February, 2001 Vol. 54 No.1

E-commerce and International Freight Forwarding By Christopher J. Gillespie

In autumn last year, FIATA president, Christopher Gillespie presented to the Propeller Club* in Basel/Switzerland a North American view on how the Internet impacts on ‘our’ industry. In my career, I have seen first hand the changes that containerization brought to marine transportation. The evolution of computerization first introduced by my father to our company with a Singer/Frieden Accounting System machine, was equally as dramatic. From XT's to 286's, 386's, 486's and Pentiums, I have seen the ever more rapid imposition of technology in our workplace. Computerized phone systems replaced traditional switchboards, cell phones and voice mail facilitated access to individuals, fax replaced telex and will ultimately be replaced by e-mail, digital printing centers replaced basic photocopiers, computers replaced typewriters, and now the internet threatens to replace our industry! See E-commerce, page 3

David vs. Goliath CIFFA at the OECD By Tony Young, CIFFA Vice President and Seafreight Chair

CIFFA's Seafreight Chair recently participated in a two-day Workshop on Cargo Liability at the OECD (Organization for Economic Cooperation and Development) at Paris. At issue is the possible formation of a new international convention by

the Comité Maritime International to govern multimodal transport liability. What is at stake for freight forwarders and NVOCCs who issue door-to-door or terminal-to-terminal combined transport bills of lading is the proposed increase in both the scope and amount of liability limitation to almost $1,500 per package for losses that occur during inland carriage, including terminals and warehouses. The proposed international convention would supplant Canadian provincial laws, which provide for a maximum liability of $4.41 per kilo for losses involving truck carriage with no per package minimum. Any national law or international convention does not presently govern loss and damage occurring at terminals and warehouses. See OECD, page 4

E-commerce & International Freight Forwarding David vs. Goliath, CIFFA at the OECD Solid Wood Packing Material (SWPM) Limited Liability as ‘Agent’ Upheld by US Court of Appeals World Trade in Goods to Rise by 10% This Year N.A. Emergency Response Guide Book Now Available on the Net Are You Ready to Be Inspected? IMO Dangerous Goods Schedule New Email Addresses for Secretariat INCOTERMS and Insurance Under CIF and CIP Yes, Help Is Available from the Export Development Corp. (EDC) Transport Canada Launches Comprehensive Int’l Air Policy Review Congratulations CIFFA 2000 Graduates in Calgary Finally National Uniformity Envisaged by Transport Canada! The Young International Freight Forwarder of the Year Award IATA Dangerous Goods Training Delayed Annual General Meeting Notice to Members IMDG Code 2000 Edition - Erratums Relief Fund for Gujarat India Correspondence from at Home and Around the World Huge Project Opportunities in Morocco A Moment of Reflection Snakes, Planes and Machinery Discount Offer for OAG Air Cargo Guide Press Releases 2000 Forwarder’s Choice Awards a Huge Success A Letter from KLM Cargo

CIFFA NEWSLETTER - FEBRUARY, 2001

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CIFFA NEWSLETTER - FEBRUARY, 2001

E-commerce

(cont’d from page 1)

Supply chain without forwarders? Since 1994 Internet users have grown from 13 million to more than 300 million worldwide, with half of this number in North America. How many of you saw the Time issue (May 22nd, 2000) and the section "Visions 21 - Our Work, Our World" in which appeared the article "And What Jobs Will Disappear" stating "the Internet will eradicate middlemen by the millions". That's pretty heady stuff, and although there are those who say that the "function" won't disappear, and that perhaps the internet will spawn "more" intermediaries, tell that to the stock brokers, real estate agents, travel agents, insurance agents, customs brokers, bank employees and the myriad of other positions whose functions lend themselves easily to electronic facilitation. Forwarders too are threatened, especially where the extent of their value added service is minimal, but the advantage we have is that we can and do evolve, and we seem to be adaptable by nature. Victory of the Internet In North America, perhaps more than anywhere else, we are continually bombarded by the Internet and e-commerce phenomenon. From trade publication articles, TV ads and programs, newspapers and magazines, e-mail promos and conferences, not a single communication medium is left free of this phenomenon. The Internet or web had more users in its first five years than the telephone in its first thirty! Unlike EDI, which went nowhere because it was expensive and not really customer or business driven - the Internet is user friendly, inexpensive, and both customer and supplier driven! Electronic connectivity is the only aspect of EDI that remains of interest. Clients and carriers including railroad, ocean, air and auxiliary services such as terminals, are all looking to the benefits of e-commerce. Speed and accuracy are of foremost interest, coupled with the capacity to effortlessly link systems and processes at minimal cost, makes it all seem too good to be true.

Recently I heard the "E" in e-commerce referred to as "equal" in that it presents us all with the ability to offer services which prior to this were only accessible to those with hundreds of thousands of dollars to invest in proprietary or EDI systems. The importance of this to the industry in North America, and in fact the world, cannot be understated. It provides all of us with the ability to electronically transfer information between partners virtually anywhere in the world. With a computer and Internet access you are a very short hop from e-commerce capability. Internet based systems or "platforms", will proliferate and their solutions will be available to everyone with basically a user/pay approach. As I become more and more involved in the development of my own corporate system, it is hard to ignore the potential of such a powerful tool. Consider the possibilities of a buyer placing an order, key to which is his harmonized code for customs, transmitted electronically to the seller where this piece of information is moved into the export process and eventually returns to the buyer's customs entry electronically. This is the greatest challenge the customs brokerage industry must face. Track and trace success In North America, and doubtless the rest of the developed world, customers are driving the implementation of systems to ensure timely, thorough and accurate information, often with immediate access! In response tracking and tracing systems are proliferating via the Internet. The key to their success will be the ease with which they can be assimilated into your own system. Ideally the system you select should have a track and trace system already incorporated. In fact in North America, tracking and tracing capabilities may in some instances mean the difference between winning and losing a bid for business. I am also believe in the proactive approach to tracing with a system such as we are testing which sends an e-mail advice to interested parties each time the information is updated. Such systems can be tuned to meeting certain parameters like "only send advice if vessel delayed more than two days" but ultimately the key is information. See Integrators, page 6

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Solid Wood Packing Material (SWPM) The following update was received from our Customs Chair, Don Lucky on the ongoing issue of SWPM with regards to the EU and China For shipments traveling to China from the USA with Canadian packing material The USDA has advised CFIA (Canadian Food Inspection Agency) that effective immediately their staff is to disregard Canadian Industry Documents and to only recognize a Canadian Phyto Certificate when requested by US shippers to certify conifer wood packing to China that originated in Canada. Update on the EU rule on conifer wood packing from Canada A further meeting was held on January 22, 2001 in Brussels to address the difficulties of North American industry to meet with the new European requirements by the suggested dates of January 1, 2001 and/or July 1, 2001. A further delay was requested to spring 2002 whereas the EU presently agreed to an extension until October 1, 2001 only. As it is suspected that many industries will not be able to meet the EU standards by this date, it was requested that a phase in period be considered to minimize trade delays. The commission proposed a 'gentleman's agreement' to the effect that community measures would be applied 'proportionately and prudently' and that there would be recognition that compliance would not be perfect at the time of implementation. The treatment standard will be heat treatment of 56-30 (56°C for 30 minutes). Methyl Bromide, although offered as an alternative, is strongly discouraged. International Standard Hand in hand with the above, there is the International Plant Protection Convention, attached to FAO/UN, which has established a working group to develop standards for solid wood packaging. It is naturally hoped that this will finally help to overcome the regional standard variances presently in place and set guidelines that will be applicable throughout the world. Canada and the USA have developed a standard mark to be proposed next week for wood packing to replace phyto certificates. But a proper wood packing certification system has yet to be developed in Canada. A working group is being put together by CFIA.

