2. 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
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3. 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.
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4. 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.
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5. 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
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6. 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
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7. 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.
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8. 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
classification, packaging, labeling,
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
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9. 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
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10. 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.
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11. 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
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12. 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.
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13. 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
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14. 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
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15. 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
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16. 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
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17. 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
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18. 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
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19. 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.
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20. 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.
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21. 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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22. Open Account
▶ An open account situation is
possible only when a foreign
currency can be freely bought or
traded in the importer’s country.
While open account transactions
are more common in situations
where foreign currency can be
freely bought or traded in the
importer's country, they can still
occur even in countries with
restrictions on currency
exchange. In such cases,
parties involved may agree upon
terms and conditions that
accommodate the limitations
imposed by currency controls or
other regulations. However, the
absence of currency
convertibility may affect the
terms and risk management
strategies adopted in the
transaction.
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23. Cargo Transport
▶ Cargo transport units
transported with a fumigation
material not present in the
container are regulated under
the IATA Code. The
International Air Transport
Association (IATA) does not
specifically regulate the
presence of fumigation materials
in cargo transport units.
However, there are regulations
and guidelines set forth by
various international
organizations and regulatory
bodies, such as the International
Maritime Organization (IMO)
and the International Plant
Protection Convention (IPPC),
which govern the fumigation of
cargo containers and transport
units to prevent the spread of
pests and diseases.
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24. Cargo Transport
▶ For air transport, the International Air
Transport Association (IATA)
primarily regulates the safe
transportation of dangerous goods by
air through the IATA Dangerous
Goods Regulations (DGR). While the
DGR includes provisions for the
transportation of certain fumigants
and pesticides as dangerous goods, it
does not specifically address the
presence of fumigation materials in
cargo transport units.
Instead, regulations regarding the
fumigation of cargo transport units
are typically established by national
authorities or agencies responsible
for agriculture, plant protection, and
public health. These regulations may
require proper documentation,
certification, and handling procedures
for fumigated cargo transport units to
ensure compliance with international
standards and prevent risks to human
health, the environment, and the
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25. Express warranties
▶ Express warranties are
considered “extra coverage” or
“extra conditions” that must be
adhered to in the case of a
claim. They are specific
guarantees or promises made
by a seller to a buyer
regarding the quality,
performance, or
characteristics of a product or
service. These warranties can
be made verbally or in writing,
and they form part of the sales
contract between the buyer
and the seller. Overall,
express warranties play an
important role in consumer
protection by providing buyers
with assurance regarding the
quality and performance of the
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26. Express warranties
▶ Key characteristics of express
warranties include:
1. Explicit Representation: Express
warranties involve explicit statements
or representations made by the seller
about the product or service being
sold. These statements can include
descriptions of the product's features,
capabilities, or quality.
2. Basis of the Bargain: Express
warranties are considered
fundamental to the transaction and
are understood to be a key factor
influencing the buyer's decision to
purchase the product or service.
3. Enforceability: Express warranties are
legally binding and enforceable under
consumer protection laws. If the
product or service fails to meet the
specifications outlined in the express
warranty, the buyer may be entitled to
remedies such as repairs,
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27. Express warranties
▶ Key characteristics of express
warranties include:
4. Duration and Scope: The
duration and scope of an
express warranty can vary
depending on the terms
specified by the seller. Some
warranties may cover the
product or service for a limited
period of time, while others may
provide coverage for specific
components or aspects of the
product.
5. Disclosure Requirements:
Sellers are typically required to
clearly disclose any express
warranties associated with the
sale of a product or service. This
helps ensure transparency and
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28. Dangerous Goods
▶ The permit for the forbidden items
require to indicate the product,
quantity, packaging, labelling, etc...
details. Only permit must
accompany the dangerous goods
transport document. Indeed, when
transporting forbidden or restricted
items that require a permit, it's
crucial to ensure that the permit
accompanies the dangerous goods
transport document.
