freight Final Review 5.15.pptx freight Final Review 5.15.pptx

freight Final Review 5.15.pptx

1. Welcome to class . We will begin shortly

2. Today’s Objectives To define the Incoterm options. To enhance your understanding of the forwarding process and the part that Incoterms play in smooth transactions. How Incoterms relate to contracts. To help you determine which Incoterm is best for your logistics circumstance.

3. What Does Incoterm Mean? IN ternational COmmercial TERMS What Are Incoterms? “ INCOTERMS define the mutual obligations of seller and buyer arising from the movement of goods under an international contract from the standpoint of risks, costs and documents. ” -United Nations Conference on Trade and Development , 1990 Simply- A set of international rules for the interpretation of the most commonly used foreign trade terms.

4. The Terms in Inco terms Terms covered by Incoterms Warehousing Packing and loading Inland freight Terminal charges Freight forwarder’s fees Ocean/air freight Duty, taxes, & customs clearance Delivery Security Clearances

5. The Ever Changing Evolution of Incoterms

6. The Importance of Incoterms Because they- Set international rules for commonly used terms in foreign trade. Define obligations of both parties involved in the transaction. Determine the distribution and transfer of risks regarding goods delivered from seller to buyer. State the clear sharing of expenses between the parties during transport. The Necessity of Updates The rapid expansion of world trade and new trends in global transportation means that the same rules cannot be applied effectively in any circumstance without considering the new factors and influences.

7. International Transportation 4 Handling Inbound Customs Clearance Duties Final Transportation Unloading Packing Loading Preliminary Transportation Customs Clearance for Export Handling Outbound Insurance 1 2 3 5 6 7 8 9 10 11 Global Logistics Forwarding Process

8. INCOTERM Groups CFR- Cost and Freight CIF- Cost, Insurance and Freight CPT- Carriage Paid To CIP- Carriage and Insurance Paid To DAT- Delivered at Terminal DAP- Delivered at Place DDP- Delivered Duty Paid EXW- Ex Works FCA- Free Carrier FAS- Free Alongside Ship FOB- Free on Board Contract for carriage without assuming risk of loss during shipment Bear all costs and risks needed to bring goods to place of destination Make goods available at own premises Deliver goods to a carrier appointed by buyer

9. Incoterm Categories Acronym reflect the mode and where lines are drawn.

10. Usage of Incoterms Use the phrase “Incoterms 2010” after the rule and named place. Clarifies that 2000 version does not apply. Ensure you are naming the right location. EXW, FCA, FAS, FOB, DAT, DAP =place of delivery. CPT, CIP, CFR, CIF=place of destination. Use contract of sale or terms and conditions. Modifying Incoterms Rules Not advised. If you do modify rules ensure contract clarifies what you are modifying and what you are not.

11. - Group Incoterms CFR- Cost and Freight Seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. Notes Seller pays for unloading if the contract of carriage covers unloading Seller clears goods for export but not import. Seller has no obligation to obtain insurance. Place of delivery of goods Seller’s delivery obligation is fulfilled when goods are on board the vessel. Risk of loss passes when the goods are on board the vessel. Port of destination Seller pays for carriage to port of destination.

12. - Group Incoterms CIF- Cost Insurance and Freight Seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. Notes Like CFR but with additional obligation to procure insurance to port of destination. Insurance requirement is minimum cover (institute cargo clause c) in the amount of contract price plus 10% from point of delivery to point of destination. Seller clears goods for export but not import.

13. - Group Incoterms CIP- Carriage and Insurance Paid to Seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between the parties); seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. Notes Like CPT but with the additional requirement that seller pay for insurance to the named destination Insurance requirement is minimum cover (institute cargo clause c) in the amount of contract price plus 10% from point of delivery to point of destination Buyer may pay for additional coverage. Seller must provide the information necessary to allow buyer to do so.