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CIFFA AT THE OECD

(cont’d from page 1)

More than one hundred delegates participated at the OECD Workshop at Paris. Among those were government delegates from some 24 industrialized nations; UN organizations such as UNCTAD and UNCITRAL; non-governmental organizations such as ICC and FIATA; international ship owner organizations such as BIMCO, CENSA, ICS and the International Group of P&I Clubs and shipper organizations such as the NIT-League of the US and the European Shippers Council. For CIFFA to have been invited to take part among such prominent and important organizations was an honor and a privilege for our humble association representing 150 Canadian freight forwarders. Nevertheless, our position paper on the issue had evidently struck a universal chord and drew the attention of Transport Canada and the support of FIATA. (Go to: http://www.ciffa.com/currentissues_transportlaw_paris.html for a full text of CIFFA's submission.) The Seafreight Chair is pleased to report that the OECD Workshop resulted in recommendations along the lines of CIFFA's position on two key issues that affect the freight forwarding industry: First is that the proposed "Performing Carrier" definition should not include agents of contracting carriers and other "non-bailees" of the goods. These would be liner shipping agents and freight forwarders who represent their partners overseas. Second is the removal of the "Through Transport Exemption" which allows ocean carriers to avoid responsibility by acting as shipper's agent when contracting out inland legs of carriage to third parties. Additionally, CIFFA made a novel suggestion for the abolition of the "per package" basis of liability altogether. Although it failed to garner immediate enthusiasm among other participants, the Workshop report nevertheless mentions that the idea could be reintroduced for consideration at a later date. It was CIFFA's argument that uniformity in door-to-door liability was not possible as long as ocean liability is on a "per package" basis while inland liability regimes are on a "per weight" basis. Cargo interests have been pushing for the higher limitation "per package" basis to apply door-to-door. The proposed convention on multimodal transport liability will be debated next at the CMI's (the international association of maritime lawyers) Issues of Transport Law conference at Singapore in mid February and CIFFA's Seafreight Chair will be there to once again ensure that the interests of the freight forwarding industry will be protected.

CIFFA NEWSLETTER - FEBRUARY, 2001

Limited Liability as 'Agent' Upheld by US Court of Appeals

realized in view of the disturbingly recent news of an ailing economy in all key economic regions: North America, Europe and Asia.

A recent decision of the US Court of Appeals for the 2nd Circuit has again affirmed provisions detailed in the STC's of the NCBFAA concerning liability of a forwarder acting as agent.

Contrary to 1999 where the economy was driven by the remarkable US economic expansion, all world trade regions showed strong growth in 2000 and are expected to do the same this year. The trebling of oil prices over the past two years has obviously benefited oil exporters, notably Russia, whose exports jumped by some 50% in dollar terms. However, growth in manufactured goods, which constitutes more than three-quarters of total merchandise trade, was also burgeoning. Interestingly enough, office and telecommunications equipment had growth more than twice as fast as the summa sumarum of all other trade. This bodes well for our industry, which is particularly dependent on a healthy manufacturing sector.

The decision, which reversed a lower court ruling, is of considerable interest to freight forwarders, international transportation specialists and logistics companies. The firm of Hyman & Kaplan in Miami was the trial counsel that successfully argued the winning appeal. In it's decision, the court recognized that the terms and conditions limited the forwarder's undertaking to the exercise of 'reasonable care' in the selection of those who would actually carry, store or otherwise handle the goods. In its decision the court recognized that the Terms and Conditions limited the forwarder's undertaking to exercising 'reasonable care' in the selection of the actual service providers such as warehouses, terminals and carriers. Consequently, when a stevedore negligently stowed certain goods, which was the cause for the legal claim, the forwarder was not held liable for those damages. This in the absence of the claimant showing proof that the forwarder was negligent in the selection of the particular stevedore. Interestingly enough, the court ruled in the forwarder's favor despite the commitment to 'closely care and supervise' the shipment throughout the journey. Finding that this language was 'mere puffing', the court concluded that such statements could not act to transform the forwarding agent into a carrier or NVOCC and thus form the basis for carrier type liability. In it's reasoning, the court cited various cases holding that independent forwarders assume no responsibility for the actual transportation or handling of goods, as long as they do not issue bills of lading or otherwise contractually assume such responsibility. The court accordingly reversed the lower court's order that the forwarder indemnifies the shipper. The case can be found at 2000 WL 1199953, 2nd circuit, New York.

Wo r l d Tr a d e i n G o o d s t o R i s e b y 1 0 % T h i s Ye a r Though this was reported back in December 2000 before the 'r' scare reared it's ugly head, there is no doubt that considerable world trade growth can be expected for this year. This is based on the WTO statistical report released at the end of last year. Global economic expansion in 2001 was forecast to reach some 3.5% whereby world trade growth in 2001 is to reach 7% or more. These growth figures, the report says, will combine to stimulate a rise in trade of goods by some 10%. Though one does wonder whether this can be

N.A. Emergency Response Guide Book Now Available on the Net An Internet version of the 2000 Emergency Response Guidebook called 'ERG2000 On-Line' is now available free of charge and can be accessed as follows: English: www.tc.gc.ca/canutec/erg_gmu/erg2000_menu.htm French: www.tc.gc.ca/canutec/erg_gmu/gmu2000_menu.htm It is easy to use, fully interactive and includes color-coded sections similar to the original hardcopy. In addition, the application includes a searching tool that enables rapid retrieval of emergency response information for a given product name or product ID number (PIN). CANUTEC has also added a free download version that can be accessed as follows: English: www.tc.gc.ca/canutec/en/GUIDE/ERGO/ergo.htm French: www.tc.gc.ca/canutec/fr/temp.htm - coming soon The information is self-extractable for easy installation and does not require any additional application to run since it selfexecutable. The minimum system requirements are a 486 or Pentium processor, Windows 95 or NT, 16 megs of ram and at least 10 megs of disk space. It features a powerful searching tool for the retrieval of multiple PIN's and a variety of searches by product name. It can also search for products referenced by a given guide number. It also includes a 'Summary Window' that provides a history of previously accessed information thus enabling users to efficiently return to prior search results. The window also has response information for specific gases or vapors that are toxic inhalation hazards (TIH) and that are released when certain materials come in contact with water. Though the guide is written for dangerous goods incidents on highways or railroads, it can become particularly relevant for freight forwarders operating warehouses, storage areas and/or their own cartage services.

