ctl sept 2013
DESCRIPTION
Canadian Transportation & Logistics magazine provides innovative solutions to transportation, logistics and purchasing professionals who manage product flow throughout the supply chain.TRANSCRIPT
TRANSPORTATIONWhen is servicenot a commodity?
MARINEGrowing ambitionson the East Coast
CUSTOMSAre your carriersready for eManifest?
SEPTEMBER 2013
Published Since 1898
Our 12th annual Shipper’s Choice Awards
survey sets industry benchmarks for
performance excellence and identifies
the carriers who surpass them
“There’s always going to be risk. The issue is how to manage it.”
Seiter&Miller 001039 Pub. CTNL Size 8.125 x 10.875 Issue May ‘13Art Director: sd/lg Copywriter: ms Account Executive: em Date: 04/30/13
People who know Distribution, know BDO.
The Consumer Business Practice at BDO
The logistics business has never been simple. And with recent emphasis on supply chain sustainability, higher safety standards, and an evolving regulatory climate, it’s getting more complex. BDO’s dedicated professionals provide an exceptional array of partner-led services to help you keep up with key issues and maximize profi tability, even in challenging times.
Assurance | Accounting | Tax | Advisory
www.bdo.ca/consumer-business
BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member � rms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.
ct&l september 2013 3
VOLUME 116 ISSUE NO. 8 SEPTEMBER 2013
Published Since 1898
Our 12th Annual Shipper’s Choice Awards Survey sets industry benchmarks for performance excellence and identifies the 53 carriers who exceed them � � � � � � � 17
COVER
Features 36. . . GROWING AMBITIONS ON THE EAST COASTAn embarrassment of riches is what some might call having three super post Panamax vessel-capable container terminals in Nova Scotia� But if everything goes according to plan, that’s what shippers can look forward to as Halifax, Sydney and Melford jockey for position to attract Suez Canal Traffic�
40. . . WHEN THINGS GO HORRIBLY WRONGThe world can sometimes be a dangerous place to ship freight� Supply chain insurance now has four legs thanks to the recent addition of trade insurance coverage� Find out how it can strengthen the current approach centred on loss, damage and delay�
43. . . CBSA’S EMANIFEST: ARE YOUR CARRIERS AHEAD OF THE CURVE?The Fall 2013 deadline for the Canadian Border Service Agency’s eManifest regulations is upon us� Carriers and their supply chain partners should have spent the summer working on resolving any bugs in the system� Are your carriers ahead of the learning curve?
4 THE VIEW WITH LOUWhy calls for increased rail safety can’t be ignored
8 IN THE NEWS New federal minister of transport Lisa Raitt emphasizes safety and partnership building in her first speech at annual conference of the Association of Canadian Port Authorities; US bill could abolish Harbor Maintenance Tax with fees levied on imports from Canada; and a new crude oil rail loading terminal for Edmonton.
48 INSIDE THE NUMBERSUnderstanding what’s behind motor carriers’ continued reluctance to add to their fleet sizes after the recession.
46 DASHBOARDTrucking’s spot market avoids usual summer slump; transportation costs continue to ease; rail freight volumes show first drop since 2009; and more.
50 THE BIGGER PICTUREHere’s a question you can’t ignore: When is a service (not) a commodity?
Departments
www.ctl.ca
VOLUME 111 ISSUE NO. 9 SEPTEMBER 2008
www.ctl.ca
Published Since 1898
Departments
3CT&L SEPTEMBER 2008
After a period of positive growth, the US airlines’ situation has
turned desperate. The weak economy and the high price of
aviation fuel are setting the stage for cutbacks rather than
expansion. There’s really no gentle way to describe what’s
happening to plans for increasing air freight capacity:
they’re grounded. . . . . . . . . . . . . . . . . . . . . . . . . . . . page 16
cover
Features22 . . . CANADA’S TRADE CROSSROADSThe logistics infrastructure for Canada’s Pacific Gateway is expanding to bridge the massive engine of the United States and the burgeoning economies of Asia.
28 . . . LOGISTICS HIGHHow school boards across the country are working withgroups like the Canadian Supply Chain Sector Council toprovide career-oriented training at the high school level.
32 . . . ALL CHECKED OUTBalancing a secure supply chain and a happy workforce is more than a question of trust in today’s global arena.
4 VIEWPOINTAre cuts in airfreight capacity temporary or a sign of things to come?
6 IN THE NEWSLufthansa picks up orphaned freighter route after Air Canada backs out; Oceanex increases capacity to St. John’s; rail and trucktonnage drop over summer months; CN to upgrade intermodal facility in Prince George; and more.
12 THE LEADING EDGEWhy companies with global supply chains require a global Enterprise Resource Planning platform.
38 THE BIGGER PICTUREStrategies and tactics for reshaping North America’s supply chain.
Are you prepared for your next round of carrier negotiations?
You need to be up on the latest transportation buying trends and benchmarks.You need our annual Transportation Buying Trends Survey.
• Anticipated shipment volumes by industry • Rate increase averages by mode • Surcharge increases by mode • Capacity concerns by mode.
All this key information and more can be yours, FREE of charge. Fill out our survey and youwill receive the full results, free of charge. . . and you'll be entered into a special prize draw.
Look for our e-mail survey.CONDUCTED IN PARTNERSHIP WITH CITA AND CITT
GROUNDED!
44 ct&l september 2013
It’s common after a major transportation ac-cident, particularly one where there has been a significant loss of life, for all sides
involved to assume unrealistic positions. In the wake of the Lac-Mégantic derailment that took the lives of 47 people this summer,
it’s critical we don’t allow this to unfold.
Already a rail safety group out of the US is comparing the DOT-111, a train tank car de-sign widely-used to transport material such as crude and eth-anol, to the infamous Ford Pinto, which was recalled in the 70s due to serious safety con-cerns. It has gained media at-tention (including mention in a major feature in the National
Post) by doing so. Safety advocates say there is evidence showing the DOT-111 tank cars are more prone to rupture in a derailment than other types and regulators have been slow in mandating safety improvements. (The 72-car train carrying crude which derailed at Lac-Mégantic included some DOT-111s. )
On the other side, the railway involved, MM&A Railroad, was slow to respond and ham-fisted when it did so. It took five days for the company CEO to make his way to Lac-Mégantic to give a set of poorly crafted re-marks, all in English. As Dan Goodwill points out in his blog, “this made him, his company and the rail industry, look insensitive and out of touch with the culture and pain of the citi-zens of this small predominantly French-speaking Quebec town.”
Ottawa acted quickly with an emergency directive of the Railway Safety Act to increase rail safety. The directive requires all rail op-erators to adopt a number of safety measures, which appear to be rooted in common sense. For example, one of the directives is that “no locomotive attached to one or more loaded tank cars transporting dangerous goods is left unattended on a main track.” It’s actually hard to believe that in the post 9/11 world tank cars carrying dangerous goods are still being left unattended.
It’s certain there will be a push for more regulatory measures.
Near the end of 2012, the Standing Senate Committee on Energy, the Environment and Natural Resources had already initiated a study of the safe transportation of bulk hydro-carbons by transmission pipelines, tankers and railcars in Canada. No doubt the Lac-Mégantic rail disaster intensified the need to address safety in transporting hydrocarbons and the committee’s report issued late in August in-cludes 13 new recommendations. Included amongst those is a recommendation that Ottawa initiate a major review of the coun-try’s “railway regulatory framework, standards and industry practices” with respect to trans-porting dangerous goods. There is also a rec-ommendation to accelerate the phase out period for the DOT-111 tanker cars.
Is this too much for a transport mode which the Senate report itself concedes is able to move oil and natural gas safely without spills, 99.9% of the time?
Perhaps.But transporting crude oil does pose grave
dangers. If released into the environment crude oil can spread rapidly, especially in water, and it is flammable under certain con-ditions. And the number of crude shipments by rail has increased significantly of late. CP is anticipating moving 70,000 carloads of crude in 2013 and CN is expected to move approx-imately 60,000 carloads of crude. Back in 2009 CP only moved 500 carloads of crude and CN didn’t move any.
And we can’t forget, 47 people did lose their lives in Lac-Mégantic.
The Senate report speaks of “social license” – the broad approval by society for a given activity or project, and how earning a social license is so central to transportation systems moving any form of dangerous goods.
Earning such a “social license”, as the Sen-ate report points out, can sometimes mean going beyond regulated requirements to ad-dress community concerns. I urge the railways and shippers to do so. At the same time, I urge legislators not to take this as free license to impose unnecessary legislation. CT&L
Lou Smyrlis, MCILT
We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the
Department of Canadian Heritage
MEMBER CANADIAN BUSINESS PRESSCANADIAN CIRCULATIONS AUDIT BOARD
Volume 116 Issue No. 8 September 2013
EDITORIAL DIRECTORLou Smyrlis (416) 510-6881
MANAGING EDITORJulia Kuzeljevich (416) 510-6880
PUBLISHERNick Krukowski (416) 510-5108
ART DIRECTORMary Peligra
CONTRIBUTING EDITORSCarroll McCormick, Leo Ryan, James Menzies,
John G. Smith, Ian Putzger, Ken Mark
MARKET PRODUCTION MANAGERGary White (416) 510-6760
VIDEO PRODUCTION MANAGERBrad Ling
RESEARCH MANAGERLaura Moffatt
CIRCULATION MANAGERBarbara Adelt (416) 442-5600 Ext. 3546
EXECUTIVE PUBLISHERTim Dimopoulos
VICE-PRESIDENT PUBLISHINGAlex Papanou
PRESIDENTBruce Creighton
HEAD OFFICE:
80ValleybrookDrive,Toronto,ONM3B2S9
CANADIAN TRANSPORTATION & LOGISTICSiswrittenforCanadiantransportationandlogistics
professionalswhomanageproductflowfrommanufacturertopoint-of-sale.Editorialisfocused
onreporting,analysisandinterpretationofCanadianlogisticstrendsandissues.Itispublishedby
BIGMagazinesLP,adivisionofGlacierBIGHoldingsCompanyLtd.
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Tel:4164425600ext.3548.Fax:4165106875.Website:ctl.ca(clickonsubscriptionbutton)
SUBSCRIPTION RATES: Canada:$64.95+applicabletaxes,peryear;$105.95+applicabletaxes,fortwoyears.U.S.A.:US$105.95peryear.Allotherforeign:US$105.95peryear.Singlecopies$8exceptfortheannualLogisticsBuyers’Guide(Aug)$59.95+applicabletaxes,(notincludingHST)plus$2.00forpostage.USA:US$107.95,Foreign:US$107.95ISSN1187-4295(print),ISSN1923-368X(Digital),(CanadianTransportation&Logistics.)IndexedbyCanadianBusinessPeriodicalsIndex.PrintedinCanada.Allrightsreserved.Thecontentsofthispublicationmaynotbereproducedeitherinpartorinfullwithouttheconsentofthecopyrightowner.
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Social licenseEarning it sometimes means going
beyond the regulations
the view with Lou Shippercanadian
Formerly ‘Canadian Transportation & Logistics’
CanadianShipper News
CanadianShipper.com
Coming in 2014!
In 2014, Canadian Transportation & Logistics is adopting a new title - Canadian Shipper. The new title is more reflective of our editorial scope and mandate: a business journal written for Canadian
Supply Chain professionals, in the context of their transportation needs and responsibilities.
The new title also lends itself more
easily to the wide array of media platforms through which we are
now able to serve you - not just our print magazine, but our eNewsletter -
Canadian Shipper News - and online portal as well - CanadianShipper.com.
Canadian Shipper will continue to publish
the award-winning features and articles that you’ve come to expect from Canadian
Transportation & Logistics - just with a fresh new look! Watch for us in 2014!
www.ctl.ca
Lou Smyrlis,MCILT
We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the
Department of Canadian Heritage
MEMBER CANADIAN BUSINESS PRESSCANADIAN CIRCULATIONS AUDIT BOARD
Volume 116 Issue No. 8 September 2013
EDITORIAL DIRECTORLou Smyrlis (416) 510-6881
MANAGING EDITORJulia Kuzeljevich (416) 510-6880
PUBLISHERNick Krukowski (416) 510-5108
ART DIRECTORMary Peligra
CONTRIBUTING EDITORSCarroll McCormick, Leo Ryan, James Menzies,
John G. Smith, Ian Putzger, Ken Mark
MARKET PRODUCTION MANAGERGary White (416) 510-6760
VIDEO PRODUCTION MANAGERBrad Ling
RESEARCH MANAGERLaura Moffatt
CIRCULATION MANAGERBarbara Adelt (416) 442-5600 Ext. 3546
EXECUTIVE PUBLISHERTim Dimopoulos
VICE-PRESIDENT PUBLISHINGAlex Papanou
PRESIDENTBruce Creighton
HEAD OFFICE:
80ValleybrookDrive,Toronto,ONM3B2S9
CANADIAN TRANSPORTATION & LOGISTICSiswrittenforCanadiantransportationandlogistics
professionalswhomanageproductflowfrommanufacturertopoint-of-sale.Editorialisfocused
onreporting,analysisandinterpretationofCanadianlogisticstrendsandissues.Itispublishedby
BIGMagazinesLP,adivisionofGlacierBIGHoldingsCompanyLtd.
SUBSCRIPTIONS: Contactusat:[email protected]
Tel:4164425600ext.3548.Fax:4165106875.Website:ctl.ca(clickonsubscriptionbutton)
SUBSCRIPTION RATES: Canada:$64.95+applicabletaxes,peryear;$105.95+applicabletaxes,fortwoyears.U.S.A.:US$105.95peryear.Allotherforeign:US$105.95peryear.Singlecopies$8exceptfortheannualLogisticsBuyers’Guide(Aug)$59.95+applicabletaxes,(notincludingHST)plus$2.00forpostage.USA:US$107.95,Foreign:US$107.95ISSN1187-4295(print),ISSN1923-368X(Digital),(CanadianTransportation&Logistics.)IndexedbyCanadianBusinessPeriodicalsIndex.PrintedinCanada.Allrightsreserved.Thecontentsofthispublicationmaynotbereproducedeitherinpartorinfullwithouttheconsentofthecopyrightowner.
POSTMASTER: Pleaseforwardforms29Band67Bto:80ValleybrookDrive,Toronto,Ontario,M3B2S9SecondClassMailRegistrationNumber0721.
PUBLICATIONS MAIL AGREEMENT 40069240
Shippercanadian
Formerly ‘Canadian Transportation & Logistics’
CanadianShipper News
CanadianShipper.com
Coming in 2014!
In 2014, Canadian Transportation & Logistics is adopting a new title - Canadian Shipper. The new title is more reflective of our editorial scope and mandate: a business journal written for Canadian
Supply Chain professionals, in the context of their transportation needs and responsibilities.
The new title also lends itself more
easily to the wide array of media platforms through which we are
now able to serve you - not just our print magazine, but our eNewsletter -
Canadian Shipper News - and online portal as well - CanadianShipper.com.
