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May 2022

News and Views for the clients of Universal Logistics

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Certified Transportation Network celebrates 25 Years

CTN AGM group photo of attendees
Group photo of attendees at the CTN AGM in Dubai.

Travelling of any kind over the past two years has been pretty much non-existent.  So participating in the Certified Transportation Network (CTN) Annual General Meeting in Dubai this year was extra special.  The fact that CTN was celebrating 25 years as one of the most successful global forwarding networks added to the excitement.

Mark Glionna, CTN Board member, leads discussion with
CTN Founding Member firms at 25-year celebration.

Paul Glionna, Vice President – Systems Development & Operations, and Mark Glionna, Vice President – Client Relations & Business Development, travelled to Dubai and met with over 40 companies from around the globe.  “Meeting in person with our freight forwarding agent partners from around the world gives us a unique understanding and perspective of local markets and conditions that affect international trade.  We use these valuable insights to enhance our operations and to share with our clients,” says Mark Glionna.

Universal Logistics was recognized and awarded as one of the top 2 network contributors for the last three consecutive years.

If you have questions about your international freight needs, contact Mark Glionna and get Universal’s Freight Solutions team working for you.

CARM update to Release 2 implementation date

CARM

Upon implementation of Release 2 of the Canada Border Services Agency’s (CBSA) Assessment and Revenue Management (CARM) program, all importers must post security, for duty and GST, in order to obtain release of goods into Canada.

As per Ted Gallivan, Executive Vice President of the CBSA, May 25, 2022, “The CBSA plans to present a revised project plan to the Treasury Board that shows the Go-live date (for CARM R2) as being 1 of 2 dates in 2023, either May 2023 or October 2023, in order to lock down the related regulations, rules of engagement, and to be sure that onboarding is complete.”

CARM Release 2 – Scheduled for May or October 2023

Key Functionality for External Clients:

  • Submit new commercial accounting declarations with ability to make corrections and adjustments.
  • All Importers must post security for duty and GST outlays in order to participate in RPP (Release Prior to Payment).
  • Harmonized billing cycle that aligns payment due dates and provides more time to make interest-free corrections.
  • Customizable electronic notification options.

IMPORTANT:  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 once CARM Release 2 comes into effect (May or October 2023).

For more details on posting security with CBSA and for tips on how to get ready, speak with your Universal Logistics Client Care representative.

Canada intends to remove tariffs on goods from Ukraine

Tariffs

On May, 8, 2022, Prime Minister Justin Trudeau announced Canada’s intention to remove remaining customs tariffs on goods from Ukraine for a period of one year.

While most goods from Ukraine enter Canada duty-free as a result of the Canada–Ukraine Free Trade Agreement (CUFTA), tariffs still apply on certain goods where tariffs are being phased out under the Agreement, or where they are excluded from it.

By removing tariffs for a one year period, Canada would continue to support Ukraine’s economy by ensuring that Ukrainian goods are able to enter Canada duty-free.

The proposed measure would come into force once the Order in Council is approved and registered.  The Canada Border Services Agency would then issue a Customs Notice detailing how importers can claim relief under the remission order.

For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.

Update on Russia economic sanctions

Sanctions

On May 18, 2022, Canada further amended the Special Economic Measures (Russia) Regulations to prohibit the export of certain luxury goods and goods that could be used in the manufacturing of weapons to Russia, to prohibit the import of certain luxury goods from Russia, and to list an additional 14 oligarchs, close associates of the Russian regime, and members of their families.

Luxury goods — Import
(3) It is prohibited for any person in Canada and any Canadian outside Canada to import, purchase or acquire any good referred to in column 1 of Part 2 of Schedule 6, wherever situated, from Russia or from any person in Russia.

Examples of Russian origin goods prohibited from importing into Canada include fish, caviar, vodka and diamonds.

For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.

Canada’s Three Largest Airlines Focus On Air Cargo

Loading air cargo

Air cargo business in Canada is growing, and the three biggest carriers are investing accordingly.  Two of them – Air Canada and WestJet – are passenger airlines that are in the process of establishing all-cargo divisions with aircraft dedicated to carrying freight on the main deck.

Air Canada is Canada’s largest air cargo provider as measured by cargo capacity, with a presence in over fifty countries and self-handled hubs in Montreal, Toronto, Vancouver, Chicago, London and Frankfurt.  The airline also recently unveiled an expanded schedule for its fledgling freight network, targetting the Europe / Canada lane.

