freight Final Review 5.13.pptx freight Final Review 5.13.pptx

Welcome to class. We will
begin shortly

Insurance
▶ The insurer is liable for any
loss attributable to the willful
misconduct of the insured, or
for any loss proximately
caused by delay, or for any
inevitable loss or damage
such as wear and tear,
inherent vice, or the nature of
the subject matter. This is a
standard provision commonly
found in insurance policies,
often referred to as
exclusions.
This Photo by Unknown Author is licensed under CC BY

Insurance
▶ Let me break it down:
• Willful Misconduct of the Insured: If the
insured intentionally causes a loss or
damage, the insurer is not obligated to cover
it. This prevents individuals from purposefully
damaging property or engaging in fraudulent
activities expecting insurance to cover the
costs.
• Loss Proximately Caused by Delay: If a loss
occurs due to a delay, and that delay can be
directly linked to the cause of the loss, the
insurer may not be liable. For instance, if a
delay in reporting a claim leads to increased
damage, the insurer might refuse coverage
for the additional loss caused by the delay.
• Inevitable Loss or Damage: This refers to
losses or damages that are bound to happen
due to factors beyond anyone's control, such
as wear and tear, inherent vice (inherent
defects or weaknesses in the property), or
the nature of the subject matter. Insurers
typically don't cover such losses because
they are considered foreseeable and not
unexpected.
These exclusions help define the boundaries
of coverage and protect the insurer from

Air Cargo Security
(ACS)
▶ Transport Canada has launched
an Air Cargo Security (ACS)
Program for the freight forwarding,
transportation, logistics, and
supply chain industries. Air Cargo
Security (ACS) refers to the
measures and protocols put in
place to ensure the safety and
security of air cargo shipments.
With the significant volume of
goods transported by air freight
worldwide, maintaining the
security of these shipments is
crucial to prevent unauthorized
access, theft, tampering, or
potential threats to aviation
security.
ACS encompasses various
security procedures and
regulations imposed by
government agencies,

Air Cargo Security
(ACS)
▶ These measures aim to:
1. Prevent Unauthorized Access: Access to
cargo areas and facilities where shipments
are stored or processed is restricted to
authorized personnel only. Access control
systems, such as identification checks and
secure entry points, help prevent
unauthorized individuals from entering
restricted areas.
2. Screening and Inspection: Cargo
shipments undergo thorough screening
and inspection procedures to detect and
identify any prohibited items, hazardous
materials, or security threats. This may
include X-ray scanning, explosive
detection, physical inspection, and the use
of security technology to ensure the
integrity of cargo contents.
3. Security Documentation and Verification:
Proper documentation and verification
processes are essential to ensure the
legitimacy and authenticity of cargo
shipments. This includes verifying the
identity of senders and recipients,

Air Cargo Security
(ACS)
▶ These measures aim to:
4. Chain of Custody: Maintaining a secure chain of
custody throughout the transportation process is
crucial for tracking and monitoring the movement
of cargo from origin to destination. This involves
implementing procedures to prevent tampering,
theft, or unauthorized access during transit.
5. Security Training and Awareness: Training
programs and awareness initiatives are essential
to educate personnel involved in air cargo
operations about security protocols, procedures,
and best practices. This helps ensure that all
stakeholders are aware of their roles and
responsibilities in maintaining cargo security.
6. Regulatory Compliance: Compliance with
national and international regulations governing
air cargo security is mandatory for airlines,
freight forwarders, shippers, and other entities
involved in the transportation of air cargo. These
regulations establish minimum security
standards and requirements that must be
followed to mitigate security risks effectively.
Overall, effective air cargo security measures are
essential for safeguarding the integrity of air cargo
shipments, protecting against security threats, and
maintaining the safety and reliability of the global air
transportation network.

Truck Shipment
▶ Truck shipments entering Canada are not required to
be documented in advance on an approved cargo
control document. When truck shipments enter
Canada, they are required to be documented in
advance on an approved cargo control document.
This document serves as a declaration of the goods
being transported and provides essential information
for customs clearance and security purposes.
The approved cargo control document typically
includes details such as:
1. Description of Goods: A description of the goods
being transported, including their quantity, value, and
any relevant specifications.
2. Sender and Receiver Information: Information about
the sender (exporter) and the receiver (importer),
including their names, addresses, and contact
details.
3. Transportation Details: Details about the mode of
transportation (in this case, truck), including the
vehicle's registration number, driver's information,
and the route being taken.
4. Customs Information: Any customs-related
information, such as tariff classification codes, duty
rates, and any applicable permits or licenses.
5. Security Information: Security-related details, such as
seals applied to the cargo, security screening results,
and any other security measures implemented during
transportation.

FPA
▶ An FPA policy covers goods against total loss by
marine perils. Partial losses other than general
average losses are recoverable only in certain
cases.
In the context of an FPA policy:
1. Total Loss Coverage: The policy typically covers
the insured goods for total loss resulting from
marine perils. If the goods are completely
destroyed or irretrievably lost due to a covered
event, the policyholder is entitled to
compensation for the full value of the goods
insured.
2. Partial Loss Coverage: Unlike total losses, partial
losses (where only a portion of the goods is
damaged or lost) are only recoverable under
specific circumstances in an FPA policy.
Typically, partial losses other than general
average losses may be covered only if they meet
certain criteria outlined in the policy.
3. General Average Losses: General average
losses occur when sacrifices or expenses are
intentionally incurred for the common safety of
the ship and cargo during a voyage. These
expenses are shared proportionally among all
parties with a financial interest in the voyage,
including the cargo owners. FPA policies often
exclude coverage for general average losses
because they are considered to be shared

FPA
▶ In summary, while an FPA
policy provides coverage for
total loss by marine perils,
coverage for partial losses is
limited and may only be
recoverable in specific cases
outlined in the policy.
General average losses are
typically excluded from
coverage under FPA
policies. It's essential for
policyholders to review their
insurance contracts carefully
to understand the scope of
coverage and any exclusions
or limitations that may apply.

The IATA Carnet
▶ The IATA Carnet is not a Customs document
that acts like an international passport for goods.
It simplifies customs procedures for goods
intended for temporary use, such as trade
shows, exhibitions, and professional equipment.
Here's how it works:
1. Temporary Importation: The Carnet allows goods
to be temporarily imported into participating
countries for a limited period, typically up to one
year. This temporary importation is permitted for
specific purposes, such as trade fairs,
exhibitions, or professional activities.
2. Duty and Tax Exemption: By presenting a
Carnet at customs, the holder can temporarily
import goods without paying duties or taxes. This
exemption applies to both import duties and
value-added taxes (VAT) that would typically be
levied on imported goods.
3. Simplified Customs Procedures: The Carnet
simplifies customs procedures by providing a
unified document that serves as both a customs
declaration and a guarantee for the temporary
importation of goods. Instead of dealing with
separate customs declarations and deposits for
each country, the holder presents the Carnet at
customs checkpoints for validation and
clearance.

