With the fall federal election of 2021 in mind, in August 2021 CIFFA prepared a policy document,  “Critical Issues in Transportation Affecting Canada’s Recovery” which addressed all of the political parties on the most critical issue in Canada today: our economic recovery from the chaos and losses of the Covid 19 pandemic.  

With the results of the election behind us, and a new government mandate ahead, CIFFA aims to lobby with renewed force to represent the interests of membership. 

The following provides an outline of the policy document and our aims. 

Meeting our economic challenges with vigorous and effective policies will enable us to confront the many social and environmental issues we face.  Alternatively, if Canada does not address the economic challenges effectively, we will be weaker on every issue.  

The Covid experience has been unprecedented. No one could have predicted how it evolved in our national life.  Some industries were relatively unaffected – some even flourished – but others have been crippled and we will experience the impacts for years to come.  

In confronting the economic damage, governments must confront the reality that markets have been distorted and Canadians have lost market share. There is no guarantee that we will win this back unless it is seen as a cooperative national priority.  

One critical reality that should form public policy is this: it is not as much about the ambitious “new” policies and infrastructure, as it is about executing the existing framework with efficiency and excellence.  In places where the federal government’s agencies are directly involved in economic activity, it is critical that they execute with very high levels of reliability and timeliness.   

This has implications for federal staffing targets as well as complex, time-consuming regulatory processes.   

Over the last three decades Canada has relied on market forces to craft the services and prices for transportation. Generally, this has been a successful strategy, one we endorse with appropriate government oversight for those areas where concentration of market dominance can lead to abuse of dominant position.  With a few exceptions we have also employed a “user pay” approach which has kept system costs away from taxpayers.   

However, the Covid 19 epidemic has created completely unprecedented circumstances. 

For the next two years the federal government will need to maintain a greater degree of responsiveness to economic developments than it has since deregulation.  It must ensure the cost efficiency of the transportation network that affects all industries and travelers.  

Customs Services and Border Modernization: 

One of the most encouraging developments in recent government decisions was the announcement of a proposed investments in border modernization.  We remain very supportive of this concept and eager to see details of its implementation.  

Commercial stakeholders currently navigate seven different IT systems for commercial goods movements. The present system has a lack of cohesive strategy, as Canadian importers and exporters regularly struggle with myriad systems and overlapping regulations that impact their businesses on a daily basis. 

The solutions – some of which are being tried now – include: 

  1. Better harmonization of different agencies/departments and mandates, especially of their IT systems.  
  2. A significant investment in technology to make information available at all ports and to capture data on a system-wide basis. 
  3. Continued investment in border officers to ensure an adequate and well-trained workforce.  
  4. Improvements in transparency to benefit users and the various agencies involved.
  5. Investment in the physical infrastructure to facilitate more modern border processes, i.e.: dedicated lanes for “trusted shippers” who should be segregated from the general population at border crossings. 
  6. Aggressive implementation of the Single Window Initiative (SWI) will benefit users while maintaining federal information requirements.
  7. Move ahead with the implementation of the promised CBSA Assessment and Revenue Management program which was introduced as a program to “provide a modern interface enabling a simplified importation process, thereby increasing visibility and reducing costs for importers.”  and which should produce important efficiencies for users as well as government.  

Trade Gateways  

As our economy recovers and trade volumes climb, there is an opportunity to craft much improved regional strategies to increase the efficiency of our trade corridors. These corridors are a combination of private and public facilities, suggesting the need for increased collaboration among the various participants.  

The promise of infrastructure investments by the federal government, individual ports and private facility owners could materially improve Canada’s competitiveness if a clear plan existed. But these investments will be much influenced by an actual strategy in the Canada Trade Gateways.   

Armed with better information, port users will be better able to contribute to a modern sectoral strategy for Canada’s national gateways, especially regarding infrastructure investments which will enhance productivity and competitiveness. 

Specific sectors requiring attention  

While 2020 – 21 has been a stressful year for all modes of transportation, it has been especially disruptive for our marine and aviation sectors. Addressing the myriad issues confronting these sectors will require new approaches for the federal government and flexible policies for an indeterminant recovery period. 

Marine: 

Considering how critical the marine industry is to Canadian trade, it is odd that the sector gets less attention and less support from the federal government than others.  This needs to change as this is one of the transportation sectors most disrupted by Covid.  

