spring 2011 the forwarder - canadian international …international federation of freight forwarders...

32
Canadian International Freight Forwarders Association 170 Attwell Drive, Suite 480, Toronto, Ontario M9W 5Z5 Tel: 416-234-5100 Toll Free: 866-282-4332 Fax: 416-234-5152 Email: [email protected] Cargo Security A Global Issue 2011 CIFFA Scholarship Canadian Imports The New Normal STCs Freight Forwarder’s Legal Liability Spring 2011 THE FORWARDER The Voice of Freight Forwarding in Canada

Upload: others

Post on 02-Jan-2021

3 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

Canadian International Freight Forwarders Association170 Attwell Drive, Suite 480, Toronto, Ontario M9W 5Z5 Tel: 416-234-5100 Toll Free: 866-282-4332 Fax: 416-234-5152 Email: [email protected]

Cargo SecurityA Global Issue

2011 CIFFA Scholarship

Canadian Imports – The New Normal

STCs – Freight Forwarder’s Legal Liability

Spring 2011

THE FORWARDERThe Voice of Freight Forwarding in Canada

Page 2: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

Quality you know,Service you can trust since 1982

• WEEKLY EXPORT CONSOLIDATIONS DIRECT TO 21 PORTS WORLDWIDE OVER 500 ON-CARRIAGE DESTINATIONS

• IMPORT CONSOLIDATIONS FROM ASIA, EUROPE, SOUTH AMERICA

• OWN 56,000 ft2, 12-DOORP.I.P. CERTIFIED SUFFERANCE WAREHOUSE IN MISSISSAUGA

Go to www.lclnav.com and register for our on-line sailing schedule, on-line tariff, on-line booking, on-line documentation and

on-line cargo status. Go green, go paperless.

Call us at toll free: 1-877-789-8126

Page 3: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 2011 3

At A Glance5 Cargo Security: A Global Issue

7 Canadian Imports and the Freight Forwarder: The “New Normal”

10 18,000 TEU Vessels: Is Bigger really better?

11 Standard Terms: Mistakes and Misconceptions

13 CIFFA Standard Trading Conditions: A Legal Liability and E&O Underwriter’s View

14 BCCC Marine Mapping Webinar

14 Mark Your Calendar!

17 2010 Young Freight Forwarder of the Year

18 Is Your Child Heading to College or University? A CIFFA 2011 Scholarship Could Help

20 Membership Grows

20 Preferred Vendors continue to offer value to Members

21 Calgary Members Chill at Networking Event

21 International Trade and Red Tape

22 CIFFA Welcomes our National Sponsors

24 Incoterms® 2010 – Time to Update the Old Forms

29 Correspondence from around the World

29 The Forwarder Magazine 2011 Advertising Rates

30 Plan your 2012 marketing budget now

THE FORWARDERThe Voice of Freight Forwarding in Canada

Spring 2011

Canadian International Freight Forwarders Association170 Attwell Drive, Suite 480, Toronto, Ontario M9W 5Z5

Tel: 416-234-5100 Toll Free: 866-282-4332 Fax: 416-234-5152Email: [email protected]

CIFFA 62nd AGMCall to MeetingFurther to By Laws Article V, Section 4, notice is hereby given ofthe Annual General Meeting to be held May 30, 2011, 13:00 -15:00 hours at the Mississauga Convention Centre, Salon C, 75Derry Road, Mississauga, ON.

Please note registration for this event is required for seating arrangements. Register online at www.ciffa.com/events_register.aspUse the drop down box to choose Annual General Meeting.

For those that cannot attend, please make sure to send your proxyto the Secretariat, properly signed, by fax: 416-234-5152. A copyof the proxy is available on the website www.ciffa.com, MembersArea (Member login is required).

According to the Association By Laws, Article V, Section 5, a nom-inating committee has been formed and is chaired by Ms. DonnaLetterio of DHL, Mississauga, who can be contacted at [email protected].

CIFFA is now calling on Regular Members for nominations to theNational Board of Directors (NBD). There are 6 positions up forrenewal consisting of a two year term.

Current directors who where holding these terms have agreed tostand for a further 2 year term, are:

• M. Bibeau, OEC Overseas Express (Canada) ConsolidatorsInc., Montreal

• G. Vince , DHL Global Forwarding, Mississauga• D. Letterio, DHL Global Forwarding, Mississauga• M. Soubry, jas Forwarding Worldwide Inc., Mississauga• J. Cullen, Bellville Rodair International, Mississauga• B. Rodgers, CEVA Freight Canada Corp., Mississauga

Any regular Member interested in submitting their name to be-come a Director on the National Board must submit their in-terest to the Nominating Chair as listed above. The nominationmust outline the name, position/profile and company affili-ation and be accompanied by five sponsoring signatures ofcurrent regular Members of CIFFA.

As per by-laws, Members must submit their nominations to theNominating Chair or the CIFFA Secretariat by May 16, 2011, whichis no later than two weeks before the Annual General Meeting tobe held May 30, 2011, 13:00 – 15:00 hours at the Mississauga Convention Centre, Salon C, 75 Derry Road, Mississauga, ON.

Page 4: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International
Page 5: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 2011 5

Cargo SecurityA Global Issue

Europe in 2010 and the implementation ofnew systems, programs and the like, wethought it would be interesting to provide ourreaders with an update on the sometimesconfusing changes and issues concerningcargo security.

Let’s start with here at home. The CIFFA Sec-retariat has been regularly engaged in dis-cussions with Transport Canada and with ourMembers trying to minimize the impact ofair cargo security issues on our industry andbusinesses.

With the September 2010 revision to Trans-port Canada’s Air Cargo Security Program,and the newer changes to the SecurityMeasures Respecting Air Cargo, CIFFA hasconducted many Cargo Security Coordinatorand Authorized Cargo Representative train-ing sessions with Member firm employees,who are anxious to comply with the newregulations and struggling perhaps, underthe vague and obfuscated communicationsfrom Transport Canada. CIFFA also con-ducted several discussion groups with Mem-ber Cargo Security Coordinators to discuss

the impact of theSeptember 2010revisions. With themost recent deadline forimplementation on April 1,CIFFA quickly drafted a new‘Cargo Security Form’ to track thechain of custody and shared it with theMember CSCs, easing the burden on individ-ual Member firms and helping implementsome standardization into the process.

Needless to say, the past several monthshave been a very busy and changing time inthe Canadian air cargo security environment.

This brings us to what the United States isdoing. The TSA implemented the system forcargo loaded on passenger aircraft insidethe United States with the help of airlinesand the Certified Cargo Screening Programby their deadline of August 3, 2010. Thescreening is done by airlines or in advanceby their customers who have been certifiedto self-inspect shipments, speeding up pro-cessing at the airport, preventing possibledamage by other parties tearing apart con-solidated loads and avoiding inspection fees.

On January 14, 2011, the U.S. TransportationSecurity Administration moved the 100%

screening requirement for inbound interna-tional cargo transported on passenger air-craft to the end of this year (2011) --accelerating it’s timetable by more than ayear from the original 2013 date. The TSAfaces challenges achieving 100% screeningon international inbound flights. It simplydoesn’t have jurisdiction to impose regula-tions on foreign freight forwarders and ship-pers to screen cargo before departure. TheTSA said it decided to move faster to fullcompliance because airlines are alreadyscreening a large amount of the inboundcargo. The new measures likely would re-quire airlines to further adjust their proce-dures for accepting freight at overseaslocations so that cargo can be screened intime before flight departure, the TSA said. Itrecommended that airlines notify freight for-warders, shippers, ground delivery compa-nies and other partners of the pending ruleand the potential impact it may have on theirsupply chains.

cont’d on page 6

With all the changes concerningair and ocean cargo security inCanada, the United States and

Page 6: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 20116

Events late last year surrounding the terrorist attempts to ship ex-plosives aboard cargo aircraft also prompted the TSA to issue an ad-visory with Security Directives and Emergency Amendments in Marchof this year with less than a week’s notice for implementation. Thisridiculous timeline negatively impacted cargo operations not only inCanada – where Air Canada was forced to introduce a short livedembargo on cargo flown to the USA - but around the world. The aircargo industry scrambled to sort out the new security directive. Whilethe TSA order took effect March 11, 2011 the agency has not indi-cated a deadline for enforcement action.

Around the same time, a new U.S. Government Accountability Officereport was released and states that there is no technology approvedor qualified by TSA to screen cargo once it is loaded onto a pallet orcontainer, both of which are common means of transporting air cargoon passenger aircraft. This leaves doubt over air carriers’ ability toscreen air cargo effectively on such wide-bodied aircraft.

