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OCEAN LINER LOSSES CRY OUT FOR HIGHER RATES
Eight publicly listed container lines lost more than $4 billion in the first half of 2009, essentially in the red by $264 per TEU, according to the newsletter Dynaliners, published by Dutch maritime consultant Dynamar.
The carrier included in the research were APL, China Shipping, COSCO Container Lines, Hanjin Shipping, Hapag-Lloyd , Maersk Line, OOCL and Zim . The eight carriers combined saw the first half turnover dip anywhere from 24 percent to 57 percent. The statistics give “an impression of what has to happen to the rates (at unchanged costs) for them to return to profitability and, ultimately, to survive the current downturn,”
Dynamar said. “It explains the almost daily announcements of yet another rate increase to which they’re all taking a firm stand now as no company can sustain such losses any longer.” A GRI is already in place since Mid-August, space availability is getting tighter and tighter and we are beginning to see the same old problems of space issues and containers being rolled to subsequent departures etc.
Maersk Line announced rate increases on their Intra Americas Services. The increases impacting Canada and the U.S. are as follows: North America to/from West Coast South America - effective 1 October 2009
USD 300 per 20’, USD 600 per 40’ ,
USD 600 per 40’ HC & USD 600 per 45’ HC
North America (United States and Canada) to/from West Coast South America destinations (Chile, Colombia, Ecuador, Peru, Bolivia).
Mediterranean Shipping Co. has announced a general rate increase of $100 per TEU and $200 per 40-foot equivalent for all freight moving from the United States and Mexico to the company's western Mediterranean destinations effective Oct. 1.
Major Trans-Pacific shipping lines of the Canada Transpacific Stabilization Agreement (CTSA), wish to advise their customers that effective October 1, 2009, the Fuel Recovery Charge will be at the following levels:
Via East Coast US$ 490.00 per 20ft container, US$ 613.00 per 40ft container, US$ 690.00 per 40ft high cube container & US$ 776.00 per 45ft container
Via West Coast US$ 246.00 per 20ft container, US$ 308.00 per 40ft container ,US$ 346.00 per 40ft high cube container & US$ 390.00 per 45ft container
The Currency Adjustment Factor will be at the following levels effective October 1, 2009 through October 31, 2009: 3% - Applicable from all origins including Japan and the PRC
COSCO is amending the effective date of the Peak Season Surcharge (PSS) for all Eastbound cargo from the Far East & Indian Subcontinent to Canada. The original effective date was September 5th to October 31, 2009 and is now being amended to:
Effective from September 15, 2009 to October 31, 2009, the PSS will be as follows:
US$ 320.00 per 20ft container, US$ 400.00 per 40ft container ,
US$ 450.00 per 40ft high cube container & US$ 506.00 per 45ft container
IATA: AIRLINES GROUND 227 FREIGHTERS
As per IATA, the world’s airlines have grounded 227 freighters (!), or nearly 12 percent of the fleet of all-cargo planes, in response to the global economic downturn that has cut steeply into cargo traffic and yield.
Albeit as per IATA, cargo traffic has shown signs of improvement recently, still, it projects cargo traffic will fall 14 percent for the full year, far worse than the post 9/11 decline in 2001.Some . With the market uplift capacity for freight has contracted considerably and with the recent uptick in worldwide economic activity, the market start to see the ‘same old, same old’ demand and supply scenario.
Backlogs are starting to build up, particularly in Asia and India and airlines reportedly have sought to raise yields with so-called rate restoration programs, similar to those of the ocean carriers, air freight rates are creeping up on an almost daily basis.
CRA FORM B256, APPLICATION FOR REFUND OF EXCISE DUTY NOW ONLINE
By courtesy of the CBSA we were informed that the CRA has provided the form B256, General Application for Refund of Excise Duty Under the Excise Act 2001 in fillable format. It is available on the CRA website at: http://www.cra-arc.gc.ca/E/pbg/ef/b256/b256-fill-09e.pdf
CFIA CHANGES IMPORT NOTIFICATION REQUIREMENTS
The Canadian Food Inspection Agency (CFIA) is initiating new import notification requirements for selected commodities regulated under the Food and Drugs Act and Regulations.
In order to facilitate this initiative, the new import notification requirements will be implemented in a phased-in approach starting with 14 priority commodities. These commodities will be coded using the International Harmonized System code (HS code) and CFIA’s Automated Imported Reference System (AIRS) Codes.
The commodities identified in Table 2 and their corresponding HS codes will be added to the CFIA’s HS Code Filter List. This will require importers to identify these products by using the HS Code and CFIA AIRS extension as outlined in Table 2. Additional commodities will be added in future in priority sequence. The latest CFIA HS Code filter list is available at:
http://www.cbsa-asfc.gc.ca/eservices/ogd-amg/hs-sh-eng.html#cfia
Effective March 15, 2010, Importers/Brokers will be expected to notify the CFIA of the commodities listed in Table 2 via the Electronic Data Interchange (EDI) using the updated HS codes and CFIA AIRS extension. Failure to do so may result in CBSA rejecting the release request. For more details, contact CFIA at: [email protected] or phone: 613-773-5322.
CPR ANNOUNCES REVISED WEIGHT RESTRICTIONS
Effective October 30 2009, CP Rail has implemented some changes to the Weight Restrictions as follows:
Within Canada – 20’ Weight has been revised to a Maximum Commodity Weight of 47,500 lbs / 21.545 MT
• Import to USA via Canada – 20’ commodity weight has been increased to 46,000 lbs – to a maximum of 47,500 lbs
• Export fm USA via Canada – 20’ commodity weight is unchanged at 46,000 lbs – however maximum of 47,500 lbs implemented
• Excess Weight Charge – USA – has been increased to US$ 300.00 per container (20 or 40)
• CP Mis-declared weight penalty - $3,000.00 if container is found to be overweight and declared weight incorrect.