CIFFA NEWSLETTER - FEBRUARY, 2001

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Integrators lead the way (cont’d from page 3) In Canada we are seeing reference to "I-Business" to describe an "internetdriven organization", which uses the internet to deploy consistent and accurate information, both internally and externally, usually through the medium of their website. Such a business example would be FedEx. At the IFCBA annual meeting I attended recently, the FedEx presentation highlighted a point which the integrators make most strongly, namely that their success is the result of giving clients what they want - no more, no less! FedEx met the demands from their customers for real time access to information. We are also confronted with reference to the "E Value Chain" which focuses on the fact that in e-commerce the value chain can be viewed as linked activities creating value for which a client is willing to pay. And this, after all, is what it is all about. Value added service is the key to successful intermediary activities. Once that activity no longer adds value or can be replaced electronically, it is doomed. The international forwarder has some advantages in the supply of transportation or logistics services in that he can and does package a product usually incorporating several aspects of the export or import transaction, and each of these has "value added" potential. Behind every e-commerce transaction there is ultimately a need to physically move the goods and while paper based processes associated with this need may be converted to electronic messages, the skills and expertise of the "transport organizer" or as FIATA fondly puts it "The architect of transport" is something more enduring. However, our role as a transportation intermediary is changing and we must change with it. Clients want

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connectivity with our systems. They want to access their files for status, extract reports from your database, and have their shipments processed in an error free manner. They want up to date information and a "one stop shop", and that will continue to be the key to our role as facilitator. What is our business? With e-commerce, we must first consider what type of business we are. ·We are not businesses that exist because of the Internet such as search engines like Yahoo. ·We are not new e-businesses that emulate physical businesses like amazon.com selling books via the Internet. ·We could be a business that adapts a new business model to connect old businesses electronically. ·We could be a business that uses ecommerce to increase efficiency of existing business electronically; or ·We could be a business that will cease to exist because of e-commerce, an option I don't believe any of us subscribe to. So, we should look to being a new business model that adopts e-business to increase efficiency. In the future - to all intents and purposes "now"- I envision our corporate system linked to all of our clients and suppliers on an "on demand" basis via the Internet. The system will allow for direct updates from carriers and terminals, as will theirs for us. Our capacity for larger volumes at less cost with greater speed and accuracy will be enhanced through eliminating re-keying and electronic information transfer. In consequence, we should be able to continue increasing value-added features to our services. Clients who formerly sent information by fax or email attachment will load the same information directly into our system

CIFFA NEWSLETTER - FEBRUARY, 2001

and we will absorb the cost, while with agents and suppliers, there would likely be a sender pay approach. Can we ever hope to emulate the integrators? Probably, with some limitations that can be made up for by better and more personal customer service. What of the future? Now that we all have e-commerce capability, tracking and tracing, automatic billing and payments, where do we go? The future is somewhat frightening and it is comforting to know that I will likely not have to deal with it in a business sense. When one considers the replacement of "fathers" by a future with cloning and in vitro fertilization, I am not at all sad to say I am glad I won't be there, or will cyber sex replace the real thing? Not a debate I ever hope to be presented with. Technology has supported Gordon Moore's "law" that the number of circuits on a silicone chip would double every 18 months (originally a year). Currently a Pentium chip has a wire 1/500th the width of a human hair with an insulating layer of 25 atoms thick. Even here, however, there are physical limits, and that will be true of what we can do as well. In closing I can only say that I do not foresee e-commerce as an enemy, but an ally of the international freight forwarder. Ultimately personal contacts, skills and experience will still weigh heavily on our service levels and e-commerce technology will surely prove to be another tool to master to the benefit of our clientele and our industry.

* The propeller club is a worldwide organization of the shipping and transport industry founded in the USA in 1927. It has around 13500 members and is based in Washington, DC.

ARE YOU READY TO BE INSPECTED? The new IMO Regulations (amendment 30) came into effect on January 1, 2001. This will be closely followed by the Canadian Transportation of Dangerous Goods Regulations (TDGR), Clear Language Amendment, which should come into effect mid February 2001 following Gazette publication. Did you know that Transport Canada is conducting random inspections to verify compliance with TDGR training? Some West coast forwarders have already been visited. ARE YOU READY? · · · ·

ARE YOUR EMPLOYEES TRAINED? ARE YOU PRACTICING RESPONSIBLE FREIGHT FORWARDING? DO YOUR EMPLOYEES KNOW HOW TO RECOGNIZE DANGEROUS GOODS? ARE YOU AWARE OF THE PENALTIES FOR NON-COMPLIANCE?

CIFFA has issued repeated notices regarding the importance of compliance with Dangerous Goods Training Regulations. In addition, numerous training courses have been organized by CIFFA for the convenience of our members. It is a membership requirement to fulfill the legal requirements for proper training in the handling of dangerous goods. Failure to comply will place your company in default with Transport Canada regulations, IMO regulations and IATA regulations, as well as compromise safety of public roadways, rail, airways and waterways. IGNORANCE CAN BE VERY COSTLY. We urge all our members to verify their personnel status in DG training compliance. If your staff does not have valid certificates of training, your company is at risk. Take this opportunity to register employees for necessary training in order to avoid serious repercussion. Courses are available for: · IMO IMDG Basic Training (one day) - General Awareness and Familiarization · IMO IMDG Advanced 2-day training (intensive) · IMDG Refresher - half day training (prerequisite = basic 1 day course) · Warehouse/ Terminal Operator 1-day training (no prerequisite) · Canadian TDGR Training - 1-day training Please contact your CIFFA Secretariat for course details, dates & costs. Toll free: 1-866 2824332 or at our website at http://www.ciffa.com/education_imo_imdgcode.html DON'T WAIT UNTIL IT'S TOO LATE!! CIFFA Dangerous Goods Committee Rachelle Anger - Chairperson

CIFFA NEWSLETTER - FEBRUARY, 2001

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IMO Dangerous Goods Schedule 1. IMO IMDG BASIC: One day training (General Awareness and Familiarization - No prerequisite) This is the basic course that CIFFA has always offered. Suitable for all employees, this basic level course provides an appreciation of the various compliance issues, the responsibilities of the employer/employee and a general understanding of what is required to ensure compliance when transporting dangerous goods. It includes a description of the classes of dangerous goods; labelling, marking, placarding and packing, stowage, segregation and compatibility provisions; a description of the purpose and content of the dangerous goods transport documents (such as the multimodal dangerous goods form and the container/vehicle packing certificate); and a description of available emergency response documents; Member Cost $295.00 Non Member Cost $335.00 (Cost includes continental breakfast and lunch)

a) Montreal b) Toronto c) Calgary d) Vancouver

April - TBA April - TBA 1. Not currently scheduled (subject to demand) 1. Not currently scheduled (subject to demand)

3. IMDG Re-fresher half day training (Re-training update - Prerequisite Basic 1 day course) Suitable for all employees, this course has a pre-requisite of the participant holding a valid Ciffa certificate of previous training. Courses taken through other organizations do not qualify. This seminar builds on previous knowledge and highlights regulatory changes and amendments, which impact on the member's activities. It also provides an opportunity for participants to discuss existing problems related to their comprehension of the regulations and any difficulties they may have encountered. This training is required every two years, to maintain compliance and should occur within the calendar year of the certificate's expiration date.

