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.
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.
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.
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.
April 20, 2020 – Late on Sunday, the White House issued an Executive Order postponing for 90 duties, taxes and fees for importers on entries not already paid in March and April. This deferral is subject to the following:
1. 90-day postponement is not available for entries that include ADD/CVD, Section 201, 232 or 301 trade remedy duties.
2. No interest accrues and no penalties are to be paid for those entries during the 90-day postponement period.
3. To be eligible, importers must be able to demonstrate SIGNIFICANT FINANCIAL HARDSHIP, one condition of which the agency defines as 2020 gross receipts 60% less than the comparable March and April period in 2019. While documentation must not be filed, the agency "may also conduct a review of the documentation at a future date to ensure compliance with the requirements."
4. Entries on a Periodic Monthly Statement may be postponed up to three months as defined by the 15th working day of the third month.
5. This deferral applies to entries paid by single check, daily statement or Periodic Monthly Statement.
April 17, 2020 – As a result of increasing cargo at its warehouses due to shipments of medical PPE, Air Canada Cargo will revert to 72 hours for free storage, effective Monday, April 20. We have received confirmation that other warehouses will follow suit. The increase surcharges as a result of the Covid-19 situation will remain in place.
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