GHY Tradelines

(Today’s Trucking)

Openness and honesty: two important factors between shippers and truckers, and, according to the Ontario Trucking Association (OTA), was the tone at a recent meeting with the Canadian Industrial Transportation Association (CITA).

The talks, which took place earlier this month, were aimed at opportunities for getting waste out of the transport system; the pros and cons of the bid/tender process for gaining long-term efficiency improvements; the challenges of the driver shortage and more. Read more here.
 

(Handy Shipping Guide)

Gold Vanishes in Air Cargo Heist Whilst Technology Aids Enforcement

With another massive air cargo crime this week comes good news for road haulage freight truck operators as Heavy Vehicle Electronic License Plate Inc (Help), a not-for-profit public-private partnership dedicated to advancing the safety and efficiency of the transportation industry, has announced that it is to bolster its support of stolen cargo recovery efforts by delivering CargoNet® theft alerts through the Automated Vehicle Identification (AVI) system, PrePass.

Firstly the story of a scheduled American Airlines flight from Guayaquil, Equador into Miami, Florida. The plane was disembarked in the early hours on Tuesday and five cargo handlers unloaded the freight carried aboard. Amongst the items was a single box containing – $625,000 worth of gold. Closed circuit TV has the freight moved to the far side of the aircraft and shortly after shows a cargo tug passing the area, stopping and proceeding out of shot. The tug was found later several gates away and sworn statements from the staff on the tarmac state none know who was driving and, with the gold still missing, the FBI is appealing for information. Read more here.
 

(Susan J. Aluise – InvestorPlace)

Sector’s rebound remains vulnerable to shortages, high costs

Shares of trucking companies are on a roll, but that doesn’t mean they might not encounter a few potholes down the road.

Cheaper fuel, rosier unemployment data and continued growth in freight tonnage are among the reasons stocks in the sector have been going strong of late. The American Trucking Association’s seasonally adjusted truck tonnage index, for one, increased slightly in four of the past five months, with February’s 0.7% dip as the only exception.

Many companies are also boosting margins by diversifying revenue streams with brokerage and logistics services. Plus, cross-border freight between the U.S. and Mexico is another growth opportunity. Read more here.
 

(CGFI)

Results published today by the Canadian General Freight Index (CGFI) indicate that the Total Cost of ground transportation for Canadian Shippers increased by 2.4 % in February when compared with January results.

The Base Rate Index, which excludes the impact of Accessorial Charges assessed by carriers, increased by 1.9 % when compared to January 2013.

Average Fuel Surcharges assessed by Carriers have seen an increase from 20.36 % of Base Rates in January to 21.53 % in February.

“Cross border Truckload continued to drive the increase combined with fuel being at the highest level since May 2012.” said Doug Payne, President  & COO, Nulogx. Read more here.
 

(STR Trade Report)

A U.S. appeals court has rejected charges that could have shut down a federal pilot program allowing Mexican trucks to carry cargo throughout the U.S. The Federal Motor Carrier Safety Administration launched the program in 2011 as an interim step toward fulfilling a U.S. commitment under NAFTA to allow long-haul Mexican trucks to operate beyond U.S. border zones. Mexico suspended trade sanctions against $2.4 billion worth of U.S. goods when the pilot was initiated but has warned that the extra tariffs could be reimposed if the program is halted.

The pilot allows Mexico-domiciled motor carriers to operate throughout the U.S. for up to three years. They may transport international cargo in the U.S. but may not provide point-to-point transportation services, including express delivery services, within the U.S. for goods other than international cargo. Participating Mexican carriers and drivers must comply with all applicable U.S. laws and regulations, including those concerned with motor carrier safety, customs, immigration, vehicle registration and taxation, and fuel taxation. Read more here.
 

(CTL / Nulogx)

Results published today by the Canadian General Freight Index (CGFI) today indicate that the Total Cost of ground transportation for Canadian Shippers increased by 0 .575 % in January when compared with December results.