Montreal: Hotel Maritime, 1155 Guy Street (At Rene Levesque), Salon Beaupre II

Member Cost Non Member Cost (Cost includes a refreshment break)

Toronto: The Holiday Inn, 600 Dixon Road, Etobicoke Conference Room

Montreal: Hotel Maritime, 1155 Guy Street (At Rene Levesque), Salon Beaupre II

a) Montreal b) Toronto c) Calgary - location TBA d) Vancouver - location TBA

Toronto: The Holiday Inn, 600 Dixon Road, Etobicoke Conference Room

1. March 20th (08:45-17:00) 1. March 13th (08:45-17:00) 1. March - date to be advised 1. March - date to be advised

2. IMO IMDG Advanced Two day training (Intensive-No prerequisite) Suitable for employees in a supervisory or managerial accountability role. This advanced level course builds on the information contained in the basic level course, supplemented with a more detailed and thorough review of the regulations, the means to implement proper management procedures and a means to conduct, evaluate and review a company's compliance level and where necessary implement corrective actions. Member Cost $670.00 Non Member Cost $760.00 (Cost includes 2 continental breakfasts and lunches) Montreal: Hotel Maritime, 1155 Guy Street (At Rene Levesque), Salon Beaupre II Toronto: The Holiday Inn, 600 Dixon Road, Etobicoke Conference Room

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$215.00 $290.00

a) Montreal

1. March 21st a.m. session (08:00 - 12:00) 2. March 21st p.m. session (13:00-17:00) b) Toronto 1. March 14th a.m. session (08:00 - 12:00) 2. March 14th p.m. session (13:00-17:00) c) Calgary - location TBA 1. March - date to be advised d) Vancouver - location TBA 1. March - date to be advised

4. Warehouse/Terminal Operator One day training (No prerequisite) Suitable for all warehouse and freight consolidation operators and employees. In addition to the basic level of training, this course adds supplemental material regarding safe handling, proper packaging and cargo securing, safety marks, documentation and any other related operational issues that impose liability and responsibility on all cargo handlers. Member Cost

CIFFA NEWSLETTER - FEBRUARY, 2001

$325.00

IMO Dangerous Goods Schedule

(cont’d)

Non Member Cost $370.00 (Cost includes continental breakfast and lunch) Montreal: Hotel Maritime, 1155 Guy Street (At Rene Levesque), Salon Beaupre II Toronto: The Holiday Inn, 600 Dixon Road, Etobicoke Conference Room a) Montreal b) Toronto c) Calgary d) Vancouver

April - TBA April - TBA 1. Not currently scheduled (subject to demand) 1. Not currently scheduled (subject to demand)

5. Canadian TDGR training One day training (No prerequisite) Suitable for all employees. This course addresses requirements under the Canadian (and to a lesser degree US CFR49) regulations that affect domestic transport with implications for compliance and enforcement. This course address issues that while not stipulated under international legislation, are required for compliance under the applicable domestic regulations. Specific focus is made on issues related to ERAP, documentation and compliance with Transport Safety Inspectors directives. Member Cost $295.00 Non Member Cost $335.00 (Cost includes continental breakfast and lunch) N.B. This course will only be scheduled subject to the demand of our members. If you are interested in this course please contact the Secretariat in order to begin possible scheduling. Contact the CIFFA Secretariat to register now. Tel: (416) 234-5100 or Email: [email protected].

NEW EMAIL ADDRESSES FOR SECRETARIAT Effective immediately the following email addresses have been activated and telephone extensions have also been included for your convenience. George Kuhn, Executive Director Ext 223, [email protected] Marilyn Massoud, Secretary-Manager Ext. 222, [email protected] Sandra Fulford, Administrative Assistant Ext 221, [email protected]

INCOTERMS and Insurance under CIF and CIP In our last Newsletter (Vol. 53, No. 2) we took umbrage with the new Incoterms 2000 allowing for 'minimum insurance coverage' under CIF and CIP terms. Therein it is stipulated that the seller only needs to arrange for insurance coverage under the 'Institute Cargo Clauses C (ICC-C) - or of comparable scheme conditions'. We have since received a letter from Michael Doyle, a member of the ICC Working Party on Trade Terms and principal of Michael Doyle & Associates, International Trade Consultants, Kaleden, BC. Mr. Doyle states the following: Your September 2000 issue, Vol 53, No. 2 states on page 10 that the Incoterms 2000 requirement that the seller needs only to arrange for Insurance coverage under the 'ICC-C' is a major flaw. With respect, it is nothing of the kind. It was included after considerable discussion and much thought. The matter is addressed in Incoterms 2000 (ICC Publication 560) on page 17 and in its companion volume ICC Guide to Incoterms 2000 (ICC publication 620), pages 26/27, 42/44 and 72 (Section A3b). The different usages of CIP (manufactured goods) and CIF (bulk goods) and the matter of resale were two of several factors that influenced our wording. As your article correctly states, it is of primary importance that the contract between buyer and seller accurately and clearly states the exact terms of the bargain they have made. Incoterms 2000, properly used, makes it easy for them to do this. Yours truly, Michael Doyle True, this is factually and technically correct! But is it not a case of the 'tail wagging the dog'? For the uninitiated or occasional importer, this can be very confusing and overlooked in the naïve assumption that, after all, Incoterms 2000 clearly stipulate insurance coverage under CIF or CIP. After all, there is a disproportionately higher number of shipments in manufactured goods than bulk cargoes. And yet, rather the exception than the rule appears to have dictated the rewriting of the Incoterms. In the writer's opinion, the ICC would have shown 'courage' if it had settled the question of insurance so that buyers could sleep quietly instead of being haunted by nightmares. The slight changes that were made, were certainly justified, nevertheless, addressing matters from a more practical point of view rather than getting absorbed in the theoretical world of what's, ifs and buts for the occasional bulk shipment, would have done the world of international trade a much greater service.