The Department of Homeland Security (DHS) also began establishinga “risk-rating” system for air cargo similar to the type used in themaritime cargo environment. Cargo rated as a “high-risk” is sub-jected to additional scrutiny, while lower risk cargo moves throughthe supply chain quicker. DHS intends to make this risk rating-systemfor air cargo a priority, but progress has been slow. DHS has not yetfound data elements that are both available in a timely manner (wellbefore take-off) and that produce useful risk ratings; furthermore,even DHS is not sure what to do or who should do it – with cargothat exceeds the risk threshold.

Further to shippers, freight forwarders and carriers having to complywith the Canadian and U.S. regulations, they now also have to complywith the new mandatory EU customs import control system (24-houradvanced manifest rule) that was implemented earlier this year. OnJanuary 1, 2011 it became mandatory to report all freight travellinginto the European Union. Again, airlines, ocean carriers and freightforwarders had to introduce procedures to file all the necessary in-formation required. There are various methods to transmit the dataand many carriers (air and ocean) introduced fees associated withthe filing. The ICS or similar requirement is already established insome countries, such as the USA and India and the concept is similarto our inbound air cargo subject to Advanced Commercial Information(ACI) filing requirements. The EU opted for a single ENS (security entrysummary declaration) filing system which puts the ultimate respon-sibility for the security declarations on the carrier, i.e. the person whophysically brings the goods into the European Community. The pri-mary purpose of the new regulation is to ensure that an entry sum-mary declaration (ENS) is submitted electronically to the first customsoffice of entry of the goods to the European Union within the timelimits specified in the regulation. The time limit is typically 24 hoursbefore any containerised cargo is loaded onto the vessel in the non-EU port, as is the case in the US 24-hour rule, to allow for CustomsAuthorities to carry out a security risk analysis and to have sufficienttime to issue a ‘Do Not Load’ message, if required.

The rules for breakbulk cargo, short sea shipping, air transport, rail,inland waterway and road transport differ in the time limits for thesubmission of the ENS. For long haul flights of more than four hours’in duration, the ENS must be submitted at least four hours before ar-rival at the first airport in the EU. The regulation states that if a vesselleaves an EU port and calls at a non-EU port before returning to anEU port with the same cargo on board, a ENS must be submitted forthat cargo prior to each call at an EU port. The regulation also spec-ifies who can file ENS declarations, the ENS data requirements andrules governing amending ENS declarations and shipment diversions.

We might see some streamlining in global air cargo security pro-grams, advance filing, e-commerce and other issues related to theindustry with the newly formed Global Air Cargo Advisory Group(GACAG). The four founding member associations include FIATA (theInternational Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International Air CargoAssociation (TIACA) and the Global Shippers' Forum (GSF). The mem-bers said the advisory group's role will be to establish a vision andstrategy for the global air cargo supply chain and to present joint in-dustry positions to third parties, including inter-governmental organ-izations such as WCO and ICAO.

Members may wish to consider the situation that the new requirementwill create from a business point of view and not only from a regulatorypoint of view. Ever-changing security regulations seem here to stayand will mean a new way of doing business for many.

The Department of HomelandSecurity (DHS) also began establishing a “risk-rating”system for air cargo similar to the type used in the maritimecargo environment.”

cont’d from page 5

Page 7: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 2011 7

Just when freight forwarders think they have the global logistics mar-ketplace figured out, new challenges sprout up to make life in the industry a little more interesting.

Customs agencies around the world continue to add new measures tofurther support security of international trade. “Health,” “safety” and “se-curity” are the new buzzwords in the movement of freight across inter-national borders. The days of just transporting the shipment havebecome a thing of the past. In fact, the transfer of data and documentshas now become as important as the movement of the goods (perhapseven more important). If information (data) does not precede the arrivalof goods, shipments are turned away from the border or denied loadinginto/onto the conveyance. This has caused many shippers and serviceproviders dealing with international trade to review their entire businessprocesses.

Adding to these complexities is the industry’s vulnerability to a wide rangeof security risks: the handling of hazardous materials, product and foodsafety, theft and potential terrorist threats. The onus for safety and securityis on the industry as a whole, including all parties involved in the shipmentprocess. Everyone in the process must take the necessary steps to ensurecargo is safe and secure against terrorist and criminal activities.

Integral to taking those steps is having technology in place to enable theelectronic exchange of data that provides real-time visibility into themovement of goods, and supports standardization and automation.

Security Initiatives are Driving Change

We have all seen a number of security initiatives implemented by regu-latory bodies and government agencies. Some of these include increasedcargo inspections, heightened physical security of cargo facilities, security training for cargo workers, and stricter controls over access tocargo carriers, containers and operations areas.

Meeting these initiatives requires better coordination and visibility withinthe trade community as well as the development of new relationshipswith government agencies and international regulatory bodies.

Increasing compliance requirements also demand standardization. Airand marine freight stakeholders have to automate and standardize shipment management processes so that both carriers and freight forwarders around the world do not reinvent the wheel every time a shipment occurs.

It is evident that processes and requirements are becoming increasinglycomplex. Therefore, shippers and logistics service providers need to develop a vision for the future and they need to have the right tools inplace to prepare themselves for the evolving regulations, mandates andprocess requirements.

The Canadian Border Services Agency (CSBA) and the Freight Forwarder

Canada is no exception, and along with the USA and the EU has madesecurity a priority. In the middle of the last decade, Advanced CommercialInformation (ACI) for Marine and Air came into force and has become thefoundation for the CBSA’s risk assessment and enforcement activities.Since then, new regulations have arrived. The current ACI Phase III, theuse of e-manifests, is now here with eManifest Highway being imple-mented on a voluntary basis since October 31, 2010 at the border.

The CBSA’s focus is now on the Canadian freight forwarder. A draft Elec-tronic Commerce Commercial Client Requirements Document (eCCRD)has been prepared and made available to outline the new requirementsfor e-reporting. Many CIFFA Members participate in the CBSA’s eSPNHousebill Technical Design Working Group where they review and provideinput to this critical new initiative.

Highlights of the “New Normal”

• Under the CBSA’s new expectations, Canadian freight forwarders willbe more accountable and will present the Housebill data -- notpaper -- 8000 series deconsolidation data -- prior to loading. Thehousebill data will be similar to the current ACI data set – with a fewadditional data elements. Expect this ‘secondary’ reporting to replacethe current ACI security reporting requirements in the Air and Marinemodes. Basically, the freight forwarder will be deconsolidating elec-tronically before the goods are loaded overseas.

• In the near future a new CBSA web portal for freight forwarders willbe developed to enable small and medium sized companies to meetthe new reporting requirements.

• In the next few years, the CBSA will implement Advance Trade Data(ATD) (similar but not identical to the USA 10+2 requirements) in theMarine environment (for now). Pre-Arrival Review System (PARS) inthe Marine and Air modes will be actively encouraged.

• All health, safety and security examinations will be conducted at thefirst point of arrival.

• Expect new requirements for all carriers, terminal and warehouse operations to get on board with e-reporting of cargo arriving in Canadathrough the Release Notification System (RNS). This will also facilitatethe PARS processing.

• With PARS processing and the above new arrival capabilities (RNS) inplace, the ability to release freight a first point of arrival will be attractiveto various industry sectors and is something the CBSA is exploring.

CANADIAN IMPORTS AND THE FREIGHT FORWARDER

The “New Normal”

cont’d on page 8

Page 8: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 20118

Preparing for New Compliance Regulations

To meet the demands of changes to compliance requirements in an electronic security-focused environment, shippers will need to work inconjunction with global trade compliance service providers to find newand innovative ways to move data and business documents around theworld faster and more efficiently. Data requirements will be higher thanever. More collaborative business relationships with foreign agents andeven with owned or affiliated overseas offices will be important. Thesecombined efforts will be critical to achieve the speed and data compliance that will be mandated by eManifest.

Strategic Planning

Of course, making the process work won’t just happen - it will need sig-nificant strategic planning. The electronic movement of information, doc-uments, and such critical trade data such as permits, certificates,invoices and bills of lading becomes essential to ensure information isdelivered to the right place, and at the right time, for smooth and fastborder crossing. How can this information be moved electronically whena shipper’s trading partners have different proprietary or off-the-shelfsystems? In order to facilitate the timely exchange of information, systems need to talk to each other passing relevant data among thetrade chain players in a highly secure and expedited manner. In order toavoid costly penalties and delays, shippers and their trading partnerswill also need to be networked together to:

- automate and standardize business processes,

- share vital data for immediate and automatic integration with theirbusiness systems, and

- comply more easily with required regulations.

Because this approach requires a high level of collaboration, new andsometimes non-traditional alliances must be developed to ensure thatall the links are made and the responsible parties are defined accordingto who will provide what data and when. This demands clearly defineddata elements as a means to establishing accountability for participants.

Given the changes to come—and the increased demand for collabora-tion in the supply chain execution industry—organizations must be prepared to invest in processes that will ensure the trade chain can continue without interruption. A solid vision, good strategic planning anda communications infrastructure within a trading community will be thekeys to future success.