The IATA Carnet
▶ The IATA Carnet is not a Customs document
that acts like an international passport for
goods. It simplifies customs procedures for
goods intended for temporary use, such as
trade shows, exhibitions, and professional
equipment.
Here's how it works:
4. Multiple Countries: The Carnet is accepted in
over 80 countries and territories that are
members of the ATA Carnet system. This
includes many major trading nations around
the world, making it a valuable tool for
businesses engaged in international trade
and temporary exports.
5. Security Deposit: While the Carnet exempts
the holder from paying duties and taxes
upfront, it does require the holder to provide
a security deposit or guarantee to cover
potential liabilities in case the goods are not
re-exported within the specified timeframe or
are misused.
Overall, the IATA Carnet streamlines the
process of temporarily importing goods into
foreign countries for specific purposes, providing
cost savings and administrative efficiency for

Open Policies
▶ Open policies are not
suitable for most merchants
sending or receiving goods,
and their chief disadvantage
is that coverage is not
automatic. Indeed, open
policies can be a convenient
choice for many merchants
involved in sending or
receiving goods
internationally. These
policies provide continuous
coverage for multiple
shipments over a specified
period, typically a year,
without the need to obtain
separate insurance for each
individual shipment. This can
streamline the insurance

Open Policies
▶ However, as we mentioned, the
chief disadvantage of open policies
is that coverage is not automatic.
Unlike specific voyage or single
shipment policies, where coverage
is triggered automatically for each
shipment, open policies require the
insured party to declare each
shipment separately to ensure
coverage. Failure to declare
shipments correctly or in a timely
manner can result in the shipment
not being covered under the policy.
Additionally, open policies may
require more administrative effort to
manage, as the insured party is
responsible for accurately
recording and reporting each
shipment to the insurer. This can
be challenging for businesses with
high shipment volumes or complex
logistics arrangements.

Open Policies
▶ Despite these drawbacks,
open policies remain a
popular choice for many
merchants due to their
flexibility and potential cost
savings over time, especially
for businesses with regular
and predictable shipping
patterns. However, it's
essential for businesses to
understand the requirements
and limitations of open
policies and to ensure proper
compliance with reporting
procedures to maintain
coverage for their shipments.

Open Policies
▶ Under an open policy, if
documentation is required for
a particular shipment, a
certificate of insurance is
prepared. This certificate
serves as proof of coverage
for that specific shipment
under the terms of the open
policy. It outlines key details
of the insurance coverage,
such as the insured party,
the type of goods being
shipped, the insured value,
and any applicable terms
and conditions.

Open Policies
▶ The certificate of insurance is
provided to the party requesting
documentation for the shipment,
such as a shipping agent, freight
forwarder, or customs authority. It
demonstrates that the shipment is
adequately insured under the open
policy and provides assurance that
the insurer will indemnify the insured
party for any covered losses or
damages that may occur during
transit.
Preparing a certificate of insurance
for each shipment allows the insured
party to comply with documentation
requirements while maintaining the
benefits of the open policy, such as
continuous coverage for multiple
shipments over a specified period. It
also facilitates the efficient
processing of shipments through
customs and other regulatory
checkpoints by providing proof of

The Canadian Import
Control List (CIFL)
▶ Certain dairy and agricultural
products, textile products,
carbon steel and specialty
steels, endangered species of
wild flora and fauna, and
weapons and ammunition are
in the Canada CIFL is an
inaccurate statement. Due to
these being just a few
examples, and the CIFL
covers a wide range of
products and commodities.
Importers should consult the
Canadian Import Control List
and other relevant regulations
to determine whether their
products are subject to import
controls and to ensure
compliance with Canadian
import laws and regulations.

The Canadian Import
Control List (CIFL)
▶ The Canadian Import Control List (CIFL) is
an extensive document that outlines
various products subject to import controls
and regulations in Canada. While I can't
provide an exhaustive list of all the
products included in the CIFL, I can
highlight some of the key categories
commonly subject to import controls:
1. Agricultural Products: This category
includes items such as dairy products,
poultry, eggs, and certain grains. Import
controls are often in place to manage
quotas, tariffs, and other measures to
support domestic agricultural producers
and ensure food safety standards.
2. Textiles and Apparel: Textile and apparel
products are frequently subject to import
quotas, tariffs, and other restrictions to
protect domestic textile industries and
maintain fair competition in the market.
3. Steel and Specialty Metals: Certain types
of steel and specialty metals may be
subject to import controls to protect
domestic steel producers or address

The Canadian Import
Control List (CIFL)
▶ The Canadian Import Control List (CIFL)
is an extensive document that outlines
various products subject to import
controls and regulations in Canada. While
I can't provide an exhaustive list of all the
products included in the CIFL, I can
highlight some of the key categories
commonly subject to import controls:
4. Automobiles and Automotive Parts:
Import restrictions may apply to
automobiles and automotive parts to
manage trade flows and support the
domestic automotive industry.
5. Endangered Species and Wildlife
Products: Import controls are in place to
regulate the trade of endangered species
and their products, including wildlife
specimens, parts, and derivatives, to
ensure compliance with international
conservation agreements.
6. Firearms and Ammunition: Importation of
firearms, ammunition, and certain types of
weapons is strictly regulated in Canada

Transportation of
Dangerous Goods
Regulations (TDGR)
▶ In Canada, the transportation of
dangerous goods by ground, whether
for domestic or transborder purposes, is
regulated by the Transportation of
Dangerous Goods Regulations (TDGR).
These regulations establish the
requirements and standards for the safe
handling, shipping, and transportation of
hazardous materials by road, rail, and
other modes of ground transport.
The TDGR covers a wide range of
hazardous materials, including but not
limited to:
1. Explosives
2. Gases
3. Flammable liquids
4. Flammable solids
5. Oxidizing substances
6. Toxic and infectious substances
7. Radioactive materials
8. Corrosive substances

Transportation of
Dangerous Goods
Regulations (TDGR)
▶ Key provisions of the TDGR
include requirements for proper
classification, packaging, labeling,
placarding, and documentation of
dangerous goods shipments. It
also mandates training for
personnel involved in the
transportation of hazardous
materials and establishes
emergency response procedures
in case of incidents or accidents
involving dangerous goods.
Compliance with the TDGR is
essential for ensuring the safety of
individuals, property, and the
environment during the
transportation of hazardous
materials by ground. Failure to
comply with these regulations can
result in penalties, fines, and legal

Transportation of
Dangerous Goods
Regulations (TDGR)
▶ Transportation companies,
shippers, carriers, and other
parties involved in the
transportation of dangerous
goods by ground must
familiarize themselves with
the requirements of the
TDGR and take appropriate
measures to ensure
compliance with the
regulations. Additionally, they
may need to obtain permits
or authorizations from
regulatory authorities
depending on the nature of
the hazardous materials
being transported and the

Transportation of
Dangerous Goods
Regulations (TDGR)
▶ Dangerous goods are indeed
generally defined as articles
and substances that are
capable of posing a significant
risk to health, safety, property,
or the environment. This
definition encompasses a wide
range of materials, including
explosives, flammable liquids,
gases, toxic substances,
corrosives, and radioactive
materials, among others.
Proper handling, storage,
transportation, and disposal of
dangerous goods are
essential to mitigate the risks
associated with these
materials and ensure the

Legal Liability
▶ Legal liability establish the legal
responsibilities written either in a
contract or by the law of the land. It
outlines the duties and responsibilities
that must be fulfilled, and failure to meet
these obligations can result in legal
consequences, such as lawsuits, fines,
or other penalties.
Legal liability can arise from various
sources:
1. Contractual Obligations: When parties
enter into a contract, they agree to
certain terms and conditions that outline
their rights and obligations. If one party
fails to fulfill its contractual obligations, it
may be held legally liable for breach of
contract.
2. Statutory Law: Laws enacted by
legislative bodies, such as federal or
state governments, establish legal
requirements and standards that
individuals and businesses must comply
with. Violations of statutory law can lead
to legal liability, enforced through

