the voice of freight forwarding in canada season’s greetingsthe voice of freight forwarding in...

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December 2009 The Forwarder The Voice of Freight Forwarding in Canada Season’s Greetings The Canadian International Freight Forwarders Association Feliz Navidad Merry Christmas Happy Holidays Happy New Year Bonne Année Buon Natale Frohliche Weihnachten Joyeux Noël Buon Anno Happy Chanukah 480 - 170 Attwell Drive, Toronto, Ontario M9W 5Z5 Tel: 416-234-5100 Toll Free: 866-282-4332 Fax: 416-234-5152 Email: [email protected]

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DocHdl1OnPTR1tmpTargetSeason’s Greetings
Feliz Navidad Merry Christmas
Buon Natale
Buon Anno
Happy Chanukah
480 - 170 Attwell Drive, Toronto, Ontario M9W 5Z5 Tel: 416-234-5100 Toll Free: 866-282-4332 Fax: 416-234-5152 Email: [email protected]
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New Year’s Regulations and New Year’s Resolutions The party doesn’t start for a couple more weeks yet, but I am more than ready to celebrate the New Year. In this issue of The Forwarder you will read about the long awaited, much anticipated ‘Proposed Security Measures Respecting Air Cargo’. Yes, Transport Canada is issuing in the New Year with new regulations.
And CIFFA is issuing in the New Year with new resolutions. Following the Board’s Strategic Planning session last September, the Secretariat is developing actions to implement the eight strategic imperatives we identified as critical to leading the association into the next decade. High on our list of priorities is our renewed focus on Environmental Stewardship. Some of our actions will be small – like printing this issue of The Forwarder on 100% recycled paper. Yes, it costs a little more. And no, it is not as shiny and nice as other papers, but it is the right thing to do. Next year, we are resolved that all of our publications – the Directory, The Forwarder, our Certificate program textbooks, will be printed on 100% recycled paper. And, as we enter into the second decade of this new millennium, another New Year’s resolution is to investigate carbon offset programs, research methods and costs of measuring a carbon footprint and collaborate with other associa- tions to deliver options and information on ‘going green’ to the Membership.
The Secretariat has been very busy over the past year. As I write this article, we have welcomed 19 new Regular and 6 new Associate Members to the associa- tion. We have touched 1,540 individuals in a training activity: some 350 graduates of the Certificate and Advanced Certificate programs and hundreds of students in Air or Ocean Dangerous Goods, Cargo Security Coordinator (CSC) or Authorized Cargo Representative (ACR) webinars or International Trade Workshops. We have hosted meetings with Transport Canada on Air Cargo Security, with the Canada Border Services Agency on Export Regulations and eManifest. We have attended dozens of stakeholder meetings with government and NGO agencies across the country. We have issued hundreds of eBulletins, three issues of The Forwarder and the Membership Directory,
On behalf of the Secretariat – Doug Burek, Marilyn Massoud, Anna Loginova, Lynn Herman, Mahesh Khedu, Brenda McGregor and myself, I assure you we will ac- complish even more next year and I wish you all Joyeux Noël et Bonne et Heureuse Année.
Ruth Snowden Executive Director
2 The Forwarder December 2009
Season’s Greetings From the President With just six months of experience as the President of the Board of Directors at CIFFA, I continue to be im- pressed by the scope of CIFFA’s achievements. As articles in this magazine attest, this has not been an easy year for freight forwarders. Ocean carriers are facing enormous pressures as over-capacity and unsustainable rates wreak havoc on the industry. In the course of a few weeks this fall, roller-coaster rates in the Asian air cargo markets have swung from all time lows to historic highs. To survive, freight forwarding compa- nies have had to react quickly, responding to rapid fire shifts in market conditions.
Yet, through it all, CIFFA has kept a laser focus on Members and on communications that matter. eBulletins are timely, contain essential information and contribute to the authority and respect with which the industry is recognized in Canada and around the world. At the FIATA World Congress this fall in Geneva, the Canadian delegation was recognized not just for its participation and support of the association, but as leaders among associations in delivering effective communications and professional education in support of its Members.
In the midst of a global recession, your volunteer Regional Committees have organized fabulous Forwarders Choice Awards gala dinners for more than 1200 peo- ple, provided the opportunity for more than 400 golfers to hit a hole in one and celebrated the success of hundreds of Certificate and Advanced Certificate grads. The commitment of these volunteers can be measured by the success of their events; the success of their events can be measured by your participation. It is a remarkable testament to the strength and engagement of CIFFA Member companies that networking events are so well subscribed.
During the next year, CIFFA will be seeking even more support from its Membership. Of the eight strategic imperatives identified during our planning session in September, three focus on increasing your individual engagement with the association. You may be asked to participate in a Working Group on a specific issue – providing input to the CBSA’s Export Regulations Review, sharing your opinion on changes to Air Canada’s terminal fees structure or helping design the CBSA’s new eManifest processes; or to sit on a National Committee; or to help organize an event; or simply to attend an information seminar. CIFFA Members and your par- ticipation provide the foundation strength on which we can build the future.
2009 has held its challenges. While most certainly 2010 will also bring its fair share of challenges, it is my honest belief that we have turned the corner and begun the journey on the road to economic recovery. I want to thank my colleagues on the National Board of Directors and the staff at the Secretariat for their continued support and dedication to the association. And finally, I want to wish all of you a Merry Christmas, Happy Holidays and a safe, healthy and prosperous New Year.
Marc D. Bibeau President
3The Forwarder December 2009
President Marc D. Bibeau Upon completing his studies 25 years ago, Marc Bibeau entered the forwarding business, learning the trans- portation industry from the ground up. Marc developed a winning approach based on his philosophy of service, quality and integrity for the product with which he forged the future path for OEC in the emerging transportation industry.
Marc recognized the potential for growth in the Asian trade, and invested heavily in Information Technology to develop a global logistics system to meet the specific requirements of OEC's customers. With a worldwide network of over 200 offices and affiliates, the OEC network of offices in Asia has made them a market leader.
After having served on the National Board of Directors since 2002, in May 2009, Marc was appointed to the position of CIFFA President.
For the past ten years Marc as been associated with St. George's Tyndale Com- munity Centre, assisting with fundraising and operational activities for the benefit of disadvantaged youth in Montreal. He is also a strong supporter of the Montreal Children's Hospital, the Cedars Cancer Institute and Sun Youth. He is an avid skier and golfer with a keen interest in knowledge and education.
Immediate Past President Robert Walker Mr. Walker started his career in Transportation at CP Foreign Freight as a summer student, and since the early 1960’s has held a variety of positions, leading up to 1988 when Bob joined Carson Customs Brokers (later to be known as Carson International) as Vice President International Trade. With the assistance of an amazing team throughout the
country Carson’s transportation services have grown from a very small base to a major operation within Canada and USA.
Bob has been a Director of CIFFA for 16 years. His best accomplishments within CIFFA – convincing Ruth Snowden to become Executive Director and introducing the new CIFFA Scholarship Program.
Bob’s enjoyments in life: Golf (only director of CIFFA to have his golf bag in trunk of car in January in case of sudden thaw), kayaking, wine and life in general.
Vice President I Donna Letterio Ms. Letterio, a 30 year industry veteran, is currently the CEO Canada, DHL Global Forwarding (Canada), Inc. and is based at the country headquarters in Toronto, Ontario.
Donna has achieved certification as a Professional Logisti- cian from the Canadian Professional Logistics Institute. Dur- ing her 6 year tenure on the National Board of Directors, Donna has chaired the CIFFA Ethics & Standards Commit- tee and is currently By-Laws Committee Chair and V.P. I.
Treasurer Gary Vince Mr. Vince is currently the District Manager for DHL Global Forwarding Canada Inc. Gary has attained his P. Log ac- creditation and his Master of Business Administration. Mr. Vince has more than 30 years of extensive logistics experience with several multi-national logistics providers
where he has held a number of senior management positions. He has diversified expertise in the areas of, air and ocean freight, project cargo, customs brokerage, warehousing and distribution, and North American Transportation.
Gary joined the National Board of Directors in 2004 as Membership & Public Rela- tions Committee Chair, and later as Security Chair.
Gary and his wife have 2 children.
Secretary Paul Lobas Mr. Lobas comes from a systems background and has been involved in the freight forwarding/customs broker- age industry for the past 26 years. He has designed and implemented computer systems for many industry par- ticipants. Mr. Lobas has served in various capacities on the CIFFA board over the past 17 years including Cus-
toms Chairman, E-Commerce Chairman, CIFFA Executive as VP I., and served as President of CIFFA for 4 years. Paul is currently responsible for CIFFA Membership, he has participated on various committees such as EDI CASS, AIRPARS, Line Re- lease, CTACC and Customs Consultative Committee.
Mr. Lobas lead the initiative to implement E-Learning for CIFFA. He also met with leaders of freight forwarding associations from around the world promoting elec- tronic commerce as a means for improved business to business communications. Paul has also served on the FIATA Airfreight Institute committee.
