth only C$8 billion a year, he said. Trade with the Pacific Alliance grouping of Mexico, Colombia, Peru and Chile – all of which have free trade deals with Canada – totals C$48 billion a year. That is dwarfed by bilateral Canada-U.S. trade, which according to Statistics Canada totaled C$780 billion last year.
Source : Reuters
February 9, 2018 – There have been severe delays with CN rail in both transit and accessibility once the containers arrive at the CN Brampton or CN Taschereau terminals.
This is due to extreme cold temperatures and restrictions for shorter railcars when traveling across Canada.
We will continue to monitor and thank you in advance for your understanding and patience. Should you have any questions, please do not hesitate to contact your sales representative.
February 7, 2018 – Imagine clearing Canadian customs in Florida, Arizona, or Chicago, or having a U.S. customs facility attached to a car plant in Ontario, with the goal of helping people and cargo travel faster between the countries. The Canadian and American governments are discussing it.
They have begun talking about expanding pre-clearance — with plans to discuss potential sites for the first-ever Canadian customs facilities inside the U.S., and the longer-term goal of applying it to commercial goods. "You’ve got an administration on the American side and certainly on our side, that really want to move these files," Public Safety Minister Ralph Goodale said Monday, after his first face-to-face meeting with his new U.S. counterpart — Homeland Security Secretary Kirstjen Nielsen.
It began decades ago with U.S. border facilities in major Canadian airports — allowing people to clear customs at home, avoid logjams in U.S. hubs and fly directly into U.S. airports that don’t have customs facilities. A few years ago the Harper and Obama governments agreed to new rules allowing the practice in every mode of transport — rail, cars, buses and ships. The Trudeau Liberals approved pilot projects at rail stations in Montreal and B.C. Now, with the Trump administration, the countries are working on two future phases. Goodale said he already began discussing a first phase with Nielsen’s predecessor, installing Canadian facilities inside the U.S."John Kelly and I had a conversation about, ‘Where would we start?’ He thought Boston, his hometown. Some Canadians suggested either Fort Lauderdale, (Fla.), or Scottsdale (Ariz.), the (places with) snowbird traffic in the winter," Goodale said in an interview.
"Midwesterners would say Chicago. … Or somewhere in the American northeast," he said noting that Canadian ski resorts would appreciate quicker access for American travellers. "There are lots of ideas."
But the bigger long-term goal involves cargo. The countries have agreed to meet this spring to develop a plan on what regulatory changes might be required to introduce pre-clearance for cargo beyond a pair of previous pilot projects. Goodale said he envisions a future where cars can have their components screened and sealed for shipment right inside the plant. Given that a car under construction might cross the border a half-dozen times, he said that would avoid snags and boost productivity. "The real prize of pre-clearance is when we could expand it from passenger to cargo," Goodale said.
He said he left the first meeting with Nielsen feeling positive. "Really good meeting," he said. "You wonder in the first encounter: Will there be a list of complaints or grievances? No. There’s a list of important issues we’re working on together… It’s a really good, constructive, international to-do agenda."
Source: The Canadian Press / CBC News
February 4, 2018 – A Hong Kong-based blockchain developer has publicized its plans to start handing out its own cryptocurrency tokens to shippers, forwarders and 3PLs under an ambitious and self serving project to promote the use of digital currency.
The company will release some 20m TEU tokens, “custom-designed as digital shipping booking deposits, using smart contract blockchain technology, to solve the no-show and rolling problems plaguing the container shipping industry”, to container line customers for free – but on a first-come-first basis. Interested shippers and forwarders need to demonstrate their eligibility for these tokens, and are currently restricted to those that bought slots in 2016. After passing the eligibility test, container line customers will allocated TEU tokens based on how much they have spent with the lines, which cumulatively saw sales of $150bn in 2016. “For example, if the eligible participant has paid $50m as freight payment directly to container lines during 2016, the eligible participant would be entitled to at least 0.03% [$50m as a % of $150bn, the revenue of the entire container shipping industry] of the TEU tokens to be distributed to the customers of container liners – about 6,667,”according to its prospectus.
The company, named 300cubits said the total supply of TEU tokens will be fixed at 100m. They would earn a commission fee for each transaction. A similar process will begin with making the tokens available to shipping lines, although this will be undertaken via one-on-one negotiations. The company is also set to sell a further 18m TEU tokens to the general public by way of an initial coin offering (ICO) in March, although potential buyers will be subject to a know-your-customer vetting process. The company is also developing a booking deposit system based on blockchain technology, due to be launched on 15 June, with a beta version ready next month. The distribution of free tokens is set to end on 1 August.
Source: The Loadstar
January 31, 2018 – Wal-Mart Stores Inc. (Walmart) plans to ask suppliers to deliver more goods to warehouses exactly on time or face fines, another step in the retailer’s efforts to keep inventory low and shelves stocked as it battles with Amazon.com Inc.
At an annual conference for suppliers this week, Walmart executives plan to announce that large suppliers need to deliver full orders within a specified one- or two-day window 85% of the time or face a fine of 3% of the cost of delayed goods, said Steve Bratspies chief merchandising officer for Walmart U.S. Previously, suppliers had to hit a 75% threshold to avoid fines. For smaller suppliers, the on-time threshold will move to 50%, up from 33%. The change will take effect in April.
A more precise delivery window helps Walmart keep shelves stocked and the flow of products more predictable, while reducing inventory, say executives. That goal has become increasingly important to the world’s largest retailer as it pushes to make stores more profitable so it can marshal funds to boost online efforts. In addition, accurate inventory data is more important to retailers as they offer shoppers more ways to buy online and pick up in store.
The tightened delivery window comes as freight costs are soaring for manufacturers and retailers. Many companies are scrambling to book transportation, particularly for time-sensitive deliveries, because demand has outstripped the supply of available trucks. Prices on the spot market, where shippers arrange last-minute transportation, are up more than 20% compared with this time last year. Fuel prices are also rising, adding to costs.
Source: CIFFA
January 24, 2018 – The 11 remaining members of a Pacific trade pact abandoned by U.S. President Donald Trump have agreed on a revised agreement, with the nations to work toward signing the deal by early March, according to the Canadian government.
Senior officials resolved outstanding issues, finalized the list of suspended provisions and completed the legal verification of the agreement, concluding negotiations after two days of talks in Tokyo on what has been renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The original Trans Pacific Partnership, which would have covered 40 percent of the global economy, was seen as a guarantee of U.S. involvement in Asia—an idea thrown into disarray when Trump withdrew in one of his first acts as president. Japan has led a scramble to keep the deal alive, with the hope of enticing the U.S. to return at a later date.
The following countries make up the agreement: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.