You can expect to see the Canadian International Freight Forwarders Association (CIFFA) organizing live detailed seminars in major centresacross Canada, with webinars for those located in smaller communities,to provide you with the most recent and updated information available.Watch for the CIFFA bulletin for dates and times.

Oryst Dydynsky is a 30 year veteran of the CBSA and a Descartes Systems Group / DAP International Trade consultant. Contact: [email protected]

cont’d from page 7

Page 9: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

eh! hartrodtThe a. hartrodt Group is proud to announce its newest member company, a. hartrodt Canada Ltd.

Formerly Cargo Alliance Ltd., a. hartrodt Canada has served the group as agent forthe past 12 years, combining expertise and a personal touch to deliver superiorglobal logistics service.

Beginning April 1, a. hartrodt Canada will offer customers expanded access toworld-class freight forwarding through two offices in Canada, three in the U.S. andplans for more in both markets. It will offer employees a dynamic work environment.

So if you're looking for air, ocean, cross-border or customs brokerage services,look to hartrodt... eh!

a. hartrodt Canada Ltd. | 905-676-8806 | hartrodtcanada.com | hartrodt.com

Page 10: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 201110

18,000 TEU VESSELS

Is bigger really better?

Maersk Line’s stunning order of 10 ships, each with a capacity of 18,000 TEUs, and an option of 20 more has certainly generateda slew of headlines and commentaries across the world. With the exceptionof one oil tanker, these will be the largest ships ever to plow the seas of ourworld.The ten Triple-E class vessels — standing for Economy of scale,Energy efficiency, and Environmentally improved — are to be built in ac-cordance with standards of the classification society ABS. Deliveries arescheduled for 2013-2015. The vessels will be built for the Asia-Europetrade. Interestingly, North American ports – at this time – are not equippedto unload ships and move the containers of such numbers in a cost effi-cient manner. Their ports are not deep enough and their cranes are nothigh enough.

The proposed vessels are more than a third larger than the biggest con-tainer ship presently afloat, itself a Maersk ship known as the EmmaMaersk with a capacity of 13,000 TEU. A decision to commit to possibly30 of them reflects enormous faith in the ability of the container shippingmarket to absorb equally enormous volumes. And Maersk is not alone:Many shipping lines have ordered new vessels of between 8,000 to13,000 TEUs implying a resumption of the flood of new capacity that justbegan to hit the market in 2008 when the whole sector was shaken byone of the most severe downturns for decades.

No doubt, the size of the new vessels gives Maersk an advantage in termsof productivity over lesser sized ships. It is also expected that the unusualtwin engine design will lower fuel consumption. The extra carrying capacity is due to their u-shaped hull, as opposed to the currentv-shape of most ships today. The ships’ environmental credentials are alsoimpressive: the Triple-Es will produce 50% less carbon per containermoved than the industry average on the Asia-Europe trade lane. A smallerengine will produce a lower top speed of around 19 knots, a heat recoverysystem will capture and reuse energy from the engine exhaust gas forextra propulsion. Maersk Line is also introducing a ”cradle-to-cradle pass-port” for the Triple-E ships. This means all the materials used to build themwill be documented and mapped, so when they are retired from service,the document will ensure all the materials can be recycled or disposed ofin the safest, most efficient manner. This may potentially offer the shipperan opportunity to receive environmental credits for carbon emissions.These are all key competitive factors to be sure, but this economy of scale

also comes at a price. Vessels as large as this can only be used on a fewroutes between China and Europe. Presently there are only about threeEuropean ports capable of handling such volume: Rotterdam, Bremer-haven, Felixstowe (and possibly Southampton and Hamburg). And whilstsome ports will be capable of efficiently handling such added volumes,the question begs whether or not hinterland facilities are sufficient tomove such volume efficiently off to its final destination. There is also concern that there will be an increase in trans-shipment and cause congestion at the ports due to the time it will take to discharge and re-load the ships – issues that could be exaggerated if other carriers arrive simultaneously with large sized vessels. How will this affect servicelevels and transit times for those shippers whose goods will need to betrans-shipped? Shippers cannot afford to risk waiting for connecting vessels that might call four or five days after arrival at the trans-shipmentpoint. It is interesting to note here, there seems to be consensus that portswill need to step-up and increase berth productivity, something Maerskrecently indicated was an area of concern.

Ultimately, the Maersk fleet will be less flexible than one composed ofsmaller vessels. What would Maersk do if the present patterns of worldshipping changed? There are a lot of indications that this will be the case.China is presently re-focusing its economic policies with a more inwardlooking tendency rather than to more export growth. Alternatively, thinkof the new emerging economies of India, Vietnam, Cambodia, Indonesia,Malaysia etc. These smaller economies have huge growth potential forgoods formerly produced in China. The answer will be more feeder services to bigger ports, less direct services and the need for more huband spoke systems. All factors that may negatively influence Maersk’srather optimistic cost projections and lay it open to problems as big asthose seen in 2008.

George Kuhn, former Executive Director of CIFFA, currently providesmanagement and consulting services to the industry. Reprinted withthe permission of LQ Magazine.

Page 11: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 2011 11

When was the last time you reviewed theterms on the reverse side of your own transport documents? Do you think your customers review them more frequently thanyou do? You might think that cargo damageis the cause of most claims involving forwarders, but in fact most cargo claims(like most claims generally) settle without litigation. It is not the damage itself but a dispute over the terms of the arrangementthat costs parties time and money in Court.

Although standard contract terms have beenaround even longer than bills of lading, manyforwarders – even forwarders with manyyears of experience – have not taken thetime to read and understand their own termsand conditions, much less those of the par-ties with whom they do business. Here arefour common mistakes and misconceptions:

Conditions Borrowed from CarriersMany forwarders and NVOCC’s will ‘borrow’standard trading terms from the reverse of anocean carrier’s bill of lading, and trust that theterms drafted by the carrier’s high-priced London and Hong Kong lawyers will protectthem too. But those lawyers charged goodmoney to draft terms that would protect theirclient in that particular client’s business. Canadian Forwarders will not want to litigate inHong Kong, for example, nor will they want toincorporate COGSA as part of their standarddocumentation, both common provisions onlarge carrier bills of lading. And they will cer-tainly not want carrier’s terms applying on atransaction in which they acted as agent only!

CIFFA Conditions on Bills of LadingMany readers will be CIFFA Members andhope to be protected by the CIFFA STCs,which are the property of CIFFA and are licensed for use by Members only. But theCIFFA STCs are drafted to protect Forwardersin their role as Forwarder, and not in theirrole as carrier. The CIFFA STCs are not conditions of carriage and will not serve toprotect you properly if you are acting as contractual carrier: they should never be reproduced on the reverse of a bill of lading.

Conditions on invoiceHow would you feel if a contractor tried toset or change the conditions of your arrange-ment after the work was done and the invoice prepared? You might think it was abit too late – and you’d be right! Contractualterms and conditions must be agreed beforea contract is formed, not after it is performed.If they’re not part of the agreement, they’renot part of the contract. Make sure your trading conditions are communicated to potential customers before you agree to handle their business, or they will not protectyou after something goes wrong.

Battle of FormsMany of your suppliers and contractors willalso try to protect themselves with standardterms. When disputes arise between theseparties, the case may centre on which set ofterms – if either! – will apply, and the Courtswill take a wide range of facts and circum-stances into account when making a deci-sion: search Forwarderlaw.com for “Battle of

Forms” to learn more. To paraphrase SunTzu: “If a forwarder knows his own terms andhis clients’, he need not fear the outcome ofa hundred claims. If a forwarder knows hisown terms but not his clients’, for everyclaim won one will be lost.”

And of course if a forwarder knows neitherhis own terms nor his clients, he will keephis lawyer very busy!

Gavin Magrath is a partner with MagrathO’Connor LLP in Toronto, CIFFA’s legal counsel, and the General Editor of Forwarderlaw.com. [email protected]

Standard Terms: Mistakes and Misconceptions

• Protecting your Business with the CIFFA Standard Trading Conditions •Online Workshop – April 27-28

Prepared by CIFFA’s legal counsel, Gavin Magrath, and delivered by Executive Director, Ruth Snowden; this workshopwill benefit your sales, operations, and management staff.

Learn when and why CIFFA Members limit their liability in athorough discussion of the STCs from the convenience of youroffice or home over two 1.5-hour sessions (1-2:30 pm ESTon each day).

Explore real life case studies and learn steps to take to protectyour business.

Online, May 17-18Incoterms 2010(1-2:30 pm EST on each day)

Vancouver, May 6Incoterms 2010 (AM)Letters of Credit (PM)

Also available this spring:

Register now! www.ciffa.com � Education � Register online

• Purchase CIFFA STCs •

CIFFA has stock of the new STCs in packages of 100 (each), either in Englishor French. The cost per package is $25.00

plus $10.00 shipping & handling and applicable taxes. The title page has

enough room for Members to overprinttheir company name and details.