By ensuring that the permit
accompanies the dangerous goods
transport document, transporters
can provide regulatory authorities
with all necessary information to
verify compliance with regulations
and ensure the safe transportation
of forbidden or restricted items.
This helps prevent incidents,
protect public safety, and maintain
regulatory compliance throughout
the transportation process.
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29. Dangerous Goods
▶ This permit typically contains detailed
information about the forbidden or
restricted items being transported,
including:
1. Product Description: A clear
description of the forbidden or
restricted item being transported. This
may include its chemical composition,
physical characteristics, or other
relevant details.
2. Quantity: The quantity or volume of the
forbidden or restricted item being
transported. This helps ensure that the
transporter, as well as regulatory
authorities, are aware of the amount
being moved.
3. Packaging: Details about the
packaging used to contain the
forbidden or restricted item during
transportation. This may include
information about the type of
packaging, such as drums, cylinders,
or bulk containers, as well as any
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30. Dangerous Goods
▶ This permit typically contains
detailed information about the
forbidden or restricted items
being transported, including:
4. Labeling: Requirements for
labeling the packaging containing
the forbidden or restricted item.
This may include specific hazard
labels or markings mandated by
regulations to ensure proper
handling and identification.
5. Other Requirements: Any
additional details or requirements
specified by regulatory
authorities for the transport of
forbidden or restricted items.
This could include information
about handling procedures,
emergency response protocols,
or documentation requirements.
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31. Freight Forwarders
▶ The majority of forwarders
establish their own carrier code
with Canada Customs.
Establishing their own carrier
code with Canada Customs is a
common practice among freight
forwarders. This unique carrier
code allows forwarders to
streamline customs clearance
processes for the goods they are
transporting into or out of
Canada.
Overall, establishing their own
carrier code with Canada
Customs empowers forwarders
to efficiently manage customs
clearance processes, enhance
client service offerings, and
ensure compliance with
regulatory requirements,
ultimately contributing to
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32. Freight Forwarders
▶ Here's why forwarders typically
establish their own carrier code:
1. Customs Clearance: Having their own
carrier code enables forwarders to act
as the carrier of goods in the customs
documentation. This allows them to
manage the customs clearance process
on behalf of their clients, facilitating the
smooth movement of goods across
borders.
2. Control and Efficiency: By having their
own carrier code, forwarders have
greater control over the customs
clearance process. They can manage
documentation, declarations, and
compliance requirements more
efficiently, reducing delays and ensuring
timely delivery of goods.
3. Client Service: Establishing a carrier
code allows forwarders to offer
comprehensive services to their clients,
including end-to-end logistics solutions
that encompass customs clearance.
This enhances the overall service
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33. Freight Forwarders
▶ Here's why forwarders typically
establish their own carrier code:
4. Regulatory Compliance:
Operating under their own carrier
code ensures that forwarders
comply with customs regulations
and requirements set forth by
Canada Customs. This helps
avoid potential issues or
penalties related to incorrect or
incomplete documentation.
5. Brand Identity: Having their own
carrier code also reinforces the
brand identity of forwarders in
the industry. It signifies
professionalism, reliability, and
expertise in managing
international freight shipments,
which can be appealing to clients
seeking trusted logistics partners.
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34. Freight Forwarders
▶ Logs, lumber, wood with bark
attached, wood chips, bark chips,
bamboo products, decorative
wood items and dry cones are
required to be treated. This
treatment is typically aimed at
mitigating the risk of spreading
pests, diseases, and invasive
species that may be present in the
wood.
These treatments are typically
mandated by international
phytosanitary regulations, such as
the International Plant Protection
Convention (IPPC) and
regulations set forth by individual
countries' plant health authorities.
Compliance with these regulations
helps prevent the spread of
harmful pests and diseases,
safeguarding both natural
ecosystems and agricultural
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35. Freight Forwarders
▶ Common treatments for
wood products include:
1. Heat Treatment: Heating the
wood to a specific
temperature for a set
duration to kill pests and
pathogens. This process,
known as heat treatment or
kiln drying, is often used for
lumber, logs, and wooden
packaging materials.