Canadian Shipper will continue to publish
the award-winning features and articles that you’ve come to expect from Canadian
Transportation & Logistics - just with a fresh new look! Watch for us in 2014!
Angelo SarraciniPresident, Bailey Metal
Products Limited
Keith ReardonV. P. Intermodal Services,
CN Rail
Charles W. Clowdis, Jr.Managing Director, North American Markets, IHS
Global Insight (USA), Inc.
Grace TomaszunManager, N.A. Transportation
McCormick & Company
Mike OwensV. P. Physical Logistics,
Nestlé Canada Inc.
Doug MunroPresident and Owner,
Maritime-Ontario Freight Lines Limited
Carlos M. GomesSenior Economist,
Scotiabank
Douglas NixVice Chairman, Corporate Finance
Associates (CFA) Chairman of CFA’s Transportation and Logistics
Industry Practice Group
Michelle ArseneauManaging Partner, GX Transportation
Solutions
Neil McKennaV. P. Transportation,
Canadian Tire Corporation
Anna PetrovaSenior Supply Chain
Leader, Ferrero
Ron TepperExecutive Chairman & CEO, Consolidated
Fastfrate
Tibor Shanto Principal, Renbor Sales Solutions
Tom CoatesVP and COO,
Lakeside Logistics
Jeff PriesSr. V. P. Sales & Marketing,
Bison Transport
Jeff LindsayPresident and CEO,
Canada Cartage
Ian GragtmanExecutive
Vice PresidentColliers International
Mike McCarronConsolidation
Consultant, Wheels Group
On October 16th 2013, please plan on joining Canada’s top Transportation Executives for a
day of education & networking.
Introducing the 2013 team of presenters...
Registration: 7:30 am Presentations: 8:20 am sharp
Jacquie MeyersPresident, Meyers
Transportation Services
Wes ArmourPresident & CEO,
Armour Transportation Systems
MISSISSAuGA CONveNTION CeNTRe
75 Derry Road West, Mississauga, ON
Barry O’Neill Executive Vice President,
Hub Group
FReIGHT BIDS: Is there a better way for carriers and shippers to work together?
CARRIeR PeRFORMANCe MANAGeMeNT: Metrics that deliver results
INTeRMODAL TRANSPORTATION: Expanding beyond its niche
THe vIeW FROM THe TOP: The CEO’s perspective on major transportation trends
DeDICATeD TRANSPORTATION: Outsourcing fleet management to a third party
CROSS-BORDeR FReIGHT TRANSPORTATION: Best practices
TRANSPORTATION SALeS: Can you adapt to the new normal?
MeRGeRS & ACQuISITIONS IN TRANSPORTATION: How big are the opportunities?
LOOKING AHeAD: Economic forecasts for 2014
Summit AgendA
We have created an agenda that truly addresses the many challenges facing both
Shipper and Carrier executives.
For more information and to register, please visit www.SurfaceTransportationSummit.com
PRODUCED By MOTORTRUCk FLEET EXECUTIVE, CANADIAN TRANSPORTATION & LOGISTICS & DAN GOODWILL & ASSOCIATES
2013 Summit SponSorS
Trans Summit 2013 CTL.indd 1 13-08-26 1:28 PM
Web TV: Transportation Matters
• CHICKEN OR EGG?: Does infrastructure spending boost the economy? See what the politicians and the experts have to say.
• CLOSING BOTTLENECKS: Canada’s approach to infrastructure challenges. Is it good enough?
• NO SOFT LANDING: Some airfreight sectors remain mired in overcapacity. Will it change the way they serve the Canadian market?
• CN’s ‘COOL’ SERVICE: CN Rail is tapping into the booming refrigerated goods segment with its new CargoCool refrigerated service.
7ct&l september 2013
ONLINE
What’s on CTL.ca?
STOP SURVIVING; START THRIVING:
Discover the opportunities in your challenges at CITT’s Reposition 2013.
Find us on Twit ter at :@ C T L M a g@ L o u S m y r l i s@ J u l i a K u z e l j e v i c@ J a m e s M e n z i e s
www.ctl.ca
FEATURES
• A Risky Business: Going global with your supply chain? Protect against the risk of currency erosion
• Bridging the physical and the financial: using supply chain finance could release cash “stuck” in the chain
• Yard Management – an inside look at how NSSL delivers a cost effective solution to a long neglected link in their supply chainsBlog bits
Search our blog archives at ctl.ca
Carolina Billings: What makes a leader?
Dan Goodwill: Two New Studies provide insights into the LTL Freight Industry
Laurie Turnbull: RFID costs still problematic
in thenews
8 ct&l september 2013 www.ctl.ca8
Canadian ports conference emphasizes vital benefits of partnership-buildingBy Leo Ryan
Canadian ports and stake-holders have underlined the importance of strate-gic alliances and partner-ships built on trust to re-main competitive in today’s challenging global environment and to en-sure an efficient flow of cargo through the supply
chain. Building Partnerships was the general theme of the 55th annual conference of the Association of Canadian Port Authorities (ACPA) staged in Nanaimo, BC, on August 18-21. Some 200 delegates attended an event featuring an address by federal Minis-ter of Transport Lisa Raitt.
Headed by executive director Wendy
Zatylny, the Association groups together 18 federal Port Authorities across Canada that handle more than 310 million tonnes of cargo, representing $162 billion worth of goods, while generating 250,000 direct and indirect jobs.
In her first public speech as Minister of Transport, following the July cabinet re-shuffle by the Harper Government, Raitt was on familiar territory, having run the Port of Toronto for several years prior to entering politics in 2008.
In addition to extolling the contribution of the marine transportation system to the Canadian economy, Raitt highlighted the importance of trade and close collaboration with the United States on such initiatives as the Beyond the Border Action Plan.
She noted in this regard the participa-tion of the Port of Prince Rupert in a pilot project to improve the efficiency of ship-ping international goods by rail through Ca-
nadian ports to U.S. markets by eliminating the duplicate screening of containers as they cross the border.
“Our government is convinced,” Raitt said, “that by working together, we are mak-ing Canada’s transportation system even safer and more secure while balancing the needs of our economy. Through partner-ships between government and the private sector, Canadians continue to realize the benefits of our strategic gateways and have the right environment for Canadian indus-try to grow and prosper.”
She recalled that recent measures sup-porting sustainable transportation include the establishment of a world-class Tanker Safety System and Clean Transportation Initiatives that address the concern of hav-ing too many trucks idling in line-ups around ports. Also mentioned was the Shore Power Technology for Ports Program.
In concluding, Raitt said that during the recession, Canada’s transportation industry re-thought its strategies and practices and be-came more competitive. The challenge now is to pursue this momentum by “finding new approaches and new opportunities, so in all sectors, we can continue our efforts to in-crease trade and strengthen the economy.”
Anne Callaghan, US consul general in Vancouver, paid homage to the overall co-operative Canada-US bilateral relationship in security, trade and many other areas. “You have partners, too, in the US Embassy,” she said.
Both countries, Callaghan said, “sup-port an integrated multi-modal approach.” She also singled out “Canada’s Asia-Pacific Gateway as a great model in infrastruc-ture development.”
Intermodal partnerships given prominencePartnering with ports was emphasized by Elaine Holmes, Toronto-based director in-ternational intermodal, pricing and sales support, for Canadian Pacific (CPR) and by Michael McLellan, Vancouver-based vice-president, strategic initiatives for TSI Termi-nal Systems (Canada’s largest container terminal operator).
Holmes said that partnership agree-ments with shipping lines and with the Port of Montreal and Port Metro Vancou-ver (PMV) have been highly productive. Benefits have included a reduction in on-dock dwell time by one day for containers
in thenews
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Jeremy Carter, CITTWinnipeg, MB
Kenneth Chow, CITTVancouver, BC
Clifford Cook, CITTEdmonton, AB
Sheldon Corber, CITTThornhill, ON
Jaime DeKelver, CITTSaskatoon, SK
Marc Dionne, CITTDorval, QC
George Abousawan, CITTBrampton, ON
Rodney Bennett, CITTWinnipeg, MB
Rocco Agostino, CITTMississauga, ON
Tomas Billik, CITTMilton, ON
Cory Lyn Boden, CITTWest Kelowna, BC
Robert Bowman, CITTThornhill, ON
Chunji Cai, CITTMilton, ON
Gregory Callaghan, CITTTrenton, ON
Juliana Feteanu, CITTMississauga, ON
Kevin D’Sa, CITTWinnipeg, MB
supply chain & logistics
cred-ability
Bradley Hall, CITTBrampton, ON
No other professional credential says “logistics expert” as decisively as CITT. CITT is proud to present the logistics professionals who earned their designation from CITT between July 2012 and June 2013. Congratulations to the more than 80 dedicated supply chain and logistics professionals who now join the ranks of the industry’s elite.
Qazi Ahmed, CITTMississauga, ON
Jacqueline Barroso, CITTBrampton, ON
Parijat Bhatnagar, CITTMississauga, ON
CITT Grad Insert for CTL - 2013.indd 1 8/16/2013 11:29:00 AM
Lisa Raitt
Jeremy Carter, CITTWinnipeg, MB
Kenneth Chow, CITTVancouver, BC
Clifford Cook, CITTEdmonton, AB
Sheldon Corber, CITTThornhill, ON
Jaime DeKelver, CITTSaskatoon, SK
Marc Dionne, CITTDorval, QC
George Abousawan, CITTBrampton, ON
Rodney Bennett, CITTWinnipeg, MB
Rocco Agostino, CITTMississauga, ON
Tomas Billik, CITTMilton, ON
Cory Lyn Boden, CITTWest Kelowna, BC
Robert Bowman, CITTThornhill, ON
Chunji Cai, CITTMilton, ON
Gregory Callaghan, CITTTrenton, ON
Juliana Feteanu, CITTMississauga, ON
Kevin D’Sa, CITTWinnipeg, MB
supply chain & logistics
cred-ability
Bradley Hall, CITTBrampton, ON
No other professional credential says “logistics expert” as decisively as CITT. CITT is proud to present the logistics professionals who earned their designation from CITT between July 2012 and June 2013. Congratulations to the more than 80 dedicated supply chain and logistics professionals who now join the ranks of the industry’s elite.
Qazi Ahmed, CITTMississauga, ON
Jacqueline Barroso, CITTBrampton, ON
Parijat Bhatnagar, CITTMississauga, ON
CITT Grad Insert for CTL - 2013.indd 1 8/16/2013 11:29:00 AM
Hansa Patel, CITTMississauga, ON
Rena Hawkins, CITTCambridge, ON
Petra Heymans, CITTGuelph, ON
Michael Houston, CITTWinnipeg, MB
Jibu Jose, CITTEdmonton, AB
Shaukat Khan, CITTMississauga, ON
Ziauddin Khedri, CITTCalgary, AB
Janie Lauzon, CITTHamilton, ON
Jie Li, CITTRichmond, BC
Kandys Manbodh, CITTToronto, ON
Roxana Mares, CITTMississauga, ON
Brenda Mattie, CITTMississauga, ON
Sharona Mazgaonkar, CITTRichmond Hill, ON
Michael McCallum, CITTMississauga, ON
Robert McInnes, CITTHalifax, NS
Craig McLean, CITTMississauga, ON
Francis Monteiro, CITTMississauga, ON
Victor Moran, CITTToronto, ON
Ivy Neri, CITTConcord, ON
Craig Palz, CITTWinnipeg, MB
Dwight Paul, CITTMississauga, ON
Marc-Antoine Pouliot, CITTSt. Gilles, QC
Sal Radcliffe-Corneil, CITTMoncton, NB
Sean Hassan, CITTMississauga, ON
Terry Hallman, CITTBurlington, ON
supply chain & logistics
recognize-ability
CITT Grad Insert for CTL - 2013.indd 2 8/16/2013 11:29:12 AM
Photographs of these 2013 CITT-Certified Logistics Professionals were not available:
www.citt.ca • [email protected] • 416-363-5696
Tracey Aggus, CITT, Markham, ON
Anthony Arcouette, CITT, Morinville, AB
Bavendran Atchuthampillai, CITT, Toronto, ON
Ryan Bloor, CITT, Aurora, ON
Moya Campbell, CITT, Concord, ON
Darren Carter, CITT, MacKenzie, BC
Jonathan Cheung, CITT, Richmond, BC
Adam Coughlin, CITT, Georgetown, ON
Jason Czarnecki, CITT, Kingston, ON
Michael Di Girolamo, CITT, Kleinburg, ON
Nathan Eldridge, CITT, Winnipeg, MB
Dimitri Fleitman, CITT, Richmond Hill, ON
David Fulton, CITT, Calgary, AB
Stephen Gladwish, CITT, Mississauga, ON
Sybille Hausberg-Bowen, CITT, Rockport, ON
Stephen Hayne, CITT, North Bay, ON
Karen Karageusian, CITT, Toronto, ON
Alexander Kostin, CITT, Edmonton, AB
Lynda Kretchmann, CITT, Thompson, MB
John Marcon, CITT, Mississauga, ON
John McEwen, CITT, Mississauga, ON
Catherine Moseley, CITT, Calgary, AB
Raymond Murray, CITT, Mississauga, ON
Olena Nikonova, CITT, Milton, ON
Waqas Shaikh, CITT, Concord, ON
Zhang Zheng Tao, CITT, Saskatoon, SK
Randolph Tapia, CITT, Vaughan, ON
Kyle Thiessen, CITT, Brampton, ON
Thomas Van Dam, CITT, Winnipeg, MB
Carissa Reid, CITTRed Deer, AB
Demi Todorov, CITTMississauga, ON
Shaun Tuck, CITTSaskatoon, SK
Olga Vindberga, CITTBedford, NS
Sukhpreet Singh, CITTMississauga, ON
Sandra Spitzer-Byer, CITTWhitecourt, AB
Neal Sukhraj, CITTBrampton, ON
Daniel Tabares, CITTMilton, ON
Michelle Tamburro, CITTWoodbridge, ON
Jyoti Waghela, CITTMississauga, ON
For more information about logistics courses and professional certification from CITT, visit www.citt.ca or contact us at 416-363-5696 or [email protected]
supply chain & logistics
recognize-ability
CITT Grad Insert for CTL - 2013.indd 3 8/16/2013 11:29:17 AM
Hansa Patel, CITTMississauga, ON
Rena Hawkins, CITTCambridge, ON
Petra Heymans, CITTGuelph, ON
Michael Houston, CITTWinnipeg, MB
Jibu Jose, CITTEdmonton, AB
Shaukat Khan, CITTMississauga, ON
Ziauddin Khedri, CITTCalgary, AB
Janie Lauzon, CITTHamilton, ON
Jie Li, CITTRichmond, BC
Kandys Manbodh, CITTToronto, ON
Roxana Mares, CITTMississauga, ON
Brenda Mattie, CITTMississauga, ON
Sharona Mazgaonkar, CITTRichmond Hill, ON
Michael McCallum, CITTMississauga, ON
Robert McInnes, CITTHalifax, NS
Craig McLean, CITTMississauga, ON
Francis Monteiro, CITTMississauga, ON
Victor Moran, CITTToronto, ON
Ivy Neri, CITTConcord, ON
Craig Palz, CITTWinnipeg, MB
Dwight Paul, CITTMississauga, ON
Marc-Antoine Pouliot, CITTSt. Gilles, QC
Sal Radcliffe-Corneil, CITTMoncton, NB
Sean Hassan, CITTMississauga, ON
Terry Hallman, CITTBurlington, ON
supply chain & logistics
recognize-ability
CITT Grad Insert for CTL - 2013.indd 2 8/16/2013 11:29:12 AM
Photographs of these 2013 CITT-Certified Logistics Professionals were not available:
www.citt.ca • [email protected] • 416-363-5696
Tracey Aggus, CITT, Markham, ON
Anthony Arcouette, CITT, Morinville, AB
Bavendran Atchuthampillai, CITT, Toronto, ON
Ryan Bloor, CITT, Aurora, ON
Moya Campbell, CITT, Concord, ON
Darren Carter, CITT, MacKenzie, BC
Jonathan Cheung, CITT, Richmond, BC
Adam Coughlin, CITT, Georgetown, ON
Jason Czarnecki, CITT, Kingston, ON
Michael Di Girolamo, CITT, Kleinburg, ON
Nathan Eldridge, CITT, Winnipeg, MB
Dimitri Fleitman, CITT, Richmond Hill, ON
David Fulton, CITT, Calgary, AB
Stephen Gladwish, CITT, Mississauga, ON
Sybille Hausberg-Bowen, CITT, Rockport, ON
Stephen Hayne, CITT, North Bay, ON
Karen Karageusian, CITT, Toronto, ON
Alexander Kostin, CITT, Edmonton, AB
Lynda Kretchmann, CITT, Thompson, MB
John Marcon, CITT, Mississauga, ON
John McEwen, CITT, Mississauga, ON
Catherine Moseley, CITT, Calgary, AB
Raymond Murray, CITT, Mississauga, ON
Olena Nikonova, CITT, Milton, ON
Waqas Shaikh, CITT, Concord, ON
Zhang Zheng Tao, CITT, Saskatoon, SK
Randolph Tapia, CITT, Vaughan, ON
Kyle Thiessen, CITT, Brampton, ON
Thomas Van Dam, CITT, Winnipeg, MB
Carissa Reid, CITTRed Deer, AB
Demi Todorov, CITTMississauga, ON
Shaun Tuck, CITTSaskatoon, SK
Olga Vindberga, CITTBedford, NS
Sukhpreet Singh, CITTMississauga, ON
Sandra Spitzer-Byer, CITTWhitecourt, AB
Neal Sukhraj, CITTBrampton, ON
Daniel Tabares, CITTMilton, ON
Michelle Tamburro, CITTWoodbridge, ON
Jyoti Waghela, CITTMississauga, ON
For more information about logistics courses and professional certification from CITT, visit www.citt.ca or contact us at 416-363-5696 or [email protected]
supply chain & logistics
recognize-ability
CITT Grad Insert for CTL - 2013.indd 3 8/16/2013 11:29:17 AM
12 ct&l september 2013 www.ctl.ca
in thenews
in Vancouver, resulting in a faster transit on service to the US Midwest and a two-fold increase in traffic on that corridor since 2009. CP operates 40 dedicated intermodal trains per week to and from the Port of Montreal.