Mr. Lobas is a Director with ITN Logistics Group, a Canadian International Freight Forwarder and Logistics provider.
Meet the CIFFA Executive
At A Glance President’s & Executive Director’s Messages ............................2 Meet the CIFFA Executive ............................................................3 CIFFA Board of Directors Approves 2010 Scholarship Award....5 The New Year Brings New regulations: Transport Canada Moves to Regulate Air Cargo Security ....................................................5 How the Rotterdam Rules Will Impact Your Business ................5 Members Participate....................................................................7 Shipping Deregulation a Bonus... but for Whom? ......................9 The Cargo Agents Settlement System (CASS) ..........................10 Has IATA e-Freight Missed the Boat?........................................10 It’s a JUNGLE up There ..............................................................11 USA: Importer Security Filing (TSF) ..........................................13 Meet Darlene Vaughan, Certificate Program Instructor ..........13 New CIFFA Resume Board ........................................................13 CIFFA Well Represented in Geneva............................................14 CIFFA in Lebanon, “Forward for the Future!” ..........................15 CIFFA Certificate Courses Receive Accreditation ....................15 Membership Grows....................................................................16 CIFFA Finds Alternative to In-class Training ............................16 CIFFA Thanks Associate Members ............................................16 2009 Western Region Forwarder Choice Award ......................17 CIFFA Participates......................................................................18 Read What Members Are Saying About CIFFA..........................18 Correspondence from around the World/Résumés ..................18 PFF 2010 Renewal Campaign ....................................................19 Plan Today for your 2010 Advertising Dollars ..........................19 Out & About ................................................................................19
Note: Vice President III, Paul Glionna was profiled in the September 2009 edition of The Forwarder, and is also the Central Region Chair.
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Intended to level the playing field in Canada, the Proposed Security Measures Respecting Air Cargo will mirror the voluntary program and will place all participating companies in the same advantageous position vis-à-vis non-participating companies. With this regulatory framework, the Canadian air cargo security regime will more likely meet inter- national requirements (yes, think USA).
During the consultation period last November and earlier this month, provincial capitals, larger air cargo centers and major international airport cities were the locations of information sessions and regulatory consultations held by Transport Canada’s Air Cargo Security Program. Industry stakeholders were invited to participate in infor- mation and awareness sessions to learn more about the enhanced program. The program, based on a new regulatory framework, includes addi- tional security provisions and increased manda- tory screening, and a significant focus on cooperation with the United States to facilitate the flow of goods across the border.
CIFFA has provided initial training to more than 200 Cargo Security Coordinators and over 400 Authorized Cargo Representatives in anticipation of this regulatory change. Many of these trained individuals continue to receive recurrent training to maintain their qualification. CIFFA Members who embraced the program early are well posi- tioned to become compliant Regulated Agents and are well prepared to meet the new upcoming reg- ulated environment.
CIFFA offers Air Cargo Security Programs that meet Transport Canada requirements. For more information: or [email protected]
The New Year Brings New Regulations: Transport Canada Moves to Regulate Air Cargo Security
5The Forwarder December 2009
CIFFA Board of Directors Approves 2010 Scholarship Award Last May, then CIFFA President, Mr. Robert Walker, Carson International stated, “CIFFA’s key roles are to lead the industry by providing education, advocacy and membership opportunities to the freight for- warding community. CIFFA’s new Scholarship Pro- gram meets two of those focuses. The scholarships provide additional value to a company’s membership and they promote our strong focus on education.”
The objectives of the CIFFA Scholarship program are to: • Promote higher learning in international trade,
logistics and commerce. • Increase awareness of freight forwarding as a
career among children of CIFFA Regular Mem- bers’ employees.
• Support the children of CIFFA Regular Members’ employees in achieving higher learning designa- tions.
At the November Board meeting CIFFA Directors ap- proved one scholarship in the amount of $3000.00 to be distributed in two equal instalments in 2010/2011. The application will be posted on the CIFFA website in January 2010 with a deadline of May 15, 2010.
How the Rotterdam Rules Will Impact Your Business The United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea, or the “Rotterdam Rules”, for short, has now been signed by 20 nations. Twenty is the magic number for the convention to come into force once it has been ratified (formally adopted as national law by at least 20 countries.) Canada, so far has not signed the Convention. In a press release, Transport Canada announced: ”While many stakeholders indicated that Canada should sign the Con- vention in Rotterdam, subject to ratification, there were also many stakeholders who could not support Canada’s signature at this time and felt that such a step should be considered as and when Canada’s major trading partners have indicated their commitment to ratify the new Convention.”
Of the twenty countries that have signed on, the United States, France, Netherlands, Denmark, Greece, Norway, Poland, Spain and Switzerland are significant trading na- tions. However, other important trading partners such as China, Japan, India and other EU countries have not signed on. These, like Canada, have so far not indicated their intention. All eyes, however, are on the United States, which has announced their intention to update their outdated COGSA 1936 (Carriage of Goods by Sea Act) with the Rotterdam Rules, to be ratified by the Senate rather than the full congress, perhaps as early as next year. If the Rotterdam Rules become the new U.S. COGSA, it will in effect be the paramount law governing all container trade with the U.S., whether the nation trading with the U.S. has ratified it or not. The U.S. is of course a major trad- ing partner to almost every country in the world.
Canada does not trade with the U.S. by container ship but that does not mean that the U.S. COGSA will not apply in Canada. It will apply to every shipment going through a U.S. port into or out of Canada. So the new U.S. COGSA, the Rotterdam Rules, will
be just as much the regime governing Canada’s overseas imports and exports as to any nation trading with the U.S. Canada’s current Marine Liability Act applies only to goods that were loaded at a Canadian port or a port situated in a country that is a signatory to the Hague-Visby Rules. At the very least, there will be a serious con- flict of laws if all nations trading with the U.S. (or using U.S. ports of entry/exit) are not on the same liability regime.
So, what is so different and controversial about the Rotterdam Rules? If you act strictly as an agent: nothing. But, if you enter into a contract of carriage with a mer- chant as a carrier, the Rotterdam Rules will have a big impact on your business. The big shocker is the new door-to-door liability of up to 875 SDR’s (roughly $1,500) per package. If a container with 1,000 cartons was lost for whatever reason, at any point between the place of receipt and the place of delivery (door-to-door), you will be liable for up to $1.5 million, no ifs, no buts. Just as shocking is the penalty for delay, which will be 2.5 times the freight amount, if delivery did not take place by
the time agreed.
The increase in carrier liability is significant. The increase in carrier liability insurance premium will also be quite sig- nificant. Presently, if 100 cartons of jeans weighing 500 lbs. were stolen off the delivery truck, the trucker’s maxi- mum liability (and yours as the carrier) is $2.00 per pound or a total of $1,000. Under the Rotterdam Rules, the trucker’s maximum liability will not change but you, as the international multimodal carrier, will be liable to the shipper for 100 x $1,500 = $150,000. You can imagine the cost of carrier liability insurance and what could happen after a few large claims settled by your liability insurer.
Cont’d on page 7
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7The Forwarder December 2009
Fortunately, the Rotterdam Rules allow carriers a way out of the hugely increased liability burden. In an unprecedented maritime deregulation, the new convention will allow carriers and shippers to agree to waive liability altogether – no claims for loss, damage or delay. The liability waiver is permitted under a “volume contract”, defined in the Rotterdam Rules as “a contract of carriage that provides for the car- riage of a specified quantity of goods in a series of shipments during an agreed pe- riod of time. The specification of the quantity may include a minimum, a maximum or a certain range.” While the streamlined door-to-door uniform liability regime of the Rotterdam Rules were designed with the intention of reducing costly lawsuits over where the loss occurred and which liability regime or which national law should apply, the volume contract liability waiver eliminates claims and law suits altogether. Shipments will be completely at shipper’s risk. Any cargo insurance covering such shipments will have to have no subrogation rights, which means that the insurer cannot go after the carrier in the name of the insured in order to recover claims paid. It would be a “no-fault” cargo insurance and therefore more expensive.
We are all familiar with shipping lines’ volume contracts, also known as service contracts or service agreements. Under the Rotterdam Rules, all carriers, includ- ing NVOCCs and freight forwarders can enter into volume contracts with ship- pers and agree to a liability waiver. The freedom to contract out of liability was strongly pushed by the container carriers as a significant cost saving factor. The idea is that the freight rate would be lower if liability was waived. To state it in the reverse, unless the shipper agrees to waive carrier liability, the freight rate would be much higher, perhaps prohibitively higher. No doubt liability waivers will be part of every volume contract, which will supersede the bill of lading as the un- derlying “contract of carriage”.
What does it mean to the freight forwarder or NVOCC who will have signed “no-li- ability” volume contracts with their ocean carriers? Quite simply, you will need to do the same with your shippers in order to have “back-to-back” conditions, mean- ing your conditions of carriage will need to be the same as that of your service
provider. Otherwise, your liability insurer will be underwriting the liability gap with- out having recourse against your ocean carrier and as illustrated earlier, we can be talking about million+ dollar claims, if a container goes overboard on the high seas, or derails in a train accident or is hijacked on the road.