2. Fumigation: Exposing the
wood to fumigants, such as
methyl bromide, to eradicate
pests and their eggs or
larvae. Fumigation is
commonly used for wood
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36. Freight Forwarders
▶ Common treatments for
wood products include:
3. Chemical Treatment:
Treating the wood with
chemical preservatives to
protect it against decay,
insects, and fungi. Chemical
treatments are often applied
to lumber, utility poles, and
outdoor wooden structures.
4. Bark Removal: Removing the
bark from wood products to
eliminate potential hiding
places for pests and
pathogens. Bark removal
may be required for logs,
lumber, and wooden
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37. Freight Forwarders
▶ Failure to comply with
phytosanitary regulations can
result in the rejection of
shipments at the border,
costly delays, or even fines
and penalties. Therefore, it's
essential for exporters and
importers of wood products
to ensure that their
shipments are properly
treated and accompanied by
the necessary phytosanitary
certificates and
documentation.
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38. CANUTEC
▶ CANUTEC (Canadian Transport
Emergency Centre) is part of
Transport Canada. CANUTEC’s
responsibilities are to assist
emergency response personnel in
dealing with dangerous goods
emergencies by any mode of
transport. CANUTEC serves as
Canada's national emergency
response center for transportation
incidents involving dangerous
goods, regardless of the mode of
transport (road, rail, air, or water).
CANUTEC plays a critical role in
enhancing the safety and
effectiveness of emergency
response efforts across Canada by
providing timely and accurate
assistance to those dealing with
incidents involving dangerous
goods. Its expertise and resources
help mitigate risks, minimize
environmental impact, and protect
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39. CANUTEC
▶ CANUTEC's primary responsibilities
include:
1. Emergency Response Assistance:
Providing immediate technical
advice and guidance to emergency
responders dealing with incidents
involving dangerous goods,
including chemical spills, leaks,
fires, or accidents.
2. Hazardous Materials Information:
Offering access to a comprehensive
database of hazardous materials
information, including safety data
sheets (SDS), chemical properties,
handling procedures, and
emergency response protocols.
3. 24/7 Emergency Hotline: Operating
a dedicated 24-hour hotline that
emergency responders can contact
for assistance and guidance during
transportation emergencies
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40. Cargo Control Number
▶ Cargo control numbers can not
be duplicated if required. Cargo
control numbers (CCNs) are
unique identifiers assigned to
shipments for tracking and
documentation purposes. They
are used primarily in the
transportation and logistics
industry to track the movement
of cargo from its point of origin
to its destination.
It's essential that cargo control
numbers are not duplicated,
especially when required for
regulatory or operational
reasons. Duplicating CCNs
could lead to confusion, errors in
tracking, and logistical problems
such as misrouting or
misidentification of shipments.
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41. Cargo Control Number
▶ To prevent duplication of cargo
control numbers, logistics
providers typically implement
systems and procedures to
ensure that each CCN is
assigned only once to a specific
shipment. This may involve
using unique alphanumeric
combinations, employing
centralized databases or
tracking systems, and
implementing strict protocols for
generating and assigning CCNs.
By maintaining unique and non-
duplicated cargo control
numbers, logistics providers can
effectively track and manage
shipments, ensure accurate
documentation, and facilitate
smooth transportation and
delivery processes.
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42. Gross Negligence
▶ Gross negligence is defined as an
act that indicates recklessness or
a total disregard for the interests
of others. It is a legal concept that
refers to a severe form of
negligence characterized by a
reckless or willful disregard for the
safety or well-being of others. It
involves behavior that goes
beyond mere carelessness or
ordinary negligence and
demonstrates a conscious
indifference or reckless disregard
for the consequences of one's
actions.
Acts of gross negligence often
involve extreme or egregious
conduct that creates a high risk of
harm to others. This could include
actions such as knowingly
ignoring safety protocols, failing to
take reasonable precautions to
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43. Gross Negligence
▶ In legal proceedings, gross
negligence is typically
viewed as more serious than
ordinary negligence and may
result in more severe
consequences, including
punitive damages or criminal
liability, depending on the
jurisdiction and the specific
circumstances of the case.