The CP intermodal executive also out-
lined the evolution of the railway’s so-called Dynamic Export Management con-cept to more effectively link exports to ship schedules by, when appropriate, ad-justing cut-off days.
McLellan of TSI said it was vital to in-vest the time and effort necessary to sustain
partnerships, whether they be with the port, ocean carriers, railways, trucking firms, importers and exporters, beneficial cargo owners, transload warehouses, or Third Par-ty logistics providers. He mentioned in par-ticular that the Service Level Agreements with CN and CP have markedly reduced the average import dwell times at the Van-term and Deltaport box terminals.
What makes a good partnership? Here, McLellan cited a number of essentials rang-ing from “making sure you have transparent goals” to being “forthright in sharing infor-mation” and to “closely monitor service per-formance.” And overriding everything was “the creation of a bond of trust” through constant communication.
Building community partnershipsStill on the partnership theme, a business session was devoted to the challenges facing ports in reaching out to their host commu-nities so that the added benefits of port activities are reflected in positive and on- going relationships.
Michael Buda from the Ottawa-based Federation of Canadian Municipalities pointed out that municipalities had increas-ingly limited capacity to finance much of the infrastructure and services ports rely on. At the same time, federal funding programs supporting municipal infrastructure to en-hance trade are showing signs of stagnating. What Buda termed “the tough political equation” was as the need to “balance im-provements to port efficiency with mitiga-tion of the port’s local impacts.”
Department of Homeland Security funding port securityThe US Department of Homeland Security is allocating $93.2 million in annual port security grants to protect against, mitigate and respond to terrorist attacks.
The port grants represent a small por-tion of $1.5 billion in preparedness grants awarded to states, cities, and towns by DHS’s Federal Emergency Management Agency, said a release.
Port authorities, facility operators and state and local government agencies are eligible for the port security grants, which can be used for risk management pro-grams, domain awareness, training, detec-tion technologies, physical barriers, secu-rity cards for transport workers and other
14 ct&l september 2013 www.ctl.ca
in thenews
protective investments. The eight highest risk port regions, such
as New York-New Jersey, Long Beach-Los Angeles and the Delaware Bay, were eligi-ble to compete for $53 million, while smaller port regions split the remainder of the funding. Congress two years ago also consolidated separate grant programs under a single management, putting port security in competition with six other grant catego-ries, including transit security, emergency management, and state homeland security, said the release.
Conference Board report says Canada a leader in public-private partnershipsCanada has emerged as a leader in the cre-ation of efficient public-private partner-ships (P3) for building infrastructure, said a Conference Board of Canada report which found that 83 per cent of projects met the goal of being completed early or on time.
“P3 delivery is enhancing the long-term
quality of public infrastructure and deliver-ing value for taxpayers. Canadian compa-nies are also developing expertise in P3 projects, which is creating opportunities to export their services around the world,” said Vijay Gill, Principal Resource Associ-ate, Conference Board of Canada.
“But the P3 model is not intended to re-place traditional procurement processes al-together – it is one tool in the toolbox. Any potential P3 project must be rigorously evaluated to ensure that the benefits out-weigh the costs.”
The report, Canada as a Global Leader: Delivering Value through Public-Private Partnerships at Home and Abroad, builds on the 2010 Conference Board research, Dispelling the Myths: A Pan-Canadian As-sessment of Public-Private Partnerships for Infrastructure Investments. Financial sup-port for this research came from the Gov-ernment of Alberta, Infrastructure Ontario, Infrastructure Québec, Partnerships British
Columbia, PPP Canada, and The Canadian Council for Public-Private Partnerships.
The public sector has turned to P3 proj-ects as an alternative way to build and main-tain roads, institutions, waste management facilities and other public infrastructure. Traditional infrastructure projects are built by private firms funded by the public sector. In contrast, P3 projects are financed by the private sector, which is paid partly depend-ing upon the results – such as the comple-tion of the project on time and on-budget, and/or ongoing operations and maintenance.
“The public is increasingly aware that Canada’s infrastructure of roads, transit and health and community facilities is aging and in need of renewal. Meanwhile, there has been a growing public acceptance of a greater role for the private sector in provid-ing infrastructure across the country,” said Gill in the report, released August 21.
Of the last 42 projects assessed in the study, 35 were completed on time or early.
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Moreover, 90 per cent of the projects (38 of 42 projects) were delivered no more than four months after the planned completion date; and 95 per cent (40 of 42 projects) were completed no more than six months later than expected.
Provincial governments – especially Alberta, British Columbia, Ontario and Quebec – continue to be the most signifi-cant public players in the Canadian P3 arena. Further federal support has come from the P3 Canada Fund, which has to date committed over $700 million cover-ing 15 projects in six provinces and terri-tories, said the report.
Keyera, Kinder Morgan to construct crude oil rail loading terminal in EdmontonKeyera Corp. and Kinder Morgan Energy Partners L.P. have announced a 50-50 joint venture to build a crude oil rail loading fa-cility in Edmonton, Alberta called the Al-berta Crude Terminal. When complete, the Alberta Crude Terminal will be able to ac-cept crude oil streams handled at Kinder Morgan’s Edmonton Terminal for loading and delivery via rail to refineries anywhere in North America, the companies said.
“Kinder Morgan’s access to multiple crude streams, together with our location and facility capabilities, combines crude oil supply with the necessary infrastructure, land and rail connectivity to help address some of the crude oil delivery constraints currently being experienced by the Alberta energy sector,” said David Smith, President and COO of Keyera.
The Alberta Crude Terminal will be constructed next to Keyera’s Alberta Dilu-ent Terminal on land recently acquired by a Keyera subsidiary. The Alberta Crude Ter-minal, which will be operated by Keyera, will have 20 loading spots capable of load-ing approximately 40,000 barrels per day of crude oil into tank cars and will be served by both Canadian National Railway and Canadian Pacific Railway.
“Keyera is a key and significant mid-stream company in Western Canada and we are pleased to be able to join forces with them to enable additional market export options for the Canadian producer and sup-ply options for the North American refin-ing industry,” said Bill Henderson, Vice President for Kinder Morgan Canada Ter-minals. “The Alberta Crude Terminal is a
great strategic fit with our expanding Ed-monton terminal hub and is a very impor-tant part of our growing crude by rail termi-nal network.”
In addition to the construction of the Alberta Crude Terminal, Kinder Morgan
and Keyera are independently planning modifications to their respective facilities in the Edmonton area to facilitate delivery of crude oil to the Alberta Crude Terminal. Kinder Morgan is proposing to construct a 16-inch pipeline to connect its North 40
16 ct&l september 2013 www.ctl.ca
in thenews
Edmonton Terminal to Keyera’s Edmonton Terminal. Keyera plans to construct a new 16-inch crude oil pipeline across its Ed-monton Terminal to join to the existing Al-berta Diluent Terminal connector pipeline
appsexpress.com • 1.800.465.2513275 Orenda Road, Brampton, ON L6T 3T7
and install additional pumping capacity. In conjunction with this project, Keyera is also proposing to construct a new 12-inch con-densate pipeline connecting the Alberta Diluent Terminal to Keyera’s Fort Saskatch-
ewan Pipeline System.Engineering work is well underway on
these initiatives, and commissioning of the new terminal is targeted for the second quarter of 2014, assuming receipt of regu-latory approvals and delivery of long-lead items on a timely basis. Keyera’s share of the cost of the Alberta Crude Terminal, as well as the land purchase, pipeline con-struction and other facility modifications, is expected to be approximately $65 mil-lion. Kinder Morgan’s share of the cost of the Alberta Crude Terminal including modifications to the Edmonton North 40 terminal and connections to Keyera is ex-pected to be approximately $33 million. Construction of the Alberta Crude Termi-nal is underpinned by a five-year agree-ment with a major refiner.
In anticipation of additional demand for crude oil loading services, Kinder Mor-gan and Keyera are currently evaluating a possible expansion of up to 125,000 bar-rels per day of additional crude loading capacity and the possible addition of a di-luent recovery unit. The commercial dis-cussions to determine customer support for such an expansion are expected to be-gin shortly, the companies said in a release.
US bill could see fees levied on imports from Canada, MexicoA US Senate bill could go forward this fall proposing a repeal of the existing Harbor Maintenance Tax (HMT) replacing it with a fee to be levied on goods imported by road and rail from Canada and Mexico.
The HMT is a federal tax imposed on the value of the goods being shipped through US ports, and its revenue is placed in a trust fund, which is supposed to be used for maintenance dredging of federal navigational channels. The HMT is not as-sessed on importers who route cargo through non-US ports and afterwards move their goods into US markets by land.
The “Maritime Goods Movement Act for the 21st Century” would repeal the HMT and replace it with a Maritime Goods Movement User Fee (MGMUF), the proceeds of which would be fully available to Congress to provide for port operation and maintenance. The legisla-tion would change the HMT and could give shippers new incentives to move their goods through American ports.
An impressive field of 57 carriers rose to the top of the heap as part of our annual Shipper’s Choice Awards Survey. Read on to discover
how their performance last year set them apart.
THE TOPAn impressive field of 53 carriers rose to the top in our annual Shipper’s Choice Awards survey. Read on to discover how their performance set them apart.
18 www.ctl.ca
Manufacturing43%
Other Industries
28%
Retail12%
3PL 10%
Freight Forwarding
7%
Eastern Canada
51%
Western Canada
20%
Geographic Distribution of Respondents
best of the bestOur 12th Annual Shipper’s Choice Awards Survey
sets industry benchmarks for performance excellence and identifies the 53 carriers who exceed them
While success in transportation may seem simple on the surface (get it to the right destination, at the right time, with no damage) the reality is the challenges facing Canadian transportation providers have shifted
considerably over the past few years.
During the recession, carriers who had become used to the challenge of providing exemplary service while keeping up with rapid freight growth with sharply rising rates as the reward had to suddenly shift gears to right size their operations and provide more economical services. During the slow recovery they’ve had to shift gears again to provide exemplary service under the reality of only modestly improving freight volumes and rates while having to find ways to renew their aging fleets.
Looking forward, if the economy continues on its slow and uneven recovery, there will be continued pressure on providing flexible and cost-effective trans-portation solutions that don’t fall short of what was promised. Who can afford to lose a customer these days?
It makes for a difficult balancing act but the history of our survey shows clearly that no matter what the challenge, some carriers are able to rise to it. This year 53 carriers managed to surpass the Benchmark of Excellence in our 12th Annual Shipper’s Choice Awards Survey. Particularly impressive are the carriers who have scored above the benchmark of excellence for five years in a row to be awarded our special “Carrier of Choice” designation. To see these winners, turn to the final page of this report.
The research is our annual attempt to provide buyers of transportation services with consistent, national and scientifically derived benchmarks of excel-lence for carrier performance in each mode.
Our survey provides shippers, 3PL service providers and freight forwarders across Canada with the opportunity to set benchmarks for carrier performance on eight key performance indicators (KPIs) and to rate their top carriers against those benchmarks. Aside from identifying the best carriers across all modes through this process, survey respondents also provide clear indications of the different values Canadian buyers of transportation services place on each key performance indicator (KPI) based on mode as well as a comparison of how high these standards are set for each mode. (For example, transportation buyers set their highest standard on information technology for couriers while expecting TL carriers to live up to the highest standard for competitive pricing.)