So, what to do? Of course, you can always refuse the liability waiver proposed by the ocean carrier in the volume contract, or simply not sign any volume contracts. But doing so would mean a higher freight cost that may render your own services uncompetitive or the ocean carrier may not even want you as a customer. What if your shipper refuses to sign your own volume contracts with liability waivers? While freight forwarders and NVOCCs may have no choice but to agree to waive the ocean carrier’s liability, their own shippers have a much greater bargaining power as there are many freight forwarders and NVOCCs available to shippers and there are bound to be some who would be willing to take chances in order to get busi- ness, until they lose their liability insurance or go out of business.
One cannot predict how the Rotterdam Rules will play itself out, whether Canada and all other major trading nations will adopt it as the new 21st century deregulated ocean carriage regime or whether the United States will be the only country ratify- ing it, making it U.S. law and creating havoc in maritime legal circles around the world, or if it will be orphaned as another rejected U.N. convention like the Hamburg Rules. One thing is for sure: If the Rotterdam Rules go into effect in any country, non-subrogation cargo insurance will become a must for every shipment of any value so that shippers are fully protected while carriers can be immune from cargo claims. The challenge will be to find cargo insurance underwriters who are willing to relinquish subrogation rights. To accomplish this for its Members, CIFFA has its raison d’être.
(Please address any questions to [email protected] who will be happy to an- swer them. You can also read previous papers on this subject at the CIFFA website by clicking on the “Issues of Transport Law” link or by googling “Rotterdam Rules”.)
Tony Young is Chair of the Ocean Freight Transport Law sub-committee
Cont’d from page 5 How the Rotterdam Rules Will Impact Your Business
CIFFA Eastern Region Golf Tournament Eastern’s September golf tournament was at Club De Golf San Raphael and was well attended with 98 Members and their clients. The weather was great for golfing. One lucky draw winner went home with a signed S. Crosby jersey. Eastern Region is planning their 2010 golf tournament for mid-September
* Network and get to know your colleagues outside the office * Bring a client
* Meet new and interesting people * Connect and develop further contacts
* Participate in some of the local events brought to you by your Region. There is an event just for you!
CIFFA Central Region Annual Golf Tournament This year’s event was another huge success with 200 golfers participating in a great day of golf and an excellent dinner that followed. The weather cooperated nicely and the Klein- burg Golf Club hosted a perfect outing for everyone. Congratulations go to the winning team of Ken Chitolie, Jeff Robinson, Dwayne Alphonso and Fred Gouvela who finished with an impressive 13 under par. Special thanks to all our sponsors who made the event a true success: ACL Edpro Energy Group Network Cargo Adams Cartage Gillship Navigation Nu Era Logistics Air Canada Cargo KLC Freight Odyssey Shipping AON Reed Stenhouse LCL Navigation/Confreight Polaris Austrian Airlines Logistic Distribution RS Rush Transfer Express Brent Packaging Marexmidcontinental Shipco Transport British Airways World Cargo Marsh Canada Simtrans ECU Line Canada MSC The Ace Group
Western Region Hold Summer Networking Event Western Region held another successful networking luncheon this past August with 45 Members attending. Special thanks to the guest speaker, Visa Tamale from Air Canada Cargo.
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32470_Forwarder_NL:DEC 12/9/09 1:34 PM Page 8
9The Forwarder December 2009
According to legend, Janus – the Roman God – had the gift to see both future and past. Hence, he is usually depicted with two heads facing in opposite directions. If only we had today’s ‘hind- sight in foresight’ two years ago! The virtual dis- appearance of liner shipping conferences has now created the significant risk that in place of these collusive price-setting groups the industry could become increasingly consolidated. The ab-
sence of the conference pricing cushion could very well end up giving a huge ad- vantage to large, cost efficient carriers who will drive smaller players from the market.
And no doubt, during this competitive process, shippers will (and have) experience(d) lower freight rates and bet- ter service but, as the industry consolidates towards an oligopoly, there is the high risk that shippers and inter- mediaries will face fewer alternatives to move their goods, lower service quality and, ultimately, significantly higher prices. The impact on merchandise trade could be substantial. The shifting of sourcing patterns (near shore vs. offshore) is already being discussed as a viable alternative and may well accelerate if transport effi- ciencies begin to suffer.
As an interesting side note here we learned that the Dan- ish Shipowners Association (which is really Maersk, let’s face it!) is protesting against state support for shipping companies. In a recent report in Lloyds List it stated that it complained to the EU that national government support for container shipping lines is unfair and should come at the cost of enforced shrinking of fleets (and consequently com- petition). No doubt, an interesting challenge of weighing the pros and cons of Keynesian economics versus free market economics: Keynes simplistically expressed, was an advocate of government intervention where and when so necessary, while Free Market principles insist that the state keep away from any intervention at all times.
Clearly, the neoclassical theory that industry-specific shocks will motivate merger activity is reflected in the more recent news of route cancellations, service merg- ers, slot charter agreements and other consolidations amongst the liner industry. And the end is certainly not in sight, what with all the newbuilds (new ships) of 10- 12,000 TEUs and even higher capacity coming onto the market! The plethora of cancellations in ship building orders that has taken place recently, is also wreak- ing havoc in the ship building industry.
As a result, industry experts predict that the supply and demand gap will remain until at least 2014. Figures show that 10% - representing approximately 1.3 Million TEUs - of the global container fleet was laid up at the end of September 09 with an additional 200,000 tied up in slow steaming initiatives and with 1.5 Million newbuild capacity coming onto the market in the next 15 months that should re- sult in excess capacity of around 3 Million TEUs.
Owners may argue that the new ships will replace chartered tonnage, but this ar- gument is flawed inasmuch as these chartered vessels will simply be offered again on the open market. And likely snapped up at extremely advantageous conditions by another opportunistic operator with low, if any, capital costs and offering mediocre services until the opportunity runs its course.
Just recently the global head of APL told a conference in Southern China that a sub- stantial recovery in the liner shipping sector will not only require a strengthening
in volumes but must also be supported by rate increases across all trades. He stated bluntly that in some trades rates do not even cover the costs for running ships! He also mentioned that the major difference between the current downturn and previous ones was the precipitous decline in demand, which would see con- tainerized trade in 2009 post its first contraction in more than two decades.
Even with the idling of ships over the past year, carriers are facing overcapacity for the next three to four years, with return on equity falling so low that it is impossi- ble to justify investment over such a long period of time. Rates that have increased sharply from historic lows last summer are still unsustainable and all the moves
of idling ships and cancelling new ship orders will not be enough to help carriers and offer the prospect of sustainability. The industry, no doubt, faces far reaching structural changes unless shipping demand (combined with up- wards adjustments in rates) increases quickly and dramatically. Recently published statistics by the European Liner Affairs Association (ELAA) show that volume declines appear to have slowed in the third quarter but that its pricing index still shows rates remaining around 40 - 45% less than last year!
Low, unsustainable transport rates ultimately af- fect the pricing structure of the Freight Forwarder as well. At the end of October, Danske Bank’s Eu- ropean Freight Forwarding Index shows a pick- up in confidence but also states that ‘the pricing environment is still extremely competitive’. In conclusion and in the interest of our partnership relationship with primary carriers we, the Inter- mediaries, should strongly support rate restora- tion programs and other such efforts to ensure a future, stable shipping environment that affords a level of service and competitiveness that has served us all so well in the past.
If only, like Janus, we had had the foresight some years ago to stay with the Con- ference system, rather than succumbing to the same free market deregulation prin- ciples that brought all the current chaos to the world’s financial and economic structure, we might now have a saner solution to the present mess.
George Kuhn, former Executive Director of CIFFA, currently provides management and consulting services to the industry.
Shipping Deregulation a Bonus.... but for Whom?
*Webinar Training (CSC Initial & Recurrent, coming soon – International Trade Workshops)
*Web-based Secretariat meetings (Education Committee)
*This issue of The Forwarder is printed on 100% recycled paper.
In the New Year, the Directory and Textbooks will go green also. Please send us your ideas on how to reduce our environmental footprint, [email protected] CIFFA
Goes Green
10 The Forwarder December 2009
The CASS is a unique programme that provides BIFA members, who are active in the air sector, with a single electronic airline billing and forwarder remittance pro- gramme. This effectively means in practice that airlines and forwarders alike, in- stead of having to provide and process a multitude of statements, at different times in a given month, the CASS conduit provides for a single all airline billing and payment process. In itself therefore the CASS, since its inception in the UK back in 1994, remains, for these reasons at least, in principal, a resource efficient programme for both parties. However, since the CASS was devised and is owned and operated by the International Air Transport Association (IATA), certain aspects of the programme, in particular those relative to issues surrounding payment de- fault are inherently weighed totally in favour of the airlines at the very real ex- pense of the forwarder.