14. - Group Incoterms CPT- Carriage Paid To Seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any place is agreed between the parties) and the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. Notes Seller clears goods for export and pays for transport through any country necessary to delivery Seller has no obligation to pay for insurance but must provide buyer information to buy insurance at buyer’s risk and expense Buyer obtains import licenses and carries out customs formalities Seller pays for both loading and unloading if covered by contract of carriage

15. - Group Incoterms DAP- Delivered at Place Seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the good to the named place. Notes Much like DAT, but with additional obligation by seller into country of delivery Goods are placed at buyer’s disposal at named location ready for unloading; risk passes at that point Seller clears goods for export but not import (use DDP if intent is to require seller to clear goods for import also). No obligation on seller to purchase insurance

16. - Group Incoterms DAT- Delivered at Terminal Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. “Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination. Notes Seller’s obligation is fulfilled and risk of loss passes at same time: when the goods are unloaded at the arriving terminal and placed at buyer’s disposal. Can specify a point within the terminal at which time the obligation is complete. Seller clears goods for export but not for import. No requirement of insurance. If the intention is to carry seller’s obligation further into buyer’s country, use DAP or DDP.

17. - Group Incoterms DDP- Delivered Duty Paid Seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination. The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities. Notes Like DAP, but including seller’s obligation to clear goods for import—pay for any necessary licenses. Maximum obligation for seller. If seller is not well-suited to clear goods for import, DAP should be used No obligation to pay for insurance.

18. - Group Incoterms Ex Works Seller delivers when it places the goods at the disposal of buyer at the seller’s premises or another named place (i.e. works, factory, warehouse, etc.). Seller does not need to load the goods on any collecting vehicle or clear the goods for export, where such clearance is applicable. Fewest up front requirements for seller Notes Seller has no obligation to load goods, even if better-suited to do so If seller does load goods, it does so at buyer’s expense and risk Better-suited to domestic transport (no obligation that seller clear goods for export—only provide assistance if necessary at buyer’s expense and risk) Buyer bears all risk of loss from time seller places goods at buyer’s disposal.

19. - Group Incoterms FAS- Free Alongside Ship Seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment. The risk of loss of or damage to the goods passes when the goods are alongside the ship, the buyer bears all costs from the moment onwards. Notes Can be used in a string sale where seller procures goods already delivered for shipment. Seller is obligated to clear goods for export but not import. Seller has no obligation to pay for contracts of carriage or insurance but may contract for carriage and must assist buyer by providing necessary information for insurance. Not appropriate when goods in container and delivered to carrier at terminal; use FCA

20. - Group Incoterms FCA- Free Carrier Seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place. The parties are well advised to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point. Notes Seller does clear goods for export; import formalities are buyer’s responsibility Seller may contract for carriage at buyer’s expense and risk

21. - Group Incoterms FOB- Free On Board Seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards. Notes Notice change in 2010: “free on board” no longer means across the ship’s rail; now means on board the vessel. Another change in 2010: if requested by buyer or if it is commercial practice and buyer does not instruct otherwise, seller may contract for carriage at buyer’s risk and expense; seller may decline but must notify buyer promptly Like FAS but goods must be placed on board.

22. Exporting is an integral part of all international business Goods manufactured in one country and destined for another must be moved across borders to enter the distribution system of the target market It is important to be knowledgeable about the export and import documents, tariffs, quotas, and other barriers to the free flow of goods between countries The rules and regulations that cover the exportation and importation are discussed more in the following slides.

23. Export Restrictions Export regulations may be designed to conserve scarce goods for home consumption or to control the flow of strategic goods to actual or potential enemies To comply with various regulations, the exporter may have to acquire export licenses or permits from the home country To alleviate problems of exporting, the Department of Commerce has published a revised set of export regulations known as the Export Administration Regulations (EAR)

24. Determining Export Requirements In general, there are three steps to determine the proper Export Control Classification Number (ECCN) for the commodity to be exported as follows: If you are the exporter of the product but not its manufacturer, you can contact the manufacturer or developer to see if they already have an ECCN Compare the general characteristics of the product to the Commerce Control List and find the most appropriate product category The third step is to consult the Commerce Country Chart (CCC), to (Exhibit 15-to determine the reason(s) for control associated with your item A general license permits exportation of certain products that are not subject to EAR control with nothing more than a declaration of the type of product, its value, and its destination A validated license, issued only on formal application, is a specific document authorizing exportation within specific limitations designated under the EAR

25. Import Restrictions Tariffs Exchange Permits Quotas Import Licenses Standards Boycotts Voluntary Restrictions Import regulations may be imposed to protect health, conserve foreign exchange, serve as economic reprisals, protect home industry, or provide revenue in the form of tariffs The most frequently encountered trade restrictions include:

26. Import Restrictions ad valorem duties, which are based on a percentage of the determined value of the imported goods; specific duties, a stipulated amount per unit weight or some other measure of quantity; and a compound duty, which combines both specific and ad valorem taxes on a particular item, that is, a tax per pound plus a percentage of value 1. Tariffs: Custom duties are based on value or quantity or a combination of both and are classified as follows: To conserve scarce foreign exchange many countries impose restrictions on the amount of their currency they will exchange for the currency of another country 2. Exchange Permits:

27. Import Restrictions (contd …) 3. Quotas: Countries may also impose limitations on the quantity of certain goods imported during a specific period 4. Import Licenses: As a means of regulating the flow of exchange and the quantity of a particular imported commodity, countries often require import licenses 5. Standards: Health standards, safety standards, and product quality standards are necessary to protect the consuming public from imported

28. Import Restrictions (contd …) 6. Boycotts: A boycott is an absolute restriction against trade with a country, or trade of specific goods 7. Voluntary Restrictions: Countries may themselves impose restrictions on firms exporting to specific countries

29. Terms of Sale 1. CIF (cost, insurance, freight) to a named overseas port of import. It includes the costs of goods, insurance, and all transportation and miscellaneous charges to the named place of debarkation 2. C&F (cost and freight) to a named overseas port. It includes the cost of the goods and transportation costs to the named place of debarkation. The cost of insurance is borne by the buyer 3. FAS (free alongside) at a named U.S. port of export. The price includes cost of goods and charges for delivery of the goods alongside the shipping vessel. The buyer is responsible for the cost of loading onto the vessel, transportation, and insurance

30. Terms of Sale (contd ..) 4. FOB (free on board) at a named inland point, at a named port of exportation, or at a named vessel and port of export. The price includes the cost of the goods and delivery to the place named 5. EX (named port of origin). The price quoted covers costs only at the point of origin (example, EX Factory). All other charges are the buyer’s concern.

31. Getting Paid: Foreign Commercial Payments Letters of Credit Bills of Exchange Cash In Advance Open Accounts Forfaiting The five basic payment arrangements for exported goods include:

32. Export Documents Export Declarations Consular Invoices or Certificates of Origin Bill of Lading Commercial Invoice Insurance Policy or Certificate, and Licenses Each export shipment requires many documents to satisfy government regulations controlling exporting as well as to meet requirements for international commercial payment The most frequently required documents are:

33. Customs-Privileged Facilities Foreign trade zones (also known as free trade zones) Free ports, and In-bond arrangements or Maquliadoras To facilitate export trade, countries designate areas called customs-privileged facilities, where goods can be imported for storage and/or ­processing with tariffs and quota limits postponed until the products leave the designated areas Customs-Privileged Facilities include:

34. Logistics and Physical Distribution Activities Logistics management refers to all activities involved in physically moving raw material, in-process inventory, and finished goods inventory from the point of origin to the point of use or consumption A physical distribution system involves: (1) transportation mode (2) inventory quantities, and (3) packing 3. A decision involving one activity affects the cost and efficiency of one or all others 4. Total cost of the system is defined as the sum of the costs of all these activities 5. It is important to reduce the total cost instead of reducing the cost of each component of the logistics system

35. Foreign Freight Forwarder The foreign freight forwarder arranges for the shipment of goods as the agent for an exporter The forwarder is an indispensable agent for an exporting firm that cannot afford an in-house specialist to handle paperwork and other export trade mechanics A freight forwarder double-checks all assumptions made on the export declaration, such as commodity classifications, and will check the list of denied parties and end uses

36. Trade Buying and selling goods and services from other countries The purchase of goods and services from abroad that leads to an outflow of currency – Imports The sale of goods and services to buyers from other countries leading to an inflow of currency – Exports

37. Specialisation and Trade Different factor endowments mean some countries can produce goods and services more efficiently than others – specialisation is therefore possible: Absolute Advantage: Where one country can produce goods with fewer resources than another Comparative Advantage: Where one country can produce goods at a lower opportunity cost – it sacrifices less resources in production

38. Comparative Advantage Oil (Barrels) Whisky (Litres) Russia 10 or 5 Scotland 20 or 40 One unit of labour in each country can produce either oil OR whisky. A unit of labour in Russia can produce either 10 barrels of oil per period OR 5 litres of whisky. A unit of labour in Scotland can produce either 20 barrels of oil OR 40 litres of whisky.