A lack of focus in the federal government could leave Canadians far behind European and American shippers as economic recovery progresses.  

The International Federation of Freight Forwarders Associations (FIATA) recently declared: “The maritime supply chain is totally disrupted; it is on its knees. The reliability in terms of transit and frequency is the worst ever, predictability is nonexistent…without any planning certainty, managing the supply chain has become a mission impossible. 

The Covid pandemic has overstressed Canada’s marine sector, creating significant congestion and unreliability.  It has also created the opportunity for price escalation (price gouging, in fact) which is driving up costs borne by Canadian exporters, importers and consumers. The windfall profits being enjoyed by foreign owned carriers are coming directly from the pockets of Canadians. 

According to Reuters, the average price world-wide to ship a 40-foot container has more than quadrupled from a year ago, to $8,399 as of July 1.  Prices have surged 53.5% since the first week of May. 

The congestion problem creates unexpected impacts:  it is so severe that shipping interests have been forced to ask for a postponement of environmental measures which they have previously supported, such as the transient killer whale recovery strategy. Unanticipated impacts such as these further our conviction that aggressive measures by the federal authority are called for, and not merely for economic reasons. 

An assertive national policy towards the sector is needed to ensure that trade volumes, shipping costs and service levels are brought back to normal to the benefit of the entire nation. 

Specific measures: 

1 Transparency 

A significant problem in marine shipping is the lack of on-time performance.  Container ships arrived on-time only 45% of the time, even before Covid 19 struck. Since then, the situation has been more chaotic and unpredictable. Vessels arriving early or late contributes to congestion, lack of reliability and costs.  

Requiring consistent data regarding traffic, waiting times, etc. would be a major benefit to shippers, ports, and terminals.  Modern technology makes real-time tracking possible.  

The federal government should require reporting, monitor, and make available to users, data on productivity and efficiency in Canadian ports.  

2 Act immediately to restrict price-gouging behaviour by marine carriers.  

Emboldened by the chaos in international shipping, carriers have taken the opportunity to impose new charges on shippers with little explanation or justification. Listed prices to ship from China to major ports in Europe and the U.S. West Coast are closer to $12,000 a container. Some companies say they are being charged $20,000 for last-minute agreements to get goods onto outbound vessels. 

These increased costs impact Canadian business and consumers.  Canadian transport and competition authorities should vigorously respond to protect our national interests, as authorities are doing in other jurisdictions.  

 3 “Canada first” prioritization of cargo through Canadian ports  

In the Covid-created chaos affecting supply chains, Canadian port and rail facilities are sometimes so constricted by US-destination cargos that they are squeezing out Canadian shippers.  Normal competitive market philosophies are not appropriate for this period of essential rebuilding – Canadian transportation networks are a critical factor of national recovery.  

This is a concept which would be implemented in the U.S. without hesitation. Facilities built and financed by Canadians should serve Canadian needs before they are rented out to other countries.  

4 Regulatory cooperation with U.S. 

Often our national interests conform to those of the U.S., where the regulatory authorities are far more aggressive in defending shippers. The Federal Maritime Commission in the USA and other regulators are investigating pricing and capacity management practices of shipping lines. Recent US inquiries into container imbalances and unfair demurrage charges have not been followed by any Canadian action.  Close cooperation between the national governments is critical.  A recent Executive Order by the U.S. President suggests new aggressive postures by regulatory agencies which, if not matched by Canada, will produce sharp price differences between Canadian and U.S. markets, with obvious competitive implications.  

Aviation:  

Without a strong federal commitment to a comprehensive aviation recovery plan, both the air sector and Canada’s overall competitiveness face considerable risk.   

Air transportation is a critical industry in Canada, enabling the movement of people and cargo, which are often combined in commercial aircraft.  On the eve of Covid 19 the sector was accounting for 256,000 direct jobs and contributes $23.4 billion in direct Gross Domestic Product (GDP). 

A characteristic of aviation is high fixed costs which are not sensitive to traffic volumes.  Airports must clear snow to allow flights regardless of how many passengers are on the aircraft.  This reality is present in all aspects of the aviation system.  During the Covid crisis passenger demand collapsed, which had a serious impact on cargo capacity as about 50% of cargo previously traveled in the bellies of passenger flights.  Dedicated cargo flights eventually replaced some of this capacity, but at much greater costs.  