The importance survey participants place on the KPIs for each mode (based on a five-point scale) is used as a weight in calculating carrier evaluations. Survey
Mode On-time Quality of Equipment Information Competitive Customer Leadership in Value-added Sustainable performance and operations technology pricing service Problem solving services practices
LTL Trucking 4.761 4.265 4.020 4.691 4.670 4.378 3.579 4.069TL Trucking 4.852 4.482 4.172 4.734 4.666 4.413 3.905 4.206Ocean Carriers 4.601 4.405 4.330 4.783 4.642 4.410 3.967 4.177Couriers 4.889 4.339 4.558 4.740 4.675 4.384 3.845 4.166Air Carriers 4.920 4.510 4.512 4.629 4.726 4.514 4.044 4.194Rail Carriers 4.531 4.370 4.277 4.762 4.562 4.309 3.768 4.161
IMPORTANCE OF PERFORMANCE CRITERIA
Central Canada
29%
ct&l september 2013
we’re putting value in motion
1.800.388.7947w w w . a l l c o n n e c t . c a
All-Connect and Shuttle Express wouldlike to convey our appreciation to allof our customers who have recognized us for exceeding and setting the industry standard in both Truckload & LTL service for the 3rd consecutive year.
Thank You!NORTHAMERICA
we’re putting value in motion
1.800.388.7947w w w . a l l c o n n e c t . c a
All-Connect and Shuttle Express wouldlike to convey our appreciation to allof our customers who have recognized us for exceeding and setting the industry standard in both Truckload & LTL service for the 3rd consecutive year.
Thank You!NORTHAMERICA
20 www.ctl.ca
participants then rate up to three of their main carriers in each mode (again on a five-point scale.) The final weighted score for each carrier is derived by multiplying the carrier’s average performance score by the average impor-tance rating for each key performance indicator for that mode.
Because survey participants are first asked to rate the importance they place on each of the eight KPIs when making their carrier selections, and that data is used as a weight on their carrier evaluations, we feel that the benchmarks set are truly standards of excellence. In other words, carrier performance is judged against an ideal of what shippers expect and the areas given the most weight are the ones that matter most to buyers of transporta-tion services. As a result, of the hundreds of carriers rated in our survey, only a very few are deemed by participants’evaluations as providing a service so superior that it warrants a Shipper’s Choice Award.
Carriers receive the Shipper’s Choice Award when their total score meets or surpasses the total benchmark of excellence for their mode. Only those carriers who exceed this benchmark have their names and scores included in the following tables.
Average shipper satisfaction ratings for each KPI are shown by mode. The final column on the right shows the total benchmark of excellence set for each mode. The benchmarks for each of the eight KPIs per mode are indicated with each modal table on the following pages.
Invitations were sent to more than 6,000 of our readers who are buyers of transportation services in the manufacturing, retail and other sectors as well as to individuals responsible for managing shipments within the freight forwarding and 3PL sectors.
Carriers must receive a minimum number of evaluations in order to qualify for the award. It should be noted that this year winning was made all the more difficult because we once again raised the number of evalua-tions necessary to qualify for the award for almost every mode. In order to boost response, carriers were given the opportunity to forward the survey to their own customer lists. Not all carriers chose to do so, however. To prevent
SHIPPER SATISFACTION RATINGS BY MODE
Mode On-time Quality of Equipment Information Competitive Customer Leadership in Value-added Sustainable Total satisfaction performance and operations technology pricing service Problem solving services practices ScoreLTL Trucking 20.44 17.94 15.88 19.59 19.76 17.57 14.21 16.46 141.855TL Trucking 21.67 19.50 16.65 20.33 20.46 18.36 15.71 17.53 150.207Ocean Carriers 19.64 18.36 17.64 19.81 19.28 17.16 14.86 16.52 143.262Couriers 20.97 18.22 18.92 19.03 18.40 16.39 14.30 16.36 142.583Air Carriers 21.01 19.17 18.06 18.68 19.22 17.56 15.50 16.42 145.620Rail Carriers 16.96 16.58 16.04 17.81 16.22 14.44 12.31 15.58 125.926
Annual Supply Chain Budget
% of respondents
Less than $100,000 17% of respondents$100,000 to $500,000 26%$501,000 to $1M 13%$1 million to $5M 18%$5M to $10M 9%$10M to $20M 6%More than $25M 11%
ct&l september 2013
LTL Truckload Logistics
Warehousing Distribution
“It’s hard to express how great it feels to be recognized by the industry in this fashion. Our company has worked hard to get here. To be appreciated for what
we’ve accomplished in the areas of service that matter most to our
customers is phenomenal.”
Frank Prosia, PresidentTranspro Freight Systems
THANK YOU FOR VOTING US YOUR #1CARRIER FOR TRANSBORDER LTL & TL SHIPPING
Thank You for Naming Armour
Your Shipper of Choice!We are honoured to receive the 2013 Shipper’s Choice Award. Thank you
to our valued customers for your continued support and selecting Armour
Transportation Systems as your Shipper of Choice!
LTL Truckload Logistics
Warehousing Distribution
“It’s hard to express how great it feels to be recognized by the industry in this fashion. Our company has worked hard to get here. To be appreciated for what
we’ve accomplished in the areas of service that matter most to our
customers is phenomenal.”
Frank Prosia, PresidentTranspro Freight Systems
THANK YOU FOR VOTING US YOUR #1CARRIER FOR TRANSBORDER LTL & TL SHIPPING
22 www.ctl.ca
tampering, we check for multiple cases submitted by known respondents. If there is more than one case, then only the newest one is considered. Likewise, we check for similar IP addresses. As a final check on tampering, we separate and check the evaluations submitted by participants from our own e-mail list versus the e-mail lists of carrier customers. Winners must have evaluations submitted by transportation buyers from our own e-mail list to qualify for the award.
More than 2,000 buyers of transportation services participated in our survey, which makes Shipper’s Choice the largest of the several surveys we conduct annually. We thank all those of you who took the time to complete our survey. (Participants receive an advance electronic copy of the results.) More than 10,000 evaluations of carriers from all modes providing services in the Canadian market were cast.
As with past years, survey participants represent every region across Canada and buy transportation services for companies with annual sales ranging from less than $5 million up to more than $2 billion. Their annual supply chain budgets range from less than $100,000 up to more than $25 million. More than a third spends over 70% of their supply chain budgets on transportation.
The Shipper’s Choice Awards Survey was undertaken once again in part-nership with CITT and the Canadian Industrial Transportation Association (CITA), two associations whose members responsible for the purchase of transportation number in the thousands. And, as in previous years, the re-search was conducted by an independent research firm (the same research firm that conducts our industry-leading Annual Survey of the Logistics Professional).
Winning carriers are listed alphabetically, and not by their total score. Those wanting to compare the scores among the winners should keep in mind the high probability that these carriers, although they are being com-pared to an industry benchmark, have been evaluated by different shippers. This survey is intended as a measure of which carriers exceed industry expectations and not a ranking of the carriers involved.
Total no. of shippers evaluating carriers this mode: 2359 Total carrier evaluations: 3746 Benchmark of excellence: 141.855
Carriers On-time Equipment and Information Competitive Customer Problem Value-added Sustainable performance operations technology pricing service solving services practices
All Connect Logistical Services 22.96 19.90 18.30 22.36 22.92 20.80 16.70 18.73 Apps Transport 20.26 17.63 15.51 20.94 20.05 17.88 14.88 16.67 Armour Transportation Systems 20.38 18.09 15.96 19.48 20.19 17.98 14.85 16.75 Big Freight 20.15 18.05 17.42 19.55 19.97 18.39 14.18 16.86 Bourret Transportation 20.79 19.56 16.96 19.91 19.93 17.63 15.69 16.72 Cavalier 22.53 19.79 16.64 21.74 22.43 20.31 16.17 17.84 CCT Logistics 21.37 18.31 15.69 19.57 21.87 17.94 14.21 17.27 Guilbault Transport 21.80 19.27 17.28 20.50 21.38 19.68 15.20 17.57 GX Transportation 22.26 19.69 18.59 21.02 22.22 20.56 16.41 18.35 Hercules 22.05 18.95 17.30 21.51 22.02 19.74 15.93 18.00 Maritime Ontario 19.85 17.73 15.96 20.61 19.60 17.84 14.28 17.06 MSM Transportation 21.96 19.20 17.00 20.39 22.00 19.69 15.97 17.79 Normandin Transit 20.76 19.43 16.76 18.37 20.94 18.93 15.01 17.55 Polaris 21.25 18.23 17.71 20.11 20.02 17.56 14.36 16.74 Rosedale Transport 20.12 16.98 15.02 19.20 20.44 18.41 14.76 17.38 TransPro Freight Systems 22.81 20.09 18.24 21.71 22.74 20.70 16.59 19.04 Minimax Express Trans. Inc. 20.93 18.50 15.97 20.51 19.70 18.19 14.36 16.57 Benchmark of Excellence 20.44 17.94 15.88 19.59 19.76 17.57 14.21 16.46
LTL MOTOR CARRIER AWARD WINNERS
% Spent on Transportation
1-10% of Supply Chain Budget11-20%21-30%31-40%41-50%51-60%61-70%71-80%81-90%91-100%
% of respondents
ct&l september 2013
1921
114
49
312
711
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herculesfreight.com
THE NEW STANDARD FOR YOURCROSS-BORDER LTL SHIPMENTS
We reduce transit times, damage, and misrouting through our 24 “no break-bulk” terminals.
Hercules warehouse Ad-8.125x10.875:Layout 1 12-04-24 9:06 AM Page 1
1.800.822.4512 Canada1.800.621.8723 USA
herculesfreight.com
THE NEW STANDARD FOR YOURCROSS-BORDER LTL SHIPMENTS
We reduce transit times, damage, and misrouting through our 24 “no break-bulk” terminals.
Hercules warehouse Ad-8.125x10.875:Layout 1 12-04-24 9:06 AM Page 1
24 www.ctl.ca
Total no. of shippers evaluating carriers this mode: 1635 Total carrier evaluations: 2253 Benchmark of excellence: 150.207
TL MOTOR CARRIER AWARD WINNERS
Carriers On-time Equipment and Information Competitive Customer Problem Value-added Sustainable performance operations technology pricing service solving services practicesAll Connect Logistical Services 23.65 21.40 19.39 22.70 22.75 21.17 17.72 19.44 Armour Transport 21.75 19.65 17.18 20.56 20.92 19.35 17.10 17.88 Big Freight Systems 21.37 19.90 18.86 19.52 20.96 18.58 16.58 17.62 Cavalier Transport 23.71 21.77 18.95 22.72 22.93 21.43 18.48 20.21 Con-Way 22.07 19.85 17.42 19.84 20.44 18.88 15.72 18.40 Erb Transport 22.64 21.66 18.54 21.83 20.22 19.21 17.00 17.09 Guilbault Transport 22.99 20.84 18.88 21.11 21.42 20.55 17.15 19.03 Hercules 23.11 20.92 19.63 22.77 22.60 21.20 18.23 19.52 Highland Transport 21.02 20.17 18.08 21.10 20.41 18.02 16.60 18.51 International Truckload Services 23.37 20.88 17.57 22.30 21.49 18.23 15.01 18.70 Kriska Transportation 22.04 20.30 17.06 20.46 21.19 17.27 15.77 17.77 MacKinnon Transport Inc. 22.03 20.84 18.39 20.54 21.44 20.17 17.57 19.33 Manitoulin Transport 22.96 19.57 17.31 19.75 20.26 18.61 15.13 16.94 Maritime Ontario 21.48 19.87 17.23 20.68 20.96 19.12 16.80 18.26 MSM Transportation 22.82 20.21 17.43 20.67 22.08 19.75 17.35 18.46 Penner Truck Lines 23.02 21.56 19.50 20.92 21.70 19.80 15.77 19.28 Robert Transport 21.13 19.95 17.36 20.01 19.87 18.65 16.47 17.72 Transpro Freight Systems 23.95 21.51 19.25 22.49 23.00 21.39 18.33 19.91 XTL Transport 22.11 19.92 18.27 19.78 21.78 20.00 16.80 18.60 Benchmark of Excellence 21.67 19.50 16.65 20.33 20.46 18.36 15.71 17.53
Travelling separate roads
Buyers of truck transportation ser-vices – whether Truckload or Less-than-Truckload – care most about
the same things, namely: on-time perfor-mance, always ranked as the top priority, followed by competitive pricing and cus-tomer service.
But the similarities in how buyers of truck transportation view TL and LTL seem to end there. Truckload has faced the tougher expectations and the toughest Benchmark of Excellence for many years now and this year was no different. The Benchmark of Excellence is a reflection of both shipper demands and how well the best carriers are meeting them. For TL this year the Benchmark of Excellence was set at 150.207, following our tabulations, by far the highest of any mode. Air carriers are the next highest at 145.620.
Respondents to our survey had the high-est expectations from TL than any other mode when it came to quality of equipment and operations as well as sustainable prac-tices. And the Benchmark of Excellence, remarkably, was highest for TL in seven of the eight key performance indicators our survey tracks: On-time performance; qual-ity of equipment and operations; competi-tive pricing; customer service; leadership
in problem solving; value-added services; and sustainable transportation practices. TL carriers have higher benchmarks to surpass for on-time performance and cus-tomer service than couriers and a higher standard for quality of equipment than air-freight carriers. Yet, buyers of TL services also expect competitive pricing, as noted, and the Benchmark of Excellence for TL when it comes to competitive pricing is the highest for all modes, even now surpassing what is expected from ocean carriers. (LTL’s Benchmark of Excellence in this regard is ranked third highest among all the modes.)
The TL and LTL service providers also receive the greatest scrutiny by our survey respondents. Almost 6,000 ballots were part of this year’s awards.
The winners for both LTL and TL, along with their scores for each of our eight KPIs, are shown in alphabetical order and only those scoring above the total Benchmark of excellence are included. The bottom row of the table shows this mode’s Benchmark of Excellence for each KPI. The total Benchmark of Excellence is indicated on the top right.
In all, 17 LTL and 19 TL carriers surpassed the Benchmark of Excellence for 2012.
ct&l september 2013
4. No more freight piled on top of yours5. No more per CWT calculations6. No more weight breaks
1. No more cubing2. No more linear foot rule3. No more breaking down pallets
The traditional way of shipping palletizedfreight costs you too much in lost anddamaged shipments and complicatedLTL pricing. So M-O FreightWORKSchanged the rules.
Our unique logistic loading systemlets you safely stack multiple levels of palletized freight within each unit. Up to fourpallets high. So you pay less per pallet.
As you can see, each pallet, no matterits size or weight, occupies its own spacewithout touching other freight. This eliminates the need to break-down pallets,and prevents someone else’s heavyfreight from crushing yours.
This also means you virtually eliminate damaged shipments. Yetmove the same volume of product withfewer loads.
Plus, our simplified FreightWORKSPallet Pricing eliminates the complicatedcalculations and guesswork—and billingsurprises—of traditional LTL pricing.
Pay less per pallet, ship more pallets per load and reduce damaged shipments with our unique logistic loading system.