Legal Liability
▶ Legal liability can arise from various
sources:
3. Common Law: Legal principles
developed through judicial decisions
over time also establish legal
responsibilities. Common law doctrines,
such as negligence or strict liability,
impose obligations on individuals and
businesses to exercise reasonable care
or ensure product safety, for example.
4. Tort Liability: Tort law governs civil
wrongs that cause harm or injury to
others. Tort liability may arise from
actions such as negligence, defamation,
or intentional wrongdoing, and
individuals or entities found liable may
be required to compensate the injured
party for damages.
In summary, legal liability encompasses
the duties and responsibilities established
by contracts, statutes, common law, or tort
principles. Understanding and fulfilling these
obligations are essential for individuals and
businesses to avoid legal disputes and

Warranty
▶ In marine insurance, a warranty is a
promise or guarantee made by the
insured party to the insurer regarding
specific conditions related to the
insured property or the conduct of
the insured during the period of
coverage. Unlike representations or
terms, which are statements of fact
or provisions of the insurance
contract, warranties are considered
to be conditions precedent to
coverage. This means that the
insurer's liability under the policy is
conditional upon strict compliance
with the terms of the warranty.
In the context of marine insurance, if
a warranty is breached, the insurer
may be entitled to deny coverage for
any losses or claims arising from that
breach, regardless of whether the
breach is directly related to the
cause of the loss or not. Even if the
breach is minor or has no direct
connection to the loss, it can still

Warranty
▶ For example, if a marine
insurance policy includes a
warranty stating that the vessel
must have a certain type of
navigational equipment on
board, and it is discovered
during a claim investigation that
the vessel did not have that
equipment at the time of loss,
the insurer may deny coverage
for the claim, even if the loss
itself was unrelated to the
absence of the equipment.
Therefore, in marine insurance,
warranties typically require
exact compliance, regardless of
whether they are material to the
risk or not. It's crucial for insured
parties to understand and
adhere to all warranties
specified in the insurance policy

Insurance
▶ An insurer is liable for a loss that is
proximately caused by a peril
insured against. In insurance, the
principle of proximate cause is
essential in determining whether the
insurer is liable for a loss. Proximate
cause refers to the dominant or
most immediate cause of a loss or
damage. If a peril insured against is
the proximate cause of a loss, the
insurer is generally liable to
indemnify the insured for the
resulting damages, subject to the
terms and conditions of the
insurance policy.
For example, suppose a property
insurance policy covers fire damage,
and a fire breaks out in a building,
causing extensive damage to the
structure and contents. If the fire is
determined to be the proximate
cause of the loss, the insurer would
typically be liable to compensate the
insured for the damages resulting

Insurance
▶ However, if the fire was
caused by an excluded peril,
such as arson or war, the
insurer may deny coverage for
the loss, even if fire damage is
covered under the policy.
Similarly, if the fire was merely
a remote or incidental cause,
and another excluded peril
was the proximate cause of
the loss, the insurer may also
deny coverage.
In summary, the principle of
proximate cause helps
determine the extent of the
insurer's liability for a loss by
identifying the dominant or
most immediate cause of the
loss and assessing whether it
is covered under the terms of

Transport Canada
▶ Transport Canada does not
require that any documentation
relating to the transportation of
dangerous goods be kept for at
least six years after the date of
shipment. Transport Canada
requires that any documentation
relating to the transportation of
dangerous goods be kept for at
least two years after the date of
shipment. Transport Canada, the
federal department responsible for
transportation policies and
regulations in Canada, mandates
that documentation related to the
transportation of dangerous goods
must be retained for a specified
period. Specifically, under the
Transportation of Dangerous
Goods Regulations (TDGR), it is
required to keep records of
dangerous goods shipments for at
least six years from the date of
shipment.

Transport Canada
▶ These records are essential for
regulatory compliance,
enforcement purposes, and for
providing evidence of compliance
with the TDGR in the event of
inspections, audits, or
investigations by Transport
Canada or other regulatory
authorities. They may include
documentation such as:
1. Shipping documents (e.g.,
shipping manifests, bills of lading)
2. Training records for personnel
involved in the transportation of
dangerous goods
3. Emergency response plans and
procedures
4. Inspection and testing records for
packaging, containers, and
vehicles used to transport
dangerous goods
5. Incident reports and records of

Transport Canada
▶ All employers and employees
involved in the supply chain have
a responsibility to exercise due
diligence to prevent undeclared or
hidden dangerous goods from
entering the transportation chain.
This duty applies to everyone
from manufacturers and shippers
to carriers, freight forwarders, and
warehouse operators.
Due diligence in this context
means taking reasonable steps to
identify, assess, and mitigate risks
associated with the transportation
of dangerous goods. It involves
implementing appropriate
measures, procedures, and
controls to ensure compliance
with regulations, prevent
accidents, and protect the safety
of individuals, property, and the
environment.

Due Diligence
▶ Some examples of due diligence
practices in the transportation of
dangerous goods include:
1. Proper Training: Ensuring that
employees receive adequate training
and instruction on the safe handling,
storage, and transportation of
dangerous goods, including how to
recognize and respond to undeclared
or hidden dangerous goods.
2. Documentation: Maintaining accurate
and complete records of shipments,
including shipping documents,
manifests, and safety data sheets, to
facilitate identification and tracking of
dangerous goods throughout the
supply chain.
3. Inspection and Verification:
Conducting thorough inspections and
verification checks of shipments to
confirm that they comply with
regulatory requirements and do not
contain undeclared or hidden

Due Diligence
▶ Some examples of due diligence
practices in the transportation of
dangerous goods include:
4. Communication: Establishing clear
lines of communication between all
parties involved in the supply chain to
share relevant information and
address any concerns or issues
related to the transportation of
dangerous goods.
5. Reporting and Investigation:
Encouraging employees to report any
suspected instances of undeclared or
hidden dangerous goods and
conducting prompt investigations to
determine the root cause and take
corrective actions as necessary.
By exercising due diligence,
employers and employees can help
prevent accidents, minimize risks, and
ensure compliance with regulations in the
transportation of dangerous goods,
thereby promoting safety and security

Metal Strapping
▶ Light metal strapping is
not used to separate cargo
units and for tying down
heavy or awkward items.
Light metal strapping,
typically made of materials
such as aluminum or
lightweight steel, is
commonly used for bundling
and securing lightweight or
medium-duty loads in
various industries. It offers
strength and durability while
being lighter and more
flexible than heavier-duty
strapping materials like steel. This Photo by Unknown Author is licensed under CC BY

Metal Strapping
▶ Here are some common uses of light
metal strapping:
1. Packaging and Shipping: Light metal
strapping is often used in packaging
and shipping applications to secure
boxes, crates, pallets, and other types
of packaging. It helps prevent shifting,
tipping, or damage during
transportation and handling.
2. Bundling: Light metal strapping is
effective for bundling together smaller
items or packages, such as bundles of
pipes, tubes, or lumber. It provides
stability and prevents individual items
from shifting or separating during
transit.
3. Construction: In the construction
industry, light metal strapping is used
for securing construction materials,
such as lumber, pipes, or building
panels, on construction sites or during
transportation. It helps keep materials
organized and prevents them from

Metal Strapping
▶ Here are some common uses of light
metal strapping:
4. Manufacturing: Light metal strapping is
also utilized in manufacturing facilities
for bundling together products,
components, or raw materials before
shipping or storage. It provides a
secure and stable packaging solution
for various types of goods.
5. Retail and Warehousing: Retailers and
warehouses use light metal strapping
for palletizing merchandise, securing
loads on shelves or racks, and
organizing inventory. It helps maintain
orderliness and prevents damage to
products during storage and handling.
Overall, light metal strapping is
versatile and widely used across different
industries for bundling, securing, and
packaging various types of loads. Its
strength, flexibility, and durability make it an
effective solution for lightweight or medium-
duty applications where a secure and
stable strapping material is required.