CIFFA NEWSLETTER - FEBRUARY, 2001

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Incoterms

(cont’d)

ICC-C insurance only covers the total loss of the shipment. It is even worse than 'fpa insurance' that also covers damage in handling, but not part damage. Take for example a Canadian exporter that sells an expensive machine to India on the basis of CIF Mumbai. At arrival it is noticed that the machine is badly damaged and tens of thousands of Dollars are required to repair it. Yet, the seller, unsuspectingly, only took out ICCC insurance which means that the buyer is left with covering the cost of repair with no recourse against the insurance company. Similarly, a Canadian importer buys 20 barrels of harmless, but expensive, chemicals from a supplier in Asia. The basis of delivery is CIP Winnipeg and when the cargo arrives, the buyer notices that three barrels are empty and two barrels badly damaged and leaking. Again, the seller took out ICC-C insurance and the buyer will be without recourse against either the seller or the insurance company. Clearly, and once again, all our members are urged to advise the exporter or the importer to ensure that additional coverage for 'all risk, door-to-door' insurance is taken out inclusive of the additional coverage for war, strike, upheaval and civil unrest, if available. Incoterms, as such, do not represent final contractual regulations and clearly allow for additions. One then has to take care that the changes are clearly and unmistakably formulated.

Yes, Help Is Available From the Export Development Corporation (EDC) Often overlooked or little understood by the logistics community is the help available through the EDC. EDC can considerably reduce the risk for the exporter (and the freight forwarder) and increase the level of success abroad. EDC offers accounts receivable insurance to protect the Canadian exporter when venturing into the export market. This can be particularly relevant when exporting to non-traditional markets where the risk of collection is considerably increased due to local laws and circumstances. The EDC advertises the following advantages: 1. Minimize risk - EDC accounts receivable insurance covers up to 90% of the loss if a foreign buyer defaults 2. Maximize growth - EDC accounts receivables insurance can be used as collateral to increase working capital 3. Gets approval fast - EDC has a fast approval process usually within 24 hours. And if there is a claim, it will settle quickly. To access the EDC, call 1-888-382-7109 and speak with a small business export insurance specialist.

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Urgent! Feedback required by March 12, 2001 Transport Canada Launches Comprehensive International Air Policy Review In December 1999, the Minister of Transport committed to review Canada's international air policy with a commitment to have a liberalization of that policy takes effect at the end of October 2001. CIFFA received the details of the review paper on February 8, 2001 and is invited to submit comments and views to the Ministry by March 12, 2001! Stakeholders will have then the time to end March to meet with Transport Canada at their request. Therefore there is little time available to do the necessary work in reviewing the discussion paper submitted, but we urge members and their management to review the paper and submit their comments to the secretariat by the end of this month. At the time of writing this article, the 22 page document has not yet been reviewed and we are unable to comment in detail. Issues discussed can be of great importance and consequence to the freight forwarding industry and entail such matters as: Fifth Freedom Rights, All-Cargo Rights, Tariffs, Multilateral negations of international air services, foreign carrier access etc. The document is available for reference on the Transport Canada web site at: www.tc.gc.ca/pol/en/airpolicy/Air_Policy_Menu_Page.htm Please email your comments to the CIFFA Secretariat at [email protected].

Congratulations CIFFA 2000 Graduates In Calgary Andrew Fraser, Education Co-ordinator of the CIFFA Education course at the University of Calgary, together with the CIFFA National President, Paul Lobas, were on hand to congratulate the April 2000 graduates. Mr. Ron Bushman of Aerodyne Aviation, Calgary, an airline charter GSA in Western Canada, was a sponsor of the event. Our thanks to Aerodyne Aviation for helping make this event a memorable one for our students.

CIFFA NEWSLETTER - FEBRUARY, 2001

Finally National Uniformity Envisaged by Transport Canada! Finally efforts are undertaken to make roads safer and operations smoother for motor carriers hauling goods between provinces and across national borders. The Government is asking parliament to approve a national performance regime that will address national safety standards and a certification process for commercial trucking valid for the whole country. This would end the requirement that carriers be certified in each of our provinces and territories through which they might operate. The proposed amendments to the Motor Vehicle Transport Act would put a national framework on standards and do away with the separate jurisdiction presently in place. Derek Sweet, director-general of road safety and motor vehicle regulation advises that the new regulation would allow carrier certification in one province to be valid for the whole country reducing a lot of regulatory burden on carriers and the government. The regime will be based on the National Safety Code standards already developed by federal, provincial and territorial governments in cooperation with the Canadian Council of Motor Transport Administrators. The idea is to have in place a seamless system that will allow carriers to go anywhere in Canada and, it is hoped, anywhere in the United States. Apparently a similar effort is on the way in the United States of America and there are already discussions between the U.S. and Canadian authorities on streamlining such a system and accepting each other's standards as satisfactory. 'Kudos' to our public sector service for recognizing pro-actively the need towards standardization and harmonization and consequently the smoother and more competitive exchange of goods to market!

The Young International Freight Forwarder of the Year Award (Sponsored by theTT Club, FIATA & IATA)

The above-mentioned sponsors have decided to recognize each year a 'Young International Freight Forwarder' from any FIATA member association. The contest is limited to young people of 30 years of age or younger with a minimum industry employment record of two years or more. Participants in Canada will, in addition, have to have successfully completed the CIFFA Education Course with a minimum average of 75%. Each Association will submit one candidate to the award committee that will evaluate the candidate based on the curricula and achievements submitted. In addition the candidate will have to submit to the international awards committee a dissertation of 2500 - 4000 words on a topic to be chosen later. The candidate will have three months to submit the dissertation. The timing: · Mid August 2001 details of the award contest · January 15, 2002 submission of the candidate by the national association · April 30, 2002 TT Club to receive the candidate's dissertation on the chosen topic · July 2002, selection of the winner The prize: The prize is truly exciting for the chosen winner: 1. Fully paid attendance at the 2002 FIATA World Congress to be held in Istanbul/Turkey. 2. A two week training sojourn at a multimodal transport facility in either Hongkong, London or New Jersey. 3. A one week, classroom based training in transport related legal and insurance matters in London/England. 4. And a one week training on air cargo by IATA in Montreal. This considerable and generous award does not only profit the winner in question but exposes the employee to highly professional training without expense to the employer. In addition to the above, CIFFA will award a handsome prize to the winner of a similar Canadian competition. The selection committee is being formed now and the nature of the prize and the details of the contest will be advised in our next Newsletter, due in April of this year. We therefore urge the management of our member companies to pro-actively promote participation in this contest and to look out for more details in future editions of our Newsletter.

IATA Dangerous Goods Training Delayed Since the cancellation of Canadian Airlines' dangerous goods training in December 2000, CIFFA is without a proper venue to recommend professional DG-training to its members. Under the circumstances, CIFFA has decided to take this training in-house and is in the process of preparing the training course and getting IATA to certify it. We expect that this process should be completed latest by the end of April 2001 and that CIFFA will be able to hold courses and certify employees as of May this year. Please check our Web site from time to time under 'Education' where we will publish details as they become available.

CIFFA NEWSLETTER - FEBRUARY, 2001

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Annual General Meeting Notice to Members In accordance with the Association's By-Laws, Article V, Section 4, notice is hereby given of the 52nd Annual General Meeting of the Canadian International Freight Forwarders Association, the be held at the Renaissance Hôtel du Parc, 3625 Avenue du Parc, Montreal on Thursday, May 31st, 2001 from 09:00 -16:00 hours. The National Board of Directors will present their annual Committee Reports, and the Treasurer will present his financial report.