Overall, gross negligence is
a legal standard used to hold
individuals or entities
accountable for particularly
reckless or egregious
behavior that causes harm or
injury to others.
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44. Dangerous Goods
▶ Lithium-ion (rechargeable) and
lithium metal (non-rechargeable)
batteries are considered dangerous
goods for multimodal transport, as
their failure can lead to fire and
serious safety incidents. These
batteries are widely used in various
electronic devices, including
smartphones, laptops, cameras, and
medical equipment, making them
common items in international trade.
Given the potential safety hazards
posed by lithium batteries, it's crucial
for shippers, carriers, and handlers
to adhere to the applicable
regulations and guidelines to ensure
the safe transportation of these
goods. This includes proper
packaging, labeling, documentation,
and compliance with safety
protocols to prevent accidents, fires,
or other incidents during transport.
This Photo by Unknown Author is licensed under CC BY
45. Dangerous Goods
▶ Key reasons why lithium
batteries are classified as
dangerous goods include:
1. Fire Hazard: Lithium batteries
contain highly reactive materials
that can ignite if damaged,
short-circuited, or exposed to
excessive heat. Once ignited,
lithium batteries can release
intense heat and flames, posing
a significant fire hazard.
2. Thermal Runaway: Lithium
batteries are susceptible to a
phenomenon known as thermal
runaway, where an increase in
temperature triggers a self-
reinforcing reaction that leads to
rapid overheating and potentially
explosive failure.
This Photo by Unknown Author is licensed under CC BY
46. Damage/Loss
▶ Shipping exposes goods to risks of
damage/losses that may bring
financial cost to parties who have a
financial interest in the goods.
These risks can arise at different
stages of the shipping process,
including:
1. Transportation Risks: Goods can
be damaged or lost during transit
due to accidents, rough handling,
improper stowage, adverse
weather conditions, or other
unforeseen events. For example,
cargo may suffer damage from
moisture, theft, or breakage during
shipment.
2. Customs and Regulatory Risks:
Delays or complications in customs
clearance, import/export
restrictions, or non-compliance with
regulatory requirements can result
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47. Damage/Loss
▶ Shipping exposes goods to risks of
damage/losses that may bring financial
cost to parties who have a financial
interest in the goods. These risks can
arise at different stages of the shipping
process, including:
3. Market Risks: Fluctuations in market
conditions, currency exchange rates,
tariffs, or trade policies can impact the
value or demand for goods, potentially
leading to financial losses for parties
involved in international trade.
4. Supply Chain Risks: Disruptions in the
supply chain, such as delays in
production, transportation bottlenecks,
labor strikes, or disruptions to key
suppliers, can affect the timely delivery
of goods and increase costs for
stakeholders.
5. Insurance Risks: Inadequate or
insufficient insurance coverage for
goods in transit can leave parties
vulnerable to financial losses in the
event of damage, loss, or theft during
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48. ADGR
▶ The ADRG, or the Accord européen
relatif au transport international des
marchandises Dangereuses par
Route (European Agreement
concerning the International
Carriage of Dangerous Goods by
Road), indeed requires that
accidental releases of dangerous
goods from a means of containment
must be immediately reported.
However, the requirement to report
immediately applies to all accidental
releases of dangerous goods,
regardless of the quantity or class.
Immediate reporting is essential to
ensure timely response and
mitigation of potential hazards to
public safety, the environment, and
property. By reporting accidents
promptly, authorities can take
appropriate measures to contain the
situation, minimize risks, and
prevent further harm.
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49. ADGR
▶ While there are specific
reporting thresholds for certain
types of dangerous goods
releases, the obligation to
report immediately applies
universally to all accidental
releases covered by the
ADRG. These reporting
thresholds may vary
depending on factors such as
the type of substance, its
quantity, and the level of risk it
poses.