Free demo and consultation.See for yourself how our unique logistic loading system reduces your cost per pallet. Call 1-888-748-4388 or 905-792-6100and ask for Linda Chylinski.
www.m-o.com
Ad to CTL Magazine Final3 3/30/06 10:57 AM Page 1
CTLAug13MOad.indd 1 13-08-02 10:48 AM
4. No more freight piled on top of yours5. No more per CWT calculations6. No more weight breaks
1. No more cubing2. No more linear foot rule3. No more breaking down pallets
The traditional way of shipping palletizedfreight costs you too much in lost anddamaged shipments and complicatedLTL pricing. So M-O FreightWORKSchanged the rules.
Our unique logistic loading systemlets you safely stack multiple levels of palletized freight within each unit. Up to fourpallets high. So you pay less per pallet.
As you can see, each pallet, no matterits size or weight, occupies its own spacewithout touching other freight. This eliminates the need to break-down pallets,and prevents someone else’s heavyfreight from crushing yours.
This also means you virtually eliminate damaged shipments. Yetmove the same volume of product withfewer loads.
Plus, our simplified FreightWORKSPallet Pricing eliminates the complicatedcalculations and guesswork—and billingsurprises—of traditional LTL pricing.
Pay less per pallet, ship more pallets per load and reduce damaged shipments with our unique logistic loading system.
Free demo and consultation.See for yourself how our unique logistic loading system reduces your cost per pallet. Call 1-888-748-4388 or 905-792-6100and ask for Linda Chylinski.
www.m-o.com
Ad to CTL Magazine Final3 3/30/06 10:57 AM Page 1
CTLAug13MOad.indd 1 13-08-02 10:48 AM
26 www.ctl.ca
Total no. of shippers evaluating carriers in this mode: 1442 Total carrier evaluations: 2512 Benchmark of excellence: 142.583
Carriers On-time Equipment and Information Competitive Customer Problem Value-added Sustainable performance operations technology pricing service solving services practices Custom Courier 22.49 19.01 19.44 20.42 20.83 19.22 17.13 18.02 A & B Courier 22.13 18.04 18.68 21.31 20.96 18.52 16.66 17.42 DB Schenker 21.80 19.12 19.08 22.17 18.62 17.01 16.38 18.24 Midland Courier 21.47 18.38 19.01 19.21 19.85 18.47 16.17 17.17 Fed EX 21.62 18.55 18.43 19.85 19.71 17.84 15.07 17.07 Greyhound 21.68 19.07 20.18 18.89 19.23 16.90 14.67 16.87 ICS 22.39 18.27 17.75 21.58 18.82 16.61 15.27 16.44 K&H Courier 22.13 17.06 16.23 21.20 17.80 16.58 16.64 16.86 Purolator 19.90 18.61 18.64 18.25 19.78 17.54 14.26 16.34 Benchmark of Excellence 20.97 18.22 18.92 19.03 18.40 16.39 14.30 16.36
COURIER AWARD WINNERS
A need for speed and a fair price
Couriers have a particularly tough set of challenges in meeting the de-mands of shippers. While on-time performance remains the top priority for buyers of courier services, over the past few years competitive pricing
has become solidly entrenched as the second highest priority. If trying to provide quality on-time performance on a budget is not challenging enough, this year’s survey reveals two other challenges: customer service, which many couriers will assert comes at a price, now rounds out the top three performance indicators as chosen by shippers responding to our survey. And the requirement to invest in information technology, another expensive endeavour, is ranked higher for couriers than any other mode.
Courier winners and their scores for each of our eight KPIs are shown in the table below. The bottom row of the table shows this mode’s Benchmark of Excellence for each KPI. The total Benchmark of Excellence is indicated on the top right. The winners are shown in alphabetical order and only those scoring above the total Benchmark of excellence are included.
ct&l september 2013
1.888.880.3801 www.groupeguilbault.com
For the second year in a row, the shipping industry has recognized the excellence of our services with awards in both the TL and the LTL categories.
Thanks to our advanced technologies, such as the exclusive i3G mobile tracking system, our know-how, and above all- your contribution, we are a carrier that proudly goes the distance.
On the road with you since 1929
THANK YOU for going with the guilbault group!
P04973 Guilbault Ad CanTrnsprtLogstcs_aug13.indd 1 08/20/13 11:29 AM
Experience what our customers are talking about.
Superior Quality Service
Flexible Solutions
Value for your transportation spend
1-800-561-7121www.midlandcourier.com
1.888.880.3801 www.groupeguilbault.com
For the second year in a row, the shipping industry has recognized the excellence of our services with awards in both the TL and the LTL categories.
Thanks to our advanced technologies, such as the exclusive i3G mobile tracking system, our know-how, and above all- your contribution, we are a carrier that proudly goes the distance.
On the road with you since 1929
THANK YOU for going with the guilbault group!
P04973 Guilbault Ad CanTrnsprtLogstcs_aug13.indd 1 08/20/13 11:29 AM
28 www.ctl.ca
Total no. of shippers evaluating carriers in this mode: 725 Total carrier evaluations: 411 Benchmark of excellence: 145.620
Carriers On-time Equipment and Information Competitive Customer Problem Value-added Sustainable performance operations technology pricing service solving services practices
Cargo Jet 22.26 19.81 16.91 19.18 20.90 19.19 16.71 16.99 Lufthansa 22.07 20.75 21.01 14.68 20.66 18.33 16.05 17.32 British Airways 21.16 19.36 18.80 20.28 20.13 18.34 15.67 16.96 Benchmark of Excellence 21.01 19.17 18.06 18.68 19.22 17.56 15.50 16.42
AIR CARRIER AWARD WINNERS
Expected to rise above the rest
Air cargo carriers have emerged from the recession scathed by excess capacity, a situation they still have not fully resolved during the slow global recovery. Downward pressure on pricing has left them looking
for ways to reduce their own costs. Yet the demands of buyers of air cargo ser-vices have not subsided. Not only is on-time performance the most important criteria for shippers when purchasing air cargo services, expectations for on-time performance ranked higher for air cargo than any other mode. Customer service is ranked next and also carries the highest shipper expectations for any mode. But it doesn’t stop there. Shipper expectations for quality of equipment and showing leadership in problem solving were also higher for air cargo than any other mode.
Air carrier winners and their scores for each of our eight KPIs are shown in the table below. The bottom row of the table shows this mode’s Benchmark of Excellence for each KPI. The total Benchmark of Excellence is indicated on the top right. The winners are shown in alphabetical order and only those scoring above the total Benchmark of excellence are included.
ct&l september 2013
CAVALIER OWNS THE GREAT LAKES
YOUR NORTH AMERICAN FREIGHT EXPERTS
DISTRIBUTION ON BOTH SIDES OF THE BORDER
AS SPECIALIZED ASSPECIALIZED GETS
Find out more
For 35 years Cavalier has provided a vital
link between Canada’s busiest traffic lane,
Ontario-Quebec and Canada’s largest trading
partner, the USA. Today this family owned
and operated business provides a full array
of transportation services and strives daily to
accomplish its vision of expanding customer
service through innovation, creativity
and teamwork!
Consider it Delivered!
1 800.263.2394
Thank you for naming Cavalier your 2013 LTL Shipper’s Choice!
LTL PLUS™
...so much more
Serving your requirements for
1979 - 2014
Carriers On-time Equipment and Information Competitive Customer Problem Value-added Sustainable performance operations technology pricing service solving services practices
Cargo Jet 22.26 19.81 16.91 19.18 20.90 19.19 16.71 16.99 Lufthansa 22.07 20.75 21.01 14.68 20.66 18.33 16.05 17.32 British Airways 21.16 19.36 18.80 20.28 20.13 18.34 15.67 16.96 Benchmark of Excellence 21.01 19.17 18.06 18.68 19.22 17.56 15.50 16.42
CAVALIER OWNS THE GREAT LAKES
YOUR NORTH AMERICAN FREIGHT EXPERTS
DISTRIBUTION ON BOTH SIDES OF THE BORDER
AS SPECIALIZED ASSPECIALIZED GETS
Find out more
For 35 years Cavalier has provided a vital
link between Canada’s busiest traffic lane,
Ontario-Quebec and Canada’s largest trading
partner, the USA. Today this family owned
and operated business provides a full array
of transportation services and strives daily to
accomplish its vision of expanding customer
service through innovation, creativity
and teamwork!
Consider it Delivered!
1 800.263.2394
Thank you for naming Cavalier your 2013 LTL Shipper’s Choice!
LTL PLUS™
...so much more
Serving your requirements for
1979 - 2014
30 www.ctl.ca
Total no. of shippers evaluating carriers in this mode: 627 Total carrier evaluations: 645 Benchmark of excellence: 143.262
OCEAN CARRIER AWARD WINNERS
Carriers On-time Equipment and Information Competitive Customer Problem Value-added Sustainable performance operations technology pricing service solving services practices
Evergreen 18.60 17.09 19.09 20.09 22.65 19.05 16.34 18.90 Hanjin 20.86 19.97 20.49 20.72 20.11 17.94 15.15 16.06 Mitsui OSK Lines/ MOL 19.84 19.00 17.59 18.83 19.44 17.64 17.36 17.00 NYK 19.06 18.80 18.65 19.77 19.19 17.27 15.87 16.01 Atlantic Container Line (HM) 19.55 19.09 18.28 18.93 19.92 17.27 14.20 15.66 *Honorable Mention Benchmark of Excellence 19.64 18.36 17.64 19.81 19.28 17.16 14.86 16.52
Crest of approval
Buyers of marine services are particularly focused on competitive pricing. Not only is that the KPI they value most when selecting marine service providers, according to our survey, but the demands for competitive pricing are the
second highest for the marine sector, right behind those for TL trucking. There are not many marine carriers who do meet our Benchmark of Excellence but those who do set a high target, particularly with their scores in the competitive pricing and value-added services categories. Marine winners and their scores for each of our eight KPIs are shown in the table below. The bottom row of the table shows this mode’s Benchmark of Excellence for each KPI. The total Benchmark of Excellence is indicated on the top right. The winners are shown in alphabetical order and only those scoring above the total Benchmark of excellence are included.
ct&l september 2013
We’re proud of our Canadian legacy.
Toronto:MOL (Canada) Inc. • 2700 Matheson Boulevard East, West Tower, Suite 401 • Mississauga, ON L4W 4V9
Montreal:MOL (Canada) Inc. • 6500 TransCanada Service Road, Suite 421 • Pointe Claire, QC H9R 0A5
Vancouver:MOL (Canada) Inc. • 1111 West Hastings Street, Suite 860 • Vancouver, BC V6E 2J3
And excited to beopening new doors.
MOL (Canada) Inc. has opened new offices in Toronto, Vancouver andMontreal. Building upon MOL’s tradition of excellence in Canada, we’retaking what we’ve learned and making it better with exceptional serviceand performance. We’re charting a course you can count on. To viewour most current results, visit CountOnMOL.com.
To book cargo, visit MOLpower.com or contact MOL Customer Service at 1-800-449-7575.
Dawson Wylie, Regional Sales Manager – Export604-640-7485
Dominique Selbonne, Sales Manager905-629-5917
2628-37 MOL Canada Ad CTL F_8.125 x 10.875 8/20/13 2:02 PM Page 1
Thanks To our CusTomers
For Delivering This one To us!
NORMANDIN TRANSIT INC.LTL and TL trucking services CANADA-USA Sensitive Cargo,
Temperature Controlled environment and Critical Delivery service.
www.NormandinTransit.com
We’re proud of our Canadian legacy.
Toronto:MOL (Canada) Inc. • 2700 Matheson Boulevard East, West Tower, Suite 401 • Mississauga, ON L4W 4V9
Montreal:MOL (Canada) Inc. • 6500 TransCanada Service Road, Suite 421 • Pointe Claire, QC H9R 0A5
Vancouver:MOL (Canada) Inc. • 1111 West Hastings Street, Suite 860 • Vancouver, BC V6E 2J3
And excited to beopening new doors.
MOL (Canada) Inc. has opened new offices in Toronto, Vancouver andMontreal. Building upon MOL’s tradition of excellence in Canada, we’retaking what we’ve learned and making it better with exceptional serviceand performance. We’re charting a course you can count on. To viewour most current results, visit CountOnMOL.com.
To book cargo, visit MOLpower.com or contact MOL Customer Service at 1-800-449-7575.
Dawson Wylie, Regional Sales Manager – Export604-640-7485
Dominique Selbonne, Sales Manager905-629-5917
2628-37 MOL Canada Ad CTL F_8.125 x 10.875 8/20/13 2:02 PM Page 1
32 www.ctl.ca
Introducing the
Carriers of ChoiceConsistency of performance deserves a special award
Carriers are presented with this particularly prestigious award if they have demonstrated the consistency necessary to attain the highest levels of ser-
vice by surpassing the industry benchmarks of excellence set in the Shipper’s Choice Awards Survey for a minimum of five consecutive years. This is a par-ticularly difficult task because aside from having to maintain consistent excel-lence in their operations, carriers will have to meet a likely rising standard set by shippers from year to year while also responding to changing priorities. The carriers named to this elite club this year include:
This award will continue to be presented every year. To remain part of this exclusive fraternity, carriers must requalify each year by having surpassed the Shipper’s Choice Awards benchmark of excellence for five consecutive years.
BAX/Schenker
Bourret Transportation
Cargojet
FedEx
Hercules
Highland Transport
Kriska Transport
MacKinnon
Midland
MSM
ct&l september 2013
We strive for perfection in all things transportation, offering an expanded list of services for the added convenience of our customers.
We haven’t swayed from our cross border LTL expertise. But, we have added a host of transportation services so that you, our customer, can breathe a little easier.
OUR PEOPLE MOVE FREIGHT�
T�hank you for naming Polaris as your Carrier of Choice!
Polaris
We strive for perfection in all things transportation, offering an expanded list of services for the added convenience of our customers.
We haven’t swayed from our cross border LTL expertise. But, we have added a host of transportation services so that you, our customer, can breathe a little easier.
OUR PEOPLE MOVE FREIGHT�
T�hank you for naming Polaris as your Carrier of Choice!
34 www.ctl.ca34 ct&l september 2013
An embarrassment of riches is what some might call having three super post Panamax vessel-capable con-tainer terminals in Nova Scotia. If the new port devel-
opments in Sydney and Melford play out as planned, they will join the Port of Halifax in laying claim to being the closest North American mainland ports to the Suez Canal and a day and a half sailing time closer than Norfolk, to which these ports are regularly compared.
The Sydport container terminal project, under the guidance of the Cape Breton Regional Municipality (CBRM), and the Maher Melford Terminal project, driven by Melford Interna-tional Terminal Inc., have made a lot of progress. Land acquisi-tion, dredging and equity commitments are among them.