GOLF TOURNAMENT, ANNUAL GENERAL MEETING & SYMPOSIUM Montreal, Quebec

May 29 - 31, 2001

Symposium Day - May 30, 2001 - The Objective of this Symposium, 2001 - A Service Odyssey, is to provide CIFFA participants with a unique learning experience, focusing on concepts, implementation strategies and technologies to ensure effective Customer Relationship Management (CRM) within their own organizations. This learning experience will present many of the issues, seeking to resolve confusion about the definition and context for effective CRM. Equally, it will challenge the participants to reflect on their own progress and on what is needed to implement CRM as a truly effective, competitive tool. (see Symposium, next page)

Sponsorship Opportunities Tuesday, May 29th Club de Golf le Versant Inc. · Golf Tournament · Hole Sponsors · Various Contests Contact: Maureen Samit Tel. (514) 633-1211 Email: [email protected] Wednesday, May 30th Renaissance, Hôtel du Parc Breakfast Gold Morning Break Silver Luncheon Platinum Afternoon Break Silver Cocktail Reception Platinum Thursday, May 31st Renaissance, Hôtel du Parc AGM Luncheon Gold Gala Cocktail Party Platinum Gala Dinner Platinum Gala Wine Platinum Gala Flowers Silver Gala Entertainment Platinum Gala Dessert Gold For information on sponsorship contact: Marilyn Massoud (416) 234-5100, ext. 222 Email: [email protected] Or Rachelle Anger, Quad City (450) 635-5005 Email: [email protected]

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Tentative Schedule of Events Tuesday, May 29th Golf Tournament shotgun 12:00 Cocktail Party 17:00 - 19:00 Dinner 19:00 - 22:00 Wednesday, May 30th Trade Show 08:00 - 19:00 Continental Breakfast 08:00 - 09:00 Symposium 09:00 - 17:00 Luncheon 12:00 - 13:30 Cocktail Party 17:00 - 19:00 Thursday, May 31st Trade Show 08:00 - 13:00 Continental Breakfast 08:00 - 09:00 Ciffa AGM Open Forum 09:00 - 11:30 Luncheon 11:30 - 12:30 AGM Committee Reports 12:45 - 16:00 Gala Cocktail Party 18:00 - 19:30 Gala Dinner Dance 19:30 - 02:00 See enclosed registration form for pricing details.

2001 AGM Committee Marilyn Massoud, CIFFA Tel: (866) 282-4332 Email: [email protected] Rachelle Anger, Quad City Port Service Tel: (450) 635-5005 Email: [email protected] Hans Pittinger, Hellmann Worldwide Logistics Tel: (905) 565-3359 Email: [email protected]

CIFFA NEWSLETTER - FEBRUARY, 2001

Trade Show Wednesday, May 30th 08:00 - 19:00 Thursday, May 31st 08:00 - 13:00 (tear down by 15:00) Including a Scavenger Hunt and prizes! For more information and booking of space call Marilyn Massoud at (416) 234-5100 ext. 222 or E mail: [email protected].

Booths 8' x 10' Booth Cost: $550.00 Draped and Poled Two chairs supplied and table Included maximum two luncheon tickets Add’l electrical charge $ 50.00 Outside line for Internet access Bell charges are additional

Accommodations Renaissance, Hôtel du Parc room rates are $155.00 for a regular room or $185.00 for a Club Renaissance Room. A first night deposit must accompany all reservations. Quote CIFFA event. To reserve please call (800) 363-0735. Hotel map may be found at www.ciffa.com/newsandevents11232000_02.html

CIFFA GOLF TOURNAMENT May 29, 2001 CLUB DE GOLF LE VERSANT INC. 2075, Cote Terrebonne Terrebonne, Quebec J6Y 1H6 Tel: (450) 964-2251 This course will only accommodate 150 golfers, and dinner at the club afterwards will only accommodate 200, so reserve your space now!

Symposium Day (cont’d from previous page) The symposium day will consist of four presentations of approximately one hour lecture style, followed by an 'issues discussion' (Q&A) of approximately 20 to 30 minutes. The topics are as follows: · · · ·

2001: A Service Odyssey Exhibitors as of February 20, 2001 Booth Number 1 2 3 4 8 9 10 11 12 13 14

Booths are still available but are going quickly. Book yours today! Contact Marilyn Massoud at (416) 234-5100, ext. 222 or Email: [email protected].

Relationship Strategies Channel Management (Access & Process) Customer Satisfaction Management Knowledge Management

2001: A Service Odyssey Sponsors as of February 20, 2001 Platinum Air Canada Cargo British Airways World Cargo Port of Montreal Gold Canadian Sailings David Kirsch Forwarders Ltd. Magnacargo NVOCC Silver Cargo Alliance Ltd. Carson International Cole Freight Inc. Gillespie-Munro Inc. Gillship Navigation Panalpina Inc.

Exhibitor Air Canada Cargo Canadian Sailings Magazine C-Team Systems CIFFA Varig Brazilian Airlines Topax Export Packaging Cargo Alliance Ltd. A.N. Deringer Inc. Prolan Info Magnacargo NVOCC CCRA - CAED

- NEWS FLASH IMDG Code 2000 Edition Erratums 1st errata (September 2000) The 1st errata were issued with the first printing of the IMDG Code and the corrections were incorporated into the second printing. Unless the printed errata have been lost, therefore, most users will not need to download the 1st errata. 2nd errata (November 2000) The 2nd errata were issued with the second printing of the IMDG Code. Users of the first printing may therefore need to download the 2nd errata. 3rd errata (January 2001) The 3rd errata have not been issued in print. All users will therefore need to download the 3rd errata. To identify which printing of the Code you own, check the row of numbers below the publisher information on the copyright page (page ii). The lowest number is the number of the printing: if the lowest number is 1, you have the first printing; if it is 2, you have the second, and so on.

Bronze AON Reed Stenhouse Inc. TSI Terminal Systems

The IMO Web site to obtain this information is www.imo.org/imo/imdg/intro.htm.

CIFFA NEWSLETTER - FEBRUARY, 2001

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Relief Fund For Gujarat India FIATA received the following appeal from their Ordinary member, FFFAI, in India regarding the devastating earthquake in that country and has asked CIFFA to pass along the request to our Members. Dear Mr. Gillespie, This in an appeal made to provide relief and rehabilitation to the people of Gujarat (India), affected by the massive earthquake. They require shelter, food, clothes, medicines, etc. The disaster caused is so devastating, it is not easy to meet the basic requirements. We, as Federation of Freight Forwarders' Association in India, are mobilizing our member associations to make their best contribution. We would like to make an appeal to the International community of all Custom Brokers and Freight Forwarders, to support by their valued contributions in helping the people of Gujarat (India), at this time of natural calamity. Contributions, may be forwarded to the Federation for channelizing it through proper aid agencies, to reach the affected people. The contributions can be drawn in favour of "FFFAI - a/c Gujarat Relief Fund". We would appreciate your making an appeal to all member Associations to support this humanitarian cause. We thank you for your co-operation. Regards, Cdr. R. Srinivasan, President FFFAI

Correspondence From at Home and Around the World We have received correspondence from the places listed below, looking for agency relationships with member firms in Canada. Should you be interested to establish an agency relationship in any of these places, please contact the Secretariat for details.