The catastrophic declines in passenger volume left the sector unable to charge enough users to break even.  As a result, carriers, airports and NavCanada were all forced to borrow to maintain operations. This accumulation of debt represents a major threat to aviation’s recovery.   

Through the Covid crisis, government support was targeted at workforce retention and retaining essential services.  Later the Crown began providing specific aid to individual companies (Air Canada, Westjet, Air Transat, Sunwing, Porter). In the recovery phase the support needs to be “agnostic” designed to drive down system costs to the benefit of all users.  Ensuring airports and air navigation costs do NOT spike upwards is one of the most important measures the government can enact.  

  1. Provide financial support for the facilities – airports, air navigation – to ensure their heavy debt obligations do not produce sharply higher fees in the next two years as demand recovers. 
  2. Benchmark Canadian aviation against U.S. system costs, recognizing the danger of increased traffic diversion to (subsidized) U.S. airports; a particularly serious trend in a “user pay” Canadian system where fixed costs are borne by users regardless of their numbers. Adjusting policies to reflect changes in the air cargo sector.    
  3. Canada needs a specific strategy for maximizing the contribution made by air cargo to the economy.  Some elements:  

4 The indefensible airport rent system 

The Canadian International Freight Forwarders Association (CIFFA) has never supported the concept of airport rent which is simply a thinly veiled tax on users. This policy has forced airports to levy charges far greater than those the government imposed on travelers when it ran the airports itself.  Billions of dollars have been extracted from travelers through this hidden tax.  Normally “rent” is a payment received by a landlord, but the federal government does not function as such. It provides no upkeep of airport properties and assumes no risks. Canadians are paying their own government for the right to use facilities that they have already paid for as taxpayers.  The temporary suspension of airport rent during the crisis should be formalized as a permanent termination of this unjustifiable charge.  

At CIFFA, it is our hope that an elected government’s priorities will lie in executing the existing framework with considerable efficiency and excellence.  In places where the federal government agencies are directly involved in economic activity, it is critical that they execute with very high levels of reliability and timeliness.  This will address the most critical issue in Canada today: our economic recovery from the chaos and losses of the Covid 19 pandemic. 

CIFFA member and global professional services firm Aon plc provides a broad range of risk, retirement and health solutions. 

In a ransomware attack, threat actors gain unauthorized access to company networks and files using malicious software or malware. After gaining access, these cybercriminals encrypt files making them inaccessible, and demand a ransom payment in cryptocurrency in exchange for the digital key code(s) to decrypt the files.  

Ransomware attacks have become more advanced in their approach, including pre-emptive measures intended to coerce ransom payment such as targeting and destroying data backups to prevent restoration, and stealing data prior to encryption with the threat of public release. This leaves many victims with the difficult choice of either permanent loss of data and extended business disruption or paying a ransom to regain access and restore operations.  

For many ransomware victims, paying the ransom may seem like the only viable option. The possible consequences of business disruption and loss or public exposure of sensitive data are severe, and can include loss of revenue, breached contracts, missed deadlines, failure to meet customer or client expectations, damage to goodwill, or even, in the most extreme examples – such as with healthcare providers – possible loss of life. 

The most recent statistics on ransomware are staggering. The total number of global ransomware reports increased by 715.8% from 2019 to 2020². Ransom payments have risen as well, making a 60% leap in payment value since last year³. Some of the most sophisticated ransomware attack groups and malware variants are now averaging over $780,000 per payment. At these rates and amounts, it is no surprise that the predicted damages from ransomware are expected to be $20 billion in 2021. 

The Payment Conundrum  

Amid this cyber crisis, law enforcement has remained mostly neutral on the issue of ransom payments. Generally, law enforcement provides cautionary guidance around the risks associated with paying a ransom, warning that either the supplied decryption files may not work, or that the payment of a ransom may attract further exploitation. But, there is also consensus across law enforcement that those experiencing ransomware events are victims. Not surprisingly, to date there is scant record of prosecutions, much less convictions, of ransomware victims who have chosen to pay a ransom to recover critical files or restore the operation of critical systems. Until recently, the difficult decisions facing victimized entities (or those companies participating in incident response activities) was not whether it was a legal risk to pay a ransom.  

