CTSA - Transpacific Carriers to Implement Peak Season Surcharge
Member carriers in the Canada Transpacific Stabilization Agreement (CTSA) have adopted the following Peak Season Surcharge (PSS). The PSS will be applicable from all origins to Canadian destinations for the period June 15, 2011 to November 30, 2011.
US$320.00 per 20ft container
US$400.00 per 40ft container
US$450.00 per 40ft high-cube container
US$505.00 per 45ft container
CTSA is a group of 10 ocean and intermodal transportation companies serving the trade from Asia to Canada.
Vancouver Moves Forward with Process for New CEF
Inefficiencies and delays have long plagued the container examination process at Vancouver. Last month the BC Chamber of Shipping (COS), Port Metro Vancouver (PMV) and the Canada Border Services Agency (CBSA) joined together to issue a 'Request for Expression of Interest for Container Examination Facilities in the Lower Mainland', which was published on BC Bids and the MERX website. CIFFA applauds these organizations for taking the next step together on a long and somewhat laborious process to address the situation and find a long term solution for the area. As the RFEOI says, "the objective is to create a container inspection program for the Port of Vancouver that meets the requirements of CBSA and other inspection/police agencies with respect to protecting the economic and physical security of Canada, while enhancing the competitive position of PMV as a strategic gateway for North American trade with the rest of the world."
Even more encouraging is the expressed necessity of speed in getting the new CEF up and running and in the need for competitive (and one would hope transparent) rates once the new CEF is operating. "COS and PMV are open to consider any other locations that may be proposed by proponents in their Expression of Interest, particularly given the time sensitivity of having these facilities in place as soon as possible. In addition, an important consideration of COS is to ensure that any CEF's operating in the Port of Vancouver must provide both highly competitive examination rates and efficient container handling services and processes." Thank you to the Chamber of Shipping for expressing clearly these economic imperatives of any new CEF.
Hapag-Lloyd Restructures the NWX Service
Hapag-Lloyd has advised that they have chosen to restructure the NWX service by de-linking it from the LPB Pendulum serving the Far East - Europe trade restoring the NWX to a dedicated stand-alone transpacific product. This change is effective in May from sailing: Savannah Express EB voyage 38e19 / WB voyage 38w22
This will result in a westbound port rotation change in China, while eastbound port rotation remains unchanged. New rotation and sailing day is as follows:
Pusan (Wed) • Ningbo (Thu) • Shanghai / Yangshan (Sat) • Qingdao (Mon) • Pusan (Wed) • Vancouver (Import, Sat) • Seattle (Fri) • Vancouver (Export, Sun) • Tokyo (Import, Fri) • Nagoya (Import, Sat) • Kobe (Import, Sun) • Pusan
For further information contact your local Hapag-Lloyd or Beacon representative
Workers Strike at Major Australian Ports
Dock workers at Australia's three major ports went on a 24-hour walkout Saturday after talks stalled over a protracted wages and conditions dispute, crippling about one-quarter of the nation's freight.
The Maritime Union of Australia called the strike at terminals in Sydney, Melbourne and Brisbane after deadlocked contract negotiations with major freight firm Patrick hit a fresh impasse. A second strike was to begin on Monday in Fremantle, on Australia's resources-rich west coast. Patrick said the work stoppage followed a failure of talks before Fair Work Australia, the industrial umpire, hitting "15 ships, carrying a total of 17,797 containers" -- about one-quarter of the nation's container freight capacity.
Patrick and the MUA have been stalled for almost eight months over pay and conditions and strike action was approved by industrial authorities earlier this year in the event of talks breaking down. The previous workplace contract expired in October. Talks were due to resume next week and Garaty said Patrick was committed to a "fair and sustainable outcome for both parties... based on productivity improvements."
Canada West Coast Longshoremen Ratify Labour Agreement
Canadian longshoremen ratified the contract that should guarantee labour peace at the Pacific Coast ports for eight years. The contract between the International Longshore and Warehouse Union Canada and the British Columbia Maritime Employers Association also calls for wage and benefit increases, with a cost of living factor during the final three years of the agreement.
Previous ILWU Canada contracts had lasted for a term of three years, and reaching a settlement could be a painstakingly slow process. The agreement calls for an average wage increase of 3.5 percent every year of the contract, and a cost of living factor starting in the sixth year that will protect the purchasing power of the members if inflation exceeds the agreed-upon wage increase, the release stated. Also included are pension enhancements.
Dock workers Strike APM Terminals Algeciras
Over 300 dockworkers at APM Terminals in the Spanish port of Algeciras on Monday stopped work to protest a wage cut announced by the terminal-operating arm of A.P. Moller-Maersk reports the Journal of Commerce.