Agents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

Dhaka, Bangladesh Istanbul, Turkey Israel Tianjin, China Vrsac, Yugoslavia Cairo, Egypt Sialkot, Pakistan Mumbai, India Chittagong, Bangladesh Brazil Karachi, Pakistan Chittagong, Bangladesh Chennai, India Far East Karachi, Pakistan Voronezh, Russia Mumbai, India Penang, Malaysia Qingdao, China Dhaka, Bangladesh Abu Dhabi, UAE

Resumés FIATA is supporting this appeal and has decided to make an immediate contribution. CIFFA members are asked to make their donations directly to the Gujarat Relief Fund. Please note that your remittance should be addressed as follows: FFFAI A/C Gujarat Relief Fund Account No 103339 c/o INDIAN BANK Ground Floor, A Wing Mittal Tower, Narima Point MUMBAI - 400 021, India or by cheque drawn in the name of FFFAI A/C Gujarat Relief Fund Thank you for your support to this humanitarian cause. The FIATA Secretariat and The CIFFA Secretariat

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Should you be interested in any of the following job applicants, please contact the Secretariat for details. 1. Chinese national with over 5 years of experience in all modes of transport is looking for a position with multination firm. Presently in Ottawa but willing to relocate. 2. Chinese national, presently working in Denmark, with a Masters Degree from Alborg University and a BA from Shanghai University and some working experience as international freight forwarder, is looking for a position in Canada. 3. Toronto based graduate student from Centennial College, with some experience in airfreight forwarding, fluently (cont’d on page 16)

CIFFA NEWSLETTER - FEBRUARY, 2001

Huge Project Opportunities in Morocco The Department of Foreign Affairs reports that Morocco has launched a vast number of ambitious public infrastructure projects to meet the needs of its emerging economy. Such projects involve water and electric power supply, expansion of ports and airports, as well as roads, highways and dams. The cost is estimated to be in the hundreds of millions of dollars to be financed by the Moroccan Government or international stakeholders and may also involve commercial concessions or privatization. Various Canadian based engineering firms and other international players are said to be interested in participating. This should open up huge opportunities to CIFFA member companies that are well versed in the handling of projects and this North African region. Further information can be obtained from the Commercial Counselor at the Canadian Embassy in Rabat, email address: [email protected].

A Moment of Reflection (Author unknown - received by E-mail) The paradox of our time in history is that we have taller buildings, but shorter tempers; wider freeways, but narrower viewpoints; we spend more, but have less; we buy more, but enjoy less. We have bigger houses and smaller families; more conveniences, but

less time; we have more degrees, but less sense; more knowledge, but less judgment; more experts, but more problems; more medicine, but less wellness. We have multiplied our possessions, but reduced our values. We talk too much, love too seldom, and hate too often. We've learned how to make a living, but not a life; we've added years to life, but not life to years. We have been all the way to the moon, but have trouble crossing the street to meet the new neighbor. We've conquered outer space, but not inner space; we've cleaned up the air, but polluted the soul; we've split the atom, bur not our prejudice. These are the times of tall men, and short character; steep profits, and shallow relationships. These are the times of world peace, but domestic warfare; or leisure, but less fun; more kinds of food, but less nutrition. These are days of two incomes, but more divorce; of fancier houses, but broken homes. It is a time when there is much in the show window and nothing in the stockroom; a time when technology can bring this letter to you, and a time when you can choose to make a difference …… or just hit delete!

Snakes, Planes and Machinery Reproduced from the "TT Talk" - 14th Edition What is the connection between a 2 metre long wooden snake, an aircraft engine and some damaged machinery in Mexico? The answer is that they were all items of cargo which became the

CIFFA NEWSLETTER - FEBRUARY, 2001

subject of legal arguments in the United States, and in each case the carrier had to pay the claim in full. Because of slipshod paperwork, none of the carriers was able to rely on the usual limitations of liability. The wooden snake case could cost the carrier and his insurers (not, we hasten to add, the TT Club) a cool $3 million. A very expensive mistake indeed, but one which could easily have been avoided had the right document been issued at the time. Our friend, Peter Jones gives more details on his Forwarder law website at http://www.forwarderlaw.com/cases /spiralaw.htm. These stories once again highlight the absolute importance of making sure your clients are aware of your terms and conditions of business. All documents leaving your office -- letters, faxes, e-mails, quotations, collection orders, delivery notes, requests for instructions ... must make reference to your conditions. It is also a good idea to post relevant terms and conditions on your website, especially if you are accepting booking information by that medium. And do make sure that documents are issued to cover the job you have been asked to do. Contributor: Andrew Trasler, TT Club London Note: Members are urged to ensure their clients have received a copy of the Association's Standard Trading Conditions. You can order packages of the CIFFA STCS, in either English or French from the Secretariat at a cost of $25.00 per 100. Alternatively you can also access these on the CIFFA website at: http://www.ciffa.com/aboutciffa_standard .html.

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Discount Offer for OAG Air Cargo Guide OAG and CIFFA are proud to announce a special 20% discount offer to all CIFFA members. For over forty years, OAG has been at the forefront of the airfreight industry, providing unrivaled data covering virtually every aspect of airborne distribution. OAG print and electronic products are used by agents, freight forwarders and commercial shippers to obtain flight and pricing information to move goods quickly and efficiently around the world. Compiled from over 800 airlines worldwide, OAG'S Cargo products are a complete, centralized source of vital facts for the air cargo industry. To take advantage of this outstanding offer all orders have to be placed through CIFFA. See order form below. Your CIFFA Ways and Means Committee R. Walker, Chairman

Resumés

(cont’d from page 12)

bilingual in English/Spanish is looking for a permanent position in Toronto. 4. Software developer with some 13 years experience in such languages as Java-Servlets/JDBC, Java Script, HTML 4.0, Visual Basic 6.0, SQL, PL/SQL, Basic, Pacal, Assembler and 3 years of experience with ORACLE is looking for a new position in Toronto. 5. Chinese national with over 12 years of experience in International Transportation is looking for a position in Toronto. 6. Toronto based technical support person is looking for an opportunity in International Freight Forwarding firm. Preference is CRM consultant or CRM Programmer/Customizer. 7. Indian, presently in India, is looking for a job opening in sales or operations in Canada. 8. Toronto based SENECA graduate student, holding a CITT Diploma and the CIFFA Education Certificate is looking for a position in logistics or customs. 9. Individual with over 15 years administrative and HR experience with an International Freight Forwarding firm is looking for a new position in the Toronto area.

