(Canadian Transportation Logistics)
United Parcel Service (UPS) is expanding an international air-freight service that guarantees delivery dates in the wake of a slowing US economy, the Toronto Star reports.
The UPS Express Freight service will more than triple the amount of express lanes currently served, UPS officials said.
The service, which now reaches 52 countries, is designed to provide guaranteed time-definite, overnight-to-three day door-to-door delivery including routine customs clearance to major global metropolitan areas.
UPS has been boosting international revenue at a faster rate than in the US, where the economic expansion is waning, according to the Toronto Star. The report said UPS international operations accounted for 28% of the company's total revenue in 2006.
January 10, 2008
Recession Fears Grow in Ontario
(Toronto Star)
There is growing concern among economists that Ontario is teetering on the brink of a recession.
Several analysts yesterday issued pessimistic predictions about the U.S. economy, and the impact it will have on the province this year. …
Tomorrow, Prime Minister Stephen Harper will meet the provincial premiers in Ottawa to talk about economic issues. Ontario Premier Dalton McGuinty meets Quebec Premier Jean Charest in Ottawa today before meeting with Harper and other premiers.
Sources told the Star last night that McGuinty and Charest will announce a feasibility study into a 1,000-kilometre high-speed rail link between Quebec City and Windsor. The project would provide an economic jolt to central Canada and could likely help such firms as Bombardier, which builds trains….
McGuinty told The Canadian Press that he and other premiers don’t want to waste time with some of the other items that Harper has on the agenda tomorrow, such as Senate reform and limiting federal spending powers.
Wall Street investment bank Goldman Sachs Group Inc. mentioned recession in its latest forecast yesterday. A recession is typically defined as a six-month period where the economy shrinks in size, meaning that fewer goods and services are produced…..
“Recession has now arrived, or will very shortly,” Jan Hatzius, Goldman Sachs’ chief U.S. economist wrote in a note to clients. He added that the downturn will last two to three quarters and be “relatively mild by historical standards.”
Don Drummond, TD Bank’s chief economist, said the bank’s latest forecast, to be issued today, shows Ontario’s economic growth at 1.5 per cent. That’s well under the predicted national average of 1.9 per cent. It means Ontario will experience the lowest economic growth in Canada, with the exception of Newfoundland and Labrador….
… Ontario sees an inequity in the Employment Insurance system, in which payouts are, on average, $4,000 lower for workers in Ontario than in other provinces.
Dale Orr, of the economic forecasting group Global Insight, yesterday released a report stating that under a pessimistic scenario such as that in the United States, Ontario would suffer recessionary conditions.
The probability of these recessionary conditions in Ontario in 2008 is approximately 40 per cent.”
In Canada, economists at the Big Five banks believe the U.S. economy will slow down sharply, but not officially go into a recession
There is growing concern among economists that Ontario is teetering on the brink of a recession.
Several analysts yesterday issued pessimistic predictions about the U.S. economy, and the impact it will have on the province this year. …
Tomorrow, Prime Minister Stephen Harper will meet the provincial premiers in Ottawa to talk about economic issues. Ontario Premier Dalton McGuinty meets Quebec Premier Jean Charest in Ottawa today before meeting with Harper and other premiers.
Sources told the Star last night that McGuinty and Charest will announce a feasibility study into a 1,000-kilometre high-speed rail link between Quebec City and Windsor. The project would provide an economic jolt to central Canada and could likely help such firms as Bombardier, which builds trains….
McGuinty told The Canadian Press that he and other premiers don’t want to waste time with some of the other items that Harper has on the agenda tomorrow, such as Senate reform and limiting federal spending powers.
Wall Street investment bank Goldman Sachs Group Inc. mentioned recession in its latest forecast yesterday. A recession is typically defined as a six-month period where the economy shrinks in size, meaning that fewer goods and services are produced…..
“Recession has now arrived, or will very shortly,” Jan Hatzius, Goldman Sachs’ chief U.S. economist wrote in a note to clients. He added that the downturn will last two to three quarters and be “relatively mild by historical standards.”
Don Drummond, TD Bank’s chief economist, said the bank’s latest forecast, to be issued today, shows Ontario’s economic growth at 1.5 per cent. That’s well under the predicted national average of 1.9 per cent. It means Ontario will experience the lowest economic growth in Canada, with the exception of Newfoundland and Labrador….