Overall, immediate reporting
of accidental releases of
dangerous goods is a critical
requirement under the ADRG
to facilitate effective
emergency response and
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50. Transport Canada
▶ Transport Canada issue a
permit to shippers that allows
them to ship items that are
normally forbidden. These
permits are typically granted
under specific circumstances
and are subject to certain
conditions and requirements to
ensure the safe transportation of
the prohibited items.
Overall, permits issued by
Transport Canada for the
transportation of normally
forbidden items serve to balance
the need for regulatory control
and public safety with the
recognition of legitimate
exceptions or special
circumstances where the
transportation of such items may
be warranted under controlled
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51. Transport Canada
▶ Here are some key points about
permits issued by Transport Canada
for the transportation of normally
forbidden items:
1. Special Circumstances: Permits may
be issued by Transport Canada in
cases where there are special
circumstances or legitimate reasons
for transporting items that are
otherwise prohibited or restricted.
These circumstances may include
situations such as scientific research,
testing, exhibitions, or emergency
response activities.
2. Application Process: Shippers
seeking permits for transporting
forbidden items typically need to
submit an application to Transport
Canada providing detailed
information about the nature of the
goods, the intended transportation
route, the purpose of the shipment,
and the measures in place to ensure
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52. Transport Canada
▶ Here are some key points about permits issued
by Transport Canada for the transportation of
normally forbidden items:
3. Approval Process: Transport Canada
evaluates permit applications on a case-by-
case basis to determine whether the proposed
transportation of forbidden items can be
conducted safely and in accordance with
regulatory requirements. Approval of permits
may be contingent upon meeting specific
conditions, such as packaging, labeling,
handling procedures, and safety precautions.
4. Regulatory Compliance: Even with a permit,
shippers are still required to comply with
relevant regulations governing the
transportation of dangerous goods, hazardous
materials, or other forbidden items. This
includes adherence to packaging standards,
labeling requirements, documentation
procedures, and safety protocols to minimize
risks and ensure regulatory compliance.
5. Oversight and Monitoring: Transport Canada
may exercise oversight and monitoring of
permit holders to verify compliance with permit
conditions and regulatory requirements. Non-
compliance with permit conditions or misuse of
permits can result in penalties, revocation of
permits, or other enforcement actions.
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53. Shortages/Damages
▶ As soon as any shortages or
damages are noticed, they
should be immediately reported
to the carrier and the insurance
company or its nearest claims-
settling agent. Promptly reporting
any shortages, damages, or
discrepancies in shipments to
both the carrier and the
insurance company (or its
nearest claims-settling agent) is
crucial for initiating the claims
process and seeking
compensation for the losses
incurred.
Immediate reporting of
shortages, damages, or
discrepancies in shipments to
both the carrier and the
insurance company is essential
for protecting the interests of the
This Photo by Unknown Author is licensed under CC BY
54. Shortages/Damages
▶ Here's why immediate reporting is
essential:
1. Preservation of Evidence:
Reporting shortages or damages
promptly helps preserve evidence
of the condition of the goods at
the time of delivery. This evidence
may include photographs,
inspection reports, and
documentation, which can be
crucial for assessing liability and
supporting the insurance claim.
2. Timely Investigation: Prompt
reporting allows the carrier and
the insurance company to conduct
timely investigations into the
circumstances surrounding the
shortages or damages. This
includes determining the cause of
the loss, assessing the extent of
the damage, and identifying any
This Photo by Unknown Author is licensed under CC BY
55. Shortages/Damages
▶ Here's why immediate reporting is
essential:
3. Compliance with Terms and Conditions:
Many insurance policies and carrier
contracts specify time limits for reporting
losses or damages. Failing to report
promptly may result in the denial of a
claim or the forfeiture of coverage under
the insurance policy or carrier contract.
4. Mitigation of Losses: Prompt reporting
enables the carrier and the insurance
company to take immediate action to
mitigate further losses or damages. This
may include arranging for repairs,
replacements, or salvage operations to
minimize the financial impact on the
insured party.