For example, the settlement terms imposed on the forwarder are not negotiable. Included in these terms is the requirement to settle all billings, in full and on time. This is the case even if any number of the individual amounts billed for air freight consignments, are at odds with previously agreed rates and/or ancillary charges. Thereafter, the onus is on the forwarder to attempt to obtain a credit for those amounts overcharged by the carriers. It is not unusual for these airline billing ‘er- rors’ to run into hundreds and sometimes, thousands of pounds. Therefore the col- lective (airline) principal of pay now and argue later is enshrined in the CASS airline/forwarder agreement. As if this requirement was not in itself onerous enough, the forwarder is then (as often as not) left to try and recover the amounts in question. Apart from the resource, on the part of the forwarder, needed to achieve this, the success rate and time taken varies according to the airline. Any- thing up to six months+ is not unusual. Agreed, some airlines are quick to recog- nise and rectify their errors, but on the other hand, many more are not.
This whole issue was raised at the IATA/FIATA Consultative Council meetings (BIFA had a delegate present) last year, and as result, a tightening up of the billing query disciplines were agreed by the airlines at their annual IATA Cargo Conference in Bangkok back in March this year. With the ever watchful eye of competition au- thorities in many countries still firmly focused on airline practices, the carriers, somewhat unusually voted for the changes (on the advice of IATA) virtually with-
out question. The changes will proba- bly now not come into effect until 1st January 2010 and BIFA will publicise them widely once the final wording and procedures have been agreed.
We believe that when implemented, the billing query discipline measures will be a small step towards making the CASS more commercially equi- table. Much more though needs to be done, and indeed, is being done by FIATA’s airline negotiating arm, the Air Freight Institute, to further reduce the dominance of IATA to ensure that the efficiencies provided by the CASS accrue equally to the airlines and the forwarders. Similarly if penalties for default are to remain in the programme they must apply jointly and equally to both parties – not just one. Currently, for example, forwarders can be subject to penalty points in cases of irregular payment. No penalty system exists whereby the airlines are penalised for incorrect excess billings. In the worst case scenario, that of a payment default involving just one airline, however justified, the CASS manager can suspend the operator and routinely notify all of the other air- lines who consequently refuse to provide credit facilities to that forwarder thereby inhibiting his ability to trade. These two examples are typical of the one sided measures that only a programme structured and operated by a dominant party can implement. Even if IATA are reluctant to acknowledge the fact that since the mid 90’s the law has been updated to recognise and adjudge against a dominant who persists in applying restrictive or collective practices, Members of FIATA’s Air freight Institute are not. To this end every opportunity will be taken by them to con- tinue to negotiate with the airlines (many of whom are sympathetic to the for- warders plight) within the IFCC forum to try and achieve a mutually acceptable solution. In the absence of such an agreement, the ultimate arbitrator would have to be none other than the European Commission.
Reprinted with permission from the British International Freight Association (BIFA). BIFA LINK issue 229 November 2009
The Cargo Agents Settlement System (CASS) – IATA to implement new billing query disciplines on the airlines but will they make the programme more equitable for forwarders?
CIFFAMembers face similar chal-
lenges with CASS Canada, and we thank BIFA for sharing this article with our readers. FIATA and its Air Freight Institute (AFI) represent CIFFA and all member freight forwarding associations in discussions with IATA. We ex- pect similar changes to the billing query disciplines early in the New Year from CASS Canada and will keep Members updated via the e-Bulletin.
It seems to me that when the airline industry de- cided to eliminate the passenger ticket, it was a bold move, one which required thinking outside the box. So when I reflect on e-freight I wonder what happened to that same bold action and critical thinking.
Just like in passenger, the cargo industry has evolved over the years and technological improve- ments can be harnessed to revolutionize the busi- ness process. For example, forwarders are no longer commissioned sales agents of the airlines, so why are we still called upon to prepare and sign the carrier’s air waybill? Fewer and fewer airlines even transport this multi page document, prefer- ring to hold the originals at origin, and enter the shipment data into their computer system.
If e-freight is really about technological change, in- creasing efficiencies and productivity, as well as reducing or eliminating paper, perhaps the airlines should take a lesson from the passenger side and rethink the entire cargo document process, making it more user friendly for their customers; the freight forwarder.
With the price of document im- aging software
and hardware dropping significantly, in tandem with lower costs of electronic data storage and data transmission, forwarders have been embrac- ing new technologies to receive, process, transmit and store images of commercial and transport documentation within their internal systems, and with their business partners. This has opened up opportunities to process shipments, centrally or at diverse locales, limited only to the business model which works best for the organization.
The challenge to the air cargo industry is to rec- ognize today’s realities;
• Forwarders can scan a shipment package {awb instructions, manifest, security declaration, ex- port entry, etc} and transmit it to a mailbox, or other designated destination as directed by the air carrier.
• Carriers can centralize their document pro- cessing, perhaps away from the high rent air- port locations. Retrieving and processing the shipment package into their operations systems in real time, producing and transmitting the doc- uments required i.e. the awb, freight receipts,
freight billings, arrival manifests and filing elec- tronically those other documents which could be called upon for presentation when required.
• Similarly on the inbound, airlines can transmit an inbound document package to the consignee, including the collect charges, customs manifest and check-in-storage parameters.
Sound vaguely familiar? It should, as maritime car- riers have been doing this for years with their for- warding customers.
We can only hope that the air carriers will rethink their e-Freight project and opt for a process which is customer friendly and paper free …………… all on board !!
William Gottlieb, CIFFA Director and Immediate Past President of FIATA
Has IATA e-Freight Missed the Boat?
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The unfortunate by-product of an economic crisis is the sudden turn from strategic (contractual) think- ing to transactional panic. Airfreight pricing, once reasonably predictable, has become an auction style undertaking on a per uplift basis. Cash flow is king and near-term survival becomes the only driver – never mind the consequences of a seriously weak- ened balance sheet.
Clearly, the huge volume contraction prompted un- sustainable rates that have forced carriers into such extreme measures as significantly reducing uplift ca- pacity, fleet size, the parking of freighters and cutting operating and overhead costs to the bare bones. And now -- surprise! surprise! -- we see a sudden influx of uplift demand in China prompting substantial backlogs resulting in the same old rate haggling as in the past. Nor will this situation change in the short term as carriers – once burnt, twice shy – will want to see whether this is just an ‘uptick’ in market demand or whether this is the beginning of a sustainable recovery.
Though the worst in volume decline appears to be behind us, pricing is still not sustainable. Airlines are still offering rates below their viable cost levels, as the latest quarterly report from Lufthansa so vividly illustrates. Interestingly enough, the company as a whole remained profitable but its logistics business has in- curred heavy losses. Lufthansa’s CFO reported that capacity utilization has some- what recovered in the third quarter, but ‘this was only possible at considerably reduced rates’! Revenue per ton/kilometre was down by over 23% and conse- quently profits over the three quarters crashed from €160m in 2008 to a loss of €200m in 2009. According to IATA, air freight volume, so far, has fallen by 18% world-wide this year.
This dire economic situation for air carriers is further aggravated by a mind-bog- gling number of archaic government regulations that differ from country to coun- try. This is in stark contrast to the relatively liberalized ocean shipping industry where a set of international rules under the umbrella of IMO transgresses na- tional politics and gives a good degree of freedom to operate.
The industry situation has never been more diffi- cult. Fuel prices are rising and yields are falling much faster than traffic is improving. The scale of this crisis is bigger than 9/11 and airlines need the freedom to operate like any other business. The ability to merge or consolidate across borders could be a lifeline particularly if the situation gets bloody later this year. Consolidation strengthened some European carriers -- Lufthansa with Swiss, Brussels, BMI and Austrian as well as Air France with KLM and an interest in Alitalia. Delta and Northwest are good examples on this side of the ocean. But in a global business why restrict con-
solidation within political borders? Automobiles, telecoms and pharmaceuticals are all strategic industries benefiting from global capital. Why treat aviation dif- ferently? It does not protect jobs. About 200,000 US airline jobs disappeared after 9/11. A different approach is required.
Airlines and governments must cooperate to liberalize this topsy-turvy industry, otherwise artificial barriers on markets and ownership will leave airlines behind as stunted domestic companies instead of thriving global multinationals. The cur- rent situation is clearly a disincentive for banks and investors who will stay away from the present unpredictability in this industry! The legacy of this crisis must be normal commercial freedoms to build a financially sustainable future.
The industry is still facing an absolute overcapacity and since yield is a result of demand and supply one should reasonably expect that capacity will be further cut. But unfortunately capacity developments do not always follow an economic ra- tionale since governments only too often fear the fallout of political and social implications in certain countries and/or regions. There is still too much irrational capacity out there and it does not make sense to cut capacity if inflexible labour laws and government involvement do not allow these airlines to cut the associ- ated cost related to their assets. Overall, IATA expects the airline industry to incur losses of USD11 billion this year. How much longer is this sustainable?