… Ontario sees an inequity in the Employment Insurance system, in which payouts are, on average, $4,000 lower for workers in Ontario than in other provinces.
Dale Orr, of the economic forecasting group Global Insight, yesterday released a report stating that under a pessimistic scenario such as that in the United States, Ontario would suffer recessionary conditions.
The probability of these recessionary conditions in Ontario in 2008 is approximately 40 per cent.”
In Canada, economists at the Big Five banks believe the U.S. economy will slow down sharply, but not officially go into a recession
January 9, 2008
Democratic Presidential Candidates Outline Trade Policy Views
(World Trade Interactive)
The Democratic candidates for president said in recently released statements that they support trade agreement provisions that enforce labor and environmental standards and that they would review and possibly renegotiate all existing U.S. trade pacts.
The statements were released by the Iowa Fair Trade Campaign, a group of trade unions and other organizations, which requested the candidates’ views while they campaigned in Iowa for the Jan. 3 caucus. The candidates, Sens. Hillary Clinton and Barack Obama, former Sen. John Edwards and Gov. Bill Richardson (Sens. Joe Biden and Christopher Dodd responded as well but have since dropped out of the race) were asked to address five general areas that affect trade: the fast track trade negotiating process; terms for future trade agreements; review or renegotiation of NAFTA and other existing agreements; Doha Round negotiations; and measures to address the trade deficit. Following are highlights from their statements.
Fast Track
Clinton said she would not finalize any new trade agreements or seek trade promotion authority (“fast track”) until her administration has reviewed all existing agreements and crafted a comprehensive trade policy. Edwards said the U.S. needs a new negotiating process that ensures “diverse public input,” to include “non-commercial interests.” Obama said the criteria for determining possible trade partners must involve an analysis of their labor and environmental standards. Obama also supports a stronger role for Congress in the trade agreement negotiation process.
Trade Agreement Provisions
All the candidates supported enforceable labor and environmental terms in trade agreements. Edwards and Obama were critical of provisions that allow foreign investors to directly challenge U.S. federal and local laws, and Obama said he would limit this right. To ensure the safety of imported foods and other products, Clinton said she would create a single agency to oversee food safety, support country of origin labeling and increase the number of U.S. inspectors at domestic and foreign ports. Edwards endorsed removing “unreasonable limitations” in trade agreements related to border inspections and safety standards. Obama would support increased enforcement of current product safety laws and further assistance for the federal agencies that oversee these issues. Richardson would turn to the WTO for all members to agree on a “no-standards lowering clause.” On government procurement, Edwards said he is willing to change existing agreements to ensure that any related clause supports rather than hurts domestic businesses. Richardson said he would promote labor and other human rights and stated that the U.S. should buy goods from companies that adhere to certain standards.
Review or Renegotiation of FTAs
The candidates generally said that if elected they would review NAFTA and other existing U.S. trade agreements. Obama and Clinton said they would work with NAFTA partners Mexico and Canada to renegotiate and correct “shortcomings” in that agreement.
Doha Round
Edwards, the only candidate to respond to the question on the Doha Round negotiations, said generally that change is needed in current WTO proceedings, including the Doha Round, and that the U.S. should work with WTO trading partners to fix rules.
Trade Deficit Measures
To combat the U.S. trade deficit, Clinton, Edwards and Obama highlighted the need to eliminate currency manipulation, which they felt puts U.S. goods at a disadvantage. Both Clinton and Edwards said they would vigorously enforce current free trade agreements, while Clinton added that she would double the enforcement staff at the Office of the U.S. Trade Representative. Edwards and Obama would eliminate “tax incentives” that U.S. companies may have to invest overseas. Obama also said he would protect U.S. producers from dumping and predatory pricing and “demand equal access to markets abroad.”
The Democratic candidates for president said in recently released statements that they support trade agreement provisions that enforce labor and environmental standards and that they would review and possibly renegotiate all existing U.S. trade pacts.
The statements were released by the Iowa Fair Trade Campaign, a group of trade unions and other organizations, which requested the candidates’ views while they campaigned in Iowa for the Jan. 3 caucus. The candidates, Sens. Hillary Clinton and Barack Obama, former Sen. John Edwards and Gov. Bill Richardson (Sens. Joe Biden and Christopher Dodd responded as well but have since dropped out of the race) were asked to address five general areas that affect trade: the fast track trade negotiating process; terms for future trade agreements; review or renegotiation of NAFTA and other existing agreements; Doha Round negotiations; and measures to address the trade deficit. Following are highlights from their statements.
