BORDER LINES

By Staff -- Logistics Management, 3/1/2000

- Canada's ocean shipping law, the Shipping Conferences Exemption Act of 1987 (SCEA), appears to be headed for some big changes next year. According to the National Industrial Transportation League, the Canadian Shippers Council has been pressing the Canadian government to amend that law to bring it more in line with the Ocean Shipping Reform Act (OSRA) in the United States, which took effect last April. After soliciting input from various stakeholders, Transport Canada issued recommendations that the agency will present to the prime minister's cabinet for consideration and possible introduction as legislation early next year. Those recommendations include prohibiting ocean conferences from establishing terms and conditions for using service contracts; increasing penalties for violations; abolishing tariff filing for conferences; reducing the advance notice period for Independent Actions; and allowing electronic filing and access to conference information. A "sunset" provision that automatically eliminates carriers' antitrust immunity after 10 years is being considered for inclusion in any proposed legislation.

- Air Canada is wasting no time in joining its operations with those of Canadian Airlines, which it acquired last month. Over the next four months, the airlines will consolidate their passenger services into two terminals at Toronto's Pearson International Airport. Air Canada also announced an integrated flight schedule for itself, Canadian Airlines, and their regional airline subsidiaries. The new schedule includes 30 new routes, 11 new destinations, and a 2-percent increase in capacity. Air Canada last month reported record fourth-quarter operating income of CDN $91 million (USD $64 million); on the same day, the airline said it would temporarily suspend Canadian Airlines' payments to creditors while it negotiated a debt restructuring.

- The U.S. Maritime Administration (MARAD) has released maritime trade statistics for 1998. Among the agency's findings: In 1998, approximately 5.4 percent by weight of all U.S. liner traffic (scheduled ocean shipments) was transshipped via truck or rail through Canadian ports. The 7.15 million tons of transshipped cargo was valued at $25.5 billion, about 4 percent higher than the previous year's figures. U.S. imports via Canada in 1998 increased 13.7 percent by weight compared with 1997, while U.S. exports via Canada dropped 5.1 percent by weight during the same period.

- Here's proof that third-party logistics has become firmly established in Mexico: A consulting company that specializes in helping shippers select third-party providers, manage contracts, and monitor third-party performance has opened an office in Mexico City. Atlanta-based Logistics Consulting Group (LCG) last month launched a service for mid-sized companies in Mexico and Latin America. LCG has appointed Victor M. Aguila to head the operation. Aguila, who received his MBA in the United States, has logistics experience in the auto, transportation, and ocean shipping industries. In addition to 3PL-related services, LCG offers services in supply-chain design as well as logistics and warehouse management.