Load Master
▶ On a freighter aircraft, while
the Load Master plays a
crucial role in overseeing the
loading and securing of
cargo, they typically do not
have the final word on which
items are loaded onto the
plane. Instead, the decision-
making process involves
collaboration among various
stakeholders, including the
Load Master, the aircraft
captain (pilot-in-command),
and potentially other
personnel such as ground
handlers, dispatchers, and
cargo agents. This Photo by Unknown Author is licensed under CC BY

Load Master
▶ The responsibilities of the Load
Master typically include:
1. Supervising the loading and
unloading of cargo to ensure it
is done safely and efficiently.
2. Verifying that the weight and
balance of the aircraft are
within acceptable limits.
3. Ensuring that cargo is properly
secured and distributed to
maintain the aircraft's stability
and center of gravity.
4. Communicating with ground
personnel and other crew
members to coordinate loading
operations.
5. Conducting pre-flight checks to
ensure that all cargo-related
equipment and systems are in
working order.

Load Master
▶ While the Load Master plays a
critical role in the loading process
and provides recommendations
based on factors such as weight,
balance, and safety considerations,
the ultimate authority for approving
the loading of specific items onto the
aircraft typically rests with the
aircraft captain. The captain has the
final responsibility for the safety of
the flight and may make decisions
based on a variety of factors,
including operational requirements,
regulatory compliance, and aircraft
limitations.
In summary, while the Load Master
has significant influence over the
loading process on a freighter
aircraft, the final decision-making
authority ultimately lies with the
aircraft captain, who considers input
from various sources to ensure the
safe and efficient operation of the
flight.

Container
▶ The most common economical container
continues to be the cardboard box. This is
understandable, as shippers seek efficient
but inexpensive and lightweight packaging.
The cardboard box remains one of the
most common and economical packaging
solutions for shipping various goods. There
are several reasons why cardboard boxes
are popular among shippers:
1. Cost-Effectiveness: Cardboard boxes are
relatively inexpensive to produce compared
to other packaging materials such as
plastic or metal. This makes them a cost-
effective option for businesses looking to
minimize packaging expenses.
2. Lightweight: Cardboard boxes are
lightweight, which helps reduce shipping
costs, especially for shipments by air or
courier services where weight is a
significant factor in determining shipping
charges.
3. Versatility: Cardboard boxes come in a
wide range of shapes and sizes, making
them versatile for packaging various types
of goods. They can be customized to fit
specific products and can accommodate

Container
▶ The most common economical container
continues to be the cardboard box. This is
understandable, as shippers seek efficient
but inexpensive and lightweight packaging.
The cardboard box remains one of the most
common and economical packaging
solutions for shipping various goods. There
are several reasons why cardboard boxes
are popular among shippers:
4. Protection: Despite being lightweight,
cardboard boxes provide adequate
protection for many types of goods during
transit. They can be reinforced with
additional cushioning materials such as
bubble wrap or foam inserts to provide extra
protection for fragile items.
5. Recyclability: Cardboard boxes are
environmentally friendly and recyclable,
making them a sustainable choice for
packaging. Many consumers and businesses
prioritize eco-friendly packaging options, and
cardboard boxes align with these
preferences.
6. Branding Opportunities: Cardboard boxes
can be easily branded with company logos,
product information, or marketing messages.
This provides an opportunity for businesses

Transport Canada
▶ Transport Canada dangerous goods
inspectors are responsible for
enforcing the Transportation of
Dangerous Goods Regulations
(TDGR) in Canada. While they do
have the authority to inspect and
enforce compliance with the
regulations, their powers are not
equivalent to those of the police,
and they do not have the same
investigative authority.
Transport Canada inspectors have
the authority to conduct inspections,
audits, and investigations related to
the transportation of dangerous
goods. They may inspect facilities,
vehicles, documentation, and
procedures to ensure compliance
with the TDGR. Inspectors have the
right to request access to premises,
review records, interview personnel,
and take samples or photographs as
necessary to assess compliance.

Transport Canada
▶ However, Transport Canada
inspectors do not have the authority
to conduct criminal investigations or
enforce laws outside the scope of
the TDGR. They do not have the
power to make arrests, issue search
warrants, or compel individuals to
cooperate with investigations in the
same way that police officers do.
It's important to note that while
Transport Canada inspectors have
enforcement authority within their
jurisdiction, they typically work
collaboratively with other regulatory
agencies, such as local law
enforcement or environmental
agencies, when necessary. In cases
where suspected breaches of the
regulations involve criminal activities
or public safety concerns,
appropriate authorities may be
notified and involved in the
investigation.

International
Transportation
▶ In practical terms, an airline will not
compensate beyond 22 SDR/kg and
an ocean carrier will not
compensate beyond 666.67
SDR/package or 2 SDR/kg. In the
context of international
transportation, compensation for lost
or damaged goods is often limited
by international conventions and
agreements, such as the Montreal
Convention for air carriage and the
Hague-Visby Rules for sea carriage.
These conventions establish
standardized limits of liability for
carriers in the event of loss,
damage, or delay of goods during
transportation.
For air carriage under the Montreal
Convention, the liability limit for lost
or damaged goods is set at 22
Special Drawing Rights (SDR) per
kilogram, unless a higher value is
declared by the shipper and a

International
Transportation
▶ For sea carriage under the Hague-
Visby Rules, the liability limit is set at
666.67 SDR per package or unit, or 2
SDR per kilogram of gross weight of
the goods, whichever is higher. This
means that carriers are generally not
liable for compensation beyond these
specified limits, unless higher values
are declared by the shipper and
agreed to by the carrier.
These liability limits are intended to
provide a degree of predictability and
certainty for carriers and shippers
regarding potential liabilities in the
event of loss or damage during
transportation. However, it's
important for shippers to consider
these limitations when determining
their own risk management and
insurance strategies, especially for
high-value or fragile goods where the
standard liability limits may not be
sufficient to cover potential losses.

International
Transportation
▶ For international transport of dangerous
goods by ocean, you must legally follow
the International Marine Organization’s
Technical Instructions. Air Transport does
not have the follow the International
Marine Organization Technical
Instruction. The IMDG Code is developed
and maintained by the International
Maritime Organization (IMO), not the
International Marine Organization.
The IMDG Code provides detailed
guidelines and regulations for the safe
transportation of dangerous goods by
sea. It covers various aspects of
dangerous goods transportation, including
documentation, and stowage
requirements.
The Technical Instructions for the Safe
Transport of Dangerous Goods by Air
(ICAO Technical Instructions) are relevant
for air transport, not maritime transport.
Therefore, for the transportation of
dangerous goods by ocean, compliance
with the IMDG Code is legally required to

International
Transportation
▶ To limit exposure to loss, all carriers,
including NVO operators, function
under specific conditions of carriage
limiting their maximum liability in
case of loss or damage to cargo.
The conditions of carriage are often
based on international conventions.
To limit their liability in case of loss
or damage to cargo, carriers,
including Non-Vessel Operating
Common Carriers (NVOCCs),
typically operate under specific
conditions of carriage. These
conditions establish the terms and
limitations of the carrier's liability for
the goods being transported. They
are often based on international
conventions, such as the Hague-
Visby Rules for sea carriage and the
Montreal Convention for air carriage,
which provide standardized
frameworks for carriers' liability in
international transportation.