With the downturn in passenger traffic due to COVID-19 in 2020 and 2021, passenger aircraft on cargo missions played a key role in this drive for a greater stake in the airfreight sector.  To achieve this, Air Canada removed seats from eleven wide body aircraft to use them as ‘Charlies’, as the cabin freighters have been called internally.  The resurgence of the passenger business has seen most of these return to their original configuration, leaving just one ‘Charlie’ in action, primarily on transpacific routes.  It will cease cargo operations before the end of the year.

While Air Canada was the first carrier in North America to return to a combination passenger-and-freighter fleet, it also intends to invest in more all-cargo aircraft.  Buoyed by 42% growth in cargo revenues, the airline is moving to expand its fleet with new production freighters.  It is set to receive two new B767-300F factory built freighters this year, in addition to plans to convert eight 767s from passenger into all-cargo configuration.

Calgary-based WestJet expects to have its first two 737-800 standard jets converted for cargo in revenue service by July 1 or sooner.  Operating from a base at Toronto Pearson International Airport, WestJet Cargo intends to start with limited charter work, transition to regular, scheduled flights between major cities within Canada and eventually blend in ad hoc charters and transborder flights to the U.S. and Caribbean, especially on weekends and other off-peak periods.

Cargojet, as the name implies, is a cargo operator that is also significantly expanding its fleet.  Cargojet is investing in eight Boeing 777 passenger planes that will be converted to a pure cargo configuration, quadrupling its original order, according to a recent management document presented to shareholders and industry sources.  These freighters are expected to be delivered between 2023 and 2025, and these long-range aircraft will open the door for Cargojet to handle more intercontinental traffic.

For domestic and international shippers, the growing fleets mean more intra-Canada and cross-border capacity for all types of commodities, from e-commerce merchandise to perishable goods, pharmaceuticals and general products.

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

Global Spotlight Quiz
Global Spotlight
Founded in 711 AD and dedicated to the goddess of rice-growing, this shrine is still frequented by merchants and tradesmen
who pray for prosperity.

Global Spotlight Quiz

Name the home of the
Fushimi-Inari Shrine

  • There are three historical buildings located in this city often mentioned as the most important – the Imperial Palace, Nijo Castle, and the Katsura Imperial Villa.
  • It is home to numerous Buddhist temples, Shinto shrines, palaces and gardens, many of which are listed collectively by UNESCO as a World Heritage Site.
  • It was the country’s capital for over 1,000 years – from 794 to 1868 AD.  It’s name literally translates to “Capital City”.
  • Suffers from overcrowding, transportation shortages, and pollution, which is why the government of the region developed a law in 1965 that controls land use and transportation.
  • Nintendo was born in this city in the year of 1889.  Nintendo first started with producing playing cards.

See the answer

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

Quick Tip

Quick Tip

Modify Your Shipping Habits to Expedite Your Transit Times

Can’t wait until you have enough freight to load a full container? Take advantage of consolidated services to lessen the cost, while maintaining a weekly shipping schedule.

Have a hot rush truck shipment that can’t be late?  Hire an exclusive load, regardless of the actual shipment size, and have a truck make a freight delivery that is exclusively for you.

Vivien Yu, Ocean Services
Vivien Yu, Ocean Services

At Your Service: Vivien Yu, Ocean Services

Vivien Yu joined our Head Office Freight Operations Team in June 2021.  Vivien has twenty years experience handling ocean import and export shipments, and excels at providing top level service to many of our key clients.

In her current role, Vivien also coordinates ocean import transborder moves from Canada to the U.S., which require navigating both Canadian and U.S. regulations, including eManifest and US CBP requirements.  As a result of her extensive experience and knowledge, Vivien is an excellent source of information, ready to manage all of our clients’ needs.

Vivien can be reached by phone (905) 882-4880, ext. 1217 or by email.

May 2022



Route
is produced monthly for the clients of Universal Logistics. Reader comment and story ideas are welcome. Comments of general interest to all Route readers will, with the permission of the writer, be published. Copyright ©
Universal Logistics Inc. All rights reserved. Reproduction for any commercial use is strictly prohibited.

Route is produced by Universal Logistics. Editor: Bettina Scharnberg. Email: bscharnberg@universallogistics.ca While every effort has been made to ensure the accuracy of information contained herein, Universal Logistics accepts no responsibility or liability for errors or omissions. Written correspondence should be forwarded to:

Universal Logistics Inc.
125 Commerce Valley Drive West
Suite 750, Thornhill, Ontario L3T 7W4
Tel: 905-882-4880    Fax: 905-882-2250
Attention: Bettina Scharnberg
Universal Logistics

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