April 2022

Turning the page… Universal Logistics returns to
the London Book Fair!

Following a 2-year COVID induced hiatus, our Director – Client Relations, John Leis and International Business Development Representative, Andrew Doick, represented Universal Logistics and the BookFreight network at this year’s London Book Fair, held April 5-7 at the Olympia in West London, England.

With over 15,000 exhibitors and visitors in attendance, from more than 100 countries, our presence at events like the London Book Fair is essential.

“The opportunity to meet in person and re-unite with our clients, while gaining insight into the latest trends and specific challenges facing the book industry is invaluable.  Our presence at this year’s event is both a strong indicator of our unwavering commitment to the book industry and enables us to better serve the needs of all our book publishing and book retail clients.  Being afforded this in-person, networking opportunity offers tremendous value and stands as a healthy reminder of the importance of our human connections in life and in business.” said Mr. Leis.

For more information, contact John Leis, Director – Client Relations.

Air & Ocean Freight projections

Shortages of freight capacity, coupled with ongoing demand, continue to elevate shipping costs globally for both ocean and air cargo.  The consensus is that freight rates will remain high throughout 2022 for both ocean and air carriers.

In terms of ocean freight, some industry experts are predicting a rapid recovery to 2019 rate levels, potentially in late 2022, however, this is contingent upon a number of factors such as no significant disruptions to logistics operations and a return to pre-pandemic demand trends.  Other industry insiders suggest ocean freight rates look set to stay elevated for another two years, as logistics disruption continues to restrict capacity.

Things are expected to revert to some normalcy after 2022, as a flurry of new vessel orders in the last few months is set to change container shipping’s supply-demand dynamic.  Even with the influx of new equipment coming on board, it is expected that ocean freight rates will not stabilize until 2024.

Recently we have seen ocean freight rates on a slight downswing, however, many view this as a short-term market adjustment.  One reason for this “temporary” downturn relates to COVID shutdowns in various parts of China, affecting shipping volumes and reducing demand in the short term.

Similar to ocean freight, airfreight rates remain strong, with little relief in sight.  The lingering effect of COVID is that a reduction in international passenger flights has also reduced availability of belly space for cargo.  Since upwards of 50% of all air cargo moves this way, reduced capacity continues to keep rates high.  Passenger demand remains far below pre-COVID levels.  Numbers for February 2022 were down 45.5% compared to February 2019, with international traffic down 59.6% and domestic traffic down by 21.8%.

While demand for ocean and air cargo shipping is expected to continue, at least in the near term, ongoing external influences must be considered.  For example, how will Omicron and future variants impact North American consumer demand as well as effective shipping capacity and factory output?  Also, how much of rate strength is driven by higher import demand and how much is driven by lower effective shipping capacity?  Finally, consumer spending appears to be returning to more typical pre-COVID levels, as people have resumed more normal daily routines, while strong inflation and higher gasoline prices also caused consumers to cut back on discretionary spending.  All of the above will influence international shipping trends, but to what degree, remains unclear.

For more information, contact David Lychek, Director – Ocean & Air Services.

COVID-19 Duty Remission Order expires May 7, 2022

The Canada Border Services Agency (CBSA) issued the Certain Goods Remission Order (COVID-19): SOR/2020-101 with effect May 5, 2020, to remove import duty on a variety of HS tariff classifications during the COVID-19 pandemic.  The Certain Goods Remission Order has now been repealed and will no longer be in effect after May 7, 2022.

Remission of duty was temporarily granted for classifications listed in the Certain Goods Remission Order (COVID-19) SOR-2020-101, under the following conditions:

The relief of customs duties applies to eligible goods, as per the conditions found in SOR-2020-101, imported from May 5, 2020, to May 7, 2022, inclusively.  This relief could be claimed at the time of importation or within two years of the date of importation.  For clients of Universal Logistics, this relief was automatically applied at the time of import, based upon valid HS tariff classification.

If you have any questions, or feel your goods should have been imported under the provisions of the Certain Goods Remission Order, please contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs. 1213.

Are you ready for CARM? Free CBSA webinars

As customs brokers we are used to managing change, especially new CBSA initiated programs.  In most cases, we manage these changes behind the scenes.  Our clients rightfully expect that we will take care of everything on their behalf – and we do.

CARM (CBSA Assessment and Revenue Management), however, is one of the first Customs’ initiatives that absolutely requires importer engagement.  All importers to Canada (whether resident or non-resident) must take certain steps – if not, they simply won’t be able to import into Canada.

Universal Logistics will help our clients along the road to CARM to ensure a smooth transition.  The CARM initiative will be implemented in phases (or releases).  Release 1 went into effect on May 25, 2021.

Here’s what you need to know to get ready….

1. Identify your company’s Business Account Manager(s) – BAM
2. Register your business in the CARM Client Portal
3. Delegate authority to your customs broker
4. Secure a Release of Goods Bond – Release 2 (scheduled for January 2023)

The CBSA’s Assessment and Revenue Management (CARM) team is hosting free CARM webinars – tailored specifically for Importers – and focusing on CARM Client Portal Onboarding.

Registration is required for these webinars.  Please register using the links below:

For more details on CARM and for tips on how to get ready – visit our website – or speak with your Universal Logistics Client Care representative.

	The Hawa Mahal palace was built in 1799 from red and pink sandstone.

Global Spotlight Quiz

Name the home of the Hawa Mahal

• Called ‘Pink City’ – in 1876, the Prince of Wales and Queen Victoria visited this city on a tour.  Since pink denotes the colour of hospitality, the whole city was painted pink to welcome the guests.
• Home to two UNESCO World Heritage sites – Jantar Mantar and Amer Fort.
• Has hosted the world’s largest free literary festival since 2006.
• Home to some of the most expensive hotel suites in the world.
• Has the biggest circular park in Asia.

See the answer

For more information about shipping freight to or from this city, contact Debbie McGuire, Director – Freight Solutions.

Quick Tip

Why theft is often a preventable loss

Thieves and pilferers identify high value shipments by looking for descriptive labelling, illustration or prominent trademarks and brand names.  Protect your shipment from theft by using code marking, a quick and simple way to avoid a preventable loss (almost one-third of preventable losses are attributed to theft, pilferage and non-delivery).

	William Liang, Customs Operations

At Your Service: William Liang, Customs Operations

William Liang joined Universal’s Head Office Customs Operations team in May 2021, handling truck and courier clearances.  Shortly thereafter, William shifted his focus to full-load ocean container clearances and is a key member of our Ocean & Air Clearances team.  With William’s understanding of the customs clearance process for all modes of transport, he has proven to be a valuable resource for all our clients.

William can be reached by phone (905) 882-4880, ext. 1228 or by email.