International
Transportation
▶ Under these conditions of carriage,
carriers usually limit their maximum
liability for lost or damaged cargo to a
certain amount per unit of weight or
per package, unless the shipper
declares a higher value for the goods
and pays an additional fee for
increased liability coverage. These
limitations are intended to provide
carriers with a degree of predictability
and financial security while also
enabling shippers to assess and
manage their own risks.
It's important for shippers to carefully
review and understand the conditions
of carriage outlined by carriers,
including any limitations of liability,
when arranging transportation for
their goods. In some cases, shippers
may choose to purchase additional
cargo insurance to supplement the
carrier's liability coverage and ensure
adequate protection against potential

International
Transportation
▶ The three areas of costing, quoting,
and invoicing are vital to the profitable
success of the international freight
forwarder. Costing, quoting, and
invoicing are indeed fundamental
aspects of the operations of
international freight forwarders, and
they play a crucial role in ensuring the
profitability and success of their
business. Here's why each of these
areas is vital:
1. Costing: Costing involves accurately
determining the expenses associated
with providing freight forwarding
services, including transportation,
handling, customs clearance,
insurance, and other related costs.
Understanding the costs involved in
each shipment allows freight
forwarders to calculate their profit
margins effectively and make
informed decisions about pricing and
service offerings.

International
Transportation
areas is vital:
2. Quoting: Quoting entails providing
customers with estimates of the costs
and terms associated with shipping
their goods. Freight forwarders must
develop competitive pricing strategies
based on their costing analysis while
also considering market conditions,
customer requirements, and service
quality. Providing accurate and
competitive quotes is essential for
attracting and retaining customers
and winning business in a

International
Transportation
areas is vital:
3. Invoicing: Invoicing involves
generating and issuing invoices to
customers for the services provided.
Invoices should accurately reflect the
agreed-upon terms and pricing
outlined in the initial quote and any
additional charges incurred during the
shipping process. Timely and
accurate invoicing is critical for
maintaining positive cash flow,
managing accounts receivable, and
ensuring smooth financial operations.

International
Transportation
▶ Effective management of costing, quoting,
and invoicing processes enables freight
forwarders to:
• Maintain profitability by accurately
assessing and controlling costs, setting
competitive prices, and minimizing
financial risks.
• Attract and retain customers by providing
transparent, competitive, and reliable
pricing and invoicing practices.
• Enhance customer satisfaction by
delivering accurate quotes, transparent
pricing, and timely and accurate invoicing.
• Streamline operations and improve
efficiency by implementing automated
systems and processes for costing,
quoting, and invoicing.
• Comply with regulatory requirements and
industry standards for pricing, invoicing,
and financial reporting.
Overall, focusing on these three areas
helps international freight forwarders
maximize profitability, optimize customer
satisfaction, and achieve sustainable
business growth in the competitive global

Navigating the Challenges of Global Shipping

What is Freight Forwarding?
• Freight forwarding is the planning and coordinating of the
movement of commodities across international borders on
behalf of shippers.

Nature of Business: It is a
service-based company.

WHO IS FREIGHT FORWARDER?
• A forwarder does not move the goods but acts as an expert in the
logistics network.
• In simple terms, a freight forwarder is an agent responsible for the
movement of goods on behalf of the cargo owner.

MODES OF
FREIGHT
TRANSPORTATION
There are four major types of freight
transportation available for shippers
to use in the world of freight
shipping.
The primary ones are
by
Ground (road)
Rail
Ocean
Air
Although these are the main
categories of freight transportation,
each method has their own process
that differ from other.

WHO IS AN IMPORTER?
DISCUSSION QUESTION

For customs purpose, the party who
makes or on whose behalf agent
broker the import declaration and
who is the liable payment of duties
on the imported goods.
IMPORTER
Normally this party is named either
as the consignee in the shipping
documents are the buyer in the
exporter invoice.

WHO IS AN EXPORTER?
DISCUSSION QUESTION

EXPORTER
For customs purposes
the party who makes or
on whose behalf agent
the export declaration.
The exporter sells its
goods to someone in
another country known
as an exporter.

Haulage
Haulage is the business of
transporting goods by road or
rail.
It includes the horizontal
transport of ore, coal, supplies,
and waste, also called cartage.
The transport of the same
which carries is called hoisting.

Custom House Agent
• A Custom House Agent (CHA) is
licensed to act as an agent for
transaction of any business
relating to the entry or
departure of the import or
export of cargoes at a custom
agent.
• They give commercial license,
packing list and certificate of
origin.
This Photo by Unknown author is licensed under CC BY-SA.

Co-load process
• Co loading term is used in the export and import
trade especially in the area freight forwarding
where they will transfer cargo from their
customers with multiple companies on the same
transportation vehicles.
• It is the consolidation of shipments across
multiple companies on the same transportation
vehicles.
• Co-loading is not possible for every type of
shipment. In fact, several criteria must align
across multiple companies for it to happen.
Products need to be compatible; they need to fit
on the same truck, and timing should work.

WHAT ARE CONTAINERS?
DISCUSSION QUESTION

Containers
A shipping container is a container with strength
suitable to withstand shipment, storage, and handling.
Shipping containers range from large reusable steel boxes used for
intermodal shipments to the ubiquitous corrugated boxes.
In the context of international shipping trade, "container" or "shipping container" is virtually
synonymous with "intermodal freight container" (sometimes informally called a "sea can"), a
container designed to be moved from one mode of transport to another without unloading
and reloading.

WHAT IS CIFFA?
Canadian International Freight Forwarders
Association (CIFFA). support member firms from freight
forwarding, customs brokers, drayage, freight brokerage and
warehouse operation business sectors.

INTRODUCTION
• In this chapter we will describe the components of global
logistics and the parties involved in international trade,
• Highlight the role of the freight forwarder as an “architect
of transportation” solutions.
• Lastly, you will understand the role of the freight
• forwarder within a customer’s global supply chain.

Why do you think organizations turn to
global supply chain strategies and
trained freight forwarders to
overcome these challenges?
DISCUSSION QUESTION

Today, organizations turn to global supply chain
strategies and trained freight forwarders to overcome
these challenges.
• Competition is fierce.
• Product life spans are short.
• Customer expectations are high.

IMAGINE • The journey of each laptop, television,
jeans, or handbag component.
• A freight forwarding company was most
likely instrumental in getting the plastic,
screws, chips, screens, thread, buckles,
zippers or dye to the right place for
manufacturing, and the finished product
onto the retailer’s shelf.
• By how many modes of transport did
those goods travel? How many borders did
those components cross? In the case of the
U.S.A. and Canada.
This Photo by Unknown author is licensed under CC BY-NC.