Halifax, Sydney and Melford are jockeying for position to attract
Suez Canal traffic. An inside look at
their ambitious plans
B y C a r r o l l M c C o r m i c k
growingambitions
infrastructureports
Aerial view, Fairview Cove, Port of Halifax
36 www.ctl.ca36 ct&l september 2013
The Port of Halifax, which has had container terminals for decades, is not sitting on its laurels, however. It has invested $147 million in improve-ments over the past five years. They include 400 new reefer plugs, sub-station upgrades, a truck marshaling area, new crane rails for post-Panamax cranes and dredging.
This January the Port of Halifax an-nounced a $35-million project at the South End Container Terminal. Deepen-ing the berth to 16 metres and making the pier longer and wider will allow it to si-multaneously berth and service two full-sized post-Panamax vessels. “This project ensures that Halifax continues to be able to handle any size ships with operational flexibility,” says Michele Peveril, senior manager, strategic relations, Halifax Port Authority. “The Port of Halifax has two super post Panamax ready container ter-minals with four super post Panamax berths. We can accommodate the largest container ships afloat.”
MelfordDespite the challenges and delays during the recession following the US-caused glob-al financial meltdown, Melford Internation-al Terminal Inc. is making steady progress toward its goal of building a 1.5-million TEU container terminal in Melford. Located on the western shore of Nova Scotia’s Canso Strait, it will be able to accommodate any vessel afloat or planned.
Maher Terminals has signed on to operate the terminal. Financ-ing for land acquisition and construction is in place, says Richie Mann, vice president of marketing, Maher Melford Terminal Inc. “We have enough equity commitment in place to finance the $350-million project for the two-berth Phase 1, 315-acre container terminal, the first 250 acres of logistics park and the required rail spur line. We hope to see shovels in the ground this year and Phase 1 completed in a couple of years.”
The recession delayed landing contracts committing cargo to the terminal, but Melford may have turned that corner. “We are in
deep and serious negotia-tions to secure cargo com-mitments and we are doing our due diligence. This is likely the only project mile-stone to overcome,” Mann says.
Last fall Melford took its investment commitments to
the Nova Scotia government and said it was ready to finalise the purchase of the land required for Phase 1.
Phase 1 includes infilling with aggre-gate to creating 60 acres of land where there is now water. “All of the aggregate we require to give us 60 feet of dock depth is on site. This is one of the reasons why the terminal construction cost is low by terminal construction standards,” Mann explains.
Work is also underway acquiring land from property owners for the 20-mile rail corridor between the terminal site and the Cape Breton & Central Nova Scotia Rail-way (CBNS). “We have had surveyors and land acquisition people out dealing with this. We expect that will be completed be-fore long,” Mann says.
Mann is heartened by Gennese & Wyo-ming’s purchase last October of Rail Amer-ica, whose railroads included the 245-mile long CBNS. “We are very encouraged by G&Y. They have been here. They have an excellent reputation with CN. The huge benefit to us is that the line between Mel-
ford and CN does not require substantial upgrading.”The terminal has been designed as a pure rail terminal, so
there are no significant road infrastructure issues, Mann says. “Very few containers will be trucked. The terminal is already on a truck road. We would be responsible for intersecting existing trunk roads – building a loop road at our cost. The Nova Scotia and federal governments have both indicated they will do high-way upgrades, but our traffic studies and the volume of trucks anticipated indicate that the highway does not require upgrading to a different class of highway.”
Asked about the CBRM container terminal project, Mann offers a few comparisons: “Sydney makes no mention of operational part-ners or carrier partners. It is difficult to assess the project. Also,
Whether your way is the highway or the railway,Hub Group Canada is the solution. We are literallyeverywhere you turn and offer one of the most capacityrich transportation networks in North America.
With Hub Group Canada, you’ll have instant 24/7access to the services, carriers and centralizedcontrols you need to smoothly manage thetransportation needs of your business. Our highwayand intermodal specialists are standing by to respondimmediately to your next LTL, full load or specializedtransportation requirement.
Everywhere You Turn
Please contact : Barry O’Neill, Vice PresidentHub Group Canada, [email protected] www.hubgroup.com
The Berlin Express, 7506 TEU vessel calls on Ceres at Port of Halifax.
photo credit: steve farmer
”The Port of Halifax has two super post Panamax
ready container terminals with
four super post Panamax berths. It can
accommodate the largest
container ships afloat.”
infrastructureports
Whether your way is the highway or the railway,Hub Group Canada is the solution. We are literallyeverywhere you turn and offer one of the most capacityrich transportation networks in North America.
With Hub Group Canada, you’ll have instant 24/7access to the services, carriers and centralizedcontrols you need to smoothly manage thetransportation needs of your business. Our highwayand intermodal specialists are standing by to respondimmediately to your next LTL, full load or specializedtransportation requirement.
Everywhere You Turn
Please contact : Barry O’Neill, Vice PresidentHub Group Canada, [email protected] www.hubgroup.com
38 www.ctl.ca38 ct&l september 2013
substantial upgrading of the rail line [out of Sydney] is required. I know how long it’s taken us to get here. We are quite comfort-able. Our site has a tremendous amount of credibility. Plus, we are a lot larger, and have 15,000 acres in reserve.”
A lot of that credibility, Mann says, comes from the partnership with Maher and its performance at its Fairview Terminal in Prince Rupert, British Columbia. “We in-
tend to use the same operational model as in Prince Rupert. We have a 36-hour sailing time advantage over Norfolk. We can have cargo to the US Midwest even before a ship gets to Norfolk.”
SydportThe CBRM is building its container termi-nal on a 350-acre green field site it owns in
Sydney harbor. A $40-million dredging project, completed in February 2012, add-ed 150 acres to top up the site to 500 acres. CBRM reports that the channel can now accommodate the largest vessels in the world. The cost of Phase 1 of the develop-ment, with two berths and 1.25 million TEU capacity, is pegged at $400 million.
The site has all the federal, provincial, local, environmental and building permits required to proceed to building a container facility. “The permitting is to the point where the project is deemed by the finan-cial community as a viable project,” says Edward M.A. Zimny, principal at P.F. Richardson Associates, Inc., Holmdel, New Jersey. His firm has provided advisory services from the project’s beginning, and has participated in the master planning, negotiating, discussing and due diligence.
Phase 1 construction would begin after an agreement is reached with a concession-aire, according to Zimny. “We are working with CBRM with finalizing an expression of interest. We are speaking with operators, financiers and ocean carriers. Any combina-tion of these could operate the terminal. It is about to enter the final stage of negotiating a financial transaction,” Zimny says.
Although work was well underway last year on twinning Highway 125 from the exit at Kings Road to the intersection with the Sydney-Glace Bay highway, the port plan does not envision moving many con-tainers by truck. Most containers will be moved either by rail or will be transferred to smaller vessels destined for ports along the eastern seaboard.
The CBNS rail line extends into Syd-ney, but some rail infrastructure will be required on the terminal site. CBRM does report that improvements are required on some sections of the Sydney subdivision of
infrastructureports
39ct&l september 2013www.ctl.ca
the CBNS line east of the Canso Cause-way. Zimny notes, “Some people point out that a tremendous amount of [rail] work is required, but the line is already used week-ly. It is functional. CBNS has the capacity to offer the service, but it needs some de-ferred maintenance. In relative terms it is minor, compared to the [cost of] the build out at Melford.”
As for tying in the terminal with the rail line, there are several possible configura-tions, Zimny says. “It could have single or parallel track, depending on the type of operation. Conceptual plans have up to five or 10 rail sidings supplying 10,000-foot trains. It all depends on what the op-erators require or want.”
It is no small question whether Melford or Sydport has the edge. Mann cites the partnership with Maher Terminals and the lower development cost, thanks to water deep enough that there is no need for dredg-ing. He also notes that the project has an additional 1,500 acres adjacent to the prop-erty under its control.
Zimny thinks Sydney’s existing rail infra-structure is a plus, compared to the cost of linking CBNS to the Melford terminal. Comparing Sydport to Halifax, Zimny comments, “Rail-wise, Halifax is con-strained, relative to Sydport, because Hali-fax is a centre-city operation. A centre-city operation costs more money. It is also about velocity, getting cargo in and out efficiently. We envision Sydport being more reliable than the other offerings.”
The Port of Halifax argues that its in-vestments are part of the Halifax Port Au-thority’s long-term strategy for maintain-ing the port’s competitiveness in cargo - its core business.
Zimny’s argument that cargo trans-shipped at Sydport could be at a US port
before a ship going directly to a US port ar-rives appears equally applicable to Melford and Halifax. So does the argument that ships coming into a Nova Scotia port can take cargo down the coast without violating the Jones Act. This gives all three NS ports an edge over foreign ships entering US ports that might hope to move cargo to another US destination.
“Do I think all three ports can come on
Carroll McCormick is an award-winning writer who has been covering transportation industry issues and technolo-gies for more than a decade. He is based in Quebec.
line immediately? No,” Zimny comments. But Canada has a bright future with its proximity to the Suez Canal.” CT&L
infrastructureports
40 www.ctl.ca40 ct&l september 2013
Supply chain insurance now has four legs thanks to the recent inclusion of trade disruption insurance (TDI) coverage. The addition strengthens the existing three-legged approach
centred on loss, damage and delay.The update shifts insurers’ attention to shielding organiza-
tions from potential profit losses caused by supply-chain stop-pages. Before, their major concern was protecting the value of in-transit goods. Trade-disruption coverage deals with contin-gent business interruptions triggered by events far beyond in-surance buyers’ control.
“This can cover power supply, infrastructure (roads, airports, ports) access and direct suppliers of material and/or services,” says Daniel Galvao, Toronto-based, senior vice-president - Financial Products, Marsh Canada Limited.
The culprits remain the same – natural disasters, political vio-lence, government policies and financial failures, etc. What’s dif-ferent now is not that disruptive events are more frequent but that the resulting damage is more costly.
Still, according to a recent survey of manufacturers, conducted by Newton MA-based ChainLink Research, more than 70% of respondents said they rely solely on Tier 1 suppliers to monitor risk in their supply base.
As logistics practitioners increasingly help firms assess supply chain risk, their judgments become strategic rather than tactical making their input more visible and valuable.
That’s because executives realize that corporate success de-
pends on the seamless functioning of their far-flung supply chains. “As a result of globalization, supply chain risk has become a ‘top-of-mind’ concern for everyone in business today,” says Daniel Primeau, vice-president, program and customer service with Ot-tawa-based Export Development Canada.
As proof, Primeau cites the example of the earthquake-tsu-nami that struck Japan’s Sendai district in March 2011. It forced the shutdown of the GM truck assembly plant in Shreveport, La. for lack of parts.
Such breakdowns can be very painful. In the survey, Chain-Link’s chief research officer, Bill McBeath notes that such glitches can cost publicly traded firms 25% of their shareholder value. Primeau believes disruption can force small- and medium-sized firms to shut their doors.
Here is where insurance brokers earn their keep. According to Galvao, Marsh offers clients two key services. One is assessing potential clients’ exposure to supply chain risk. The second is finding optimally priced coverage to meet their needs. “We help companies build risk-intelligent supply chains,” he says. “It is im-possible to eliminate supply chain risk.
“We must identify the risk and find cost-effective ways of man-aging those risks. That can be on the firm’s own balance sheet or by buying insurance and transferring it to the insurer’s balance sheet.” (As an insurance advisor, Marsh does not underwrite poli-cies. It goes to the market to find suitable coverage from insurance firms including EDC.)
By Ken Mark
a measure of control
when things
spiral
tradeglobal
41ct&l september 2013www.ctl.ca
By Ken Mark
spiral
SM
Thank you for choosing XTL as your 2013 Shipper’s Choice Award winner!
Telephone: 416-742-2345 • Toll Free: 800-665-9318www.xtl.com
Addressing supply chain risk intelligently can yield unexpected benefits. Galvao talks about persuading a textile-sector client to buy political risk and natural catastrophe insurance to mitigate its risk exposure to a critical overseas supplier. The coverage boosted the confidence of the client’s bank such that it offered the firm asset-backed lending to finance operations.
Since “all risk” coverage does not exist in TDI policies, firms need to establish proper priorities and probabilities about the sup-ply chain risks they face. In insurance parlance, these are called “named risks”. Galvao points out that various exclusions still exist. These include losses caused by volcanic ash, disease outbreaks (pan-demics), bio-terrorism and nuclear explosions.
Based on specified policy terms, TDI coverage will help insured firms deal with the added costs of finding alternative sources of sup-ply, a secondary producer as well as to help pay for increased mate-rial, utility, transportation and other related costs.
EDC has expanded its coverage of protecting Canadian export-ers’ foreign receivables ensuring that they will get paid in the event of national disaster, political upheaval or financial failure. Recently it introduced its “supply pull” strategy that makes capital available to overseas giants such as Vale and Tata to encourage them to add more Canadian firms to their supply chains.
It has also boosted support for Canadian foreign direct investment in overseas affiliates or operations outside of the country. Growth in the category has recently skyrocketed. For example, in 2009 foreign affiliate sales exceeded direct exports from Canada for the first time. From 2000 to 2009, nominal foreign affiliate sales grew at an average annual rate of 2.4%, much faster than nominal exports over the same period. Most of it occurred in emerging markets.
Closer to home, there are other risks and insurance issues on the table.
“To join our organization, all applicants must have at least $250,000 in errors and omissions liability coverage,” says Ruth Snowden, Toronto-based executive director of the Canadian Inter-national Freight Forwarders Association (CIFFA). “That’s because if there is no cargo insurance in place and there is a loss, cargo owners will come after carriers and freight forwarders.”
As for administrative delays, Canadian agencies can be as heavy-handed as their overseas counterparts. Snowden points to the Cana-dian Food Inspection Agency (CFIA) and its concerns over wood pallets, crates and dunnage used in containerized cargo meeting ISPM-15 standards. This is totally separate from the quality of the cargo itself.
If the wood items have not been properly treated or fumigated
or lack appropriate certificates, CFIA can have the box shipped backed to its original source. That trip can take up to six or eight weeks and triple shipping costs.
To protect themselves, importers and consignees should clearly state the acceptable types of wood packaging to be used. “They should also insist in their purchase agreements with suppliers that proper certification be part of the shipping documentation package and to ensure that all the pallets etc. are properly stamped,” says Carol Beaul, Toronto-based president, Intelli Trade Inc. “And it would be helpful to have a copy of the certificate on file in case it is not included with the shipment.”
Random Canadian Border Services Agency (CBSA) inspections can create further headaches. Snowden states that this model lacks transparency because there is no price list that breaks down inspec-tion costs and there is no recourse.
“We estimate that such inspections can cost as much as $3,000 each – much more than the actual shipping costs,” she says. “Cargo owners must pay since the carriers’ only duty is to make the ship-ment available to CBSA for inspection.”
Avoiding such unpredictable inspections is difficult. To protect themselves, Beaul suggests that cargo owners join the trusted trad-ers program that includes our own CSA (Customs Self Assess-ment), the US PIP (Partners in Protection) and C-TPAT (Customs-Trade Partnership Against Terrorism) and the joint Canada-US the FAST (Free and Secure Trade) initiatives. “Since government agen-cies consider participating firms to be ‘good guys’ with better track records and who represent lower risks than those who don’t, their shipments are less likely to be pulled out for secondary inspections,” she says.