The dock unions plan to stage a dozen 24-hour stoppages on selected days of the month. According to the Gibraltar Chronicle, the action has led to many ships anchoring in the bay awaiting permission to enter into the port to unload cargo at the transshipment hub. The industrial action is expected to intensify in the coming days said the report.
TSA Carriers Implement GRIs and File Peak Season Surcharges
Effective May 1, 2011 the carrier members of the Transpacific Stabilization Agreement (TSA), serving the East Asia/USA trade lane, implemented previously announced General Rate Increases (GRI) which increased freight rates to US West Coast Ports by US$ 400 per 40' container, and to all other USA destinations by US$ 600 per 40' container; rates for other containers sizes were increased accordingly.
This is consistent with the TSA's 2011-12 "revenue stability program" announced back in November 2010. This GRI applies to both tariff and service contract rates. It also applies to flat rack, open-top, tank and all other types of special equipment.
The TSA Carriers have also filed Peak Season Surcharges (PSS) which will be effective June 15 thru Nov 30, 2011 as follows: US$ 320 per 20' ctr, US$ 400 per 40' ctr, US$ 450 per 40' hi-cube ctr, and US$ 505 per 45' ctr. The PSS amounts for LCL vary; some carriers have filed US$ 6 per CBM or US$ 12 per 1000 KGS.
Bunker Adjustment Factors (BAF) calculated using TSA's old monthly formula for May 2011 are set at
US$ 1048 per 20ft ctr,
US$ 1310 per 40ft ctr,
US$ 1474 per 40ft hi-cube ctr,
US$ 1658 per 45ft ctr, and
US$ 29 per WM (LCL).
However, most shipments are subject to the new formula BAF, which is updated on a quarterly basis; for the April-June 2011 quarter the new formula BAF amounts are
US$ 468 per 40' ctr to US West Coast Ports and
US$ 879 per 40' container to US Atlantic & Gulf Coast Ports;
BAF for other container sizes applies as per formula. Shipments to US Inland Points are also subject to an Inland Fuel Charge (IFC); for the April – June 2011 quarter the IFC amounts are
US$ 295 per ctr for shipments to IPI destinations served via West Coast Ports,
US$ 148 per ctr for shipments to RIPI destinations served via East Coast Ports, and
US$ 85 per ctr for shipments to Group 4 Points and to East Coast local store door points.
CP Service – Victoria Day Weekend Terminal Hours of Operation
On Victoria Day, upcoming on Monday, May 23, Canadian Pacific will be operating over-the-road and local trains to maintain network fluidity and balance.
If you are normally serviced on this day and do not expect to be open to receive or release cars, please notify your Customer Service Account Representative at 1-888-333-8111 by Tuesday, May 17, 2011. If you are serviced by a yard that has implemented the new Service Reliability Program, i.e. Edmonton, Winnipeg, Montreal, Toronto or Coquitlam, please also indicate changes to your normal operating hours on your Service Request form.
If your facility is not accessible and cars are returned to the servicing yard, charges Tariff 2 will apply. Please note, regular service applies to automotive plants/facilities, and bulk train shippers and receivers, as your statutory service is managed on a weekly planning basis by your CP shipment planning team.
CN - Flooding in Quebec's Montérégie Region
Flood warnings are currently in effect in the Montérégie region of Quebec, south of Montréal. The Richelieu River has been particularly affected and, as a result, CN has been forced to suspend operations along the Swanton subdivision of the CN main line. Specifically, service between Montréal and the NECR interchange point at St Albans, VT, has been suspended until further notice due to high water levels under one of CN's railway bridges.
According to weather forecasts, it will continue to rain in the affected area until at least mid-week. In addition, some SLQ short line railway tracks located in South Paris, ME, are currently flooded. Their activities are expected to resume later in the week. In the interim, CN is holding traffic destined for this line until clearance is given by the other carrier. CN will provide further information as it becomes available.
CN Update on Operations – Impact of Adverse Weather Condition
Flooding has affected local customers in the Cairo, IL, area; however, trains are being detoured over the Bluford subdivision of the CN main line in order to bypass the affected locations. According to current estimates, normal service will be restored on Tuesday, May 17th.
Flooding in the Memphis, TN, area is not expected to affect CN's operations at Harrison Yard. Few local customers have been affected, and CN has not shut down their Memhis operations.
CN continues to monitor the situation in CN's Central division very closely. Engineering personnel are conducting regular inspections of all areas affected by high water levels. As water levels subside to the north, they are expected to increase in Louisiana, with a projected crest at Baton Rouge, LA, due on May 22nd.
Authorities have elected to install a levee between Baton Rouge, LA, and Geismar, LA. The Baton Rouge subdivision of the CN main line closed as of noon Central Time on Friday, May 13th. CN activated plans to detour affected traffic along their McComb and Hammond main line subdivisions. It should be noted that portions of this traffic will be delayed as a result of the detours.