The realist knows that this crisis is re-shaping the industry as never before. Many shippers, to reduce costs, have reverted back to transport alternatives such as Sea Express Services, Air/Sea services and regular, time defined LCL services. It is not likely that such measures will be revisited once trade improves.
The optimist sees an industry that built the global village, that delivers enormous social and economic benefits and that seeks change with a clear vision for its fu- ture. That future is not based on government bailouts by any means. It is a future built with normal commercial freedoms, effective infrastructure and a dedication to safety and environmental responsibility. This cannot be achieved alone. This cri- sis must be an opportunity to work with governments to become safer, more se- cure, greener and profitable.
And speaking about profitability in a market hit by surplus capacity… the Freight Forwarder may well be able to pass on the pricing pressure to its carrier. But in a world of lower prices and volumes, the contribution margin will be corre- spondingly lower when measured in absolute terms.
Let’s hope that industry interests can ramp up their considerable clout with world governments to formulate a plan that allows the airline industry the same free- doms as the maritime industry. Perhaps then, like Tarzan, they can once more ef- fortlessly navigate the jungle up there.
George Kuhn, former Executive Director of CIFFA, currently provides manage- ment and consulting services to the industry.
11The Forwarder December 2009
A man is flying in a balloon, but he is lost. He drops down to a height of 30 feet and shouts down to a man standing in the field: "Excuse me, can you tell me where I am?" The man in the fields replies: "You are in a balloon" "You must be a forwarder" says the balloonist. "How do you know?" asks the man in the field. "Because the information you have supplied is factually correct, but effectively completely useless" says the balloonist. "Well, you must be a customer" says the forwarder. "How do you know that?" the balloon man asks. "Because" says the forwarder, "you got yourself completely lost and all of a sudden it's my fault."
F r e i g h t F o r w a r d i n g H u m o r
It’s a JUNGLE up There
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Robert Walker is Chair of the CIFFA Customs Committee
Mark the following day in your calendar: Jan 26th, 2010. This is the day the US Cus- toms (CBP) flexible enforcement period which started on Jan 26th, 2009 comes to an end. Beginning in January, CBP may issue liquidated damages of $5000 per viola- tion for the submission of an inaccurate, incomplete, or untimely filing. If goods for which an ISF has not been filed arrive in the US, CBP may withhold the release or transfer of the cargo; CBP may refuse to grant a permit to unlade for the merchan- dise; and if such cargo is unladed without permission, it may be subject to seizure. Additionally, non-compliant cargo could be subject to “do not load” orders at origin or further inspection upon arrival.
First, a little history for those unfamiliar with this US program:
On November 25, 2008, U.S. Customs and Border Protection (CBP) published an in- terim final rule entitled “Importer Security Filing and Additional Carrier Requirements” in the Federal Register (73 FR 71730). The Importer Security Filing and Additional Carrier Requirements interim final rule will help prevent terrorist weapons from being transported to the United States by requiring both importers and carriers to submit ad- ditional cargo information to U.S. Customs and Border Protection (CBP) before the cargo is brought into the United States by vessel.
Also called “10 + 2”, the elements shown below must be filed with CBP 24 hours prior to lading of Master vessel or vessel that will be proceeding to US Ports. The Rule is not applicable to feeder vessels. Any amendments must be filed 24 hours prior to arrival.
How does this affect Canadian freight forwarders? …Well read on!
For cargo via air, rail, or truck from Canada, these regulations will not apply. However, they do apply to coastal or lake vessels moving from Canadian ports to US ports. Timeliness will be essential here for anyone involved in this short sea shipping to the USA or for anyone tendering Canadian exports on vessels that call at a US port be- fore sailing overseas.
What will be of particular interest to Canadian Forwarders is the FROB (Freight Remaining On Board) regulations and ISF 5.
For FROB, the required elements must be submitted also 24 hours prior to lading aboard a vessel destined to the United States. The party required to submit the Im- porter Security Filing is the party causing the goods to enter the limits of a port in the United States. This party is the carrier for FROB and the party filing for the immediate exportation (IE), transportation and exportation (T&E), or foreign trade zone (FTZ) doc-
umentation for those types of shipments. It is important to remember here that FROB and T & E cargo require ISF 5 while for IT and FTZ cargo an ISF 10 must be filed. CBP has confirmed they “can” hold a FROB shipment if the ISF has not been submitted.
For those who have US organizations and intend to file ISF’s themselves, it is sug- gested that for IT and FTZ cargo you ensure with your insurance carrier that your power of attorney includes trading conditions noting that the liabilities fall upon the ac- tual importer/exporter and not yourself as the bond holder /person submitting the ISF. CBP will issue fines – not be an arbitrator!
The following should eliminate misunderstanding that has existed concerning the confidentiality of the data the US government has secured. It is important to note that all ISF data will be considered “security” data and, unlike manifest data in the US, will not be made available to the public. CBP will only make this data public should the owner of this data instruct CBP to reveal to a party.
It should also be noted that similar to manifest data, ISF data should be kept on file for 6 years.
Finally some recent comments from US officials advised the error rate on ISF submissions is approximately 3%. Amendments are running approximately 15-17%. Ap- proximately a week ago 24,000 submissions were re- ceived on one determined day and that over two-thirds were timely. They also advise that still 10% of imports have not filed reports and of course, these will be prior- ity, once enforcement is instilled.
For more info, visit following site:
ISF 10 Data Elements • Seller; • Buyer; • Importer of record number / for-
eign trade zone applicant identi- fication number;
• Consignee number(s); • Manufacturer (or supplier); • Ship to party; • Country of origin; and
• Commodity Harmonized Tariff Schedule of the United States (HTSUS) number
• Container stuffing location; and • Consolidator. ISF 5 Data Elements • Booking party; • Foreign port of unlading; • Place of delivery; • Ship to party; and • Commodity HTSUS number.
Meet Darlene Vaughan, Certificate Program Instructor – Calgary, AB Darlene Vaughan has been in the transportation and logistics field for over 25 years. Her experiences have taken her across Canada, from Montreal to Vancouver. Darlene is currently residing in Calgary and for the past 10 years has worked with many
CIFFA Member Companies. She also sat on the board of directors for the Calgary Transportation Club for seven years and remains an active member.
Darlene is currently employed by WorleyParsons Canada - Calgary in the Heavy Oil sector as their Senior Logistics Coordinator – Heavy Oil Division. She handles the coordination of movement of large over dimensional freight to the oil sands in North- ern Alberta.
While her duties keep her very busy, Darlene has been teaching the CIFFA Certifi- cate Program at the University of Calgary for the past four years. She is instru- mental in guiding our students to success in the transportation field while continuing to learn and help in keeping a high level of knowledge and understanding of inter- national freight in our Calgary market.
Darlene also found time to raise a son and maintain a home with her husband of 30 years.
"Anyone can make the simple sound complex, but it takes a master trainer to make the complex simple." Chuck Swindoll
NEW CIFFA RESUME BOARD Looking for a CIFFA grad to join your team? Coming early in the New Year to is a new Resume Board service for CIFFA Member compa- nies. This is a value-added and free service to our Members who may be looking to hire. Students of colleges or employees of Non-CIFFA Members who have com- pleted the CIFFA Certificate and/or Advanced Certificate Program are able to place their resumes on our web site. Current employees of CIFFA Members will not be eligible to use this service. A candidate for work will complete a standard form, so that it is easier for our Members to compare the qualifications of several individuals. There will be a search function that will allow a hiring manager to sort potential candidates by geographic locations and by job interest. This is an excellent opportunity for our Members to match their employment needs to persons looking for work in the freight forwarding industry. Resume Board will make it easier for employers to source and screen talent online. Note: CIFFA does NOT verify the resumes for accuracy. CIFFA will validate the completion of Certificate and/or Advance Certificate Programs ONLY. The hir- ing company must exercise their normal due diligence in the selection process.
USA: Importer Security Filing (ISF)
32470_Forwarder_NL:DEC 12/11/09 2:25 PM Page 13
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Nestled among the mountains on the shores of a glittering lake, the elegant, little city of Geneva made an excellent venue for the FIATA World Congress 2009. More than 600 participants came together to renew acquaintances, review changes and receive updates on issues affecting the industry. From the initial march of the traditional Swiss guards to the swirling colour of Thailand’s traditional dances at the closing cer- emonies, Swiss efficiency and organizational skills delivered a well-run congress.
Swiss Guards
During the course of the Congress, CIFFA’s President Marc Bibeau was pleased to present the FIATA Foundation with a cheque for $1000 in support of the train the trainer programs of the Foundation.
Thomas Sim, Chairman ABVT, FIATA; Rodolfo J.C. Sagel, Chairman AFI, FIATA; Marc D. Bibeau, CIFFA President
Chris Gillespie chaired the Multi-Modal Transport panel which reviewed current topics including the pending signing of the new Rotterdam Rules; the American Foreign Asset lists (re: Iranian owned vessels); CLECAT’s ‘green working group and the development of a Best Practices Guidebook; container inspections and ISMP15 marking requirements.