5. Facilitation of Claims Settlement: Early
notification of losses or damages
expedites the claims settlement process
by providing the carrier and the
insurance company with the information
they need to assess the claim, negotiate
settlements, and issue compensation in
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56. Freight Forwarders
▶ Freight forwarders acting on
behalf of shippers, exporters,
and importers must verify that
the shipper, exporter, or
importer has followed all of
the correct and applicable
regulations, rules, and
procedures. By verifying
compliance with regulations,
rules, and procedures, freight
forwarders help ensure the
smooth and efficient
transportation of goods while
minimizing the risk of delays,
fines, penalties, or other
compliance-related issues.
Their expertise and attention
to detail are essential for
navigating the complex
regulatory landscape of
This Photo by Unknown Author is licensed under CC BY
57. Freight Forwarders
▶ Here's how they typically verify
compliance:
1. Documentation Review: Freight
forwarders carefully review all
documentation provided by the
shipper, exporter, or importer to
ensure that it complies with
applicable regulations. This may
include bills of lading, commercial
invoices, packing lists,
export/import permits, certificates of
origin, and any other relevant
documentation.
2. Regulatory Compliance Checks:
Freight forwarders verify that the
goods being transported comply
with all relevant regulations and
requirements, including those
related to customs clearance,
export controls, dangerous goods
transportation, sanitary and
phytosanitary measures, and any
This Photo by Unknown Author is licensed under CC BY
58. Freight Forwarders
▶ Here's how they typically verify compliance:
3. Packaging and Labeling Compliance: Freight
forwarders ensure that the packaging and
labeling of the goods meet the requirements
of the destination country or countries, as well
as any applicable international standards.
This includes verifying that hazardous
materials are properly packaged, labeled, and
documented in accordance with regulations
such as the IMDG Code or IATA Dangerous
Goods Regulations.
4. Transportation Mode Compliance: Depending
on the mode of transportation (e.g., air, sea,
road, rail), freight forwarders verify that the
goods are being transported in compliance
with the specific regulations and requirements
governing that mode of transport. For
example, they may ensure that cargo is
properly secured and stowed, temperature-
controlled if necessary, and accompanied by
the appropriate documentation.
5. Customs Compliance: Freight forwarders
assist shippers, exporters, and importers in
preparing customs documentation and
ensuring compliance with customs
regulations and procedures. This includes
providing guidance on tariff classification,
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59. Freight Forwarders
▶ The best way to get the policy that is
most suited to a particular company’s
needs is to fill out the insurer’s
application as completely as possible,
including such information as the type
of goods involved, where shipments
are going to or originating from, the
limit required for each shipment, and
any previous losses. Providing
comprehensive information allows the
insurer to assess the level of risk
associated with insuring the company's
shipments and tailor the policy
accordingly.
By providing detailed information on
the insurer's application form,
companies can facilitate a thorough
risk assessment process, enabling
insurers to offer policies that address
their specific needs and exposures.
Additionally, accurately disclosing
information helps prevent disputes or
coverage issues in the event of a
claim, as insurers base their coverage
decisions on the information provided
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60. Freight Forwarders
▶ Here's why each piece of
information is important:
1. Type of Goods Involved: The
nature of the goods being
shipped can significantly impact
the level of risk and the type of
coverage required. Hazardous
materials, perishable goods,
high-value items, or specialized
equipment may have different
insurance requirements and
considerations.
2. Origination and Destination:
Knowing where shipments are
going to and originating from
helps insurers assess factors
such as transportation routes,
geopolitical risks, local
regulations, and exposure to
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61. Freight Forwarders
▶ Here's why each piece of
information is important:
3. Limit Required for Each Shipment:
Determining the appropriate
coverage limit for each shipment
is essential for ensuring adequate
protection against potential
losses. This limit should reflect the
value of the goods being
transported and any financial
liabilities associated with the
shipment.