39. Comparative Advantage Opportunity Cost = sacrifice/ gain Russia: if it moved 1 unit of labour from whisky to oil it would sacrifice 5 litres of whisky but gain 10 barrels of oil (OC = 5/10 = ½) Moving 1 unit of labour from oil to whisky production would lead to a sacrifice of 10 barrels of oil to gain 5 litres of whisky (OC of whisky is 10/5 = 2) Scotland: if it moved 1 unit of labour from whisky to oil it would sacrifice 40 litres of whisky but gain 20 barrels of oil (OC = 40/20 = 2) Moving 1 unit of labour from oil to whisky production would lead to a sacrifice of 20 barrels of oil to gain 40 litres of whisky (OC of whisky is 20/40 = ½ ) For Scotland the OC of oil is four times higher than that in Russia (2 compared to ½)

40. Comparative Advantage In Russia, oil can be produced cheaper than in Scotland (Russia only sacrifices 1 litre of whisky to produce 2 extra barrels of oil whereas Scotland would have to sacrifice 2 litres of whisky to produce 1 barrel of oil. There can be gains from trade if each country specialises in the production of the product in which it has the lower opportunity cost – Russia should produce oil; Scotland, whisky.

41. Comparative Advantage Oil (Barrels) Whisky (Litres) Russia 5 2.5 Scotland 10 20 Total Output 15 22.5 Oil (Barrels) Whisky (Litres) Russia 10 Scotland 40 Total Output 10 40 Before trade – each country divides its labour between the two products: After specialisation – each country devotes its resources to that in which it has a comparative advantage.

42. Comparative Advantage Total Output has risen and trade can be arranged at a mutually agreed rate that will leave both countries better off than without trade. The rate has to be somewhere between the OC ratios (in this case 2 and ½)

43. The Terms of Trade The Terms of Trade looks at the relationship between the price received for exports and the amount of imports we are able to buy with that money. Average Price of Exports Terms of Trade = ---------------------------------------- Average Price of Imports

44. Exchange Rates Determinants of Exchange Rates: Exchange rates are determined by the demand for and the supply of currencies on the foreign exchange market The demand and supply of currencies is in turn determined by:

45. Exchange Rates Relative interest rates The demand for imports (D£) The demand for exports (S£) Investment opportunities Speculative sentiments Global trading patterns Changes in relative inflation rates

46. Exchange Rates A depreciation in exchange rate should lead to a rise in D for exports, a fall in demand for imports – the balance of payments should ‘improve’ An appreciation of the exchange rate should lead to a fall in demand for exports and a rise in demand for imports – the balance of payments should get ‘worse’ BUT

47. Exchange Rates The volumes and the actual amount of income and expenditure will depend on the relative price elasticity of demand for imports and exports.

48. Exchange Rates Floating Exchange Rates: Price determined only by demand and supply of the currency – no government intervention Fixed Exchange Rates: The value of a currency fixed in relation to an anchor currency – not allowed to fluctuate Dirty Floating or Managed Exchange Rate: – rate influenced by government via central bank around a preferred rate

49. Break Time!!!

50. 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 supply chains. This Photo by Unknown Author is licensed under CC BY

51. CSC safety ▶ Key safety requirements outlined by the CSC include: Structural Integrity: Containers must be structurally sound and capable of withstanding the stresses and forces encountered during handling, stacking, and transportation. Material Standards: Containers must be constructed using approved materials and methods to ensure strength, durability, and resistance to corrosion and other environmental factors. Inspection and Certification: Containers must undergo regular inspections and certification by authorized inspectors to verify compliance with CSC standards and ensure safe operation. 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. 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. This Photo by Unknown Author is licensed under CC BY

52. 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. This Photo by Unknown Author is licensed under CC BY

53. 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: Failure to properly document or declare goods for transportation, leading to customs issues or delays. Incorrectly arranging transportation services, resulting in missed deadlines or delivery errors. 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 with the transportation and logistics industry. This Photo by Unknown Author is licensed under CC BY

54. CANUTEC ▶ Key functions of CANUTEC include: 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. 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 associated with hazardous materials and develop effective response strategies. This Photo by Unknown Author is licensed under CC BY

55. CANUTEC ▶ Key functions of CANUTEC include: 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. 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. This Photo by Unknown Author is licensed under CC BY

56. 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 environment. This Photo by Unknown Author is licensed under CC BY

57. Dangerous Goods ▶ Key responsibilities of the government, particularly Transport Canada, in regulating the transportation of dangerous goods include: 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. 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. 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 requirements and maintain safety standards. This Photo by Unknown Author is licensed under CC BY