Bill Gottlieb, Marc Bibeau, Ruth Snowden, Chris Gillespie
Former CIFFA President, Bill Gottlieb represented Canada well on the global stage dur- ing his two year tenure as President of FIATA.
While information sharing at the panel discussions and Committee reports form the basis of the Congress, equally important to CIFFA is the opportunity to network with foreign associations and freight forwarding companies. CIFFA’s focus remains on our leadership role within FIATA as regards to the development and delivery of educa- tional and training programs. In support of the International Maritime Organization’s new January 2010 requirements for Dangerous Goods training for all employees in- volved in the handling of ocean freight, CIFFA made contact with many organizations, specifically to introduce our on-line, on-demand Ocean DG training.
CIFFA Well Represented in Geneva
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15The Forwarder December 2009
B.A.T.S, Beirut Academy for Travel Sciences, encompasses most of the academic professional services necessitated by the travel, tourism and transport industries. We believe that well educated staff is the company’s most valuable resource; after all, employees are the internal customers. In meeting this challenge, the CIFFA Freight Forwarding educational program is where academic learning experiences are even customized to the students’ hands-on work experiences to improve knowledge and develop skills and thinking to meet the ever changing and diverse cargo operations like supply chain management and project transportation. Edu- cation and experience are the keys to both personal and corporate success. In other words, we can be reasonably certain that a student in the CIFFA class is “learning” when the individual (1) understands through answering questions cor- rectly as the B.A.T.S three dedicated teachers are specialized each either in ocean, air or land freight (2) retains what is understood through recall and visual aids ma- terials after some lapse of time (3) applies whatever has been understood and re- membered through solving cargo problems. That is why CIFFA exam questions and workbooks are well designed to reliably and specifically measure the latter as- pect of learning.
In the forwarding industry in Lebanon, newly employed staff depend on the hiring company to train it to the profession: “on the job”. This proved to be a poor method of learning as these employees are only taught the things that concern their spe- cific tasks. When they encounter special circumstances not related to their field, they get lost and turn to their supervisors for assistance which is due to their poorly-rooted knowledge. This will escalate the multi-level support service while actually the trend now is towards Self Service Technologies (SSTs). This is exactly where CIFFA has provided the solution: A deep and thorough program that covers all aspects of forwarding. The CIFFA graduates are easily employed and proved to play an essential role in the success of the forwarding industry.
In today’s fast moving world, logistics is considered one of the major industries af- fecting the world’s economy. There is a growing need for skilled and qualified personnel to fill vacant positions and diversify the existing work force whereby lo- gistics companies can still be able to compete and discover new markets to sur- vive. For that reason, we at BATS are offering tailor made courses to candidates who are striving to increase their potentials in this challenging field. Besides CIFFA curriculum, we provide quality training material in Strategic Selling (essential for business growth for freight forwarders in Lebanon), Service Marketing and Man- agement, Integrated Communication Skills…The latter is of great significance be- sides transportation geography and transportation law. Our collaboration with CIFFA is of extreme importance. Its curriculum is concise yet covers every aspect of transportation including the rules and regulations that govern the industry. Stu- dents are exposed to actual cases that take place in real life backed up with the friendly course material of CIFFA to enable our candidates to succeed the course and acquire even managerial positions in the industry as we are currently wit- nessing. Our goals at BATS are not only to promote highly professional students who can find work and achieve set objectives easily.
Hassan Al Zein is Managing Director of BATS (Beirut Academy for Travel Science)
Note: While in Lebanon this summer, CIFFA Secretary-Manager, Marilyn Massoud (centre), met with Hassan El Zein, Managing Director (left) and Ali Zgheib, Event Planner of B.A.T.S. (right), to review CIFFA’s education offerings and future col- laboration.
CIFFA in Lebanon, “Forward for the Future”!
It CIFFA was in good company when the Canadian Supply Chain Sector Council (CSCSC) announced recently that two of the seven educational offerings that were accredited through its initial National Accreditation Program (NAP) were CIFFA Certificate Programs.
The NAP was established to recognize those educational offerings in supply chain-related topics that meet the Council’s standards for accreditation, created with the as- sistance of the Canadian Standards Association and with significant input from supply chain stakeholders.
The standards are based on national and international best practices and principles, and include requirements for course/program needs assessment, design, develop- ment, delivery, and student evaluation. They do not include requirements related to the provider itself, such as its administrative management system, governance structure, or policies and procedures. To be accredited, the course or program must meet all of the standards.
With their newly accredited status, these offerings are recognized as meeting in- dustry needs; they’re differentiated from non-accredited offerings by being proven relevant and valuable. Graduates of accredited programs can expect that em- ployers will increasingly appreciate the merit of their education as awareness of the NAP builds. Educators offering accredited courses and/or programs will ben- efit, too, as this recognition should boost enrolment in their supply chain-related courses and programs.
Congratulations to Doug Burek and the entire CIFFA Education team for achieving this recognition.
CIFFA Certificate Courses Receive Accreditation
Business Administration – Business Operations Management Centennial College of Applied Arts and Technology Certificate Program in International Freight Forwarding Canadian International Freight Forwarders Association Advanced Certificate Program in International Freight Forwarding Canadian International Freight Forwarders Association Bachelor of Applied International Business & Supply Chain Management Bissett School of Business, Mount Royal University Strategic Supply Chain Management Leadership Purchasing Management Association of Canada Supply Management Training Purchasing Management Association of Canada Graduate Certificate - Business Process Management Sheridan College
CIFFA Grads have another reason to be proud!
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“I quite like the format particularly breaking it up into two
half-day sessions. This still allowed time to deal with office
issues each day. It was also interesting to have partici-
pants and feedback from right across the country as op-
posed to just local viewpoints.” John from Toronto, ON
16 The Forwarder December 2009 CIFFA Finds Alternatives to In-class Training It is now possible to cut down on business travel expenses while still maintaining staff training.
Did you know that most of CIFFA courses are offered on-line or through webinars?
CIFFA Cargo Security Coordinator webinars have been available since the summer of 2009. Webi- nar-based CIFFA International Trade Workshops are coming up in 2010.
A webinar (short for Web-based seminar) is a ne- ologism to describe a specific type of web con- ference. Webinars are just like a conference room based seminar; however, participants view the presentation through their Web-browser and lis- ten to the audio through their telephone. You will need a computer with Internet access and a phone line to attend.
Typical CIFFA webinars consist of a one hour in- structor’s presentation and one hour of a live Q + A session to allow full participation between the audience and the presenter.
Individuals benefit from this type of training be- cause it does not require physical attendance; you are unbound by place – study at home, work, or on the road. A side benefit is it also enhances your computer and Internet skills!
In a business sense, the money you save on travel costs can be put toward other parts of your
business. Last but not least, it is an- other way to take action to address cli- mate change.
BECOME A CIFFA ASSOCIATE MEMBER CIFFA is always looking to increase Associate membership in order to offer our Members as many industry related services as possible. For benefits of mem- bership in CIFFA visit Complete your application online today at Any questions can be directed to [email protected]
CIFFA Thanks Associate Members The three CIFFA Regions work closely throughout the year with our Associate Members, particularly when hosting our networking events. Special thanks go to these Members for their continued support and their sponsorship contributions, which add to the success of the events. Also included in our Associate Member category are the Preferred Vendors who offer cost reductions to our Members through this program. For details on how to become a Preferred Vendor visit ACI Cargo Inc. Adams Cargo Ltd. Advertek Graphic Solutions Aéroports de Montréal Air & Oceanland Inc. Air Canada Cargo Air France - KLM Cargo Airline Services International Inc. Amar Transport American Airlines AN Deringer Inc. AON Reed Stenhouse Inc. Assuraction CM International Inc. ATF Transport Inc. Atlantic Container Line AB Atlantic Marine Underwriters Inc. Atlantis Transportation Services Inc. Avalon Risk Management Inc. Bravo Logistics Corp. Breininger & Associates Inc. Brent Packaging & Logistics Limited Brisset Bishop British Airways World Cargo Buckley Search Inc. Burl-Oak Investigative Services CAC Air Cargo East Canadian Transportation & Logistics
Magazine Cargo Airport Services Canada Cargojet Canada CargoWise edi Carrier One Inc. Cathay Pacific Airways Ltd. CG&B Group Inc. Chapman Freeborn Airchartering Ltd.