The Base Rate Index, which excludes the impact of Accessorial Charges assessed by carriers, increased marginally by 0.38 % when compared to December 2012. Average Fuel Surcharges assessed by Carriers have seen an increase from 19.66 % of Base Rates in December 2012 to 20.36 % in January 2013.

“Cross border Truckload saw an increase while the other segments (Domestic LTL,TL & Cross Border LTL) had decreases.” said Doug Payne, President & COO, Nulogx. “Of particular note, Total Costs are still trailing behind a year ago levels.”

The CGFI tracks changes in freight costs for Canadian Shippers. The index is published monthly and the results are based on a statistically valid sample of transactions taken from the Nulogx database of more than $750M in annual freight transactions.
 

(Canadian Trucking Alliance)

There were a number of positive developments related to border and road infrastructure in the 2013 federal budget titled: Jobs, Growth and Long-Term Prosperity Economic Action Plan. Below are early highlights of the budget from a Canadian Trucking Alliance perspective:

• Over $47 billion in new infrastructure spending over 10 years starting in 2014-15, for provincial, territorial and local  infrastructure including $14 billion for a new Building Canada Fund to support major economic projects that have a national, regional and local significance. Specifically, the budget proposes to provide (a) up to $124.9 million to build a bridge-causeway between Nuns’ Island and the Island of Montreal; (b) $25 million over three years to advance the Windsor-Detroit crossing project; (c)$100 million for Stony Trail Ring Road in Calgary; (d) $705 million for completion of Phase II of highway 30 project in Quebec; (e) up to $365 million to support South Fraser Perimeter Road (Deltaport to TCH); (f) twinning in Banff National Park $267 million; (g) $29.9 million for Highway 8 expansion in Kitchener.

• Under the Beyond the Border Action Plan, the federal government over the next five years will commit to the following measures to improve border efficiency: (1) Upgrading border infrastructure at S-Bernard-de-Lacolle, Que., Lansdowne, Ont., Emerson, Man., and North Portal, Sask., and installing border wait-time technologies at key ports of entry; (2) Implementing a single window for companies to submit electronically all the data required by government departments for arriving shipments; (3) harmonized and enhanced benefits for trusted traders (FAST); (3) Equipping new custom facilities at the port of Vancouver and pilot projects at the ports of Prince Rupert and Montreal; (4)  Developing and implementing pilot projects to automate small and remote ports of entry; (5) supporting integrated cross-border  law enforcement initiatives; (6) establishing and co-ordinating entry and exit information systems with the United States, including a system where the record of land entry into one country can be utilized to establish a record of exit from the other.

• The government also proposes to implement other measures that facilitate the secure movement of people and goods and ensure that border processing is not a hindrance to legitimate trade and travel.

• The creation of the Canada Job Grant. Under the new labour market agreements, provinces and territories will deliver the Canada Job Grant directly to businesses and Canadians, in addition to other training they provide. Businesses with a plan to train unemployed and underemployed Canadians for an existing job or better job will be eligible to apply for a Canada Job Grant. Canadians seeking training can, in partnership with an employer, benefit from the program. The Grant could provide $15,000 per person or more for training, which includes up to $5000 in federal contributions. Federal contributions must be matched by both provinces and employers. The Grant will be for short-duration training, and will include eligible training institutions, including community colleges, career colleges and trade union  training centres. The detailed design of the Grant will be negotiated with provinces and territories over the next year, in consultation with stakeholder groups including employer associations, educational institutions and labour organizations.

• Budget 2013 confirms the government’s intention to create a new and innovative ‘Expression of Interest” immigration management system. It will allow for Canadian employers, provinces and territories to select skilled immigrants from a pool of applicants that best meet Canada’s economic needs. The budget also announced that the government will take action to reform Canada’s Temporary Foreign Worker Program to ensure that Canadians are given the first chance at available jobs.
 