Rather, the primary focus in the ransomware conundrum was whether it made business sense to pay the ransom and, if so, how to both engage with the threat actor to negotiate and navigate the often-unfamiliar cryptocurrency landscape to facilitate payment. Post-payment, the most difficult issue typically facing a victimized entity was the often time-consuming and technically taxing decryption process.  

Ransomware is, by multiple measures, the top cyber threat facing businesses today¹. Unlike data breach, ransomware is a risk without discretion. Any company that either requires access to critical data, or faces loss or hardship in the event of business interruption is a potential ransomware victim. 

If law enforcement was involved or notified by a victimized entity at any point throughout this process, it was generally in the hope of receiving guidance (based on experience with similar previous attacks) or justice (if law enforcement could identify the ransomware threat actors). While law enforcement remained eager to work with victimized companies, the increase in ransomware attacks forced the selective prioritization of which cases to handle. Those cases that law enforcement could take on were appropriately focused on their mandate of criminal investigation and prosecution. This mandate, combined with the deluge of ransomware matters, ensures that victimized entities that notify and work with law enforcement still handle most aspects of the incident response investigation themselves, including root-cause analysis of the incident, the scope of the intrusion, and restoration of the business.  

Risk Mitigation Strategies  

Ransomware attackers often operate with the same discipline and approach of a traditional business, except in a criminal venture with criminal intent. Threat actors typically choose the path of least resistance to achieve their business goals, attacking vulnerable companies taking advantage of common exploits, or a lack of cyber defense and preparedness. To help mitigate the risk of falling victim to ransomware and in an effort to better prepare for a ransomware incident, consider these eight tips:  

  1. Be proactive – Being victimized by ransomware is a jarring experience. It tests an organization’s emotional responses to crisis, escalation procedures, technical prowess, business continuity preparedness, and communication skills, especially because the organization must sometimes interact directly with the attackers. Ensure that the Incident Response (IR) Plan/Playbooks, and/or Business Continuity Plan/Disaster Recovery Plan has been recently assessed, reviewed, and updated. But, most important, these plans and playbooks must be tested through simulated practice across realistic scenarios to help improve resilience.  
  2. Educate employees on cyber security and phishing awareness – Phishing is still a leading cause of unauthorized access to a corporate network, including as the entry point for ransomware attacks. Training users to not only spot a phishing email, but to also report the email to their internal cyber security team is a critical step in detecting the early stages of a ransomware attack. Companies must create a culture where all employees feel responsible for enterprise security, and are encouraged to participate in proactive detection of, and defense against, threats, risks, and attacks. Phishing awareness is a critical cornerstone to such a cyber secure culture. 
  3. Employ multi-factor or “two-step” authentication – Multi-factor authentication (e.g., a password – something employees know, plus an authentication key – something employees have) across all forms of login and access to email, remote desktops, external-facing or cloud-based systems and networks (e.g., payroll, time-tracing, client engagement) should be a requirement for all users. In many—but not all—instances, the presence of multi-factor authentication may even prevent the exploitation of stolen login credentials because the attacker does not also possess the necessary second piece of the login process, the authentication key. It is important to ensure proper multi-factor configuration. Multi-factor access controls can be even more effective if coupled with the use of virtual private network (VPN) interaction. 
  4. Keep systems patched and up-to-date – The rudimentary cyber hygiene activity of system updates and patching often falls by the wayside, especially as operations and security teams are stretched, systems and endpoints age and move towards legacy status, and new systems, hardware, and applications are introduced as businesses grow, mature, merge and divest. There are—and will continue to be—major unpatched vulnerabilities that allow attackers to compromise corporate networks. Attackers can often identify a vulnerable system with a simple scan of the Internet using free tools. They engage in this exercise broadly and indiscriminately, looking for exploitable systems on which to unleash ransomware and other cyber attacks.  
  5. Install and properly configure endpoint detection and response tools – Tools that focus on endpoint detection and response can help decrease the risk of a ransomware attack and are useful as part of incident investigation and response. However, many entities that invest in these tools fail to properly configure them to be of assistance in the event of a cyber event and investigation. Properly configured security tools give a much greater chance of detecting, alerting on, and blocking threat actor behavior.  
  6. Design your networks, systems, and backups to reduce the impact of ransomware – Ensure your privileged accounts are strictly controlled. Segment your network to reduce the spread of adversaries or malware. Have strong logging and alerting in place for better detection and evidence in the event of incident response. Having a technical security strategy that is informed by architects that know the latest attacks and adversary trends is important, as is the use of continuous threat intelligence monitoring in open source and on the dark web.  
  7. Consider risk transfer options – Because a ransomware attack can threaten an entity’s reputation and goodwill, the complete risk of ransomware can never be fully mitigated or transferred. However, in practicing ransomware preparedness, organizations should consider obtaining appropriate cyber insurance coverage. In doing so, organizations should review how coverage addresses indemnification for financial loss, business interruption, fees and expenses associated with the ransom and incident response, as well as considerations for service providers, such as the ability to work with incident response providers of choice. 
  8. Pre-arrange your third-party response team – an effective ransomware response will often include all or some third-party expertise across the disciplines of forensic incident response, legal counsel, crisis communications and ransom negotiation and payment. Seeking out, vetting and engaging with these professionals during a ransomware incident places additional burden on an already strained enterprise, and is ineffective and inefficient when every second counts and every decision is critical. As time is of the essence, it is critical to pre-vet and pre-engage a team of professionals to monitor and be ready to respond to a ransomware attack when it happens.  