These charges will be located in CP Tariff 7800 which can be found at www.cpr.ca
CANCELLATION OF OBSOLETE GENERAL EXPORT PERMITS AND A GENERAL IMPORT PERMIT
Under Canada’s Export and Import Permits Act (EIPA), the Minister of Foreign Affairs has the authority to issue, amend, suspend, cancel or reinstate General Export Permits (GEPs) and General Import Permits (GIPs). GEPs and GIPs allow a resident of Canada to export or import certain controlled goods, as specified by the permit, without applying for an individual permit.
In order to ensure that the federal government’s export control regulations and policies are up-to-date and consistent, the Minister of Foreign Affairs, on July 3, 2009, has cancelled the following obsolete GEPs and GIP:
GEP No. Ex. 14 - Export of Specimens Permit;
GIP No. Ex. - 17 Import of Specimens (Personal or Household) Permit; GEP No. Ex. 7 - Export of One Cent Bronze Coins Permit;
GEP No. Ex. 15 - Eggs; and GEP No. Ex. 16 - Egg Products.
Details are available on the Canada Gazette website.
IMPORTANT REMINDER - CONTAINERS WITH IMPROPERLY MARKED WOOD, INFESTATIONS, SOIL ARE RETURNED TO ORIGIN
Two very important issues are causing the refusal of entry into Canada of containers both FCL and more frequently LCL consolidations. CIFFA Members must inform staff and overseas offices of the consequences of non-compliance regarding both issues.
1) Failure of non processed wood packaging to indicate the required ISPM 15 “brand” and /or the presence of insect infestation and
2) Presence of mold, fungus, and soil. Either will lead to a container being refused entry to Canada - and its return to the arriving carrier for immediate removal.
1) At http://www.inspection.gc.ca/english/plaveg/protect/dir/d-98-08e.shtml#e the CFIA regulations on wood packaging, as enforced by the CBSA include the following:
“4.0 Non Compliance - As of July 5th, 2006, any non-compliant wood packaging materials (excluding ship borne dunnage) entering Canada will be ordered removed from Canada. Additional enforcement measures may be applied to importers or those person or organization having custody of non-compliant wood packaging. Permitting the entry of non-compliant wood packaging results in increased risks of pest establishment in Canada and increased uses of pesticide treatments including methyl bromide to remove associated pests. Canada is a signatory to the Montreal Protocol and is taking steps to reduce its overall use of methyl bromide. However, where wood packaging may pose an immediate risk for the entry of a pest, the CFIA or CBSA will order treatment of the non-compliant wood packaging, as prescribed in Appendix 1, prior to it being ordered removed from Canada. All costs incurred in the disposition of non-compliant wood packaging are the responsibility of the person or organization having custody of the non-compliant wood packaging materials at the time of entry to Canada (including port or berthing facilities receiving untreated ship borne dunnage).”
It is important that canadian importers & overseas suppliers understand that fumigation of “containers” to Canada is not an acceptable wood packaging treatment process.
All wood packaging (unless it is a type of wood that does not require treatment as a result of its manufacturing process, i.e. plywood, osb, etc. etc.) Must show the required ISPM 15 stamp/brand.
While fumigation is an acceptable treatment of wood packaging TO ENABLE it to bear the ISPM15 stamp or brand, it is NOT an acceptable treatment for wood packing WITHOUT the stamp or brand.
In short containers with wood packaging that does not indicate the required stamp or brand WILL BE REJECTED by Canadian authorities EVEN if the whole box has been fumigated.
The other problem fumigation presents us with is that now any Customs or CFIA inspections of fumigated containers require that the container will have to be set aside to “air out” prior to inspection resulting in added expense to consignees over and above the inspection expenses.
Containers if inspected and found not to comply with these requirements will be refused entry and returned to the point of origin. There are NO exceptions. All costs incurred for inspection, reloading, and re-export of the container as a result of the use of improper packing and dunnage materials will be for the origin agent’s account.
2) As for soil contamination, the Canadian government through the authority of the Canadian Food Inspection Agency (CFIA) has a “ZERO TOLERANCE” policy with regard to SOIL CONTAMINATION.
The most common source of such contaminations are used vehicles (motorcycles, cars, trucks, ATV’s, farm equipment, etc.) but even general cargo, in some cases stored or loaded outside, may be at risk of contamination.
The risk associated with soil contamination is refusal of entry of the container into Canada and its ordered return to the country of origin.
While there are no specific requirements for the type of cleaning of used vehicles, standard high pressure wash with hot water including soap or a detergent, is probably the best approach and some evidence that this has been done would facilitate entry into Canada.
The requirements are more stringent where Foot and Mouth disease has been reported in the countries of origin.
In this case it is best to refer to the requirements of CFIA website at: http://www.inspection.gc.ca/english/anima/heasan/policy/ie-2001-12e.shtml.
A list of the countries Canada considers FREE of FMD is also indicated on their website http://www.inspection.gc.ca/english/anima/heasan/policy/ie-2001-18e.shtml. Note that this still does not exclude cargo from these countries from the soil contamination requirements.
The financial costs related to a container’s refusal entry into Canada and to return same to origin are significant, to say nothing of the commercial impact for the seller and buyer. Please ensure that your staff and overseas loading facilities are made aware of these requirements.
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