(James Menzies – CTL)

Federal Environment Minister Peter Kent visited Bison Transport’s Mississauga terminal [Tuesday], to announce that Canada will adopt the US greenhouse gas emissions standards for model years 2014-2018 heavy trucks.

Kent said “With these tough new measures, GHG emissions from 2018 model year heavy-duty vehicles will be reduced by up to 23%. The regulations will also lead to improved efficiency. For example, a semi-truck operator driving a 2018 model year vehicle will save up to $8,000 per year in fuel.”

The regulations, which will apply to vehicle manufacturers and importers, will require them to attain fuel economy – or GHG emissions – benchmarks on a significant portion of their overall build. Read more here.
 

(Conference Board of Canada)

Tens of thousands of truck drivers are approaching retirement age, but very few young people and immigrants are entering the industry. A new Conference Board of Canada report concludes that the gap between the supply of drivers and the demand for them – estimated at 25,000 by 2020 – could be costly to the Canadian economy.

“The food we eat, the goods that we enjoy and even the homes we live in are in large part delivered by trucks. The inability to meet a huge demand for drivers could be costly for the trucking industry, consumer goods and the Canadian economy,” said Vijay Gill, Principal Research Associate.

Highlights

• The age of the average truck driver is now higher than the age of the average worker in Canada.

• The expected gap between the supply and demand of drivers is 25,000 by 2020, but it could exceed 33,000.

• A change in policy to recognize the truck driving occupation as a skilled trade could attract more domestic and immigrant entrants into the industry.

• The trucking industry moves 90% of all consumer products and food within Canada and 60% of trade with the United States, Canada’s largest trading partner. It alone accounts for 33% of real gross domestic product (GDP) in the transportation sector. Most of the demand for truck transport services is tied to the manufacturing, retail and wholesale trade industries. Demand for goods and services from retail industries is expected to grow significantly by 2020. The trucking industry’s real GDP is expected to increase from $17 billion to $21.4 billion from 2011.

• While truck drivers make up nearly 1.5% of the Canadian labour force – approximately 300,000 truck drivers overall – it struggles to attract drivers to the for-hire industry. The for-hire industry is comprised of companies that provide truck transportation services to other companies. Drivers in the for-hire industry are often required to work long hours, over long distances, and with unpredictable schedules.

•  Participation of young people, ages 15 to 24, has dropped off significantly in the past decade. As a result, the average truck driver’s average age has increased from 40 years in 1996 to 44 years in 2006, an average that surpasses that of many comparable occupations.
 

(Truck News)

Port Metro Vancouver is set to implement the Smart Fleet trucking strategy, a three-year action plan designed to improve the efficiency and reliability of the container truck sector and reinforce the Port’s ongoing collaboration with supply chain partners, Port officials announced.

“In 2012, container traffic at Port Metro Vancouver reached a new record of 2.7 million TEUs and that number will continue to grow,” said Robin Silvester, president and CEO of Port Metro Vancouver.

“Given that a large proportion of container traffic moves to and from the terminals by truck, improvements to reliability and efficiency are vital. Smart Fleet sets out our action plan to ensure we are maximizing existing capacity and improving operational efficiencies as the Gateway grows to service our nation’s trade requirements.” Read more here.
 

(Canadian Transportation & Logistics)

There has been an abundance of available freight on the spot market to begin 2013, creating one of the most freight-rich months on record.

The DAT North American Freight Index surged 42% year-over-year in January, and was up 24% compared to December 2012. This marked the first time in the index’s history that January volumes exceeded those of December. On average over the past 10 years, spot market freight has decreased 13% in January compared to December.

Meanwhile, in Canada, TransCore Link Logistics’ Canadian Freight Index showed similar strength. The index recorded the highest load volumes ever for January, surpassing the previous record in January 2011 by 3%. January load volumes in Canada were up 25% from December 2012, and up 4% year-over-year.