Fast Track
Clinton said she would not finalize any new trade agreements or seek trade promotion authority (“fast track”) until her administration has reviewed all existing agreements and crafted a comprehensive trade policy. Edwards said the U.S. needs a new negotiating process that ensures “diverse public input,” to include “non-commercial interests.” Obama said the criteria for determining possible trade partners must involve an analysis of their labor and environmental standards. Obama also supports a stronger role for Congress in the trade agreement negotiation process.
Trade Agreement Provisions
All the candidates supported enforceable labor and environmental terms in trade agreements. Edwards and Obama were critical of provisions that allow foreign investors to directly challenge U.S. federal and local laws, and Obama said he would limit this right. To ensure the safety of imported foods and other products, Clinton said she would create a single agency to oversee food safety, support country of origin labeling and increase the number of U.S. inspectors at domestic and foreign ports. Edwards endorsed removing “unreasonable limitations” in trade agreements related to border inspections and safety standards. Obama would support increased enforcement of current product safety laws and further assistance for the federal agencies that oversee these issues. Richardson would turn to the WTO for all members to agree on a “no-standards lowering clause.” On government procurement, Edwards said he is willing to change existing agreements to ensure that any related clause supports rather than hurts domestic businesses. Richardson said he would promote labor and other human rights and stated that the U.S. should buy goods from companies that adhere to certain standards.
Review or Renegotiation of FTAs
The candidates generally said that if elected they would review NAFTA and other existing U.S. trade agreements. Obama and Clinton said they would work with NAFTA partners Mexico and Canada to renegotiate and correct “shortcomings” in that agreement.
Doha Round
Edwards, the only candidate to respond to the question on the Doha Round negotiations, said generally that change is needed in current WTO proceedings, including the Doha Round, and that the U.S. should work with WTO trading partners to fix rules.
Trade Deficit Measures
To combat the U.S. trade deficit, Clinton, Edwards and Obama highlighted the need to eliminate currency manipulation, which they felt puts U.S. goods at a disadvantage. Both Clinton and Edwards said they would vigorously enforce current free trade agreements, while Clinton added that she would double the enforcement staff at the Office of the U.S. Trade Representative. Edwards and Obama would eliminate “tax incentives” that U.S. companies may have to invest overseas. Obama also said he would protect U.S. producers from dumping and predatory pricing and “demand equal access to markets abroad.”
Lee Valley Targets Canada Post in Lawsuit Over Shipping Charges
(CBC News)
Courier shipping charges levied by Canada Post are at the centre of a class action suit that, if successful, could see at least 57,000 commercial customers refunded overpayments.
The Ontario Superior Court certified the suit in December, allowing an Ottawa-based hardware and gardening chain store, Lee Valley, to proceed with its legal argument against Canada Post. At issue is the way Canada Post measures and charges for oversized, lightweight parcels. Lee
Valley alleges it has overcharged commercial customers for several years.
According to court documents, up until 2000, the crown corporation charged customers based on the weight of the parcel as defined under the Weights and Measures Act.
Around 2000, Canada Post started charging commercial courier fees based on something called a “volumetric weight,” taking into account the fact a package might weigh very little, but still take up as much room on a truck as a heavier item.
Because Canada Post requires commercial customers to weigh parcels and pay in advance, it then verifies those charges using a piece of equipment called a “cubiscan.”
Lee Valley argues in court documents – which have not been proven in court – that this system “greatly overstates the true volume of any irregularly-shaped parcel.”
Each time Canada Post verified Lee Valley’s estimates for shipping charges, the price went up, Lee Valley president Robin Lee told CBC News. The company spends $7 million a year on Canada Post shipping charges.“They only raised the postage, they did not lower the postage … How is it that we don’t have any parcels where there are refunds on what we declared?” Lee asked.
“Canada Post’s answer was we don’t refund if you over-declare. Essentially what they said is we keep the change if you over-declare.”
While Canada Post spokesman John Caines declined to offer details since the case is now before the courts, he told CBC News that the crown corporation is comfortable with its position.
“We measure like any other courier company does, and have for years,” Caines said.
He said Canada Post was the first courier company to give refunds to commercial customers for overpayments – a policy it implemented in January 2007.