To order the 2010 STCs, please email your request to [email protected]

Page 12: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

�������������������� �������������������� ��

������������� �������������������������������������� �������������� �������������������������������������� �������������� �������������������������������������� ������� ���!��� ���!��� ���!"""#$�#$�#$�"""���$��%& ���!���$��%& ���!���$��%& ���!"""#$�#$�#$�"""��!���!���!����

��

��

''' (�� �) )''' (�� �) )''' (�� �) )���

*���+���*���+���"",��-����+��������������,��-����+����������������%������������.�)/��,��������������%������������.�)/��,��������������

�((�)������� ����������������(����((�)������� ����������������(�����������������������/���/���������������������������/���/�������

,��0�)���1���%�����,����)�����,��0�)���1���%�����,����)��������/�*1�����/�*1��"",����)�2�����1�3�����,����)�2�����1�3�������

Page 13: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 2011 13

The standard Freight Forwarders Professional Legal Liability and E & O Insurance policy in Canada is based on the CIFFA Standard Trading Conditions. The other major document outlining your liability is your bill oflading, if you use your own. Your bill of lading must be reviewed by a marinelawyer to ensure it properly responds to the changing regimes in Canadaand other countries. (Remember, the Rotterdam Rules may be coming). If you do issue your own bill of lading you must also submit it to your insurance underwriter for approval, in order to be covered by your policy.

The CIFFA STCs are the basis for your protection when you operate as afreight forwarder within its definitions. You should therefore ensure yourclient is aware of these terms by referring to the CIFFA STCs on your letterhead, web site, invoice, quotation forms etc. You must make it clearto your client what “rules” you play by.

So now as a CIFFA Member you have the CIFFA STCs, a proper bill of ladingand a Freight Forwarders’ Professional Liability and E & O Policy coveringyour operations as a Freight Forwarder. You are prepared and protected.

Scenario

One day you receive a letter from a Canadian lawyer enclosing a “state-ment of claim” holding you responsible for a $250,000 cargo loss on amachine weighing 300kg, and an additional claim of $500,000 for lossof market as the shipment was delayed. He represents a foreign marineinsurance underwriter who has paid this loss in Hong Kong on a shipmentwhich arrived damaged, which you forwarded. The local lawyer is subrogating against you for his client, the foreign underwriter who paidthe damage claim to your client’s consignee in Hong Kong.

Immediately, you send the lawyer’s letter, including the “statement ofclaim” to your insurance broker who in turn sends it to your underwriter.This must be done quickly as you usually only have 30 days to respond

or a judgement could be made against you, without a defence. (ie. youwill lose). The most important feature of your Forwarder’s Policy is “de-fence”. It will defend you even if the case is frivolous. Your underwritercontacts you asking you to send all important documents from your fileand to engage a marine lawyer to respond to the writ, within the timeallotted. The underwriter then reviews your file, discusses it with yourstaff and prepares a defence, which can in most cases include negotia-tions with the plaintiff’s lawyer. If then it does go to court your under-writer defends you and pays the claim if you are held legally liable in thisloss. He will also pay any costs such as investigators, surveyors or experts needed in your defence.

This is the quick scenario, but as everyone knows, most claims havemany twists and turns which can lead to lengthy and costly stories.

The main point here is that the CIFFA STCs (and your Forwarders Professional Liability and E&O policies) have protected your position. Theclaim was brought against you in Canada, clause 21, not Hong Kong.You are able to limit your liability to 2 SDR per kilo, in this case only approximately $ 470.00, clause 15. Also the loss of market claim fordelay for $500,000 was rejected by the courts because of clause 15 (b). Unfortunately the STCs and the bill of lading can’t always protect you;this could be a topic for another day.

All the above greatly depends on your insurance broker and underwritercoming together to write a policy that best insures your operations.

Bernie Cissek, is the President of Eagle Underwriting Group Inc. inToronto, vice Chairman of the International Union of Marine Insuranceand past President of CBMU. www.eagleunderwriting.com

CIFFA Standard Trading Conditions:A Legal Liability and E&O Underwriter’s View

Page 14: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 201114

L

Job wel

Vancouver Dashboard Phase 2 Summary Findings

Vessel Arrives Positive

93:02 91:29

1:32 1:10

16:21 9:29 112:30

$1,347

117:20

12:28 1:20

33:33 23:05

Fumigant Area

43.13% Fail First Test – Phase 2

NegativeExamination Bay

Ground – Port Terminal

Return to Terminal

Total Processing TimesAverage Median

146:15141:21123:43128:08

269:58269:29

CBSAIndustry

TotalTotal Days 11 11

56.87% Pass First Test – Phase 2

Container ExaminationFacility

Release fromExamination Bay

As a part of its leadership through Advocacy mandate, CIFFA continues to provide guidance and to protect interests of its Members at each level of Government.

With an increased focus on security and changes to safe levels of chemicals, ocean container inspection issues spiked in 2008 – 2009. Since then the ContainerExamination Subcommittee of the CBSA’s Border Commercial Consultative Committee has made significant progress towards a cross-industry solution.

Last winter, a Container Examinations Webinar, jointly presented by CIFFA and the CBSA, provided an update on the work of the Container ExaminationSub-Committee, the results of the process mapping, and some highlights of where the Sub-Committee will focus over the next months.

The CBSA’s Eric McCrossin and CIFFA Director Chris Gillespie (our representative on the Sub-Committee) shared the results of Phase 2 of the MappingExercise and the Dashboard.

Following the webinar, we received this comment: “I found the webinar very insightful and of great value, for myself and the two staff who joinedme for the presentation. Job well done.”

For those of you who weren’t able to join the webinar, the PowerPoint slides are posted on the CIFFA’s website: www.ciffa.com/news/2011/02_11_01.asp

BCCC Marine Mapping Webinar

April 14/11 Central Region FCA

June 2/11 Eastern Region Graduation

June 7/11 Central Region Graduation

June 8/11 Western Region Graduation

June 16/11 Central Region Boat Cruise

June 16/11 Eastern Region FCA

July 7/11 Western Region Golf

Sept 15/11 Central Region Golf

Sept 23/11 Eastern Region Golf

Sept 30/11 Western Region FCA

Dec 8/11 Western Region Christmas Lunch

Mark Your Calendar!

Page 15: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

Air Canada Cargo | Going further.

aircanadacargo.com

We go far, further and everywhere in between.

Air Canada Cargo is introducing a whole new class of service. With more direct destinations, more scheduled departures, 8 unique Solutions to choose from and your choice of Standard or Priority1 services; Air Canada Cargo is going further than ever before.

Whether it is precious valuables or fresh asparagus or life saving drugs, Air Canada Cargo’s Solutions and Services will keep your business moving – safely and efficiently.

Think of us as business class for your commodities.

AC General Cargo

AC Cool Chain

AC Expedair

AC Live

AC DGR

AC Secure

AC Compassion

AC Post

Page 16: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International
Page 17: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 2011 17

Paramjit Jandu was born in Jandiala, India and immigrated to Canada with his family in October, 1998. He holds an Accounting diploma from HumberCollege, a Bachelor of Commerce degree from Ryerson University, the CIFFA Certificate in International Freight Forwarding and is currently workingon the CIFFA Advanced Certificate in International Freight Forwarding.

Paramjit started his career in the transportation industry as a truck dispatcher while going to school. He made the jump to MELLOHAWK LogisticsInc. in February, 2005 as the Ocean Import/Export Coordinator. He quickly took on more and more responsibility and today he is the Manager of theOcean Department and Acting General Manager, helping to make MELLOHAWK one of the fastest growing Freight Forwarders in Canada.

What prompted you to enter the CIFFA Young FF of the Year contest?My managing directors Arnon Melo and Peter Hawkins are always promoting continuing education and they made me believe that I had what it tookto win this contest. I have always enjoyed taking new and exciting challenges at work and in my personal life and, of course, I wanted to make mycolleagues and my family proud.

When you were selected by CIFFA as our Canadian winner, how did you feel?I felt very proud and excited when I heardthat my hard work paid off. Between myhoneymoon and increasing responsibilitiesat the office I had to struggle to get thetime to work on the essay. I am very thank-ful to God and my family for supporting meto finish this project.

What were the challenges and benefits of writing your dissertation?One of the main challenges I thought wasdeciding on the topic itself. Although Ihave a lot of experience with many excit-ing projects at MELLOHAWK, I wanted tomake it special, where the project helpedus carve MELLOHAWK’s name in goldenletters. Writing the dissertation about ourproject in the Bahamas made me realizehow tricky and fun the project actuallywas. We are planning on using this proj-ect as one of our manual case studies forour future staff members to help realizewhat and how many aspects of shippingcould be involved in one project.