REGULATORY COMPLIANCE
•Every country and every
mode of transport has a
different regulatory
environment with which
the freight forwarder and
the international trader
must comply.

REGULATORY COMPLIANCE
• A vital ingredient in successful trading on world markets is
compliance with a myriad of statutory measures and regulations.
• In this area, the freight forwarder's specialized skills and knowledge
come to the fore.
• International traders rely on freight forwarding professionals to
ensure their goods move quickly and securely across borders and
around the world.

All of these aspects of global trade are
governed by legislation and regulations.
Cargo security
Advanced commercial
information
Export declarations
Import Customs
clearance

REGULATORY
COMPLIANCE
• Someone moving a truck shipment
from the U.S.A. to Canada must
ensure compliance with the
U.S.A.’s export regulations as well
as Canada’s import regulations,
restrictions and all of the
consumer safety and
security regulations attached to
that commodity.

In every international trade
transaction, there is an element of
risk.

Risk management
International traders require that their forwarders be in a position to advise
and assist them in minimizing the risks that are specifically associated with
the movement of goods - loss, damage and delay.
Every forwarding organization must offer risk-management expertise,
whether in the form of cargo insurance, limitations to liability through
trading conditions or legal liability insurance.

FINANCE AND PAYMENT
• An incredibly gratifying aspect of
freight forwarding is the
facilitation, through consultancy
and networking, of the entry of
new exporters and importers into
the international market.
• Excellent service leads to prompt
settlement for goods purchased
and satisfied traders.

FIANANCE AND
PAYMENT
• Forwarders are entrusted with goods
that are very often dispatched under
conditions where buyer and seller
are not known to one another.
• Under these circumstances, the
forwarder must scrupulously ensure
that all requirements of the door-to-
door operation are met - from
movement of the goods to proper
packaging to the accurate and timely
production of documentation.
This Photo by Unknown author is licensed under CC BY-SA.

Cross-Functional Integration in Global Supply Chains
The forwarder is ideally placed to act as the catalyst to maximize the
benefit from advances in information technology
The role of the forwarder is critical because, in adopting cross-functional
integration strategies, companies are outsourcing their non-core activities.

Cross-Functional Integration
in Global Supply Chains
• The ability to ensure the efficient and
effective door-to-door movement of
goods from country to country from
the time an order is placed until
finished goods are delivered to the
final consumer places the freight
forwarder in a position to make a
unique contribution to the
enhancement of value to the
activities of exporters and importers.
This Photo by Unknown author is licensed under CC BY-SA-NC.

Networks, Local Knowledge and CREEEPSS
• As the poet John Donne
wrote, “No man is an
island,” which certainly
applies to an
international freight
forwarder.

Regardless of how a network is structured, its
existence is fundamental to freight
forwarding.
• It is impossible for a freight forwarder to work in isolation.
• The company you work for may be a branch office of a large
multi-national organization with operations in every major
city in most countries of the world.
• Your organization may be domiciled in one office in one city in
one country - with a network of agency relationships in the
key geographies that you serve

WHAT IS CREeEPSS?

WHAT IS
CREEEPSS?
Culture
Religion
Education
Economics
Environment
Politics
Social
Special Characteristics

Networks, Local Knowledge and
CREEEPSS
• Without solid representation at origin and destination, how could your organization
overcome differences in the CREEEPSS between North America and the rest of the
world?
• Importers and exporters in particular must understand the local conditions in which they
are attempting to trade.
• To develop new markets or sources, it is important that traders have a firm grasp of the
local conditions.

THE EXPORTER
•The exporter’s primary function is to sell his/her
goods in international markets.
• The exporter is responsible for these “controllable”
aspects of a new market - the selling price, the
product development, the distribution and the
promotion.

THE EXPORTER - 4PL
Exporter is heavily involved in creating the right mix of (4Ps) to
make the goods competitive in the new marketplace.
• price,
• product,
• place and
• Promotion

Because exports create jobs, bring
wealth into a country, and help with
the balance of payments, all
governments look favourably on
exports and assist their exporters.

The IMPORTER
The primary role of the importer is to find goods and services that are needed or
wanted by domestic consumers and industry and bring them to market in good
order. Thus, there are three types of importers:
1. Those that provide finished industrial and consumer goods to individuals
and to other wholesalers and retailers.
2. Those that provide intermediate (semi-finished) goods required to complete
the manufacture of the finished product.
3. Those that provide raw materials used in either semi-finished or finished
products.

Importers must ensure that
the goods they import will
suit the domestic market.

THE FREIGHT
FORWARDER
• In ocean freight, this can be accomplished by
issuing a FIATA multi-modal ocean bill of lading, while
an IATA air waybill serves the same purpose for air
cargo.

DOMESTIC TRANSACTION
• The bank can conduct a credit check on an exporter’s potential
customers to ensure that they are financially sound.
• Unlike a domestic transaction, there are many risks inherent in
international transactions that can mean trouble to an exporter and
increase the possibility that he won’t get paid.
• As they negotiate the contract of sale, the importer and the exporter
negotiate how and when payment will be made.

No international transaction can
be complete without the
involvement of government.

GOVERNMENTS
• And finally, the government of the importing nation will
most assuredly have something to say about the types and
quantities of goods that enter its country and the duties and
taxes that must be paid, safety and security regulations that
must be followed, data collection and delivery laws that must
be obeyed.

GOVERNMENTS
• The exporting country's government
will have export-reporting requirements
that may range from a simple
declaration or report to a full-blown
export Customs declaration.
• If the goods travel through a third or
fourth country on their journey from
seller to buyer, the governments of
each of those “transit” countries will
have regulations that must be met.

An international
trade
transaction can
take place
within three
steps.
1) Buyer/Importer and
Seller/Exporter: Negotiating the
Sales Contract
2) Forwarder and Carrier: Moving
the Goods and Information
3) Forwarder and Customs Broker:
Customs Clearance and Delivery

1) Buyer/Importer and Seller/Exporter:
Negotiating the Sales Contract
• offer,
• consideration and
• acceptance
The three legal
components
necessary for any
contract -
must be present in
an international
sale between seller
and buyer.

2) Forwarder and Carrier: Moving the Goods
and Information
• The forwarder contracts with the primary carrier (ocean, air, truck) for the
movement of the goods, on behalf of the shipper.
• The forwarder may also arrange any local cartage, special loading or crating
requirements, consolidation, export declarations, cargo insurance and
preparation of transportation documents - which may be required for
presentation to a bank, depending on the payment terms negotiated between
the buyer and the seller.

2) Forwarder and Carrier: Moving the Goods
and Information
The exporting freight forwarder may also act on behalf of the importer, arranging transportation and
all transactions up to delivery to the importer’s door, including Customs clearance. N
Note: In Canada, if you are acting on behalf of more than one importer in matters relating to the CBSA,
you or your employer must have a Canadian Customs broker license.
You must also have written permission from the importer to act on its behalf.
Keeping the importer (and exporter) informed of the progress of the shipment is another key job of
the freight forwarder.
Whether through use of a global tracking system or efficient use of e-mail, all parties need to be kept
informed of goods in transit.

• The importing forwarder arranges any deconsolidation and provides the
proper documentation needed to account for the goods to local Customs
authorities, obtain Customs clearance, and arrange delivery to the final
consignee.

• Depending on the country of importation, the freight forwarder may perform the duties
of the Customs broker or may hand over the documents to another
organization/individual that is a licensed Customs broker or that holds a power of
attorney from the importer to act as a Customs broker.