Lee estimates Canada Post has so far refunded more than $1 million.
While he was at pains to say that Canada Post provides good service and that he understands the need to charge for oversized parcels, Lee takes issue with the notion that Canada Post felt it could “keep the change.”
“Canada Post has unjustly enriched themselves. They’ve made money they shouldn’t have,” he said. ‘We want our change back.”
Courier shipping charges levied by Canada Post are at the centre of a class action suit that, if successful, could see at least 57,000 commercial customers refunded overpayments.
The Ontario Superior Court certified the suit in December, allowing an Ottawa-based hardware and gardening chain store, Lee Valley, to proceed with its legal argument against Canada Post. At issue is the way Canada Post measures and charges for oversized, lightweight parcels. Lee
Valley alleges it has overcharged commercial customers for several years.
According to court documents, up until 2000, the crown corporation charged customers based on the weight of the parcel as defined under the Weights and Measures Act.
Around 2000, Canada Post started charging commercial courier fees based on something called a “volumetric weight,” taking into account the fact a package might weigh very little, but still take up as much room on a truck as a heavier item.
Because Canada Post requires commercial customers to weigh parcels and pay in advance, it then verifies those charges using a piece of equipment called a “cubiscan.”
Lee Valley argues in court documents – which have not been proven in court – that this system “greatly overstates the true volume of any irregularly-shaped parcel.”
Each time Canada Post verified Lee Valley’s estimates for shipping charges, the price went up, Lee Valley president Robin Lee told CBC News. The company spends $7 million a year on Canada Post shipping charges.“They only raised the postage, they did not lower the postage … How is it that we don’t have any parcels where there are refunds on what we declared?” Lee asked.
“Canada Post’s answer was we don’t refund if you over-declare. Essentially what they said is we keep the change if you over-declare.”
While Canada Post spokesman John Caines declined to offer details since the case is now before the courts, he told CBC News that the crown corporation is comfortable with its position.
“We measure like any other courier company does, and have for years,” Caines said.
He said Canada Post was the first courier company to give refunds to commercial customers for overpayments – a policy it implemented in January 2007.
Lee estimates Canada Post has so far refunded more than $1 million.
While he was at pains to say that Canada Post provides good service and that he understands the need to charge for oversized parcels, Lee takes issue with the notion that Canada Post felt it could “keep the change.”
“Canada Post has unjustly enriched themselves. They’ve made money they shouldn’t have,” he said. ‘We want our change back.”
Lack of Standards Is Slowing Adoption of RFID for Cargo Security
(Industry Week)
The U.S. government has been slow to issue any kind of mandate regarding the implementation of RFID on cargo containers.
It’s been several years now since consumer goods manufacturers received their marching orders from retail giant Wal-Mart Stores Inc. and the U.S. Department of Defense to start implementing radio frequency identification (RFID) technology into their operations. There, the goal has primarily been to speed up warehousing operations and improve inventory management.
And yet, paradoxically, the U.S. government has been much slower to issue any kind of mandate regarding the implementation of RFID on cargo containers, where the goal would be much loftier: ensuring supply chain security and thwarting terrorists and hijackers.
One reason for the lag in cargo security technology adoption has been market confusion about standards. An ISO committee has issued a standard based on active RFID tags, i.e., those that include a power source, such as a battery. However, according to a recent study conducted by ABI Research, many end-users would rather use passive RFID solutions (no power source, and much less expensive), which are the types of tags Wal-Mart and DoD suppliers are adopting.
“The cargo tracking and security market is not immune from the active vs. passive cost-benefit-performance debate,” points out Michael Liard, a director with ABI Research. “The ISO standards committee has been deliberating for years, and this year, amid industry rumors suggesting that the U.S. government would mandate inspection of container seals on all incoming containers, it decided in favor of active technology.”
However, he continues, since the Department of Homeland Security has not issued any kind of RFID mandate, end-users have mostly taken a “wait and see” position. In the meantime, some suppliers of passive RFID tags are working with other standards groups to create a passive RFID standard for container tracking, according to ABI Research.
“So far, the U.S. government has wielded the ‘carrot’ of expedited processing of sealed containers, rather than the ‘stick’ of a legal mandate,” observes Mike Ippoliti, another research director at ABI Research. “That carrot has not been tasty enough to tempt any of the interested parties. While nobody wants a container-related breach of security, only if there is a major incident will the government try to impose its will on this industry. If and when that happens, we expect the container security market to explode.”