A CIFFFA IntransporT

Ar

ernationA Intion and Tattranspor

aff abaffftsr ouyyoue Ar

alernationade Progrrion and T

op elvvelle to de ab

amade Progr

an eftranspor

Be CIradeT

nd ef aefectivn ef ffectivn soatittranspor

n, cayethsureBe onatiternA InFFFA InCI

Program.rade

ficientd ef fficientmeet and o ion tutoln s

hemtrolling eny bn, ationtrsporanTal on

meet and

e thin hemd anation

egisR

or 20w fNee fndli deaonatitregis

c@onatieduc

radeT

er atiseg: R11or 20ober cmepte Sorr Se f for

614; omc.faifffac - 432

Program.rade

ytime!ner asesurrseso A t 15thusAug

4- )00 (225 5)1551

.t 15th

2011 Young Freight Forwarder of the Year

CIFFA offers a yearly award to a young freight forwarder who best demonstrates industryknowledge and the right qualities to become a true freight forwarding professional.

After review of the dissertations from several applicants, our review panel is pleased toannounce that Paramjit Jandu of MELLOHAWK Logistics Inc. is our 2011 Young FreightForwarder of the Year.

Once he has submitted his full dissertation to the international contest organized by theTT Club, FIATA and IATA, Paramjit will receive CIFFA’s $1,500.00 cash award. If he is selected as the America’s Regional winner, Paramjit will receive an all expenses paid tripto Egypt to attend the October 2011 FIATA World Congress, as well as numerous all ex-pense paid trips to attend various training courses around the world, with an estimatedvalue of approximately $20,000.00. Good luck Paramjit!

Page 18: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 201118

CIFFA Scholarship Flyer Please remove the scholarship flyer inserted in

this Forwarder and post in your staff lunch room. Help encourage employee children to apply

online: www.ciffa.com

Is Your Child Heading to College or University?A CIFFA 2011 Scholarship Could HelpThe purpose of the Scholarship Program is to disburse funds annually to children of CIFFA Regular Member employees who are pursuinghigher learning in an accredited Canadian college or university.

Eligibility• Child of an employee in good standing of a CIFFA Regular Member company as of April 1st of the award year.

• Letter of employment certifying permanent full time or permanent part time employment of parent at least 20

hours/week signed by an officer of the company.

• Student entering any year of undergraduate or graduate studies at an accredited Canadian college or university.• Enrolled in international trade, logistics or business course leading to a diploma or degree.

• Final High school/previous year's transcripts showing marks as of June 30th of the award year

• Submission of a 500 word essay entitled, “The Value of Higher Education”

• Three letters of reference from employer, teacher, coach, charitable organization, or other

• Resume outlining volunteer activities, interests, part-time work etc.

• Confirmation letter of attendance from institution

Scoring is based on a matrix. For example, if your child has been accepted into a college diploma program in International Businessor Customs and Freight Forwarding or Logistics – even though the student will take general courses for the first year or two – thatstudent will score higher on the matrix. Similarly, a student who has been accepted into a program such as a Bachelor of Commerce,or a Bachelor of Arts with an International Relations/ Business/Logistics/ Commerce/Geography major who takes general coursesin the first year would score higher than a student without an indicated major in one of these areas. If a child has been acceptedinto a General BA program, without indicating a major in one of our targeted areas of study, it is likely that a more suitable candidatemay apply – one who has applied in one of our targeted areas of study – and therefore would be scored higher than someone in ageneral program.

There is no question that CIFFA’s intention is to promote international freight forwarding or, if you prefer, ‘global supply chain logistics’as a career of choice among students. Our industry needs engaged, intelligent, highly educated workers to lead us into the future.Our Scholarship program was designed to help get us there.

Scholarships are in the amount of $3,000 with a minimum of one and a maximum of three scholarships being awarded each year. Scholarshipsare paid in two installments of $1500 during the first and second years of study in an international trade, logistics or business course leadingto a diploma or degree.

The scholarships are advertised in The Forwarder and in the CIFFA e-Bulletin from April - July each year. Applications will be acceptedbetween June 15th and July 30th each year. The 2011 application is posted on the CIFFA website.

Support your industry. Support your child.

Apply today for the CIFFA scholarship.

Page 19: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

Age

nce

Linéa

l - 3

3 (0

)3 2

0 41

40

76

ONE ALLFOR

ICS via conex is a transmission platform especially dedicated to the Import Control System which manages the exchange of EU advance security declaration between operators worldwide and the numerous European customs administrations prior to the entry of goods into Europe. Our solution is multimodal (Air, Sea, Land), technically flexible (Full EDI, Web application, EDI/ WEB mix), multi-country (a single and direct connection to the 27 + 2 EU IT systems).

ICS via conex supplements the CONEX platform which already manages 60 million messages per year to the customs administrations of several countries. Working with a single solution like ICS via conex means avoiding multiple system development and removes the need to apply personally for country-specific certification.

Page 20: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 201120

151 156163

180

195

214

229 234

249

80 8194 98

104113

136 137147

0

50

100

150

200

250

300

2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008 2009 2010

2002 - 2010 Membership Trend

Regular Associate (including Educational Partners)Type of Membership

etaciifertCed ncadvA

lA

FICadeniatboydaer

?etacifitreCAFF

hetfoe nois

he tfor esitsquiprere

l aionsseffePro(FPF

er rdarwoFhtreigF

nd a)iontanigesD

.alomipDTAAIF

TrC

er tsegi R:1120r foNew

gorplanoitiddaowTeveihcaotderiuqer

:etacifitreC

erFdezilaiceMniahCylpp

ggnitekraMdna

e!mityaner

erasmargdecnavdAna

secivreSthgietnemeganaM

egR

er mbeeptSroffoeindladen iotratiseg

416m;o.caffaifffc@iontaeduc -234

sesurocer A h.15ttsuugA

234- 225)(100 5

Even in these difficult economic times, Freight Forwarding companies continue to find value in CIFFA membership. Since our April 2010 issue ofThe Forwarder, CIFFA has welcomed 16 new Regular Members and 14 new Associate Members.

Membership Grows

Regular Members

5 Continents Global Logistics Inc.Albatrans-Robert Groupe Logistique Inc.

Amaras Inc., Global LogisticsAP Logistics International

ContainerWorld Forwarding Services Inc.Flying Fresh Air Freight

HECNY Transportation (Canada) Ltd.jas Forwarding Worldwide Inc.

Kintetsu World Express (Canada) Inc.List Transport Inc.Logikor Inc.

North American Cargo Solutions Inc.Ray-Mont Logistics

Thompson, Ahern & Co. Ltd.TransOcean Transport Agency Canada Ltd.

World Wide Logistics Inc.

Associate Members

AIM Logistics Inc.AVEC Insurance Managers Inc.

Beneplan Inc.British Columbia Maritime Employers AssociationFraser Surrey DocksGroupe Lafrance

Harbour Link Container Services Inc.McKeil Marine Limited

Muzz Inc.North American Crating Inc.Saint John Port AuthoritySummit NW Corporation

Team Transport Services Ltd.Wal-Mart Canada Corp.WinsCar Transport Inc.

Preferred Vendorscontinue to offer value to Members

www.nacora.com

www.descartes.com www.cargocover.com

www.beneplan.net

For more information on the benefits of the program pleasevisit www.ciffa.com/vendors_benefits.asp.

Associate Members interested in becoming Preferred Vendorsplease contact [email protected].

Page 21: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 2011 21

Effective logistics strategies are the driving force behind a company’s success. As industry leaders move their firms into the global marketplace, they increasingly need talented individuals with a mix of supply chain management and logistics knowledge. Apply now to Centennial College’s new Logistics Management Graduate Certificate program and in just eight months you could gain the skills needed to launch a successful career. To find out more, e-mail us at [email protected] or call 416-289-5000.

PREPARE FOR A CAREER IN LOGISITCS MANAGEMENT

The Future of Learningcentennialcollege.ca

Rebecca Nielsen, Kirsty Panneton and Paul Lobas learn how to ‘Protect Your Business with CIFFA STCs’ during the ½ day workshop in Calgary on March 9th.

Calgary Members Chill at Networking Event

Thanks to Ian Kennedy, President of ITN Logistics Group for arrangingCIFFA’s Ruth Snowden as keynote speaker at the Swedish-CanadianChamber of Commerce sponsored “Nordic Luncheon” in Toronto onMarch 17th. CIFFA’s presentation outlined how a professional freightforwarder can help Canada’s importers and exporters overcome someof the hurdles in the competitive global arena of ‘International Trade andRed Tape.’

International Trade and Red Tape

It may have been minus many degrees outside, but the atmosphere waswarm and welcoming inside at the CIFFA hosted networking event inCalgary on March 9th. More than 40 employees of CIFFA Member firmscame in from the cold to enjoy some wings and a beverage at the localToad 'n' Turtle Pubhouse & Grill.