The boom in spot market freight availability has some scratching their heads. Is it an indication of a strong freight environment or are other factors are play? Turns out a bit of both. There were more weekdays during the month of January this year, which could’ve had an affect. But there’s more to the sudden surge in spot market freight, according to David Shrader, senior vice-president of DAT’s freight-matching business in Portland, Ore. Read more here.
 

(Truck News)

Results published today by the Canadian General Freight Index (CGFI) indicate that the total cost of ground transportation for Canadian shippers declined by 0.86 % in November when compared with October results.

The Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, decreased by 1.2% when compared to October. Average fuel surcharges assessed by carriers have seen a decrease from 21.27% of base rates in October to 20.46% in November. This is the first decrease in fuel since July.

“Total costs for domestic LTL and truckload continued their increase again this month, while cross-border LTL and truckload costs continue to decline,” said Doug Payne, president and COO of Nulogx, which facilitates the CGFI. “Accessorial charges rose marginally after three months of steady costs.”

The CGFI is sponsored by Nulogx, a transportation management solutions provider, and is used by shippers and carriers to benchmark performance, develop business plans, and secure competitive agreements. It was developed with the assistance of Dr. Alan Saipe. The most recent results are available at the CGFI Web site: www.cgfi.ca.
 

(Journal of Commerce)

Nashville, Ind.-based transportation forecaster FTR Associates’ Shippers Conditions Index for November fell slightly from October to a reading of -5.3, a sign that 2013 will be challenging for shippers.

FTR projects that the combination of pending government truck safety regulations, continued slow growth in the economy and freight industry and the reluctance of the trucking industry to add capacity will result in tighter conditions and rising truck rates towards the second half of the year.
 

The CBSA would like to remind the trade community of the following publications that have been developed to increase awareness about the eManifest initiative:

•  Preparing for eManifest – A Checklist for Highway Carriers

• 10 Things Highway Carriers Need to Know About eManifest

•  Information for U.S. Shippers: eManifest requirements for commercial clients

Importers and carriers need to be aware that the “informed compliance” period (which was temporarily extended from November 1, 2012) draws to a close in May 2013, but leaving matters to the last minute to implement new eManifest processes into their supply chain is NOT AN OPTION as it is highly unlikely that any further extensions will be allowed for non-compliance with the highway mode eManifest requirements.
 

(Nulogx)

Results published [this week] by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian Shippers increased by 0.45 % in October when compared with September results.

The Base Rate Index, which excludes the impact of Accessorial Charges assessed by carriers, increased by .01% when compared to September 2012.

Average Fuel Surcharges assessed by Carriers have seen an increase from 20.48% of Base Rates in September 2012 to 21.27% in October 2012. This is the 4th consecutive month of Fuel Surcharges increasing.

“Total Costs for Domestic LTL & Truckload increased this month. Domestic LTL has seen an increase of 13.9% from a year ago while the Domestic Truckload is still 6.5% below a year ago.” said Doug Payne, President & COO, Nulogx. “Cross Border LTL and Truckload were both down in October from September however compared to a year ago LTL and Truckload are up 2.2% & 4.7% respectively.” continued Payne.

Read the complete article (with graphs) here.
 

(CBSA)

1. With the implementation of eManifest, the Canada Border Services Agency (CBSA) must receive and validate highway carriers’ electronic cargo and conveyance data a minimum of one hour before commercial goods arrive at the border.

2. An informed compliance period begins November 1, 2012, and remains in effect until May 2013 when eManifest-enabling legislation is expected to be in place.

3. During the six-month informed compliance period, the CBSA will monitor highway compliance with eManifest and provide feedback to non-compliant carriers.

4. During the six-month informed compliance period, carriers will not be denied entry to Canada or subject to penalties for reasons associated with eManifest non-compliance.

5. In May 2013, eManifest highway carrier requirements are expected to be mandatory and non-compliant carriers could be subject to penalties.

