June 9, 2020 – Since 4:30 pm ET on Thursday, June 4, the CBSA has been experiencing a system delay in processing some marine cargo control documents. The CBSA is receiving all incoming marine cargo control documents, but there is a delay in processing and sending outbound message such as acknowledgments, reject messages and notices. For our affected customers, Canaan Transport has been proactively sending couriers to each customs office to ensure a timely release for our customers.
June 8, 2020 – We have noticed a marked shift in the sourcing of PPE now that the most urgent needs have been met. Two trends continue to emerge; 1. A shift from air to sea mode for transportation and 2. A shift to other Asian countries other than China as a source. In the few weeks, we have noticed a large drop in air cargo demand due to the astronomical air freight rates from China to Canada and the USA. This has been replaced by a larger shift of increased demand for product to be moved at a fraction of the cost by ocean. More impactful is that many other countries are now emerging to fulfill the demand of Canada and USA markets for medical PPE. Vietnam, Thailand, and now Taiwan have all risen to the top in terms of countries that can provide sufficient volume of PPE. Canaan Transport continues to track these and other trends for our customers.
June 1, 2020 – In a first for the industry, France’s leading logistics association, TLF, has surveyed its members and put a figure on the overheads they are incurring in protecting staff, company premises and equipment from COVID-19, underlining that the industry cannot shoulder the financial burden alone. The survey revealed that the average cost of providing individual protective equipment works out at €2.50 per employee per day. Overheads stemming from the implementation of measures to keep premises and equipment as safe as possible from the spread of the virus are estimated by TLF at €0.15 for every square metre of warehouse space. Companies are also suffering a 15% loss in productivity due to increased absenteeism and as they adapt processes for social distancing, modified working hours, staggered rest breaks and temporary suspensions of activities to disinfect premises. TLF noted that these overheads are in addition to the losses already incurred as a result of “the brutal shock of the crisis.” Canaan Transport has not raised any of its fees during the pandemic even though we share the concerns outlined in this study. We are cognizant that our customers are partners are also going through a period of adjustment and will continue to support you as we navigate this new path forward.
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.
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.
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.
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.
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.
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.
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.