LTL news: FedEx Freight Canada receives Partners in Protection Certification

Jeff Berman, Group News Editor -- Logistics Management, 8/19/2008

MEMPHIS and TORONTO—FedEx recently announced that less-than-truckload subsidiary FedEx Freight Canada has received a Partners in Protection (PIP) certification from the Canada Border Services Agency (CBSA).

Similar to Customs and Border Protection’s C-TPAT (Customs-Trade Partnership Against Terrorism), PIP was established in 1995 and according to the CBSA Website it is a program that enlists the cooperation of private industry to enhance border and trade chain security, combat organized crime and terrorism and help detect and prevent contraband smuggling.

In an interview with LM, FedEx Freight executive vice president and chief operating officer said that FedEx Freight Canada customers will enjoy “peace of mind” made possible by PIP certification.

“They [shippers and customers] know we’re a secure freight carrier that has met stringent criteria required for certification,” said Reed. “Our PIP membership means customers’ freight is safe at all times and the border crossing process is expedited, even during times of heightened security.”

In order to receive PIP certification, FedEx said that transportation companies must volunteer to apply for the PIP program and meet certain criteria to qualify for certification. It added that FedEx Freight Canada’s certification is the first one issued since PIP made significant changes to the program, effective June 30. Reed explained these changes include: incorporating new eligibility criteria for membership, including minimum security requirements, site validations and updated policies, among other changes. Reed added that PIP is aligned with the U.S. Customs-Trade Partnership (C-TPAT) program, making it easier to be eligible for both programs.

When asked what drove the need for FedEx Freight Canada to become PIP-certified, Reed explained the impetus was a commitment to providing excellent service to its Canadian customers, with participation in PIP helping the company achieve that goal.

“Like other FedEx operating companies throughout the world, FedEx Freight Canada proactively seeks opportunities to enhance and differentiate its services,” said Reed.

FedEx Freight Canada applied for PIP certification on March 18, 2008, according to Reed. The modernized PIP program requirements and application process came out after this date; however no applications were to be accepted for the modernized PIP program until July 1. FedEx Freight Canada applied for recognition and acceptance into the modernized PIP program on July 2. FedEx Freight Canada’s Toronto facility was inspected June 25 and passed with no recommendations regarding security. FedEx Freight Canada was awarded the first modernized PIP certification in Canada on July 30.

In July, the CBSA and CBP said they have collaborated on an arrangement to strengthen cargo security to “promote a smarter, more secure and efficient border.” CBSA said that with the new arrangement, both countries will now use similar criteria when granting companies membership to their respective cross-border programs: PIP and C-TPAT.