CNA Canada Cornerstone Logistics Inc. CrimsonLogic (North America) Inc. C-Team Systems Inc. Demers Insurance Adjusters Inc. Desticon Logistics Inc. DWS Logisitcs Inc. Eagle Underwriting Group Inc. EDC - Export Development Canada EDPRO Engery Group Inc. Emirates SkyCargo Enerflex System Ltd. Fernandes Hearn LLP Four Soft USA Inc. Frontline Carrier Systems Inc. G T Group Good Moves Inc. Gowling Lafleur Henderson Greater Toronto Airports Authority
(GTAA) Halifax Port Authority Hamilton International Airport Hamilton Port Authority Hapag-Lloyd (Canada) Inc. Hays Specialist Recruitment Isaac Freight Ltd. K Line Canada Ltd. Kwik Kopy Larway Transportation Le Château Inc. Little Guys Delivery Services Inc. Lufthansa Cargo AG Lynx Trucking Maersk Magrath O'Connor LLP Manitoulin Group of Companies
Marsh Canada Limited Matcom Industrial Installations Inc. Melford International Terminal Inc. Menzies Aviation Midnight Express & Cartage Ltd. Minimax Express Transportation Inc. Montship Inc. MSC - Mediterranean Shipping
Company (Canada) Inc. Nacora Insurance Brokers Ltd. Norton Lilly International NYK Line (Canada) Inc. Oceanwide Inc. OOCL (Canada) Inc. Pacific Coast Express Ltd. Palmer Marketing Inc. Paterson, MacDougall Paul's Transport Port Metro Vancouver Protos Shipping Limited Reagle Terminals Inc. Royal Personnel RR Donnelley Seabridge International Shipping Inc. Seanautic Marine Inc. Simard Westlink Inc. Sim-Tran (Ontario) Inc. Stikeman Elliott LLP Stoakley-Dudley Consultants Subrogateway Inc. TD Bank Financial Group TDK METRO Terminals The Ace Group The Descartes Systems Group Inc.
The St Lawrence Seaway Management Corporation
Thompson Ahern & Co Ltd. TMT Freight System Topax Export Packaging Systems Toronto Port Authority Tracon Consultants Ltd. Trident Freight Logistics Tropical Shipping of Canada Inc. TSI Terminal Systems Inc. TWI Exhibition Logistics Inc. Tyden Brooks Security Products
Group U S Traffic Uchan Transport (1987) Ltd. Valport Maritime Services Inc. Vancouver Airport Authority Zim Integrated Shipping
Services Ltd. CIFFA Partners ALACAT - The Federation of National Latin America & Caribbean Freight Forwarders Associations
Ashton College Beirut Academy for Travel Sciences CBFCA - Customs Brokers & Forwarders Council of Australia Inc.
George Brown College Intermodal Association of North America
Logistics Institute Microskills Seneca College Singapore Logistics Association Vancouver Central College
“It was very informative through instructor’s guid-ance and in depth, good questions from the otherattendees” Mads from Richmond, BC
Even in these tough economic times, Freight Forwarding companies continue to find value in CIFFA memberships. Since our September ’09 issue of The Forwarder, CIFFA has welcomed 5 new Regular Members and 1 new Associate Member.
Membership Grows
New Regular Members: Arrival Air & Sea Transport Inc Axsun Global Inc Canaan Transport Group Inc MC Freight Systems Smaster Logistics Canada Ltd.
New Associate Members: Desticon Logistics Inc
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Another great FCA at the River Rock Casino Hotel this past fall. Over 220 were in attendance, and the support and sponsorship was strong despite the challenging economic conditions this past year. The River Rock Hotel is a great venue, they provide great service and the casino makes it a “fun” event for after the dinner. Madeleine Kersey and Steve Baron were our very entertaining, knowl- edgeable and wel- coming Emcees.
Pacific Coast Express donated a lovely gift basket; Robbie Red- mond of PCX drew the prize. Prize won by Dan Foran, Cole Freight; special thanks to Al Turner and Robbie Redmond of PCX for their generous gift.
As well, a one night stay at the River Rock was donated by the River Rock. Prize won by Kenta Yamazawa, Silk Road Logistics Ltd.; with special thanks to Sophia Kim of the River Rock for all her help in putting together the event and donating the prize.
Thanks go out to Madeleine, Robin, Craig, Mike and Travis for all their work to put this together. A special thank you goes to Amy for once again putting together
a technically proficient and visually appealing awards slide show presentation. See you all next year!
Paul Courtney, Western Region Chair
2009 Western Region Forwarder Choice Award
WESTERN REGION FCA Western Region Carriers of the Year Air: CATHAY PACIFIC AIRWAYS, LTD.
Ocean: OOCL
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“ I recently attended a National Education Fair in Montreal, this past October, and represented CIFFA at the Canadian Supply Chain Sector Council booth (of which CIFFA is a pillar association). I met many young people at the fair, and most of the ones I talked to were there to seek careers in various industries. In several discussions
during the fair, they expressed interest in international freight forwarding careers, especially after hearing about the job opportunities open for them upon successful completion of the CIFFA Certificate Programs. These programs are required by many CIFFA Regular Members, and are recognized by Emploi Quebec. They were made aware that even without any international freight forwarding experience, by first taking the CIFFA Certificate Programs, they will gain an edge in ac- quiring a position, and as they gain experience, it will lead to better job opportunities, which translates into better salaries in the future. I have referred them to the CIFFA website ( to get more infor- mation on how to start a career in international freight forwarding. During this event, I also met several interesting people from other organizations. We exchanged ideas about various as- sociations education and training programs, and the value to employees of holding professional designations (such as CIFFA’s PFF), when they search for jobs in the transportation industry.”Oscar Torio, CEVA Freight Management, PFF
CBSA Import/Export Information Fair CIFFA was one of several organizations represented at the Import/Export Information Fair, hosted by CBSA in October this year. New and experienced exporters and importers had a chance to gain the latest infor- mation on government programs and business procedures. CIFFA booth visitors learned what CIFFA Members can do for them to maximize the effectiveness of their export/import business. CIFFA’s Ruth Snowden facilitated a seminar on the role played by Incoterms in international trade, sharing with the 40 participants how they could gain competitive advantage with Incoterms 2000.
18 The Forwarder December 2009
The following résumés have been received.
CIFFA has received correspondence from the locations listed, looking for agency relationships with Canadian firms. CIFFA has not reviewed this correspondence or vetted these companies or individuals. Interested Members send your requests to [email protected], quoting either Agency or Résumé item number required.
Correspondence from around the world
1 Toronto, ON – Toronto, ON - 6 years retail management, customer service. English, French and Arabic. B. Comm.
2 Toronto, ON – 9 years experience, project coordinator; strong computer skills. Business/ computer diploma.
3 Toronto, ON – 14 years logistics experience overseas, strong computer skills
4 Toronto, ON – 10 years international experience; ocean freight and logistics, CIFFA certified. Fluent in Turkish, Persian.
5 Toronto, ON – 3 years experience; import, export, and inventory coordinator. CIFFA certified, Diploma in International Transportation and customs.
6 Toronto, ON – 12 years international experience in import/ export operations, strong computer skills.
7 Toronto, ON – 3 years logistics and 5 years marketing experience. FIATA diploma/ CIFFA certified.
8 Montreal, QC – 5 years of import/export experience, strong computer skills.
9 Calgary, AB – 3 years experience as analyst and recruitment assistant. AB Insurance level I certificate.
10Abbotsford, BC – 2 years of import/export, air and ocean freight international experience. Spanish and English.
11Relocating to Canada – 1 year logistics experience, freight forwarding. Business/ FIATA Diploma.
Ré su
m és
1 Guangdong, China 2 Shenzhen, China 3 Tianjin, China 4 Tehran, Iran 5 Dubai, U.A.E. 6 Wanchai, Hong Kong 7 Mumbai, India 8 Shanghai, China 9 Pune, India
10 Gemitrans Gemlik, Turkey 11 St. Mashhad, Iran 12 New Delhi, India 13 Karachi, Pakistan 14 Karachi, Pakistan 15 Xiamen, China 16 Wainchai, Hong Kong
CIFFA Participates
Marek Kiercz, Dimerco at the CIFFA booth
Nicki Belair, The Federated Group and Frank Gong, YBC Fortis Logistics Inc. at the CIFFA booth
The National Education Fair For a third consecutive year CIFFA participated at the CSCSC booth dur- ing the Montreal Education Fair. This event is the most comprehensive education and career gathering in Canada. One of our volunteers shared his experience from this event.
From left to right: Jonathan Capolupo, Schenker, PFF; Daniel Boyer, CITT, Les Consultants Danathca Inc.; Rose Pine, Rutherford Global Logistics, PFF Ted Chazin, Milgram, PFF
Read What New Members Are Saying
“ The clear benefit to Shuttle Freight Logistics Inc., is to reflect its partnership with the other major forwarders
through the CIFFA structure. Our company along with its principals (Robin Williams, Seymour Naidu and Ray Lord) has always being strong proponents of the theme of collective action. As our company continues to grow, our view is to always engage our major concerns through CIFFA”, says Vice President, Robin Williams. “As a mid size Canadian forwarder we now have a Proper “collective” voice, during these times of change in security with both airlines and other modes of transport. The daily updates to the Canadian forwarding market continues to be very valuable, and timely, keeping us fully informed of recent changes and critical advisories on services by both airlines and steamship companies.”Members who are not receiving the CIFFA daily ebulletin can get “connected” by emailing your request to [email protected]
We would like to thank our volunteers for helping out at the CIFFA booth during October events:PFF’s: Jonathan Capolupo, Ted Chazin, Angelo Loffredi, Gra- ham Pickup, Jasmine Sanghvi, Oscar Torio;Also: Nicki Belair, Frank Gong, Joelle Houpert Savino and Marek Kierez. Congratulations to our draw winners: Ms. Katharine Gi-mousis, Pankosmia Inc. and Mr. Erick M. Martins, who won free registrations for one of the International Trade Work- shops of their choice ($200.00 value, which could also be used as a credit toward any other CIFFA Programs)!