58. Dangerous Goods ▶ Key responsibilities of the government, particularly Transport Canada, in regulating the transportation of dangerous goods include: 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. 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. This Photo by Unknown Author is licensed under CC BY

59. 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 invoice won't be paid on the agreed terms. This Photo by Unknown Author is licensed under CC BY

60. 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: 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. 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. 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. This Photo by Unknown Author is licensed under CC BY

61. 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 settle invoices with exporters, and currency exchange risks are relatively low. This Photo by Unknown Author is licensed under CC BY

62. 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 regimes. This Photo by Unknown Author is licensed under CC BY

63. 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 authorities. This Photo by Unknown Author is licensed under CC BY

64. Import Control List (ICL) ▶ The Import Control List (ICL) includes various categories of goods that are subject to import controls, such as: 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. 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. 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 practices, or national security concerns. This Photo by Unknown Author is licensed under CC BY

65. 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 carriage. This Photo by Unknown Author is licensed under CC BY

66. 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 circumstances and nature of the air transportation involved. This Photo by Unknown Author is licensed under CC BY

67. 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. This Photo by Unknown Author is licensed under CC BY

68. 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. This Photo by Unknown Author is licensed under CC BY

69. 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: 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. 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. 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). 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 shipping labels or barcodes, and loading shipments onto trucks or carriers for transport. This Photo by Unknown Author is licensed under CC BY

70. 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. This Photo by Unknown Author is licensed under CC BY

71. 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. This Photo by Unknown Author is licensed under CC BY

72. 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 integrity of transported goods. This Photo by Unknown Author is licensed under CC BY

73. 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 products or services they purchase. This Photo by Unknown Author is licensed under CC BY

74. Express warranties ▶ Key characteristics of express warranties include: 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. 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. 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, replacements, or refunds. This Photo by Unknown Author is licensed under CC BY

75. Express warranties ▶ Key characteristics of express warranties include: 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. 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 allows buyers to make informed decisions. This Photo by Unknown Author is licensed under CC BY

76. 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. This Photo by Unknown Author is licensed under CC BY

77. Dangerous Goods ▶ This permit typically contains detailed information about the forbidden or restricted items being transported, including: 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. 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. 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 special packaging requirements. This Photo by Unknown Author is licensed under CC BY

78. Dangerous Goods ▶ This permit typically contains detailed information about the forbidden or restricted items being transported, including: 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. 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. This Photo by Unknown Author is licensed under CC BY

79. 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 smoother international trade operations. This Photo by Unknown Author is licensed under CC BY

80. Freight Forwarders ▶ Here's why forwarders typically establish their own carrier code: 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. 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. 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 offering and strengthens relationships with clients. This Photo by Unknown Author is licensed under CC BY

81. Freight Forwarders ▶ Here's why forwarders typically establish their own carrier code: 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. 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. This Photo by Unknown Author is licensed under CC BY

82. 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 industries. This Photo by Unknown Author is licensed under CC BY

83. Freight Forwarders ▶ Common treatments for wood products include: 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. Fumigation: Exposing the wood to fumigants, such as methyl bromide, to eradicate pests and their eggs or larvae. Fumigation is commonly used for wood products like logs, lumber, and wooden pallets. This Photo by Unknown Author is licensed under CC BY

84. Freight Forwarders ▶ Common treatments for wood products include: 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. 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 packaging materials. This Photo by Unknown Author is licensed under CC BY

85. 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. This Photo by Unknown Author is licensed under CC BY

86. 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 public safety during transportation emergencies. This Photo by Unknown Author is licensed under CC BY

87. CANUTEC ▶ CANUTEC's primary responsibilities include: 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. 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. 24/7 Emergency Hotline: Operating a dedicated 24-hour hotline that emergency responders can contact for assistance and guidance during transportation emergencies involving dangerous goods. This Photo by Unknown Author is licensed under CC BY

88. Cargo Control Number ▶ Cargo control numbers can not be duplicated if required. C argo 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. This Photo by Unknown Author is licensed under CC BY

89. 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. This Photo by Unknown Author is licensed under CC BY

90. 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 prevent foreseeable risks, or intentionally disregarding legal obligations or standards of care. This Photo by Unknown Author is licensed under CC BY

91. 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. This Photo by Unknown Author is licensed under CC BY