4. Previous Losses: Providing
information about any previous
losses or claims helps insurers
assess the company's claims
history and risk profile. This
information allows insurers to
better understand the company's
risk management practices and
may influence premium rates or
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62. Freight Forwarders
▶ In March 2012, the International
Plant Protection Convention (IPPC)
adopted a wood packaging standard
that recognizes the risks associated
with the use of wood packaging.
ISPM 15 aims to prevent the spread
of pests and diseases that can be
transported through untreated wood
packaging materials such as pallets,
crates, and dunnage. These pests
and diseases can pose serious
threats to agriculture, forestry, and
ecosystems in importing countries.
By adopting ISPM 15, countries aim
to harmonize phytosanitary
measures related to wood
packaging materials and facilitate
international trade while minimizing
the risk of introducing invasive pests
and diseases. Compliance with
ISPM 15 standards is typically
required for the import and export of
wood packaging materials in many
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63. Freight Forwarders
▶ Key provisions of ISPM 15
include:
1. Heat Treatment or Fumigation:
Wood packaging materials
covered by ISPM 15 must
undergo either heat treatment
or fumigation with methyl
bromide to kill any pests or
larvae present in the wood. The
treatment must meet specified
temperature or concentration
levels to be considered
effective.
2. Marking Requirements: Treated
wood packaging materials must
be marked with an approved
stamp or mark that indicates
compliance with ISPM 15
standards. This mark typically
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64. Freight Forwarders
▶ Key provisions of ISPM 15
include:
3. Phytosanitary Certificate: Treated
wood packaging materials may
require a phytosanitary certificate
issued by the national plant
protection organization of the
exporting country. This certificate
verifies that the wood packaging
materials have been treated in
accordance with ISPM 15
requirements.
4. Exemptions and Alternative
Measures: ISPM 15 provides
exemptions for certain types of
wood packaging materials, as well
as alternative measures for
treatment or certification in
specific circumstances. These
exemptions and alternative
measures are subject to approval
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66. 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.
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67. 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
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68. 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,
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69. 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,
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70. 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.
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71. 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.
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72. 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
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73. 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.
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74. 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.
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75. 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
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76. 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
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77. 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.
This Photo by Unknown Author is licensed under CC BY
78. 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.
This Photo by Unknown Author is licensed under CC BY
79. 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.
This Photo by Unknown Author is licensed under CC BY
80. 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
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81. 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.
This Photo by Unknown Author is licensed under CC BY
82. 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
This Photo by Unknown Author is licensed under CC BY
83. 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
This Photo by Unknown Author is licensed under CC BY
84. 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
This Photo by Unknown Author is licensed under CC BY
85. 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
This Photo by Unknown Author is licensed under CC BY
86. 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
This Photo by Unknown Author is licensed under CC BY
87. 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
This Photo by Unknown Author is licensed under CC BY
88. 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
This Photo by Unknown Author is licensed under CC BY
89. 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
This Photo by Unknown Author is licensed under CC BY
90. 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
This Photo by Unknown Author is licensed under CC BY
91. 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
This Photo by Unknown Author is licensed under CC BY
92. 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
This Photo by Unknown Author is licensed under CC BY
93. 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
This Photo by Unknown Author is licensed under CC BY
94. 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.
This Photo by Unknown Author is licensed under CC BY
95. 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
This Photo by Unknown Author is licensed under CC BY
96. 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.
This Photo by Unknown Author is licensed under CC BY
97. 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
This Photo by Unknown Author is licensed under CC BY
98. 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
This Photo by Unknown Author is licensed under CC BY
99. 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
100. 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
This Photo by Unknown Author is licensed under CC BY
101. 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.
This Photo by Unknown Author is licensed under CC BY
102. 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
103. 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.
This Photo by Unknown Author is licensed under CC BY
104. 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.
This Photo by Unknown Author is licensed under CC BY
105. 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
This Photo by Unknown Author is licensed under CC BY
106. 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
This Photo by Unknown Author is licensed under CC BY
107. 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.
This Photo by Unknown Author is licensed under CC BY
108. 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.
This Photo by Unknown Author is licensed under CC BY
109. 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
This Photo by Unknown Author is licensed under CC BY
110. 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.