CN FLOOD PREPARATIONS IN MANITOBA
Provincial authorities ordered the closure of the dike at Morris, MB on Tuesday evening, April 19th. Accordingly, CN's border crossing and interchange point with the BNSF railway at Emerson, MB, has been shut down. Affected traffic is being routed through our border point at Fort Frances, ON. While some delays may result, every measure is being taken to minimize any disruption to customer shipping cycles.
Provincial authorities were evaluating the potential need to trigger a controlled release of certain dikes east of Portage La Prairie over the weekend, in order to stem excessive flow from the Assiniboine river. CN has been assured that, in the event this step is taken, there will be no adverse effects to our operations in Manitoba.
CN U.S. Operations Continue Without Major Delays Despite Adverse Weather Conditions
Despite recent poor weather, impact to CN's operations in the U.S. has been very localized to date. Flooding has affected some local customers in the Cairo, IL, area; however, main line trains are being detoured over CN's Bluford subdivision in order to bypass the affected locations. According to current estimates, waters will subside sometime on or after Thursday, May 12th, and service will be restored shortly thereafter.
In addition, flooding in the Memphis, TN, area is less severe than originally predicted. While water levels are on the rise and are expected to crest on Wednesday May 11th, CN does not expect any shutdown of the Memphis operations. CN is monitoring the situation very closely: contingency planning remains in effect. Further information will be provided as it becomes available.
Mexico to Join ATA Carnet System
The ATA Carnet System is set to expand on 16 May, when Mexico will join this international system, which reduces paperwork and costs for businesses travelling with goods, following new members such as Bosnia and Herzegovina, and the United Arab Emirates.
Mexico has long been identified as one of the priority target countries by the network of organizations already affiliated with the ATA guarantee chain, administered by the International Chamber of Commerce (ICC). The addition will bring to 71 the number of countries accepting ATA Carnets, which work like passports for goods.
Mexico's large economy and geographic position make it both an important international trading partner and transit point for goods. Mexico's entry into the ATA chain will also facilitate trade relations between Mexican business and their foreign partners. The Mexico City National Chamber of Commerce (CANACO) will administer ATA Carnets.
Prior to Mexico, Bosnia and Herzegovina joined the ATA Carnet system on 18 April, following the United Arab Emirates, which joined on 1 April. More than 160,000 Carnets are issued every year worldwide, for goods with a total value of over US$20 billion. Carnets cover all goods traded internationally, with the exception of perishable items.
CFIA Notice Modification of Procedure – Inspection of US Meat Imports
The following CFIA notice is to Importers, Brokers, Carriers, Registered Inspection Establishment Operators, and Broker Associations.
Subject: Modification to the procedure for notification for inspection of US meat imports. The following is to inform you that as of May 16, 2011, the Canadian Food Inspection Agency (CFIA) will modify its procedures related to importing meat and meat products from the United States.
- The instructions below apply to importers and brokers.
- The information will be of interest to carriers, registered inspection establishment operators, and broker associations.
The US Department of Agriculture (USDA) inspects and certifies all meat shipments from the United States before the meat is exported to Canada. As an additional measure to verify the safety of US meat, the CFIA conducts random inspections of incoming meat shipments. More details at: http://www.inspection.gc.ca/english/fssa/meavia/20110505note.shtml
Japan Sets Guidelines for Radiation Measurements
The American Bureau of Shipping said Japan has set guidelines for radiation measurements and what it is calling "attestations" for export containers and ships in Japanese ports reports American Shipper. The guidelines are available on the Web site of Japan's Ministry of Land, Infrastructure, Transport and Tourism. Also available on the Web site are measurement results of dose rate of atmosphere and seawater in ports. More information is available here.
Canadian International Merchandise Trade March 2011
Canada's merchandise exports and imports both rose in March, as most sectors recorded gains. Exports increased 3.5% and imports grew 2.8%. As a result, Canada's trade surplus increased from $356 million in February to $627 million in March. Exports rose to $37.4 billion in March, as volumes, up 2.5%, increased in all sectors except agricultural and fishing products. At the same time, prices advanced 0.9%. Broad-based gains in the value of exports were led by energy products and industrial goods and materials. Exports have generally been trending upwards since May 2009. Higher volumes have accounted for almost two-thirds of the growth during that period.
Imports increased to $36.7 billion, as volumes rose 3.2% while prices decreased 0.4%. Imports of automotive products, which largely accounted for the decline in February, were the main contributor to the gain in March. Increases were also recorded in imports of industrial goods and materials as well as machinery and equipment. Overall, imports have been trending upwards since June 2009, as a result of higher volumes. Prices declined during that period.