92. 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

93. Dangerous Goods ▶ Key reasons why lithium batteries are classified as dangerous goods include: 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. 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

94. 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: 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. Customs and Regulatory Risks: Delays or complications in customs clearance, import/export restrictions, or non-compliance with regulatory requirements can result in financial penalties, fines, or the seizure of goods. This Photo by Unknown Author is licensed under CC BY

95. 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: 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. 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. 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 shipping. This Photo by Unknown Author is licensed under CC BY

96. 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. This Photo by Unknown Author is licensed under CC BY

97. 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 mitigate the consequences of incidents involving hazardous materials. This Photo by Unknown Author is licensed under CC BY

98. 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 conditions. This Photo by Unknown Author is licensed under CC BY

99. Transport Canada ▶ Here are some key points about permits issued by Transport Canada for the transportation of normally forbidden items: 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. 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 safety and compliance with regulations. This Photo by Unknown Author is licensed under CC BY

100. Transport Canada ▶ Here are some key points about permits issued by Transport Canada for the transportation of normally forbidden items: 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. 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. 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. This Photo by Unknown Author is licensed under CC BY

101. 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 insured party and maximizing the likelihood of a successful claims outcome. This Photo by Unknown Author is licensed under CC BY

102. Shortages/Damages ▶ Here's why immediate reporting is essential: 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. 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 potential liability issues. This Photo by Unknown Author is licensed under CC BY

103. Shortages/Damages ▶ Here's why immediate reporting is essential: 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. 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. 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 a timely manner. This Photo by Unknown Author is licensed under CC BY

104. 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 international trade. This Photo by Unknown Author is licensed under CC BY

105. Freight Forwarders ▶ Here's how they typically verify compliance: 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. 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 other applicable laws or regulations. This Photo by Unknown Author is licensed under CC BY

106. Freight Forwarders ▶ Here's how they typically verify compliance: 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. 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. 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, valuation, customs duties, taxes, and any other customs-related requirements. This Photo by Unknown Author is licensed under CC BY

107. 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 during the underwriting process. This Photo by Unknown Author is licensed under CC BY

108. Freight Forwarders ▶ Here's why each piece of information is important: 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. 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 potential hazards or perils along the supply chain. This Photo by Unknown Author is licensed under CC BY

109. Freight Forwarders ▶ Here's why each piece of information is important: 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. 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 coverage terms. This Photo by Unknown Author is licensed under CC BY

110. 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 countries around the world. This Photo by Unknown Author is licensed under CC BY

111. Freight Forwarders ▶ Key provisions of ISPM 15 include: 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. 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 includes the IPPC logo, country code, treatment code, and unique identification number. This Photo by Unknown Author is licensed under CC BY

112. Freight Forwarders ▶ Key provisions of ISPM 15 include: 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. 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 by national plant protection authorities. This Photo by Unknown Author is licensed under CC BY

113. Global Trade Chokepoints

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

115. 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 liabilities that would be unreasonably costly or outside the scope of the insurance agreement. This Photo by Unknown Author is licensed under CC BY

116. 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, international organizations, and industry stakeholders. This Photo by Unknown Author is licensed under CC BY

117. Air Cargo Security (ACS) ▶ These measures aim to: 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. 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. 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, validating shipping manifests, and ensuring compliance with regulatory requirements. This Photo by Unknown Author is licensed under CC BY

118. Air Cargo Security (ACS) ▶ These measures aim to: 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. 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. 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. This Photo by Unknown Author is licensed under CC BY

119. 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: Description of Goods: A description of the goods being transported, including their quantity, value, and any relevant specifications. Sender and Receiver Information: Information about the sender (exporter) and the receiver (importer), including their names, addresses, and contact details. 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. Customs Information: Any customs-related information, such as tariff classification codes, duty rates, and any applicable permits or licenses. Security Information: Security-related details, such as seals applied to the cargo, security screening results, and any other security measures implemented during transportation. This Photo by Unknown Author is licensed under CC BY

120. 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: 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. 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. 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 liabilities rather than individual losses. This Photo by Unknown Author is licensed under CC BY

121. 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. This Photo by Unknown Author is licensed under CC BY

122. 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: 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. 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. 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. This Photo by Unknown Author is licensed under CC BY

123. 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: 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. 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 businesses engaged in international trade and temporary exports. This Photo by Unknown Author is licensed under CC BY