Sources 

The fall issue of the Forwarder Magazine, published twice yearly, is now available and has been mailed out. The Forwarder Magazine is Canada’s only dedicated magazine for freight forwarders, load brokers, and cartage companies. Each edition contains original content on the issues affecting logistics professionals. The magazine celebrates the achievements of its member firms and their employees.

(View Fall 2021 Forwarder Magazine )

For the first time in its fifty-year history, terminal operator Montreal Gateway Terminals Partnership at the Port of Montreal, joined efforts with Fracht FWO Inc., an international Freight Forwarder with strong presence in North America, to receive a cargo vessel originating directly from China.

“The first direct shipping link, without transshipment, between Asia and the Port of Montreal demonstrates the fluidity of the trade and the availability of installations in Montreal. The Port of Montreal is pleased to be able to count on the efficiency and strength of its key partners in the supply chain. As a strategic asset, our primary role is to ensure optimal service for the benefit of North American businesses and citizens. Our partner MGTP’s responsiveness and creativity contributes significantly to our ability to fulfill our essential role at the heart of society,” said

Guillaume Brossard, Vice-President, Growth and Development, Montreal Port Authority.

With vessel capacity a growing challenge throughout the supply chain this year, Fracht FWO Inc. with headquarters in Houston, Texas and in partnership with Fracht Canada Freight Inc., reached out to Montreal Gateway Terminals Partnership earlier this year to evaluate the option of moving their customers’ freight through Montreal to accommodate the growing consumer needs.

“Times have been challenging for many of our customers who face disruptions in the global shipping market. This solution has been truly ‘out of the box’ and we appreciate the cooperation, responsiveness and support MGTP has offered to work with us and receive this special vessel at their terminal in Montreal. It has helped us put this solution together and help ship a tremendous amount of cargo on one vessel during these difficult times” says Benjamin Liewald BM/ Executive VP Projects.

This General cargo vessel the “Happy Rover”, specializing in heavy lift cargo and measuring 138.04 meters in length and 22.94 meters wide, left Taicang, China September 29th and moved through the Panama Canal on October 29th, after making one port call in Busan Korea. Under the command of Capt. P.H.S.T Blok of Biglift Shipping B.V., She arrived safely in Montreal 46 days later, on November 14th.

The units discharged have been quickly routed by truck inland. After a one-day port stay, the Happy Rover, still under charter agreement with Fracht FWO Inc, continues her

voyage to Cleveland with a final destination in Thunder Bay.

Michael Fratianni, President and CEO of Montreal Gateway Terminals Partnership commented about this collaboration:

“MGT is particularly proud to have teamed up with Fracht in making history. We are also pleased that the unloading of the first ever direct Asia call to Montreal was handled seamlessly and safely.  We are grateful that Fracht opted to partner with MGT to provide a unique solution to its customers during these unprecedented times of supply chain disruptions.”

 

 

 

 

New this year, CIFFA is accepting freight brokers into our regular membership category. CIFFA offers numerous benefits to its North American Freight Brokers and Transportation based 3PLs.