Imports from the United States rose 3.2%, mostly a result of increases in imports of automotive products, while exports grew 1.9%, led by higher exports of crude petroleum. Consequently, Canada's trade surplus with the United States narrowed to $4.8 billion in March from $5.0 billion in February.
Exports to countries other than the United States rose 7.8% in March, largely reflecting higher exports to the European Union. During the same period, imports grew 2.1%. As a result, Canada's trade deficit with countries other than the United States declined from $4.7 billion in February.
Extension of Public Consultation Period on Shared Vision for Canada-U.S. Perimeter Security
Last week it was announced that the Government of Canada is resuming public consultations on the Canada-United States shared vision for perimeter security and economic competitiveness. The public consultation period has been extended until June 3, 2011.
As stated in the declaration, the Government of Canada will engage with all levels of government and with communities, non-governmental organizations, the private sector and Canadian citizens on innovative approaches to security and competitiveness. These consultations will inform the development of a joint Canada-United States action plan that will set out a range of initiatives in four key areas of cooperation aimed at promoting security and supporting trade and economic growth. More at: http://www.international.gc.ca/media_commerce/comm/news-communiques/2011/131.aspx?lang=eng
Saudi Arabia Accedes to Key WCO Trade Facilitation Instruments
On 4 May 2011, the Embassy of the Kingdom of Saudi Arabia deposited their country's instruments of accession to the International Convention on the Simplification and Harmonization of Customs Procedures (revised Kyoto Convention) and the Convention on Temporary Admission (Istanbul Convention) with the World Customs Organization.
The revised Kyoto Convention (RKC) is regarded as a blueprint for effective and modern Customs procedures. Some of its key elements include the application of simplified Customs procedures in a predictable and transparent environment, the maximum use of information technology, the use of risk management, a strong partnership with the trade, and a readily accessible system of appeals.
The Istanbul Convention (IC) is an international instrument that combines all existing conventions on temporary admission. Integral to the Convention is the ATA carnet that is secured by an international guarantee system which allows the free movement of goods across frontiers and their temporary admission into a Customs territory with relief from duties and taxes.
Caribbean Ship-owners Postpone Bunker Surcharge Increase
The members of the Caribbean Shipowners Association are postponing the scheduled increase in their bunker surcharge from Sunday, May 15 to Sunday, May 29, 2011 reports the Journal of Commerce.
Carriers in the association include Bernuth, CMA CGM, Crowley, Seaboard Marine, SeaFreight Line and ZIM. The CSA said in its announcement of the postponement that it will continue to monitor fuel cost developments and adjust bunker surcharge levels, including rolling back these announced increases if not supported by actual circumstances. But it suggested that shippers plan business transactions on the basis of the advanced notification of increases in the bunker surcharges.
Air China and Cathay Pacific Airways Consolidate Cargo Businesses
Air China and Cathay Pacific Airways announced last week the consolidation of their cargo businesses in Beijing to launch the new Air China Cargo.
Air China will hold 51% of the shares and Cathay Pacific will hold 25% of the shares and 24% of economic interests in Air China Cargo. After the consolidation, Air China Cargo's fleet will include 12 B747-400 aircraft. The airline's operation center will be based in Shanghai.
The consolidation of Air China and Cathay Pacific's cargo businesses is part of the two airlines' long-term cooperation strategy. The operation center in Shanghai will satisfy the market demands of the Yangtze River Delta, which makes up two-thirds of Air China's service area. The cooperation will help Air China Cargo reach all-round global development.
South African Supply Chains at Risk from Power Cuts, Theft and Strikes, Says Survey
A recent survey designed to identify the key risks to the supply chain in South Africa has highlighted power outages, theft and labour disputes as the primary concerns reports Transport Intelligence. The survey also studied the different types of risk management strategies that are currently in place in the country. The MIT Center for Transportation and Logistics Global Risk Survey was undertaken in South Africa jointly by several parties in collaboration with MIT.
The survey found that extended loss of electricity is five times more likely to occur in South Africa, compared to the world average. Employee theft/executive misdeeds come in four times higher than the international average. Protracted labour disputes are 2.5 times more likely to transpire and disease/infestation, 2.3 times higher. Interestingly, the survey found that, in terms of the top ten supply chain risk factors, South Africa is more closely aligned to developed rather than developing economies. However, extended electricity loss and major software systems failure are two challenges more commonly associated with developing economies.
South African companies rated raw material supplier failure as the top supply chain risk, followed by finished goods manufacturing failure, product quality failure, transportation carrier failure and economic recession/market collapse. "Notably, within South African supply chains, companies tend to work more with customers than suppliers in addressing risk management." In terms of risk mitigation perceptions, South African companies believe in a local response over a central risk response action. This falls in between the North American and European approaches, as identified by the global survey findings.
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