Newsletter May2012
Created by John on 5/29/2012


Beacon International Despatch Ltd - Newsletter May 2012

Beacon International - Newsletter

May, 2012

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 PR0CESS 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

A
SA 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,
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.


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.

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

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 to $ 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 here.


Contact Information
[email protected]
Head Office - Brantford
Tel: (519) 756-6463
Fax: (519) 756-6800

Toronto Office
Tel: (905) 361-5010 or
Tel: (905) 678-7777

Fax: (905) 678-7171

Montreal Office
Tel: (514) 282-1041

Fax: (514) 282-1180

Vancouver Office
Tel: (604) 278-3410

Fax: (604) 278-3412 

Sales Contacts
 

Troy Guerin - [email protected]

VP Sales & Customer Service

 

Cell: (519) 771-3700


 

 

 

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