The U.S. government has been slow to issue any kind of mandate regarding the implementation of RFID on cargo containers.
It’s been several years now since consumer goods manufacturers received their marching orders from retail giant Wal-Mart Stores Inc. and the U.S. Department of Defense to start implementing radio frequency identification (RFID) technology into their operations. There, the goal has primarily been to speed up warehousing operations and improve inventory management.
And yet, paradoxically, the U.S. government has been much slower to issue any kind of mandate regarding the implementation of RFID on cargo containers, where the goal would be much loftier: ensuring supply chain security and thwarting terrorists and hijackers.
One reason for the lag in cargo security technology adoption has been market confusion about standards. An ISO committee has issued a standard based on active RFID tags, i.e., those that include a power source, such as a battery. However, according to a recent study conducted by ABI Research, many end-users would rather use passive RFID solutions (no power source, and much less expensive), which are the types of tags Wal-Mart and DoD suppliers are adopting.
“The cargo tracking and security market is not immune from the active vs. passive cost-benefit-performance debate,” points out Michael Liard, a director with ABI Research. “The ISO standards committee has been deliberating for years, and this year, amid industry rumors suggesting that the U.S. government would mandate inspection of container seals on all incoming containers, it decided in favor of active technology.”
However, he continues, since the Department of Homeland Security has not issued any kind of RFID mandate, end-users have mostly taken a “wait and see” position. In the meantime, some suppliers of passive RFID tags are working with other standards groups to create a passive RFID standard for container tracking, according to ABI Research.
“So far, the U.S. government has wielded the ‘carrot’ of expedited processing of sealed containers, rather than the ‘stick’ of a legal mandate,” observes Mike Ippoliti, another research director at ABI Research. “That carrot has not been tasty enough to tempt any of the interested parties. While nobody wants a container-related breach of security, only if there is a major incident will the government try to impose its will on this industry. If and when that happens, we expect the container security market to explode.”
TACA Lines to Hike Eastbound Rates Next Month
(Transport Intelligence)
Container shipping lines belonging to the Trans-Atlantic Conference Agreement (TACA) are planning to implement a general rate increase for eastbound traffic, effective February 1, 2008.
In a statement, the group claimed that following a further review of current and projected transatlantic trading conditions, they wished to advise that “the increasing eastbound trade volume, as reported in the August trade announcement, is now creating severe demands on vessel space and, in particular, on container availability for the growing US exports”.
“This rising demand for space, as evidenced by the strength of eastbound cargo volumes and the high level of forward bookings, coupled with the additional costs of repositioning containers, is expected to increase substantially into 2008. In this respect, the TACA rate restoration measures published in October 2007 have provided insufficient revenues to cover the rising cost pressures encountered by these demands.
“The parties conclude that, under such conditions, services will become unsustainable at current levels and that further action is necessary in order to maintain the quality of services required by the trade. As a consequence, TACA wishes to advise its customers of an eastbound general tariff increase effective from February 1, 2008.”
TACA said the planned increases, for dry van and temperature-controlled containers moving from and via Atlantic, Gulf and Pacific ports, were $400 per 20ft container, $500 per 40ft/45ft container and WM $25.
Container shipping lines belonging to the Trans-Atlantic Conference Agreement (TACA) are planning to implement a general rate increase for eastbound traffic, effective February 1, 2008.
In a statement, the group claimed that following a further review of current and projected transatlantic trading conditions, they wished to advise that “the increasing eastbound trade volume, as reported in the August trade announcement, is now creating severe demands on vessel space and, in particular, on container availability for the growing US exports”.
“This rising demand for space, as evidenced by the strength of eastbound cargo volumes and the high level of forward bookings, coupled with the additional costs of repositioning containers, is expected to increase substantially into 2008. In this respect, the TACA rate restoration measures published in October 2007 have provided insufficient revenues to cover the rising cost pressures encountered by these demands.
“The parties conclude that, under such conditions, services will become unsustainable at current levels and that further action is necessary in order to maintain the quality of services required by the trade. As a consequence, TACA wishes to advise its customers of an eastbound general tariff increase effective from February 1, 2008.”
TACA said the planned increases, for dry van and temperature-controlled containers moving from and via Atlantic, Gulf and Pacific ports, were $400 per 20ft container, $500 per 40ft/45ft container and WM $25.
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