This Photo by Unknown Author is licensed under CC BY
111. 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
classification, packaging, labeling,
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
This Photo by Unknown Author is licensed under CC BY
112. 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.
This Photo by Unknown Author is licensed under CC BY
113. 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
This Photo by Unknown Author is licensed under CC BY
114. 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.
This Photo by Unknown Author is licensed under CC BY
115. 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:
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
This Photo by Unknown Author is licensed under CC BY
116. 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:
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.
This Photo by Unknown Author is licensed under CC BY
117. 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
This Photo by Unknown Author is licensed under CC BY
119. Cargo Ships Attack
Red Sea
▶ The Red Sea shipping crisis
is a result of Houthi rebel
attacks on cargo ships and
tankers, and it is causing
hundreds of vessels to avoid
the Suez Canal, one of the
world’s most important
waterways. Instead, these
vessels are being forced to
reroute around southern
Africa — a lengthy detour
that adds 4,000 miles to
each journey, vastly
increasing transport times
and freight costs.
120. Cargo Ships Attack
Red Sea
▶ What is the impact on supply
chains?
With 30% of global container trade
passing through the Suez Canal,
the Red Sea shipping crisis is
upending supply chains. This is
compounded by the ongoing
shipping disruptions caused by
blockages in the Panama Canal,
which is experiencing one of the
region’s worst droughts since the
1950s.
“The lengthening of supplier
delivery times acts as an adverse
supply shock. The rerouting of
ships around Africa’s Cape of Good
Hope equates to a roughly 30%
increase in transit times, and this
implies an approximately 9%
reduction in effective global
container shipping capacity,” said
121. Cargo Ships Attack
Red Sea
▶ What is the impact on supply
chains?
Already, several Europe-based auto
plants have announced temporary
production shutdowns due to delays
in obtaining car parts from Asia. Auto
component makers — particularly
those with high revenue exposure to
exports from China to Europe and the
U.S. — have also been affected.
“The crisis is testing the resilience of
the auto supply chain, particularly for
new-energy vehicles (NEVs), which
are a key part of China-Europe trade.
This is because China mainly exports
NEVs to Europe, which are usually
carried by sea,” said Jose Asumendi,
Head of the European Automotive
team at J.P. Morgan. “Depending on
the situation in the region, shipping
times and prices may change
throughout the year. Traffic in the
122. Cargo Ships Attack
Red Sea
▶ Key Take Away
• With 30% of global container trade
transiting through the Suez Canal,
the Red Sea shipping crisis is
upending supply chains.
• It is also increasing shipping costs,
causing the prices of some routes —
particularly from Asia to Europe —
to surge nearly five-fold.
• Higher shipping costs are likely to
pass through to imported goods
prices with a lag, depending on both
the duration and intensity of the
crisis.
• Overall, J.P. Morgan Research
estimates the disruptions could add
0.7 percentage points to global core
goods inflation, and 0.3 percentage
points to overall core inflation,
126. Open top containers
• Open top containers are those whose cargo is
out of the garage, with the height of the cargo.
• Example: Animals, Machinery.
127.
128.
129.
130.
131.
132.
133.
134.
135. VESSEL
• A craft for traveling
on water, now
usually one larger
than an ordinary
rowboat, a ship or
boat.
136.
137. Difference between RO-RO
and Breakbulk Cargo
• RO-RO: Roll-on roll-off vessel is
designed to carry wheeled cargo such
as cars, trucks, semi-trucks off the ship
with their heels such as self-propelled
modular transporter.
138.
139. BREAKBULK • Breakbulk: Break bulk cargo are goods that
must be loaded individually are not in an
intermodal container this sort of cargo is called
general cargo ships.
140.
141. Difference
between Bulk
and
Containerized
Vessel
• Bulk: A bulk carrier,
bulk freighter specially
designed transport
raw material
shipped in cargo
unpacked cargo.
• Containerized Vessel:
Containerized is a
system of intermodal
freight transport
containers where the
cargo is shipped in a
container.