Sellers and buyers must negotiate two
other very important terms. They are:

DEFINING THE FREIGHT FORWARDER
• For many years now, forwarding companies have also been
investing heavily in the development of IT solutions, which,
combined with expert knowledge workers, have created a global
infrastructure to serve this increasingly complex market.
• Today, a freight forwarding company must certainly invest in
knowledgeable employees and information systems and may also
have trucks, distribution centers and even aircraft.

CSC safety
▶ The CSC (Container Safety
Convention) sets forth safety
regulations for international shipping
containers. These regulations cover
various aspects of container design,
construction, inspection, and
maintenance to ensure the safety of
containers during transportation. Do
not exceed the maximum payload
weight of the container. The
maximum payload weight is shown
on the CSC safety plate attached to
the outside of the doors; it is also
shown as tare weight on the outside
of the doors.
Compliance with CSC safety
regulations is essential for ensuring
the safe and secure transportation of
goods in international trade. By
adhering to these standards, shipping
companies, freight forwarders, and
other stakeholders can help prevent
accidents, protect cargo, and promote
the efficient functioning of global

CSC safety
▶ Key safety requirements outlined by the CSC
include:
1. Structural Integrity: Containers must be
structurally sound and capable of withstanding
the stresses and forces encountered during
handling, stacking, and transportation.
2. Material Standards: Containers must be
constructed using approved materials and
methods to ensure strength, durability, and
resistance to corrosion and other environmental
factors.
3. Inspection and Certification: Containers must
undergo regular inspections and certification by
authorized inspectors to verify compliance with
CSC standards and ensure safe operation.
4. Marking and Placarding: Containers must be
clearly marked with identifying information, such
as the owner's name, container number,
maximum gross weight, and other relevant
details. Additionally, containers carrying
hazardous materials must display appropriate
placards and labels to indicate the nature of the
cargo.
5. Maintenance and Repair: Containers must be
properly maintained and repaired as needed to
address any damage, wear, or deterioration that
could compromise their safety or integrity.

Insurance
▶ One common type of liability insurance is
against errors and omissions in the
execution of a forwarder’s engagement as
agent of its customer. In these situations,
a forwarder may be liable for breach of
his duty to exercise reasonable care.
Errors and omissions (E&O) insurance is
a type of liability insurance that provides
coverage for claims arising from
mistakes, negligence, or omissions in the
performance of professional services. In
the context of freight forwarding, E&O
insurance protects the forwarder against
claims or lawsuits alleging errors or
negligence in the execution of their duties
as an agent of their customers.
Freight forwarders act as intermediaries
between shippers and carriers,
coordinating the transportation of goods
and handling various logistics tasks on
behalf of their clients. While performing
these duties, forwarders have a duty to
exercise reasonable care and skill to
ensure that the services they provide
meet the expectations of their clients and
are conducted in a professional and
competent manner.

Insurance
▶ However, errors or omissions can occur
in the execution of a forwarder's
engagement, leading to financial losses,
delays, or other damages for their
customers. Examples of situations where
a forwarder may be liable for breach of
duty include:
1. Failure to properly document or declare
goods for transportation, leading to
customs issues or delays.
2. Incorrectly arranging transportation
services, resulting in missed deadlines or
delivery errors.
3. Providing inaccurate or incomplete
information to clients, leading to financial
losses or other damages.
E&O insurance helps protect forwarders
from the financial consequences of such
claims by covering legal expenses,
settlements, or judgments arising from
lawsuits alleging errors or negligence in
the performance of their professional
duties. It provides peace of mind for
forwarders and their clients, ensuring that
they are adequately protected against
potential liabilities and risks associated

CANUTEC
▶ Key functions of CANUTEC include:
1. Emergency Response Assistance:
CANUTEC provides 24/7 emergency
response assistance to first
responders, emergency services, and
industry stakeholders in the event of
transportation incidents involving
hazardous materials. Trained
specialists offer expert advice and
guidance on handling hazardous
materials emergencies, including spill
response, containment, and
mitigation measures.
2. Hazardous Materials Information:
CANUTEC maintains a
comprehensive database of
hazardous materials information,
including safety data sheets (SDS),
emergency response guides (ERG),
and other relevant technical
resources. This information helps
emergency responders and industry
professionals assess the risks

CANUTEC
▶ Key functions of CANUTEC include:
3. Public Outreach and Training:
CANUTEC conducts public outreach
and awareness initiatives to educate
stakeholders about the safe
transportation and handling of
hazardous materials. This includes
providing training workshops,
seminars, and educational materials
to raise awareness of best practices
and regulatory requirements.
4. Coordination and Collaboration:
CANUTEC collaborates closely with
other government agencies, industry
associations, emergency response
organizations, and international
partners to enhance emergency
preparedness and response
capabilities for hazardous materials
incidents. This includes participating
in joint exercises, sharing best
practices, and coordinating response
efforts during emergencies.

Dangerous Goods
▶ The Canadian government, through various
regulatory agencies and departments,
including Transport Canada NOT BSO,
regulates the transportation of dangerous
goods to, from, within, and transiting through
Canada. One of the key regulations
governing the transportation of dangerous
goods in Canada is the Transportation of
Dangerous Goods Act, 1992 (TDGA) and its
associated regulations, the Transportation of
Dangerous Goods Regulations (TDGR).
The TDGA and TDGR establish
comprehensive requirements for the safe
handling, shipping, and transportation of
dangerous goods by all modes of transport,
including road, rail, air, and marine. These
regulations cover various aspects of
dangerous goods transportation, including
documentation, training, emergency
response, and enforcement.
Overall, the Canadian government, through
its regulatory framework and enforcement
mechanisms, plays a crucial role in ensuring
the safe and secure transportation of
dangerous goods to, from, within, and
transiting through Canada, thereby
protecting public safety, health, and the

Dangerous Goods
▶ Key responsibilities of the government,
particularly Transport Canada, in
regulating the transportation of dangerous
goods include:
1. Development and Enforcement of
Regulations: Transport Canada develops
and enforces regulations governing the
transportation of dangerous goods to
ensure compliance with safety standards
and mitigate risks to public safety, health,
and the environment.
2. Issuance of Permits and Approvals:
Transport Canada issues permits and
approvals for the transportation of certain
types of dangerous goods, such as
explosives, radioactive materials, and
hazardous wastes, to ensure compliance
with regulatory requirements and
safeguard public safety.
3. Inspections and Audits: Transport
Canada conducts inspections, audits, and
compliance assessments to verify that
shippers, carriers, and other stakeholders
involved in the transportation of
dangerous goods comply with regulatory

Dangerous Goods
▶ Key responsibilities of the government,
particularly Transport Canada, in
regulating the transportation of dangerous
goods include:
4. Training and Education: Transport
Canada provides training, guidance, and
educational resources to industry
stakeholders, emergency responders,
and the public to increase awareness of
the risks associated with dangerous
goods transportation and promote best
practices for safe handling and
transportation.
5. Emergency Response and Incident
Management: Transport Canada
coordinates emergency response efforts
and collaborates with other government
agencies, emergency responders,
industry associations, and international
partners to effectively manage hazardous
materials incidents and mitigate their
impacts on public safety and the
environment.