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19The Forwarder December 2009
PLAN YOUR 2010 TRAINING NOW! Quality CIFFA Training Programs have been recognized in Canada and Worldwide • CIFFA Certificate Programs have been recognized by FIATA (International
Federation of Freight Forwarding Associations) and recently accredited by CSCSC (Canadian Supply Chain Sector Council)
• CIFFA Dangerous Goods training programs meet the requirements of IATA, IMO, and Transport Canada
• CIFFA is an IATA Accredited Training School for Air Dangerous Goods
Flexibility Most of the CIFFA programs are available on-line or through a webinar (CIFFA Certificate Programs, Ocean DG, Air Cargo Security Training, coming up: Air DG, International Trade Workshops) • Courses are accessible on your schedule (24/7) • E-Learning does not require physical attendance • Learning is self-paced • Provides flexibility: students can skip over material they already know
and focus on topics they would like to learn • Travel time and associated costs are eliminated (parking, fuel, vehicle
maintenance, food, child care, etc.) • Enhances computer and Internet skills Customization CIFFA offers in-house training (Dangerous Goods, International Trade workshops, Air Cargo Security training • Cost savings with more effective group training • Training times crafted around your schedule • The ability to address specific employee training needs • Reduced travel time with on-site training
Information and Registration • CIFFA Website has all the information you need on the available training programs • Easy to-follow two-step registration form allows you to register quickly whether you register your- self or any number of your employees [email protected]
416-234-5100 OUT AND ABOUT CIFFA Secretariat, Directors and Committee Volunteers representing and promoting your Association October 6, 2009 – CBSA Export/Import Fair – Toronto, ON October 14 to 16, 2009 – National Job Fair & Training Expo – Montreal, QC November 13, 2009 – CBSA Consultation Meeting – Toronto, ON November 18, 2009 – eManifest Design Working Group – Toronto, ON December 3, 2009 – Toronto Transportation Club Annual Dinner – Toronto, ON December 7, 2009 – ieCanada Global Trade 2010: What’s Ahead? – Toronto, ON December 9, 2009 – Western Region Christmas Toy Drive Luncheon,
River Rock Casino – Richmond, BC January & February 2010 – eManifest Seminars to be held in Montreal, Toronto, Vancouver and via webinar. Details to be advertised in the CIFFA eBulletins. March 8 to 12, 2010 - 2010 IATA World Cargo Symposium – Vancouver, BC May 4 to 5, 2010 – SCL/CITA Transpo 2010 – Vaughan, ON June 16, 2010 – Western Region Golf Tournament – Vancouver, BC
Plan Today for your 2010 Advertising Dollars The Forwarder: CIFFA will be publishing two larger Forwarder Magazines in 2010 instead of three. These will contain more articles and Association updates. The first will be published before the May AGM, with an April 1st artwork dead- line, and the second in October with a September 27th deadline. The Forwarder reaches 1500 in hard copy and thousands of others by being posted on
CIFFA Membership Directory 2011: Our 2010 Membership directory will be published and mailed to Member branch offices early February. It is never too early to consider advertising in the 2011 Directory when planning your 2010 budgets. Deadline for Directory artwork is November 5, 2010.
Consider promoting your business through CIFFA – reach industry colleagues - forwarders, importers, exporters and Member employees.
For full details email your questions to [email protected]
PFF 2010 Renewal Campaign CIFFA’s Professional Freight Forwarder Designation 2010 Renewal Campaign is fast approaching. The deadline for submission is January 29th, 2010. To make the PFF renewal process easier and more convenient, starting in 2010 the PFF and AFF designations will be subject to a 2-year renewal.
Only those PFF’s who have met all renewal requirements will be listed in the 2011 and 2012 CIFFA Membership Directory (being published February each year).
Early Bird Draw: For the second year in a row, if you renew (submit payment and renewal form, meet all the renewal requirements) or apply for the PFF designa- tion by January 15th, your name will be entered into a draw for a chance to win one of three $25.00 Best Buy Gift Cards!
If you are considering obtaining the CIFFA PFF designation, this is another rea- son to do it now!
For the list of renewal requirements and PFF forms, please visit our website:
Participation in the industry events meets the Professional Freight Forwarder an- nual renewal requirements.
(ABH) Oversize Direct Ltd.
A.G.O. Transportation Inc.
ABCO International Freight Inc., Subsidiary Cole Group of Companies
AC Freight Forwarding Inc. Adcom Worldwide Canada Advance Distribution & Logistics Inc. Advantex Express Inc. Aeronautic Freight Systems Inc. Affiliated agents en douane Ltée. AG Logistics Agility Logistics, Co.
Air World Express, Division of Key Mail Canada
Air-Ship International Inc.
Albacor Shipping Inc.
ALB Global Solutions Inc.
Anchor International Freight Services Inc. Anything To Anywhere Worldwide Logistics
AquaMar Shipping Inc.
Alberta Shipping Inc.
Atlas International Freight Forwarding Inc. AWF Forwarding & Logistics Ltd. Axsun Global Logistics Inc.
Axxess International Inc. Bali International Inc.
Beler International Forwarding
Bellville Rodair International
BGL Brokerage Limited
Can-Tran Intl. Inc. Canaan Transport Group Inc.
Cargo Alliance Ltd.
CJL Logistics Inc.
Colbeck & Clarke Inc.
Cole Freight Inc.
CrossBorder Solutions Inc. Customized Global Logistics Inc.
Cyberfreight Systems Inc.
DB Schenker Delmar International Inc. Destination Logistics Inc. DHL Global Forwarding (Canada) Inc.
Dimerco Express (Canada) Corporation
DRT Logistics International Inc.
DSV Air & Sea Inc.
Ecu Line Canada Inc.
Fast Freight Forwarding Co.
Farrex Freight Systems Ltd.
Federated Freight Services Limited
Freight Systems (Canada) Inc.
Gillespie-Munro Inc.
GMW Freight Services (Canada) Ltd. Golden Jet International Freight Forwarders Inc.
GTI Global Freight Systems
Harte & Lyne Limited
Hellmann Worldwide Logistics Inc.
Inter-Transport Ltd.
Kelron Logistics Group of Companies
KTI Logistics Ltd.
LCL Navigation Ltd.
Locher Evers International
Lyman Container Line, Division of LCL Canada Limited
Lynden Canada Co.
Mantoria, Inc.
Mercator Transport International Inc.
Metras Shipping & Forwarding Inc.
Milgram International Shipping
Movin’ Freight Ltd.
MSM Worldwide
O.T.S. Global Logistic Inc.
Omnilogistics Inc., Subsidiary of Omnitrans Inc. Omnitrans Inc.
One Globe Logistics
Outaouais Moving Inc.
Pacific Overseas Forwarding Inc. Paltainer Ltd. Panalpina Inc.
Patriot Freight Services Inc.
Parry International Relocations Ltd.
Perishables International Transportation Inc.
Phoenix Bathurst Fret-Freight Inc. Polaris Transportation
Polimex Forwarding Corp.
ROE Logistics Inc. Ranger Express Forwarding Inc.
Renaissance International Freight Forwarding Inc.
Ridgeway North America Limited
Rutherford Global Logistics
SDR International Freight Inc.
SDV Logistics/Logistiques (Canada) Inc.
Sea Cargo Air Cargo Logistics Inc. Sea Projects Alliance Inc.
Seatrade Enterprises Canada Inc.
Secure Freight Systems, Inc.
SPI International Transportation Strategic Shipping Canada Inc. Synergex Logistics Corp.
TCT Ltd. Texcom Shipping Inc.
TLS International Inc.
Toll Global Forwarding (Canada) Ltd. Total Logistics Partner Ocean Consolidators Inc.
Traffic International (Montréal) Inc.
Tri-Ad International Freight Forwarding Ltd.
Tri-Alliance Freight Services Inc.
UE Canada Inc., Global Logistics Services
Unifreight International Ltd.
UTi, Canada Inc.
Viamar Scilla Transport International Inc.
Vinpac Lines (Canada) Inc.
W. G. McKay Limited
Willson-Green International Limited
TFM Global Logistics
Trade Link International Ltd.
UGF-Unimar Global Forwarding Ltd.
Eurofret Canada Inc. Euroworld Transport System Can