During his introductory remarks Calgary based Paul Lobas from ITN Logistics, a long-serving Director on the CIFFA National Board, welcomed everyone, mentioning how great it was to see such a goodturn out for the party and wondering why more people hadn’t been atthe CIFFA training workshops earlier in the day. As Calgary is includedin CIFFA’s Western Region, Paul Courtney, CIFFA’s Western Regional Chairwho attended from Vancouver was pleased to acknowledge that well at-tended social activities in Vancouver, such as the annual ForwardersChoice Awards gala dinner and the July golf tournament, were able to generate net revenues that allowed CIFFA to host the evening. The applause was loud and sustained as Calgary showed their appreci-ation to their Vancouver colleagues.

Page 22: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 201122

NORTH AMERICAN CRATING INC.

Export Crating & Preservation Packaging Loading, Blocking & Bracing Sea Containers On-Site Packaging at any location within Canada & USA Pick-up & Delivery of Crated Cargo Warehousing & logistics Project Management

We are a fully registered Heat Treated Wood facility. Conveniently located in Mississauga and close to all major highways and airport We invite you to contact Edward Perdue Cell: (416) 818-4104 Rory Hastings Cell: (905) 928-4209 Dorine Duquet Cell: (647) 987-3753

3983 Nashua Drive Unit 2 Mississauga, ON L4V 1P3 Tel: (905) 405-8885 Fax: (905) 405-8866 www.nacicanada.com

HT CERTIFICATION CA-01233

CIFFA’s newly introduced national sponsorship program has been a resounding success! Thank you to all of our 2011 sponsors for their continued support of CIFFA.

CIFFA Welcomes our National Sponsors

Diamond Ruby

Links to the sponsors’ websites can be found at:www.ciffa.com/national_sponsorship_program_current.asp

Check out the benefits of becoming a Diamond or Ruby CIFFA sponsor:www.ciffa.com/national_sponsorship_program_details.asp

Direct your sponsorship questions to Marilyn Massoud, Secretary Manager:

[email protected]

Page 23: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

www.port-montreal.com

Tie your business to the worldIf the success of your business is tied to the rest of the world, the Port of Montreal can take you there. From reducing transit time between the American Midwest and Europe to offering alternative routes to global markets, the Port of Montreal is the connection you need.

Page 24: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 201124

Incoterms® Time to update the Old FormsThe International Chamber of Commerce (ICC) released a revised version ofIncoterms rules that formally became effective on January 1, 2011. Thesepublications are exclusively available from The Canadian Chamber of Commerce Bookstore, www.chamber.ca. There are a number of significant changes included in Incoterms® 2010 of which all traders –whether or not involved in the international sale of goods – should be aware.

What are Incoterms?Incoterms are “international commercial terms” established by the ICCthat are intended to reflect the practice of parties to contracts for the saleof goods. Originally intended solely for international sales, they are nowintended for both international and domestic contracts. Incoterms areshort-form abbreviations for a bundle of specific rights and obligations allocated as between the seller and buyer. Incoterms are notlaws, and they do not override domestic laws. Nor are they mandatory.Instead, the seller and buyer may elect to adopt an Incoterm or maychoose to specify in detail all rights and obligations of buyer and seller ina detailed contract rather than adopt any particular Incoterm. However,Incoterms are limited to certain rights and obligations, chiefly in the areasof allocating responsibility for freight costs, transfer of delivery/risk ofloss, export/customs clearance and, in some cases, the requirement to

obtain insurance. As such, Incoterms alone cannot constitute a contractbut rather form only one part of a contract of sale.

Principal New Features of Incoterms® 2010 RulesA number of notable revisions have been made to the Incoterms rules.They include, among others: a deletion of four existing terms and theirreplacement by two new terms; a change in the presentation of the termsinto two distinct classes, by mode of transport; the introduction of “guid-ance notes” before each Incoterm rule; and the deletion of the referenceto “ship’s rail” in the context of the three Incoterms rules that previouslywere premised on this concept.

Two New Incoterms RulesThe number of Incoterms rules has been reduced from 13 to 11. Four ex-isting terms were deleted and two new Incoterms rules were introduced. The four Incoterms rules that were deleted are Delivered at Frontier (DAF), Delivered Ex-Ship (DES), Delivered Ex-Quay (DEQ), andDelivered Duty Unpaid (DDU). These were replaced by two new Incotermsrules, namely, Delivered at Terminal (DAT) and Delivered at Place (DAP).The two new rules have made the deleted terms superfluous and are simpler to use.

cont’d on page 26

Palmer Marketing 905.672.6282 800.247.5550

[email protected]

Let our team help yoursProud to serve the transportation industry since 1988!

B-ManPM Mascot

Promotions and Print Production

AnthonyGraphic Artist and Account Manager

Graphic Artist and Photographer

MarlonWeb Design and Flash Specialist

JerryAll Things Web and Technical

CarlosWeb and Print Designer

RudyGraphic Designer and Illustrator

SamCreative Director and Account Manager

LeeThe Boss Since 1988

Page 25: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

Business Media for Canadian Supply Chain Professionals

CTL.ca

e-News Aler

tse-News Aler

eb TVWWeb TVranspor‘TTranspor

tation Matters’ranspor

Page 26: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 201126

Delivering capacity to meet your needs.

Port Metro Vancouver is the third largest

container port on the West Coast. And we’re

working hard to deliver reliable service.

We’re increasing capable capacity, investing

in infrastructure, and collaborating with our

partners to meet your needs.

cont’d from page 24

For businesses operating with standard forms, it is advisable to review theuse of Incoterms in old forms, particularly if any of the deleted Incoterms havebeen used. While it is still possible to use the old terms, such use may causeconfusion and potential disputes.

Two Distinct Classes Based on Mode of TransportPreviously, the Incoterms were categorized as “E, F, C, or D” terms. In Incoterms® 2010, the terms are presented in two distinct classes: rules whichcan be used for any mode or modes of transport; and rules solely for sea andinland waterways transport. The following seven Incoterms rules can be usedfor any mode or modes of transport, even where a ship is used for part of thetransportation: EXW, FCA, CPT, CIP, DAT, DAP, DDP. The remaining four terms areintended to be used only for sea and inland waterways transport, where thepoint of delivery and the place to which the goods are carried both refer to ports:FAS, FOB, CFR, CIF. As an illustration, containerized shipments are inherentlymulti-modal and therefore the water-based terms would not be appropriatewhere containerized shipments are at issue.

Rules Applicable to Domestic Sales of Goods Some of the changes that were made represent a clear direction by the ICC toextend the utility of the Incoterms rules to domestic contracts as well as totheir traditional use in international contracts. For example, developments suchas customs unions (i.e., the European Union) result in less of an emphasis on“border” issues and payment of customs duties and the need for customsclearance. In addition, the repeal in 2004 of the U.S. federal UCC “FOB” termshas opened an opportunity for Incoterms rules to reach a wider audience ofusers for both wholly domestic as well as international trade.

Deletion of “Over the Ship’s Rail” ConceptIn the case of the terms FOB, CFR, and CIF, the seller’s obligation previously ex-tended to the loading of the receiving vessel. This was complete once the cargowas “over the ship’s rail”. This concept was deleted in Incoterms® 2010. Now,the goods are considered to be delivered by the seller when the goods are “onboard” the vessel. This adds greater clarity to the point in time where risk of lossis transferred from seller to buyer in such cases.

cont’d on page 28

Page 27: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International
Page 28: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 201128

Get the global advantage

Get the global advantage

������ ���� ������$ ���������������������- �� ��$��������

���!� �$�����������#��������- �"���� ����� �� ����!� �$���� ����� ���- �������������������� ���� ������� � ��$�!

��� �� ��������������� ���������������# ����������������������������

MicroSkills is a non-profitcommunity agency, proud to be anAssociate Member and a partner withCIFFA in preparing skilled personnel toincrease your competitive advantage

Addition of “Guidance Notes”Guidance Notes have been added at the beginning of each Incoterm rule, de-scribing the main features of each rule and recommendations on when par-ticular rules should be preferred over others. The Guidance Notes replace alonger “Introduction”, which previously was found prior to the discussion ofthe terms and, like the Guidance Notes, was not considered to form a part ofthe Incoterms themselves. The Guidance Notes are quite clear and readable.