Whatever your role in the movement of goods, the Canadian International Freight Forwarders Association is important. For transportation brokers, we offer support, advocacy, education and the stature of our world-class CIFFA brand. With a long track record of success, high standards, and strong relationships with various government bodies, a CIFFA membership guarantees that our industry and your business is well represented.

When people deal with a CIFFA freight broker, they know they’re working with trained professionals who:

CIFFA Standard Trading Conditions (STCs), which can only be used by a CIFFA member, levels the playing field in Canada. These conditions, which govern the relationship between the CIFFA regular member firms and the customer, are regularly upheld in Canadian courts. Shippers can be assured that when they work with a CIFFA regular member firm, they are working within a proven set of trading conditions and have peace of mind.

A membership with CIFFA helps protect your business.

Take advantage of new opportunities and use of the CIFFA brand on websites, emails and other communications. This recognition provides business partners with confidence in dealing with a reputable company that abide by strict standards. Listing your business in the member directory offers you increased visibility to potential clients.

CIFFA boasts a strong education offering and professional development plan for your employees – from new hires to leadership roles:

Members may also be able to participate in various CIFFA committees (Sea freight, Air Freight, Customs Load Brokers, Drayage, etc.) , providing an interchange of ideas, input and collaboration and being part of a results-driven process.

At CIFFA, communication is key.

You will also have access to valuable offers within your membership, including:

* Complete details about CIFFA Membership Requirements, Fees and Application Guideline.

A CIFFA Member Survey was launched and the results finalized this June querying membership on various aspects of technology, including: freight management systems, business process automation, predictive analytics, digitization, artificial intelligence and cybersecurity.

CIFFA Associate Member, Drew Simons of Roxville Technology Inc. drafted the survey and presented the summary to the CIFFA Technology Committee June 29.

In order to gather input, CIFFA invited 68 members to participate in the survey. The surveys were completed via Teams. Roxville used PowerPoint to share information and questions with the respondents. The source of the answers from members was anonymous, and members who participated received a copy of the full report.

CIFFA extends appreciation for the support and assistance of our members who contributed.

(Read Summary)

On July 2, CIFFA received a written response from Peter Hill, Vice-President, Commercial and Trade Branch, with the CBSA.

Mr. Hill was thanking CIFFA Executive Director Bruce Rodgers for his correspondence of June 14, 2021, regarding the upcoming end of the zero rated penalty period for electronic house bills.

Hill indicated he appreciated the input provided by CIFFA and understood that there continues to be a learning curve with electronic house bill processes for both internal and external stakeholders.

“In light of your concerns, I would like to advise that the CBSA will refrain from issuing monetary penalties over the next few months, and recommit to continuing our engagement and collaboration with CIFFA and other industry partners, but we will proceed with a full implementation of electronic house bill requirements including monetary penalties in the fall 2021. During this transition time, the CBSA is pleased to continue offering support to external clients through the continuation of bi-weekly implementation calls, and I hope that all freight forwarders and impacted stakeholders take advantage of the information and guidance provided during those calls.”

(View full CBSA letter)

Obtaining and maintaining a professional designation is a worthy achievement and something that any individual can be proud of. Professional Freight Forwarder (PFF) designates are recognized as ‘Individual Members’ of the association. CIFFA would like to recognize these individuals.

Current PFFs have not only met education and work-experience requirements, they also contribute to the industry by sitting on working groups and committees, representing freight forwarders at events and trade shows and contributing to overall promotion of the global freight logistics sector. They make a point of continuing to learn throughout their careers and are required to maintain personal and professional development through conferences, seminars, and classes.

Being recognized as an industry professional – an authority – is a career booster. And the more professionals we can boast, the more the freight forwarding industry can be both an important element of the supply chain sector and a desired career option.