6. Highway carriers can choose between two options to transmit their cargo and conveyance data to the CBSA: 1) the eManifest Portal or 2) an Electronic Data Interchange (EDI) method (Value Added Network, Customs Internet Gateway, Direct Connect to the CBSA and Third Party Service Providers).

7. On arrival at the border, drivers are required to present an eManifest lead sheet to the CBSA officer.

8. Release processes will not change with the implementation of eManifest and carriers must continue to provide importers/customs brokers with advance release data/documents for goods being released at first point of arrival.

9. For e-mail support on eManifest policy and processes, as well as eManifest Portal Shared Secret applications, contact the eManifest Help Desk at: eManifest-manifestelectronique@cbsa-asfc.gc.ca

10. For detailed eManifest technical support, contact the eManifest Technical Support Unit: by e-mail at: TSU.UST@cbsa-asfc.gc.ca; by phone at: 1-888-957-7224 and press 2 (toll-free within Canada and the U.S.)

For more information, visit the eManifest pages of the CBSA Web site at www.cbsa.gc.ca
 

(Windsor Star)

Canadian Trucking Alliance CEO David Bradley pushed for expedited construction of the planned $1-billion government-backed bridge and better streamlining of the customs clearance process at the Canada-U.S. border during a hearing this week on the federal government’s omnibus bill.

The sweeping legislation currently being debated in Ottawa by legislators includes the Bridge to Strengthen Trade Act which would exempt the Detroit River International Crossing (DRIC) bridge from certain environmental approvals and speed the start of construction.

“Construction will still need to abide by environmental laws,” said Bradley to the Star on Friday. “The project has already been through a major environmental assessment. I believe we need to expedite this and reduce the opportunity for lawsuits to slow it down.

“We think it’s a very important infrastructure project that has been delayed for too long.” Read more here.
 

(Today’s Trucking News)

The Canadian Trucking Alliance (CTA) is asking the US Customs and Border Protection (CBP) Agency to follow due process as it relates to C-TPAT suspensions and appeals.

The current process is administered in a way that can have a “devastating impact on a carrier’s business without due process, prior notice/communication, or consideration of the level of exposure carriers involved in moving high volumes of freight across the border face,” said CTA president and CEO, David Bradley.

Bradley pointed to a Canadian carrier that recently had its C-TPAT membership temporarily suspended, but only learned of that fact when their customers informed them; CBP had not contacted the carrier in regards to the suspension, let alone the reasons behind the suspension. The nine day suspension severely damaged the carrier’s reputation with existing customers and caused the loss of several potential customers representing tens of thousands of dollars, CTA explained. Read more here.
 

(Truck News)

A full contingent of Canadian Trucking Alliance (CTA) staff were on-hand at the Atlantic Provinces Trucking Association’s Transportation Summit…

Geoff Wood, vice-president of operations and safety, Ron Lennox, the CTA’s Ottawa-based v.p., Jennifer Fox, vice-president of Customs and Stephen Laskowski, senior vice-president, all took part in a panel discussion moderated by CTA chief David Bradley in which they shared their respective expertise on a wide variety of subjects. [...]

On ACI e-manifest

On Nov. 1, carriers will need to electronically file Customs documentation on Canada-bound loads to Canada Border Services Agency prior to their arrival at the border. Fox said most carriers are asking whether or not the implementation date will once again be pushed back?

“The answer is no,” Fox said. “That date will not move.”

Fleet managers on-hand seemed unconcerned with the impending deadline.

Read the complete article here.
 

(Financial Post)

TransCore’s Canadian Freight Index that reflects spot market freight shipments both within Canada and cross border remained steady with an increase of one percent from July. Year-over-year load volumes however were down 13 percent from August 2011.

Cross-border volume accounted for 71 percent of overall loads while intra-Canada freight made up 25 percent of the total load volumes. Read more here.