Planning ConsiderationsIncoterms rules represent a bundle of rights and obligations that may, whenagreed by the parties to a contract of sale, form part of the contract. An In-coterm does not have to be adopted in its entirety. Variations from the In-coterms rules are possible but, when doing so, parties should be careful toclearly specify the deviations from the usual Incoterms rules. In addition, In-coterms should not be considered in a vacuum. Other laws and treatieswhich may impact contracts for the sale of goods should also be considered.These include the Convention on the International Sale of Goods (which hasbeen implemented into Canadian domestic law at both the federal andprovincial levels), as well as the sales of goods legislation in each province. The particular Incoterms rule to be applied to any particular contract for thesale of goods is not fixed. The parties’ choice of Incoterms may be determinedby reference to a number of factors, such as: the type of goods at issue (bulkgoods, containerized); the mode or modes of transport; the respective bar-gaining strengths and/or capabilities of the seller and buyer, etc.

When using an Incoterm rule, the parties should strive to be as preciseas possible in specifying a place or address along with the three-letterabbreviation, and should also clearly specify the particular version of the

Incoterms rules being applied. An example would be DAP 199 Bay Street,Toronto, Ontario, Incoterms® 2010.

ConclusionSellers and buyers can benefit from use of Incoterms rules in negotiatingdomestic and international contracts for the sale of goods. Parties shouldensure that they fully understand the obligations they are undertakingwhen they agree to a particular Incoterm, and clearly specify any varia-tions from the term consistent with the bargain they have reached. In thisway, the parties will better achieve the goal of the Incoterms rules – toallow business to function more quickly and efficiently with a minimumof uncertainty and misunderstanding between the parties.

Jointly written by: Greg Kanargelidis is a Partner with Blake, Cassels& Graydon LLP: [email protected] or at 416-863-4306;and Roy Millen is a Partner with Blake, Cassels & Graydon LLP:[email protected] or at 604-631-4220.

The Canadian Chamber is  the most influential business association in Canada - the national leader of public policy advocacy on national and international business issues and is focused on fostering a strong, competitive economic environment that benefits Canada and improves the standard ofliving of all Canadians. ICC publications available through the Canadian Chamber of Commerce are valuable reference tools for bankers, trade con-sultants, shippers, truckers, arbitrators, lawyers, customs brokers, exporters,importers, or anyone doing business across the border or around the world. CIFFA Members receive a 10% discount on Incoterms® 2010 products!

cont’d from page 26

Page 29: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 2011 29

S u b s c r i b e N o w : P u b l i s h e d t w i c e a m o n t h . P r i n t $ 2 0 0 / y e a r o r P D F e m a i l $ 1 7 5 / y e a r . R e p l y t o C o u r t n e y T o w e r , ( P a r l i a m e n t H i l l j ourna l i s t ) , Ottawa Canada / ctower@sympat i co . ca 6 1 3 - 9 9 2 - 5 4 3 4 / w w w . b a r c o d e b o r d e r . c a

Y o u T r u s t U s . N i n e y e a r s o f a c c u r a c y , i n s i g h t , b a l a n c e . O n w h a t m a t t e r s t o y o u i n c r o s s - b o r d e r a n d w i d e r i n t e r n a t i o n a l t r a d e t r a n s p o r t a t i o n . T h a t u n e v e n b a l a n c e : s e c u r i t y v e r s u s t r a d e . P r o b l e m s o f c o m p l i a n c e . I n f r a -s t r u c t u r e n e e d s . W h e r e w e a r e h e a d e d n o w .

sUtsurTuoYalab,thgisni

ssorc - redroboitatropsnart.edartsusrev

enerutcurts

s sraeyeniN. uccaforettamtahwnO.ecnitanretnirediwdnar

nalabnevenutahT.noailpmocfosmelborP.eheraewerehW.sde

,ycaruniuoyotsredartlanoiytiruces:ec

arfnI.ecna -.wondedae

ebircsbuS

002$tnirPCotylpeRO,)tsilanruoj

6 1 3 - 9 9 2

woNe : dehsilbuP eciwtroraey/0 FDP liame $

rewoTyentruoC , ilraP(adanaCawattO / @rewotc

- 5 4 3 4 edocrab.www/

htnomae . .raey/571

tnema lliHac.ocitapmys

ac.redrobe

THE FORWARDER Magazine2011 Advertising Rates Published bi-annually in the Spring and Fall, with a circulation toapproximately 1500 recipients, as well as being posted on the CIFFAwebsite under The Forwarder Magazine archives.

Advertising Rates Cost

(Per Issue) (plus applicable taxes)

Member Rate Non-Member Rate

Outside Back Cover $1500.00 $2000.00

Inside Front Cover $1000.00 $1500.00

Full Page $550.00 $660.00

Half Page $300.00 $360.00

Quarter Page $200.00 $240.00

Fall Deadline for Artwork: October 3, 2011Prices based on digital artwork being provided.Acceptable Format: High resolution PDF.

Contact the Secretariat to place your ad now: [email protected] quoted are per issue.

The following résumés are available:

CIFFA has received requests from international freight

forwarding companies looking for agency relationships

with Canadian firms, from the following locations:

Note: CIFFA has not reviewed this correspondence or vettedthese companies or individuals. Interested members send yourrequests to [email protected], quoting either Agency or Résuméitem number being requested.

Correspondence from around the WORLD

Barrie, ON: 2 years experience in import/export, International Business Management post-graduate program Georgian College.

Kitchener, ON: CIFFA Certificate, Dangerous Goods Regulations Category 10 for Load Planner.

Markham, ON: 19 years experience in shipping and logistics.

Mississauga, ON: 9 years experience in marketing/inside sales, CIFFA Certificate.

Mississauga, ON: Over 8 years progressive administrative and operational ocean & air transportation service with CIFFA Certificate.

St. Catherines, ON: Bilingual, 7 years experience in sales and customer services, CIFFA Certificate.

Toronto, ON: 10 years of experience in marketing, and two CIFFA Certificates.

Résu

més

1 China, Shenzhen

2 China, Guangzhou

3 China, Shanghai

4 China, Hong Kong

5 China, Ningbo

6 Colombia, Buenaventura

7 Columbia, Cartagena

8 United Arab Emirates, Dubai

9 Egypt, Alexandria

10 India, Mumbai

11 Iran, Khorasan

12 Mongolia, Ulaanbaatar

13 Pakistan, Karachi

14 Pakistan, Lahore

1.

2.

3.

4.

5.

6.

7.

Page 30: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

THE FORWARDER Spring 201130

Platinum Sponsors

Media Sponsors

Gold Sponsors

Silver Sponsors

Diamond Sponsor

SCL & CITA’s Annual Conference & Trade Show • 44th Edition

BROUGHT TO YOU BY:

supplychaincanada.com

Opening Keynote Speaker:

Kevin O’LearyCBC Dragons’ Den

MAY 10-11, 2011International Centre, 6900 Airport Road, Toronto, ON Canada

Register online atsupplychaincanada.com

• RESEARCH • EDUCATE • NETWORK

For further information(905) 695-0123 x214

Win a round trip for two to Hong Kong!

Sponsored by:

Win a round trip for two to Hong Kong!

Sponsored by:

Bronze Sponsors

Plan your 2012 marketing budget now

Mechanical Specifications and Costs: For full Colour or Black & WhiteMember Rate Non-Member Rate

Outside back cover $2000.00 NOT APPLICABLEInside covers (front or back) $1650.00 NOT APPLICABLEFull page $1375.00 $1600.00

• Bleed 8 ¾" (width) x 11 ¼" (height)• Trim 8 ½" (width) x 11" (height)• Live area 7" (width) x 10" (height)

Half page (horizontal) - 7 ½" (width) x 4 7/8" (height) $830.00 $1000.00Half page (vertical) - 3 5/8" (width) x 10" (height) $830.00 $1000.00One-quarter page colour - 3 5/8" (width) x 4 7/8" (height) $600.00 $775.00

** Additional Notes:• All ads that bleed please add at least ¼” to each side of image.• All prices are based on digital art being provided.• Set up charges will be charged if applicable.

Acceptable Format: High resolution PDF.Prices subject to applicable tax(es).Deadline for artwork is November 18, 2011 Publication date: February 2012

MEMBERS ONLY SPECIAL One-quarter page Black/White - 3 5/8" (width) x 4 7/8" (height) $350.00

Send artwork (digitally or on a CD) by November 18, 2011 to the CIFFA Secretariat:

Canadian International Freight Forwarders Association Inc.480 - 170 Attwell Drive, Toronto, Ontario M9W 5Z5Tel: 416-234-5100 | Fax: 416-234-5152 [email protected] | www.ciffa.com

Visit CIFFA Booth No. 320 at the

SCL & CITA Conference.

The 2012 Membership Directorywill be distributed to over 1500 companies including Regular and Associate members in addition to

various government offices, associa-tions, all advertisers, as well as Cana-dian foreign trade missions. This is theperfect way to market your services.