OAG Subscription Form for CIFFA Members Fax or Mail to CIFFA, 1243 Islington Ave. #706, Toronto, ON M8X 1Y9 Fax. 416-234-5152 Tel. 416-234-5100 www.ciffa.com Name____________________________________ Title_____________________________________ Company________________________________ Address_________________________________

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" OAG Cargo Guide, US$236.00 1 year, 12 issues " OAG Cargo Disk, US$384.80 1 year Please select: " 3.5 HD " CD Rom Delivery Included, 4-5 weeks delivery time

________________________________________

Check one (amount is in U.S. Dollars): " " Bill me Payment enclosed " Charge my VISA

City________________Prov_______Zip_______

Card No.________________________________

Telephone________________________________

Exp Date____/_____

Email address_____________________________

Authorized Signature______________________

Date Order Placed____________________

www.oag.com

CIFFA NEWSLETTER - FEBRUARY, 2001

PRESS RELEASES 1. KLM a Winner at the Central Division Forwarders’ Choice Awards KLM Cargo Toronto would like to thank all of our loyal customers for their support over the past year. Special thanks to everyone that voted KLM Cargo the Central Division winner of four Forwarder's Choice Awards for outstanding service and commitment between Toronto and: Africa Mediterranean Middle East Europe Your recognition endorses KLM Cargo as a leader in the air cargo industry. You have our commitment that we will continue our efforts, with the ultimate goal of surpassing the expectations of our customers.

2. Airforwarders Association of Washington, DC Cathy Langham, President of Langham, a leading expedited transportation, logistics and warehousing service provider, has been elected Chairperson of the Airforwarders Association for 2001-2001. Following the Association's Board of Directors meeting Langham said, "the Airforwarders Association with its newly elected Directors and recently revised strategic plan is well poised to move ahead and confront the myriad of issues that face its membership. The association is committed to being the voice of the air forwarding/logistics industry in order to enhance the role of our members in their customers supply chain". The Airforwarders Association will convene their annual Air Freight Management Conference & Exposition in San Francisco, March 4-7, 2001. For more information access the Airforwarders Association homepage at http://www.airforwarders.org or contact the association's offices in Washington at Tel. 202-266-1317.

3. Freight Carriers Association of Canada, Fort Erie, ON This Association represents over 90 general freight carriers on matters related to economics, costing, pricing and finances, as well as motor carrier statistics. For full details of the Freight Carriers Association of Canada's 5.5 trucking rate increase visit their website at http://www.fca-natc.org or phone (905) 994-0560.

4. Canadian Pacific Railway Company, Montreal, QC For a copy of CPR's amended loaded storage rule, item 4300 of their tariff CPRS 7589-T and any other rate schedule updates etc., visit their website at http://www.cpr.ca

5. New Website at Maersk/Sealand Maersk/Sealand has launched its next generation web site! It offers easy access, quick navigation and better functionality. Apparently, the website has been developed in concert with customers to make navigation easy and logical. It can be viewed under www.maersksealand.com.

6. Shanghai High-tech Export Boom The Shanghai customs office just recently reported astounding increases in high-tech exports from its region. Technology exports reached a total of US$ 4.8 Billion, which represents a 45.5 percent increase over 1999! The considerable increase is accredited to major investments by foreign enterprises and multinationals including such names as Siemens, NEC, Lucent an others. Statistics show that foreign enterprises control over 90 percent of the city's high-and-new-tech exports!

7. Dramatic 'net enhancements' at NYK With the introduction of its 'Pegasus Project', NYK has clearly taken a quantum leap in embracing e-commerce. Pegasus is an advanced system that enables the customer to monitor and interactively manage on line all shipment logistics - anytime and anywhere. In addition to the currently available on-line cargo tracing and schedule inquiry, printing of Bills of Lading for North American exports will begin in March 2001. The same will be available in Europe and Asia within the second quarter. The website will eventually allow on-line services for global supply chain management, rate inquiries, schedules, booking, cargo tracking, cargo status notification, customized reporting and more. NYK maintains that Pegasus is not intended to simply replace traditional communications media with the Internet, but to provide their customers with a platform to maximize the streamlining of their processes. The open architecture supposedly incorporates the most advanced, object oriented technology and will allow for easy and flexible connectivity with other, external and internal systems as well as with other industry portal sites. When last checking the sites; the North American and their world site, 'Pegasus' was not apparent, but we do recommend close monitoring as this purports to be a partial answer to the 'holy grail' we all seek in net development.

CIFFA NEWSLETTER - FEBRUARY, 2001

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2000 Forwarder’s Choice Awards A Huge Success The Canadian International Freight Forwarders Association (Central Division) hosted the second annual Forwarder’s Choice Awards on November 16th, 2000 at the Mississauga Convention Centre.The event was attended by 460 people. The Masters of Ceremonies for the evening were Steve Valentine, President of Cargo Alliance Ltd., and Rino Muzzin, a partner in Palmer-Muzzin Inc. The wine was provided by Ecu Line Canada Inc., Gillship Navigation, LCL Navigation and NVO Consolidators Canada. CG&B Insurance Brokers and Eastern Marine Underwriters supplied the beautiful center pieces for each table. The Carrier of the Year awards were sponsored by Canadian Sailings and Canadian Transportation and Logistics. Comedian James Cunningham provided the evening’s entertainment. Ciffa Central would also like to thank Jodie Wilson of LCL Navigation for her help with registration and working with the Convention Centre to make the evening the success it was.

Forwarder’s Choice Awards Winners and Presenters Winner

OCEAN Presented By

AIR Winner

Presented By

Africa

CCAL

Rachel Anger Quad City Services President

KLM

Ian Kennedy ITN Logistics President

Caribbean

Kent Line

Ken Singh Atlas International President

American Airlines

Peter Schwert Geo-Logistics President

Far East

OOCL

Tony Young LCL Navigation President

Cathay Pacific

Paul Lobas CIFFA National President

Latin America

CSAV

Hans Pittinger Hellmann Int’l Forwarders President

Lan Chile

John O'Brien From2.com Managing Director

Middle East

Maersk Sealand

Chris Gillespie Gillship Navigation/ Gillespie Monroe President

KLM

Werner Herding Panalpina

South West Pacific

Columbus Line

Rolf Von Fintel NVO Consolidators

Cathay Pacific

Uwe Reimer J.H. Bachman President

Mediterranean

Zim

Mike McCarthy Ecu Line Canada

KLM

Anders Fisker Fisker Cargo President

Europe

OOCL

Mike Delaney Transport Canada

KLM

Tim Speed MSAS Global Logistics President

Joyce Hammock Canadian Sailings Publisher

Air Canada

Kevin Sharp Canadian Transportation & Logistics Publisher

Carrier of the Year HapagLloyd

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CIFFA NEWSLETTER - FEBRUARY, 2001

CIFFA NEWSLETTER - FEBRUARY, 2001

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