Firms should check with their insurance brokers to find out if they are covered for such seizures and delays.
Finally, there has been a recent jump in stolen empty container boxes and container chassis left outside importers’ warehouses. Says Snowden, “Some truckers now insist on ‘live’ unloading. After the importer books a delivery time, it must unload the trailer within the specified time window before the driver takes it back.
“Ocean carriers own the containers while the chassis belong to truckers. I am not sure how many truckers have coverage for these losses.” CT&L
Veteran technology expert Ken Mark has covered supply chain management since it was called distribution and has documented its legitimization as a critical business function. He holds an MBA from York University.
tradeglobal
42 www.ctl.ca42 ct&l september 2013
regulationscustoms
Getting ahead of the
eManifestlearning curve
Carriers should “get on board sooner rather than later” says CBSABy Jul ia Kuzel jevich
43ct&l september 2013www.ctl.ca
Getting ahead of the
eManifestThe fall 2013 deadline is approaching for the Cana-
da Border Services Agency’s eManifest regula-tions.
When fully implemented, eManifest will require car-riers, freight forwarders and importers in all modes of transportation (air, marine, highway and rail) to electron-ically transmit advance commercial information to the Canada Border Services Agency (CBSA) within pre-scribed mode-specific time frames.
Participating carriers and their supply chain partners have been working through some of the bugs and pro-cesses in the system.
Client uptake on eManifest has been good, said Mi-chael Junek, manager eManifest Stakeholder Consulta-tions and Implementation, Canada Border Services Agency, in a conversation with Transportation Media.
“Generally it’s a positive story for us – we have 8000 carriers with active accounts and we’ve targeted about 15,000. Whether they are choosing to submit today or not, at least they have registered. We are definitely focus-ing our outreach efforts on the small to medium carriers,” he said.
Junek confirmed that there had been some portal issues in the month of June but that fixes were in place.
During the month of June there was a systems up-grade of sorts that caused some portal problems, such as timeouts, missing data, login problems, and long times to link shipments to trucks.
“Almost simultaneously as we were raising these is-sues, the CBSA was hearing from carriers as well. On June 20 they put a fix into the system, increasing band-with to support volumes. There were some backend fixes as well. We started to see that fix translate into the portal working smoother. Since then we really haven’t heard a lot in terms of complaints,” says Jennifer Fox, vice presi-dent customs at the Canadian Trucking Alliance.
According to the CTA, in a letter to CTA CEO David Bradley, CBSA’s president “validated the industry’s con-cerns regarding ACI and committed to addressing them as well as to outlining an action plan.”
The list of concerns sent to CBSA was detailed and lengthy. A sample includes: slow portal service, especial-ly in the p.m; login issues; lengthy time (hours) to com-plete eManifest; false screen display errors; system ran-domly kicking user out; customer service; and respect for commercial drivers, the CTA said.
“We recognize that it did have an impact, but we were able to fix the issues and contingency plans were fol-lowed during the outage,” Junek said.
“On EDI, we do a lot of work directly with carriers. We have regular conference calls and we can get up to 50 carriers participating on common issues. We do know there is a learning curve both from carriers and the trade community, and we work closely with our stakeholders
to resolve those,” he said.But he stressed that stakeholders need to come on
board early and work through the system, especially since the period of informed compliance is in effect until the fall, with no penalties associated.
“It’s a major transformative project-the sooner carriers can get on board the sooner they can get used to trans-mitting pre-arrival either with EDI or via the portal. Once people do get up to speed they find that it’s a more efficient system and works very well,” he said.
Clients can also take advantage of regular walk-throughs of the portal via webinars, noted Junek.
“We have received a positive response in terms of the contingencies and the solutions they’ve put in place. Since the end of June it’s been fairly quiet – but we are watching very closely,” said Fox. “When ACI (Advanced Commercial Information) was introduced and made vol-untary there were some issues. The industry has been very patient and understands that there is going to be a learning curve.”
In June, Eric Warren, vice president business develop-ment with Hercules, contacted Transportation Media to report that two issues had been unfolding: a) drivers were still getting stopped at the border by officers not fully understanding the new lead sheets presented by drivers; and b) the customs broker community as a whole did not understand the idiosyncrasies of the “port flip” causing a higher level freight being bonded to their terminals.
In March, Hercules moved to e-Manifest prior to which the company had been using the EDI highway cargo environment also known at CSA EDI since 2001.
"With eManifest, the broker has to have the entry at the corresponding port mirror the exact timing on the PARS (pre-arrival review system) release sheets. In the past we would send a PARS lead sheet for say 12 p.m. and they should set up their PARS prior to that time. However, in the past the broker could set it up at 1 p.m. for the frontier as a PARS, and it would accept the broker entry even though our trailer had crossed the frontier. With eManifest, if the broker were to attempt to setup a PARS entry after the date/time on our PARS lead sheet, they would get a reject message saying incor-rect port because we've electronically performed “port flip” required in eManifest. The port flip, regardless of where the physical truck is, requires us prior to arriving at the frontier to electronically query the border to see if the PARS entry for the cargo control number has been entered by the broker. If it is not entered by that mo-ment, we electronically change the port from the fron-tier to the inland port even though our trailer is still physically on the US side. After this flip, the frontier clearance is no longer a viable option – period. Brokers who have not gotten the PARS entries in by the precise ETA on our lead sheets will receive the “wrong port” and
Carriers should “get on board sooner rather than later” says CBSABy Jul ia Kuzel jevich
regulationscustoms
44 www.ctl.ca44 ct&l september 2013
Belleville 800-267-1888 Cornwall 877-665-8167 www.itstruck.ca
We are very proud to receive the designation of Carrier of Choice. We are committed to building strong relationships with our customers, suppliers and fellow team members. When our customers call on us to make the near impossible, possible, we have the experience, the resources and the people to make that happen. We believe there is always a solution. Thanks for choosing us.
other error messages on their entry and some have accused us of sending bad data in and to ‘fix your data’, but really just don’t understand. Addi-tionally, it is important for all to un-derstand that the ‘re-arrival’ process is no longer an option under eMani-fest" said Warren.
“Broker (release request) and carrier (eManifest) information needs to match in the CBSA’s sys-tem to enable the BSO to make a release decision. In certain circum-stances, brokers will receive reject notices to notify them that the re-lease request information does NOT match the carrier’s eManifest infor-mation. Border services officers have been instructed to provide as much information as possible to allow the broker and the car-rier to understand and properly amend the information prior to re-submitting to the CBSA for a release decision,” said CBSA spokesperson Amitha Carnadin.
“Future system enhancements scheduled for July 2014 will re-duce the frequency of this issue. In the meantime, the CBSA is looking at the current schedule of system modifications and de-ployments to determine if this functionality can be delivered soon-er,” she said.
In order to better understand the changes, Hercules' response was to create a flowchart document that the company sent out to its supply chain partners.
“We drew up a flowchart and to determine where the gaps of understanding are, posted it on our website. The port flip we de-tailed is not illustrated well anywhere we could find in customs documentation or in the press. From our change to eManifest in May the result is we still receive more shipments currently at our inland terminals uncleared than we did prior to eManifest. We re-ceive calls from customs brokers saying ‘You did it wrong’. We point everyone now to a link on our website with the flowchart of eManifest and the misunderstood port flip. Generally that fixes future occurrences with the same trade partner,” said Warren.
He said that Hercules also took the step of putting INPARS info on lead sheets. (He noted that some carriers are choosing not to for their own business reasons).
"We chose to do it to try to reduce the number of failed PARS
shipments coming to our inland terminals. This indicates if they do not get the PARS clearance in by the exact time on the lead sheet, you will now need to set up INPARS and we supply that port in-formation for them. We are a service based carrier and we want the shipment to be out on the street, not waiting at our terminals for clearance. Since adding our INPARS information on our lead sheets, coupled with the flowchart on our website we point every-one to, this has contributed to a dramatic reduction in the number of shipments arriving inland in-bond," said Warren.
“Regarding drivers being held at the border, CBSA indicated to us training and communication to the officers was ongoing and we were in regular contact with the eManifest program officer. We were pleased they were receptive and we have seen a dramatic improvement. Our drivers are very happy also!" said Warren.
“We recently launched the regional external client support ini-tiative at the highest volume ports, where officers have been given additional training for troubleshooting and client support, avail-able 24/7,” said Junek.
Officers are available to trouble-shoot and provide support to clients with processing issues on a 24/7 basis. Dedicated phone lines have been established and the numbers posted on the CBSA Web site to give clients direct access to these resources, he added.
Border services officers are supported by a national network of chiefs of operations across all regions who are directly connected to the eManifest project team to ensure effective two-way communi-cations between headquarters and the operational realities at the ports of entry.
eManifest – Hercules process flow chart
Hercules USA origin terminal
PARS lead sheet sent to clients customs broker. ETA is not physical trailer arrival time at frontier but is a port query time
ACI data in advance of trailer departure is
sent to CBSA
CBSA - US/Canada Border
Customs broker sets up PARS or INPARS depending on date and time of work performed
Hercules Canadian inland terminal
CBSA confirms receipt of ACI
data
Physical Hercules trailer departs for
border
At the ETA date/time indicated on PARS lead sheet, Hercules systems perform a
port query with CBSA to see if a PARS from customs broker is
entered at frontier
If Yes – no
change
If No – port is electronically flipped to inland port identified on lead sheet.
Frontier port no longer viable
Physical Hercules trailer moves to Hercules terminal
regulationscustoms
45ct&l september 2013www.ctl.ca
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“The one other thing I could add is to stress the communications between supply chain partners – carriers talking to brokers. Moving to an electronic environment, that really does become key,” said Junek.
“CBSA has also made it a little clearer in terms of the messaging coming out of the technical support unit in terms of options when the carriers are experiencing issues. There’s a helpdesk for policy questions and e-manifest tech support. Carriers shouldn’t feel they have nowhere to go when they are experiencing problems,” said Fox.
Since it’s expected there could be an in-flux of carriers joining at the last minute, the CTA is hoping that some of the issues won’t be repeated, and that the portal sys-tem will be robust and sustainable.
“I certainly hope that CBSA will make this mandatory sooner rather than later. Many of the carriers have their systems and processes in place and are certainly waiting. They don’t want to incur additional costs un-necessarily. But if they pull the trigger the system has to be sustainable and the carriers have to get their policy questions answered. They will have a lot of problems on their hands otherwise. Do carriers know what to do if there is a problem with the system? All this needs to be flushed out. After the issues we raised to them in June they are very much aware of what they have to do before they make it mandatory,” said Fox.
“In terms of the times the brokers need to set up what they need to do, that’s a tale as old as time. Carriers have always had dif-ficulty working with brokers to get what they needed. We saw the same problem going southbound. That issue is not a CBSA issue and is certainly not going away. The only thing we can do is reinforce to the industry that these processes are going to mean carriers and brokers have to commu-nicate more than ever before. This is the new normal. Maybe it doesn’t even involve the carrier but the brokers and importers.”
With time, she added, things will get better.
“We saw this with the ACE program rollout. It’s more of a learning curve and more so with brokers and importers at this stage of the game. It’s all new for US ship-pers, brokers and importers, but there should not be a whole lot of surprises with Canadian carriers with ACI.”
"The intended outcome of e-Manifest is good, is great actually, when it's all working and everyone is doing everything at the right times. So the whole program and its intention make a lot of sense. It's just getting
Features editor Julia Kuzeljevich has been writing about transpor-tation issues for more than a de-cade. Her meticulously researched articles have garnered several
transportation and Canadian Business Press writing awards.
and communicating all the moving pieces out to the right people," said Warren.
“As of August 2013, we have seen a complete change in both the adaptation and understanding of the customs brokers and also the officers at the border, when compared to our experiences in March,” he added. CT&L
regulationscustoms
46 ct&l september 2013 www.ctl.ca
dash board
TransCore’s Canadian Freight Index skirts traditional seasonal slump in JulyTransCore Link Logistics’ Canadian Freight Index for the truck-ing spot market saw no change in July from June and compared to the same period last year, side-stepping the traditional sum-mer slowdown typical for July. Load volumes in July were also at the mid-point of the last seven months. July also had two additional shipping days compared to June.
July load volumes for cross-border postings averaged 70% of total volumes. Cross-border loads destined for provinces within Canada were down 9% compared to July 2012. Conversely, cross-border loads originating in Canada destined to the United States saw an increase of 17% compared to the same period last year. Intra-Canada load volumes increased 3% year-over-year and represented 24% of the total volumes for July.
Equipment postings for July were at the highest level in the last 10 years. Month-over-month levels spiked by 10% and were 14% above posting levels for the same period last year. July’s equipment-to-load ratio increased to 2.62 from 2.37 in the previous month.
TransCore’s Loadlink freight matching database constitutes the largest Canadian network of carriers, owner/operators, freight brokers and intermediaries. More than 13 million full loads, LTL shipments and trucks are posted to the Loadlink network annually. As a result of this high volume, TransCore believes the Index is representative of the ups and downs in spot market freight movement.
The first six columns include monthly index values for years 2008 through 2013. The seventh column indicates the percent-age change from 2012 to 2013. The last column indicates the percentage change from the previous month to the current month. For the purpose of establishing a baseline for the index, January 2002 (index value of 100) has been used.
Canadian freight costs continue to decline, CGFI shows Results published by the Canadian General Freight Index (CGFI) indicate that the Total Cost of ground transportation for Canadian shippers decreased by 2.6 % in June when com-pared with May’s results.
The Base Rate Index, which excludes the impact of Accessorial Charges assessed by carriers, decreased by 1.6 % when compared to May 2013.
Average Fuel Surcharges assessed by carriers have seen a
decrease from 20.26% of Base Rates in May to 19.26 % in June.“Cross border truckload was the main driver of the freight cost
decline,” said Doug Payne, president & COO, Nulogx. “Fuel as a per-centage of freight costs have dropped to the same level as a year ago.”
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 agree-ments. It was developed with the assistance of Dr. Alan Saipe. The most recent results are available at the CGFI Web site: www.cgfi.ca.
Railway freight shows first monthly drop since 2009Freight carried by Canadian railways fell 3.4% in June to 26.2 million tonnes, compared with the same month in 2012, according to Statistics Canada data. The drop marks the first decline in freight loadings for the month of June since 2009.
Within Canada, combined loadings of non-intermodal freight (i.e., cargo moved via box cars or loaded in bulk) and intermodal freight (i.e., cargo moved via containers and trailers on flat cars) decreased 4.2% to 22.7 million tonnes.
Non-intermodal freight loadings fell 4.0% to 20.3 million tonnes as freight activity was significantly pulled down by a number of com-modity groupings. These included potash (down 406 000 tonnes), coal (down 388 000 tonnes), canola (down 234 000 tonnes), and wheat (down 165 000 tonnes). In total, 32 of the 64 commodity groups car-ried by Canadian railways fell during the month.