Register today www.supplychaincanada.com

For a Free Trade Show Passa value of $25.00

Quote code: p-ciffa

Page 31: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International

Knowledgeable importers & exporters rely on CIFFA members for professional freightforwarding and logistics services...worldwide. Our members:

Canadian International Freight Forwarders Association 480–170 Attwell Drive, Toronto ON M9W 5Z5Tel: (416) 234-5100 Fax: (416) 234-5152 Toll Free: 1-866-282-4332 Email: [email protected]

Regular Members as of: 4/1/2011

(ABH) Oversize Direct Ltd.5 Continents Global Logistics Inc.A & A Contract Customs Brokers Ltd.A. C. Global Freight Inc.A.G.O. Transportation Inc.a. hartrodt CanadaA.W.W. Kyle Logistics Inc.AB Forwarding ABCO International Freight Inc., Subsidiary Cole Group of CompaniesAC Freight Forwarding Inc.Academy Logistics Services Inc.Adcom Worldwide CanadaAdvance Distribution & Logistics Inc.Advantex Express Inc.Aeronautic Freight Systems Inc.Affiliated agents en douane Ltée.AG LogisticsAgility Logistics, Co.Air World Express, Division of Key Mail Canada Air-Ship International Inc.Air-Ship International Inc.ALB Global Solutions Inc.Albacor Shipping Inc.Albatrans-Robert Groupe Logistique Inc.Allfreight Services Int’l Inc.Amaras Inc., Global LogisticsAmeri-Connect Freight Services Inc.AMI Logistics Inc.Anchor International Freight Services Inc.Anything To Anywhere Worldwide LogisticsAP Logistics InternationalAquaMar Shipping Inc.Aramex Canada Inc.Arrival Air & Sea Transport Inc.Atlas International Freight Forwarding Inc.AWF Forwarding & Logistics Ltd.Axsun Global Inc.Axxess International Inc.Bali International Inc.BAT Transportation Inc.BDP Canada ULCBeacon International Despatch LimitedBeler International ForwardingBellville Rodair InternationalBeyon Logistics Ltd.

BGL Brokerage LimitedBig Freight Systems Inc.Branson International Inc.Browman Freight Services Inc.Buckland Customs Brokers LimitedC.S. World Cargo 2000 Ltd.Canaan Transport Group Inc.Can-Tran Intl. Inc.Cargo Spectrum Forwarding Inc.Cargolution Inc.Cargomax International Inc.Cargopedia Inc.Carson InternationalCavalier International Air Sea Freight Ltd.CEVA Freight Canada Corp.Challenger Logistics Inc.Checkpoint Logistics Inc.CJL Logistics Inc.CMS ShippingColbeck & Clarke Inc.Cole Freight Inc.Comage Container Lines Inc.Conova Logistics Inc.Consolidated Shipping Line, Inc.ContainerWorld Forwarding Services Inc.Convoy Logistics ProvidersCourtney Agencies Ltd.CrossBorder Solutions Inc.Cyberfreight Systems Inc.Damco CanadaDavid Kirsch Forwarders Ltd.DB SchenkerDelmar International Inc.Destination Logistics Inc.Deugro (Canada) Inc.DHL Global Forwarding (Canada) Inc.Dimerco Express (Canada) CorporationDolbec Y. Logistique International Inc.DRT Logistics International Inc.DSV Air & Sea Inc.Ecu Line Canada Inc.Eurofret Canada Inc. Euroworld Transport System Canada Inc.Expeditors Canada, Inc. Farrex Freight Systems Ltd.

Livingston International Inc.Locher Evers InternationalLOGFRET Inc.Logikor Inc.Logistics Plus Canada, Ltd.Lomas LogisticsLyman Container Line, Division of LCL Canada LimitedLynden Canada Co.M.A.P. International Freight Inc.M.O.T. Intermodal Shipping Inc.Maisliner LogisticsMaltacourt (Canada) Ltd.Manitoulin Global ForwardingMannix Freight ServicesMantoria, Inc.ManX Forwarding Inc.Maple Freight PartnershipMathers LogisticsMC Freight SystemsMELLOHAWK Logistics Inc.Mercator Transport International Inc.Metras Shipping & Forwarding Inc. MFS Mendelssohn Freight Services, (MFS) Inc.Mid Forwarding Inc. dba Worldwide Animal TravelMilgram International ShippingMSM WorldwideNear North Customs Brokers Inc.Nippon Express Canada Ltd.North American Cargo Solutions Inc.O.T.S. Global Logistics Inc.Ocean Transportation Services Freight Forwarding Inc.Oceanair Cargo InternationalOdyssey Shipping Ltd.OEC Overseas Express Consolidators (Canada) Inc.Omnitrans Inc.One Blue World Logistics Inc.Outaouais Moving Inc.Overseas Container Forwarding Inc.P & T International Forwarding Ltd.Pacific Overseas Forwarding Inc.Panalpina Inc.

Parry International Relocations Ltd.Patriot Freight Services Inc.Pentagon Freight Services Canada Ltd.Perishables International Transportation Inc.PF Collins International Trade SolutionsPGA Trading & Shipping Inc.Phoenix Bathurst Fret-Freight Inc.Polaris TransportationPolimex Forwarding Corp.Priority Air CargoProject Logistics Consulting Ltd.Purolator International Ltd.Quad City Port Services, Inc.Ranger Express Forwarding Inc.Ray-Mont LogisticsRenaissance International Freight Forwarding Inc.Ridgeway North America LimitedRodmarc Enterprises Inc.ROE Logistics Inc.Rohde & Liesenfeld Canada Inc.Roleco Trading & Forwarding Inc.Ronco Freight InternationalRutherford Global LogisticsSameday WorldwideSavino Del Bene Corp. (Canada)SDR International Freight Inc.SDV Logistics/Logistiques (Canada) Inc. Sea Air International Forwarders Ltd.Sea Cargo Air Cargo Logistics Inc.Sea Projects Alliance Inc.Secure Freight Systems, Inc.Shipco Transport Inc.Shuttle Freight Logistics Inc.Skyway International Freight Forwarders Ltd.Smaster Logistics Canada Ltd.SPI International TransportationStrategic Shipping Canada Inc.Synergex Logistics Corp.Texcom Shipping Inc.TFM Global LogisticsTier One Transportation Group, dba Transgroup Worldwide Logistics

TLS International Inc.Toll Global Forwarding (Canada) Ltd.Total Logistics Partner Ocean Consolidators Inc.Trade Link International Ltd.Traffic Tech Inc.Transera International Logistics Ltd.TransOcean Transport Agency Canada Ltd.Trans-Pro LogisticTri-Ad International Freight Forwarding Ltd.Tri-Alliance Freight Services Inc.Triumph Express Service Canada Inc.UE Canada Inc., Global Logistics ServicesUnifreight International Ltd. United Cargo Link Ltd.Universal Logistics Inc. UPS Supply Chain SolutionsUTC Overseas Canada Inc.UTi, Canada Inc.V. Alexander Transport Systems (Canada) Ltd.Viamar Scilla Transport International Inc.Vinpac Lines (Canada) Inc.W. G. McKay LimitedWeiss-Rohlig Canada Inc.Welke Global Logistics Ltd.Westport Freight Services Inc.Whizdom International Freight Services Inc.Wide Range International Inc.Willson-Green Logistics LimitedWorld Wide Logistics Inc.YBC Fortis Logistics Inc.

Farrow International, Division of Russell A. Farrow LimitedFast Freight Forwarding Co.FedEx Trade Networks Transport & Brokerage (Canada) Inc.Flying Fresh Air FreightFreight Partners International Inc.Freight Systems (Canada) Inc.Freightcan Global Inc.Frontier Forwarding Ltd.Garroni International Logistics CorporationGeo Express International Geodis Wilson Canada Ltd.Gillespie-Munro Inc.Global Freight Solutions Inc.GMW Freight Services (Canada) Ltd.Golden Jet International Freight Forwarders Inc.GTI Global Freight SystemsGTO Global Logistics Inc.Guy Tombs LimitedHarte & Lyne LimitedHartwick O’Shea & Cartwright Ltd.HECNY Transportation (Canada) Ltd.Hellmann Worldwide Logistics Inc. ICECORP Logistics Inc.Imperial Logistics Inc.International Fastline Forwarding Inc.International Transportation GroupInter-Transport Ltd.IPE Logistics (Canada) Inc.ITN Logistics GroupJ. René Hébert Ltée.jas Forwarding Worldwide Inc.JF Hillebrand Canada Inc.KB Forwarders Ltd.Kelron Logistics Group of CompaniesKintetsu World Express (Canada) Inc.KRG Logistics Inc.KTI Logistics Ltd.Kuehne + Nagel Ltd.Latin America Cargo (LAC)LCL Navigation Ltd.LFI Laurentide Forwarders (Canada) Inc.List Transport Inc.

Page 32: Spring 2011 THE FORWARDER - Canadian International …International Federation of Freight Forwarders Associations) the In-ternational Air Transport Association (IATA), The International