124. 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 process and offer flexibility for businesses with frequent shipping needs. This Photo by Unknown Author is licensed under CC BY

125. 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

126. 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

127. 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

128. 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 insurance as required. This Photo by Unknown Author is licensed under CC BY

129. 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

130. 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: 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. 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. Steel and Specialty Metals: Certain types of steel and specialty metals may be subject to import controls to protect domestic steel producers or address national security concerns. This Photo by Unknown Author is licensed under CC BY

131. 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: Automobiles and Automotive Parts: Import restrictions may apply to automobiles and automotive parts to manage trade flows and support the domestic automotive industry. 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. Firearms and Ammunition: Importation of firearms, ammunition, and certain types of weapons is strictly regulated in Canada for public safety and security reasons. This Photo by Unknown Author is licensed under CC BY

132. 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: Explosives Gases Flammable liquids Flammable solids Oxidizing substances Toxic and infectious substances Radioactive materials Corrosive substances Miscellaneous dangerous goods This Photo by Unknown Author is licensed under CC BY

133. 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 liabilities. This Photo by Unknown Author is licensed under CC BY

134. 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 specific requirements of the TDGR. This Photo by Unknown Author is licensed under CC BY

135. 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 safety of individuals, property, and the environment. This Photo by Unknown Author is licensed under CC BY

136. 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: 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. 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 regulatory agencies or the court system. This Photo by Unknown Author is licensed under CC BY

137. Legal Liability ▶ Legal liability can arise from various sources: 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. 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 maintain compliance with the law. This Photo by Unknown Author is licensed under CC BY

138. 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 invalidate coverage under the policy. This Photo by Unknown Author is licensed under CC BY

139. 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 to avoid potential coverage disputes or claim denials. This Photo by Unknown Author is licensed under CC BY

140. 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 from the fire, subject to any policy limits or exclusions. This Photo by Unknown Author is licensed under CC BY

141. 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 the insurance policy. This Photo by Unknown Author is licensed under CC BY

142. 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

143. 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: Shipping documents (e.g., shipping manifests, bills of lading) Training records for personnel involved in the transportation of dangerous goods Emergency response plans and procedures Inspection and testing records for packaging, containers, and vehicles used to transport dangerous goods Incident reports and records of any accidents, spills, or releases involving dangerous goods This Photo by Unknown Author is licensed under CC BY

144. 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

145. Due Diligence ▶ Some examples of due diligence practices in the transportation of dangerous goods include: 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. 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. 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 dangerous goods. This Photo by Unknown Author is licensed under CC BY

146. Due Diligence ▶ Some examples of due diligence practices in the transportation of dangerous goods include: 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. 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 throughout the supply chain. This Photo by Unknown Author is licensed under CC BY

147. 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

148. Metal Strapping ▶ Here are some common uses of light metal strapping: 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. 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. 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 moving or becoming damaged. This Photo by Unknown Author is licensed under CC BY

149. Metal Strapping ▶ Here are some common uses of light metal strapping: 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. 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

150. 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

151. Load Master ▶ The responsibilities of the Load Master typically include: Supervising the loading and unloading of cargo to ensure it is done safely and efficiently. Verifying that the weight and balance of the aircraft are within acceptable limits. Ensuring that cargo is properly secured and distributed to maintain the aircraft's stability and center of gravity. Communicating with ground personnel and other crew members to coordinate loading operations. 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

152. 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

153. 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: 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. 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. 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 different shipping requirements. This Photo by Unknown Author is licensed under CC BY

154. 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: 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. 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. Branding Opportunities: Cardboard boxes can be easily branded with company logos, product information, or marketing messages. This provides an opportunity for businesses to enhance their brand visibility and communicate with customers during the shipping process. This Photo by Unknown Author is licensed under CC BY

155. 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

156. 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

157. 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 supplementary charge is paid to the carrier. This Photo by Unknown Author is licensed under CC BY

158. 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

159. 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 ensure the safe and secure shipment of hazardous materials. This Photo by Unknown Author is licensed under CC BY

160. 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

161. 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 losses or damages during transit. This Photo by Unknown Author is licensed under CC BY

162. 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: 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

163. 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: 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 competitive marketplace. This Photo by Unknown Author is licensed under CC BY

164. 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: 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

165. 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 logistics industry. This Photo by Unknown Author is licensed under CC BY

166. The Invisible Cost of Shipping