Settlement
▶ In an open account transaction,
the exporter ships goods to the
importer without requiring
payment at the time of shipment.
Instead, the exporter sends an
invoice to the importer with
payment terms specifying when
payment is due, such as "net 30
days" or "net 60 days" from the
date of invoice. The importer
agrees to pay the invoice within
the specified timeframe. It does
not mean that the exporter has
not trust in the importer and that
his commercial invoice will not be
paid on the agreed terms when
chosen. While an open account
payment method may imply a
certain level of trust between the
exporter and importer, it doesn't
necessarily mean that the
exporter has no trust in the
importer or that the commercial

Settlement
▶ In an open account transaction, the exporter
ships goods to the importer without requiring
payment at the time of shipment. Instead, the
exporter sends an invoice to the importer with
payment terms specifying when payment is due,
such as "net 30 days" or "net 60 days" from the
date of invoice. The importer agrees to pay the
invoice within the specified timeframe.
Open account terms are common in international
trade and may be used for various reasons,
including:
1. Established Relationship: If the exporter and
importer have a longstanding and trustworthy
business relationship, the exporter may be
comfortable extending credit to the importer
without requiring payment upfront.
2. Market Conditions: In competitive markets or
industries where open account terms are
common practice, exporters may offer this
payment option to remain competitive and attract
customers.
3. Convenience: Open account terms can simplify
the payment process for both parties, as they
eliminate the need for immediate payment or
complicated payment arrangements, such as
letters of credit or documentary collections.

Settlement
▶ An open account situation is possible only
when a foreign currency can be freely
bought or traded in the importer’s country.
While the ability to freely buy or trade foreign
currency can facilitate open account
transactions, it's not the sole determining
factor. Open account transactions can occur
in situations where foreign currency
exchange is regulated or restricted, although
such scenarios may pose additional
challenges or risks.
In an open account transaction, the exporter
ships goods to the importer without requiring
payment at the time of shipment. Instead,
the exporter extends credit to the importer,
who agrees to pay the invoice at a later date,
typically within a specified timeframe. This
payment arrangement relies on the
importer's ability and willingness to make
payment in the exporter's currency or in
another agreed-upon currency.
In countries where foreign currency
exchange is freely available or where there
are established mechanisms for converting
and transferring funds internationally, open
account transactions may be more common
and straightforward. Importers can readily
obtain the necessary foreign currency to

Settlement
▶ However, in countries where foreign
currency exchange is regulated or
restricted, importers may face challenges
in obtaining foreign currency to pay
invoices, particularly if there are limitations
on currency conversion, capital controls, or
foreign exchange restrictions. In such
cases, importers may need to obtain
approval from regulatory authorities, use
alternative payment methods, or work with
financial institutions to facilitate currency
conversion and fund transfers.
Despite these challenges, open account
transactions can still occur in countries with
regulated foreign currency exchange,
especially if the importer has established
banking relationships, access to
international banking services, or other
means of obtaining foreign currency to
fulfill payment obligations.
Overall, while the availability of freely
traded foreign currency may simplify open
account transactions, it's not a strict
requirement, and open account
arrangements can be facilitated through
alternative means even in countries with
regulated or restricted foreign exchange

Import Control List
(ICL)
▶ Canada has a range of goods over
which it imposes import controls.
These goods are listed in the import
control list (ICL). Canada imposes
import controls on certain goods to
regulate their entry into the country
for various reasons, including
protecting domestic industries,
safeguarding public health and
safety, and fulfilling international
obligations. These goods are listed
in the Import Control List (ICL),
which is part of the Customs Tariff.
These are just a few examples of
the goods listed in the Import
Control List (ICL). Importers are
required to comply with the relevant
import controls and regulations
when importing goods into Canada,
and failure to do so may result in
penalties, fines, or seizure of the
goods by Canadian customs

Import Control List
(ICL)
▶ The Import Control List (ICL) includes
various categories of goods that are
subject to import controls, such as:
1. Agricultural Products: Certain
agricultural commodities, including
dairy products, poultry, eggs, and
grains, may be subject to import
quotas, tariffs, or other restrictions to
support domestic producers and
maintain market stability.
2. Textiles and Clothing: Canada may
impose import quotas, tariffs, or other
restrictions on textiles and clothing to
manage trade flows and protect
domestic textile and apparel
industries.
3. Steel and Aluminum: Certain steel
and aluminum products may be
subject to import quotas, tariffs, or
other measures to address issues
such as overcapacity, unfair trade

The Carriage by Air
Act
▶ In Canada, air freight is primarily
governed by the Carriage by Air
Act (referred to as the Carriage
by Air Act, 1932), which
implements the rules and
regulations established by the
Convention for the Unification of
Certain Rules for International
Carriage by Air, commonly
known as the Warsaw
Convention.
The Carriage by Air Act sets
forth the legal framework for
international air transportation in
Canada and incorporates the
provisions of the Warsaw
Convention, which establishes
liability rules for air carriers in
the event of accidents, delays,
or other incidents during air

The Carriage by Air
Act
▶ However, it's important to note that
domestic air transportation within
Canada may be subject to additional
regulations and laws beyond the
Carriage by Air Act, including
regulations issued by Transport
Canada, the federal department
responsible for transportation
policies and regulations in Canada.
These regulations may cover
various aspects of air transportation,
including safety, security, and
operational requirements for air
carriers operating within Canada's
airspace.
So, while the Carriage by Air Act is
an important piece of legislation
governing international air
transportation in Canada, it does not
exclusively govern air freight, and
other regulations and laws may
apply depending on the specific

Warehousing
▶ Warehousing has two basic
functions: storage and
movement. Movement can be
further divided into four handling
activities: receiving, transfer,
order selection, and shipping.
By effectively managing both
storage and movement
functions, warehouses can
optimize inventory levels,
reduce handling costs, improve
order accuracy, and enhance
customer service levels.
Implementing efficient handling
activities, such as receiving,
transfer, order selection, and
shipping, is essential for
maximizing warehouse
productivity and throughput
while minimizing errors and
delays in the supply chain.

Warehousing
▶ Storage: The storage
function of warehousing
involves the safe and secure
storage of goods or inventory
until they are needed for
distribution or sale. This
includes storing goods in
appropriate storage locations
within the warehouse, such
as shelves, racks, bins, or
pallets, based on factors like
size, weight, fragility, and
accessibility.

Warehousing
▶ Movement: The movement function of warehousing
encompasses various handling activities involved in
moving goods within the warehouse or distribution
center. These handling activities can be further
divided into four main categories:
A. Receiving: Receiving involves accepting incoming
shipments of goods from suppliers or manufacturing
facilities. This includes unloading trucks or
containers, inspecting incoming goods for damage or
discrepancies, and recording receipt of goods in
inventory management systems.
B. Transfer: Transfer activities involve moving goods
between different storage locations within the
warehouse to optimize space utilization or facilitate
order fulfillment. This may include transferring goods
from receiving areas to storage areas, from storage
areas to picking areas, or between different storage
zones based on inventory levels and demand
patterns.
C. Order Selection: Order selection, also known as
picking or order picking, involves retrieving specific
quantities of goods from storage locations to fulfill
customer orders or replenish stock. This process
may be performed manually by warehouse personnel
or automated using picking technologies such as
voice picking, barcode scanning, or automated
guided vehicles (AGVs).
D. Shipping: Shipping activities involve preparing goods
for outbound shipment to customers or distribution
centers. This includes assembling orders, packaging
goods in shipping containers, labeling packages with

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