 

Last Name

First Name

Alcime Mederick-Philippe
Allen Louise
Altomare Gianfranco (John)
Altomare Tony
Amso Hakob
Apolaya Calderon Carmen
Balakrishnan Veera Raghavan
Banderova Biliana
Belbin Enos
Bhavsar Aruna
Cant Wendy
Capolupo Jonathan
Castillo Wilfrid
Chan Joe
Chazin Theodore
Corber Sheldon
Couroux Denis
Courtney Paul
Da Silva Antonio
Danielsen Vagn Greve
Dennis Jill
Devendran Vijayalakshmi
Dhami Satnam
Fernandes Hubert
Fragomeni Joe
Gallacher Kimberly
Gazen Jeffrey
Glionna Michael
Glionna Mark
Glionna Paul
Gregory Mark
Guy Robert
Harper Natasha
Hartwell Amy
Hess Gerald
Hickey Sharon
Horan Patricia
Hudakoc James
Iachetta – Gignac Anna
Ignacio Rica
Kanwar Aseem
Klassen Rob
Knisely Kent
Kohli Harmeet
Kpalem Jimmy
Kundra Sachin
Lai Winnie
Lee Rong Fen (Maria)
Lee Gloria
Legler Karl-Heinz
Liu Zhanhong (Cathy)
Loffredi Angelo
Long Michael
Lychek David
Mazereeuw Barbara
Nandin Jose
Olafson Robin
Patel Chirag
Paule Julieta
Pazmino Gustavo
Pereira Benny
Pietramala Donna
Pine Rose
Qian Joanna
Risch Robert (Bob)
Robinson Desmond
Roche Deborah
Rodgers Bruce
Romano Alicia
Ruiz Maria Cristina
San Buenaventura Floro Fides
Sanghvi Jasmine
Schwerdt Peter
Sil Kim Young
Singh Jessie
Singroy Arlene
Snowden Ruth
Sohail Sabah
Sousa Petrina
Southcott Shauna
St.Croix Bonnie
Strange Roberta
Suter Marc
Syed Rashid
Thomson Blair Douglas
Torres Carlos
Tsang Kwong Yum (Albert)
Vanloo-Legault Jonathan
Wahab Ray
Wicke Uwe
Wong Shun Yin Alex
Wong Sueann
Zhen Tony

Policy Watch-CIFFA expresses alarm and frustration at recent development in marine shipping sector which will have negative impacts on Canadian businesses and consumers.

A letter to the Federal Minister of Finance, copied to each provincial Solicitor General, calls attention to unjustifiable and unjustified fees to industry.

View Full Letter

June 14, 2021.

Att. The Honourable Chrystia Freeland
Minister of Finance

House of Commons
Ottawa, Ontario,
Canada
K1A 0A6

Chrystia.Freeland@parl.gc.ca

 

Dear Minister,

We are writing to express alarm and frustration at recent developments in the marine shipping sector which will have negative impacts on Canadian businesses and consumers.

In the last week major shipping lines have announced new “Destination Terminal Handling Charges” on Canadian imports and exports. These fees are not justified, or justifiable.

Ocean shipping has enjoyed an extremely lucrative period during the Covid 19 outbreak.  Demand has been at record high levels and, in addition, shipping firms have been levying huge penalties on Canadian customers struggling to access containers amid the congestion in ports and terminals.

(This latter practice is so egregious it has triggered an investigation by US marine authorities.)

As Minister of Finance you will be preoccupied with concerns about rising inflation.  Clearly, we will experience some unprecedented trends in our economy as we emerge from the Covid pandemic and no one can be blamed for that.  But opportunistic and punitive charges such as these are not in that category. They are levied by service suppliers who see an opportunity in the chaos caused by Covid-19 and unafraid of any reaction from the traditionally supine Canadian regulators.

We urge you to investigate this situation. As you may know, the marine container sector has a long history of domination by explicit cartels. With 80% of our trade exposed to this industry, hardly a Canadian business or consumer is unaffected by price manipulation of this kind.

 

With best wishes,

Bruce Rodgers            Executive Director, CIFFA

Julia Kuzeljevich          Public Affairs Manager, CIFFA 

The Canadian International Freight Forwarders Association (CIFFA) represents some 260 regular member firms from the largest of global multi-national freight forwarding firms to small and medium sized Canadian companies. CIFFA member companies employ tens of thousands of highly skilled international trade and transportation specialists. As a vital component of Canada’s global supply chain, member firms of the Canadian International Freight Forwarders Association (CIFFA) facilitate the movement of goods around the world. Freight forwarders provide a vital link in Canada’s global supply chains, enhancing export capabilities and assisting in the delivery of competitive solutions to Canada’s importing and exporting communities.