The drop in loadings occurred despite a strong push from a num-ber of commodities that rose during the month. These included fuel oils and crude petroleum (up 393 000 tonnes); iron ores and con-centrates (up 308 000 tonnes); and sand, gravel and crushed stone (up 105 000 tonnes).
Intermodal loadings decreased 5.4% to 2.5 million tonnes. The de-cline was the result of a drop in containerized cargo shipments which
TransCore Canadian Spot Market Freight Index 2008-2013
2008 2009 2010 2011 2012 2013 % % Change Change
Y-O-Y M-O-M
Jan 214 140 171 222 220 228 4% 25%
Feb 217 117 182 248 222 198 -11% -13%
Mar 264 131 249 337 276 245 -11% 24%
Apr 296 142 261 300 266 229 -14% -7%
May 316 164 283 307 301 252 -16% 10%
Jun 307 185 294 315 295 234 -21% -7%
Jul 264 156 238 245 233 234 0% 0%
Aug 219 160 240 270 235
Sep 203 180 234 263 200
Oct 186 168 211 251 215
Nov 143 157 215 252 215
Dec 139 168 225 217 182
TransCore Canadian Spot Market Freight Index 2008-2013
47ct&l september 2013www.ctl.ca
offset robust growth from trailers loaded onto flat cars.From a geographic perspective, both the Western and Eastern
railway divisions in Canada saw a drop in loadings in June. The Western Division, which accounted for 58.4% of the domestic freight loadings, fell 6.6% from the same month in 2012 to 13.3 million tonnes. The Eastern Division accounted for the remainder of the loadings and declined 0.5% to 9.5 million tonnes. For statis-tical purposes, cargo loadings from Thunder Bay, Ontario, to the Pacific Coast are classified to the Western Division while loadings from Armstrong, Ontario, to the Atlantic Coast are classified to the Eastern Division.
Rail traffic received from the United States rose 1.9% to 3.5 mil-lion tonnes. The gain in tonnage occurred mainly on the strength of intermodal freight, particularly containerized cargo shipments.
RBC PMI signals modest improvement in manufacturing business conditions in AugustCanada’s manufacturing expansion was sustained for a fifth con-secutive month in August, but the rate of growth was modest and below average, according to the RBC Canadian Manufacturing Purchasing Managers’ Index.
After accounting for usual seasonal variation, the RBC PMI – a
composite indicator designed to provide a single-figure snapshot of the health of the manufacturing sector – posted 52.1 in August, little-changed from July’s reading of 52.0. Remaining above the neutral threshold of 50.0, the RBC PMI has indicated growth of the manufacturing sector for five consecutive months, although the latest expansion was modest and weaker than the series average.
The RBC PMI found that both output and new orders rose at modest rates during August. This generally reflected greater client demand in both the domestic and export markets.
“The PMI continued to make positive gains for the fifth con-secutive month and moved modestly higher in August, suggesting some of the recent shocks to the economy have been mitigated by strength elsewhere,” said Craig Wright, senior vice-president and chief economist, RBC. “We expect that improving U.S. demand will continue to provide a boost to the manufacturing sector for the balance of the year.”
The headline RBC PMI reflects changes in output, new orders, employment, inventories, prices and supplier delivery times.
The monthly survey is conducted in association with Markit, a global financial information services company, and the Supply Chain Management Association (formerly the Purchasing Management Association of Canada.)
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48 ct&l september 2013 www.ctl.ca48
inside the numbers
Getting oldUNDERSTANDING MOTOR CARRIERS’ RELUCTANCE TO UPDATE THEIR FLEETSQuality of equipment is one of the most important factors shippers consider when selecting their TL and LTL carriers. Yet Canadian motor carriers have been reluctant in recent years to invest in new Class 8 trucks. At first glance, the purchasing intentions of for-hire carriers for the rest of 2013 look promising. Only 24% of for-hire carriers responding to our Annual Equipment Buying Trends Survey indicated they had no plans to purchase new Class 8 trucks by the end of the year. In comparison, 36% said likewise in 2012. In fact, 2013 showed the lowest “no intent to purchase” since 2008 among for-hire carriers. But there’s a difference between this year’s numbers and 2012’s, and even 2011’s. It seems the number of fleets planning large purchases has dwindled. Whereas 13% of for-hire carriers told us they would be replacing more than 30% of their fleet that year and 15% said likewise in 2011, only 7% had similarly ambitious plans for this year. There is a regional difference, however, with Western Canada carriers both more willing to purchase new trucks and to replace a larger part of their fleet.
There are also great differences between the purchasing plans of medium-sized and large carriers and those of small carriers. Only 10% of large carriers (firms owning 100 Class 8 trucks or more) and only 23% of medium-sized carriers (firms owning 10-99 trucks) had no plans to purchase new Class 8 trucks this year. In comparison, 50% of small carriers (firms owning 5-9 trucks) had no plans to get into new Class 8 trucks this year.
12,871 6,991 8,904 11,399 15,823 13,902 11,198
2008 2009 2010 2011 2012 2013 5 year avg
CLASS 8 TRUCK SALES – HISTORICALCOMPARISON YTD JUNE 2013
(TRUCKS SOLD)
Carriers Small Medium Large
No replacements 50% 23% 10%
10% of fleet 25% 61% 57%
20% of fleet 8% 21% 23%
30% or more 17% 5% 10%
2008 2009 2010 2011 2012 2013
No replacements 22% 43% 39% 27% 36% 24%
10% of fleet 41% 37% 35% 39% 33% 49%
20% of fleet 24% 12% 16% 19% 19% 20%
30% or more 13% 8% 10% 15% 13% 7%
12,871 6,991 8,904 11,399 15,823 13,902 11,198
2008 2009 2010 2011 2012 2013 5 year avg
CLASS 8 TRUCK SALES – HISTORICALCOMPARISON YTD JUNE 2013
(TRUCKS SOLD)
Carriers Small Medium Large
No replacements 50% 23% 10%
10% of fleet 25% 61% 57%
20% of fleet 8% 21% 23%
30% or more 17% 5% 10%
2008 2009 2010 2011 2012 2013
No replacements 22% 43% 39% 27% 36% 24%
10% of fleet 41% 37% 35% 39% 33% 49%
20% of fleet 24% 12% 16% 19% 19% 20%
30% or more 13% 8% 10% 15% 13% 7%
12,871 6,991 8,904 11,399 15,823 13,902 11,198
2008 2009 2010 2011 2012 2013 5 year avg
CLASS 8 TRUCK SALES – HISTORICALCOMPARISON YTD JUNE 2013
(TRUCKS SOLD)
Carriers Small Medium Large
No replacements 50% 23% 10%
10% of fleet 25% 61% 57%
20% of fleet 8% 21% 23%
30% or more 17% 5% 10%
2008 2009 2010 2011 2012 2013
No replacements 22% 43% 39% 27% 36% 24%
10% of fleet 41% 37% 35% 39% 33% 49%
20% of fleet 24% 12% 16% 19% 19% 20%
30% or more 13% 8% 10% 15% 13% 7%
IN A BUYING MOOD?
TRUCK WEST AUGUST 201300 INSIDE THE NUMBERS
ast issue we looked at Western Canada’s owner/operators and their Class 8 truck purchasing plans for the rest of 2013 and next year. We found that they are more willing than their Central and Eastern Canada counterparts to invest in new trucks. This issue we examine the pur-
chasing intentions of Western Canada for-hire carri-ers. They are facing the same hefty increases in new truck prices but have enjoyed a stronger regional economy the past few years than the rest of the country. Are they similarly more enthusiastic about
investing in new iron than their counterparts in the rest of the country?
Our recently completed Annual Equipment Buying Trends Survey found that only 15% of Western Canada for-hire fleets have no plans to purchase new trucks for the rest of this year. This is considerably ahead of the national average where about one quarter of for-hire carriers told us they have no plans to purchase new trucks the remainder of 2013. The vast majority of Western Canada for-hire carriers (64%) are looking to replace up to 10% of their fleet. That too is consid-erably higher than the national average where only
49% of respondents to our survey reported plans to renew up to 10% of their fleet. Also, more than a fifth of Western Canada for-hire carriers are looking to up-date more than 20% of their fleet. Looking towards next year, only 18% of Western Canada for-hire carri-ers have no plans for new truck purchases.
Our survey also looked at the brands Western Can-ada for-hire carriers are purchasing. Freightliner is the top selling brand nationwide but in the west it’s in a dead heat for the lead with Kenworth. Peterbilt is the third most preferred, with 19% of respondents report-ing that as the main brand currently in their fleet.
Top four activities perforrmed
Class 8 trucks sold in Western Canada YTD
WESTERN CANADA’S FOR-
HIRE FLEETS REVEAL THEIR HD
TRUCK PURCHASING PLANS
L
47%
85%
82%
No
No
Yes
Yes
15%
18%
Top 4 Brands of HD truck driven
6%
9%
9%
3%
3%
6%
6%
12%
27%
50%
32%
25%
25%
19%
15% 15%24%
41%
6%
HD Truck trade-in cycles (% of respondents)
Freightliner
Kenworth
Peterbilt
International
Volvo
Years 10 8-9 6-7 3-5 <4
Forestry
Construction
Urban
Regional
Longhaul
Other
Planning to replace HD truck(s)
in 2014
Planning to replace HD truck(s)
in 2013
Freightliner International Kenworth Mack Peterbilt Volvo Western Star Total
British Columbia
Alberta
Saskatchewan
Manitoba
292 76 458 86 292 177 178 1,559
471 364 903 187 664 109 380 3,078
103 32 232 85 143 84 40 719
193 75 52 41 132 110 28 631
part II
Western Canada for-hire carriers planning to replace HD trucks in 2013
Western Canada for-hire carriers planning to replace HD trucks in 2014
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Canadian motor carrier Class 8 truck purchasing plans
Canadian motor carrier Class 8 truck purchasing plans
Guess Who Found A New Job?
Getting a new job is life-affirming! Are you stuck in a job, and looking for something new? Well, you too can find
a job on www.HireLogistics.ca, a jobs website for transportation and supply chain professionals.
HireLogistics is brought to you by Canadian Transportation & Logistics magazine. Check it out today!
Attn: Employers ~ Job Postings Are Free!Post your jobs for FREE on HireLogistics.ca. Your ad will also
appear simultaneously on three other jobs websites: ctl.ca, TransportPlanet.com, and Trucknews.com.
www.HireLogistics.ca
Canadian motor carrier Class 8 truck purchasing plans
50 ct&l september 2013 www.ctl.ca
the bigger picture
Should “services” be purchased like commod-ities, in particular, logistics services like transportation and customs brokerage? It’s a
popular practice, and yes it can be effective in some cases, but there are pitfalls to watch out for. To begin with, let’s look at the basic differences in terminology. One dictionary I consulted defines “commodity” as “an article of trade or commerce, especially a product as distinguished from a ser-vice”. A “service”, on the other hand, is defined as “an act of helpful activity; help; aid: to do someone a service”. Seems like the proverbial comparison of apples to oranges, although commodities and services are often treated in a similar fashion.
When do buyers treat logistics services like commodities? From a service provider’s perspec-tive, it’s most evident in the RFQ (Request for Quotation) or RFB (Request for Bid) process. Both of these processes are well suited for com-modity purchasing; typically a buyer identifies the commodity with a description (quality standard), along with other pertinent requirements, and sell-ers submit prices. Requests for support services such as transportation, delivery, and customs clearance in the case of international shipments, may be listed in the terms and conditions of the governing document (if at all).
Frequently however, they are not. Price nego-tiations in the transaction are often limited to the commodity itself, with transportation and customs clearance services being decided after the fact.
And because they are negotiated after the buyer, or seller, may have agreed to a commodity sale price they already consider too low, they want the lowest possible price for any services necessary to complete the sale. What follows is a flurry of telephone calls or e-mails where the buyer, or seller, tries to secure those services at the lowest possible cost (i.e. the commodity approach), with-out consideration of any mitigating factors that might affect the transaction, or impact the ability of the service provider to provide an efficient level of service (i.e. the “value add” approach).
There are many examples of the types of ser-vice requirements that are often overlooked, or not clearly specified, when buyers and sellers are simply looking for the lowest cost service. And when those factors arise “after the fact”, service providers are faced with a difficult choice – either absorb the associated costs (with an impact on our profit margin), or re-quote our original price
(never a popular option, and one that buyers fre-quently refer to as “nickel and diming”).
Factors that tend to be omitted, overlooked or mis-stated during the request for transportation services (and that can subsequently affect the timeliness, or cost) of a shipment include: avail-ability of a loading dock at origin and destination, requirements for appointments, (actual) load weight and dimensions, packaging, unitization (loose or palletized, flush or overhanging), pallet size, government regulations (eg. hazardous goods or otherwise regulated), temperature control, in-surance/declared value (that might require the carrier to obtain additional coverage before the shipment is moved), electronic data transmission requirements (eg. EDI), equipment type (dry van, flat deck, high cube), special handling, driver assist and inside delivery (eg. high-rise buildings), to name a few.
For international shipments there are also fac-tors to consider regarding the customs clearance process, such as availability of documentation (certificates of origin, commercial invoices and Free Trade certifications), harmonized code clas-sifications, shipment value, and the identity of the customs broker responsible for clearance. And, perhaps most importantly, whether for car-riage or customs clearance, the responsible party must ensure that an account has been opened with the applicable service provider, including an ade-quate credit limit.
As service providers we often ask “what’s more important – cost or service”? Buyers often respond by saying “service”, but the deciding factor in ob-taining the business often turns out to be “cost”. Understandable, but quality of service plays an important part. Just ask any shipper or receiver who selected the lowest quotation and then ex-perienced delays because important information was not relayed to the carrier or customs broker when the quote was requested. The service pro-vider often takes the blame, even though delays could have been avoided by elevating the value of the transaction to a true “service” rather than a commodity.
If we ask a lot of questions during the quotation process we’re not trying to be difficult, or look for ways to “pad” the price. We’re simply trying to ensure we have information to provide shippers and receivers with a level of service that is seamless and efficient, and adds real value to the buyer’s supply chain process. CT&L
a question you can’t ignoreWhen is a service (not) a “commodity”?
Laurie Turnbull, CITT, P.MM
Laurie Turnbull is a
supply chain consultant
with Cole International, a
leading Canadian logistics
company providing
Customs brokerage,
warehousing and
worldwide transportation
services. He can
be contacted at
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Who are you reaching out to?
Coming to your rescue. It’s what we do best.
No other Canadian carrier has the resources we do on both sides of the border. We enlist the people, technology and processes to speed things up, not slow them down.
We take a proactive approach to enhancing the efficiency of your supply chain on both a day to day basis and when you need action now. Who are you reaching out to? Take another look at Vitran!
TF : 1.800.263.0791 E : [email protected]
