Canadian International Freight Forwarders Association Inc · forwarder perspective, innovation has not really been adopted as I would have hoped, nor has it been adopted by the supply

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Posted to CIFFA Website June 28, 2018

MINUTES June 14, 2018

69th ANNUAL GENERAL MEETING

Montreal Airport Marriott In-Terminal Hotel 800 Pl Leigh-Capreol, Dorval, QC H4Y 0A4

INDEX

Attended Officers and Directors Record of Attendance

1. Call to order & Competition Bureau Clause 2. Notice of Meeting 3. Time of Remembrance 4. Minutes of Previous Meeting 5. President’s Address 6. Treasure’s report 7. Volunteer Recognition 8. Judicial 9. Education 10. Seafreight 11. Airfreight 12. Customs 13. Membership 14. Regional Report – Eastern Region 15. Reports Presented as Posted:

• FIATA

• Regional Reports i. Central Region ii. Western Region

16. Election of the National Board of Directors 17. Appointment of Auditors 18. 70th Annual General Meeting 19. Adjournment

CANADIAN INTERNATIONAL FREIGHT FORWARDERS ASSOCIATION, INC.

170 ATTWELL DRIVE SUITE 480 TORONTO, ON M9W 5Z5

TEL: 416-234-5100 FAX: 416-234-5151 TOLL FREE: 866-282-4332 [email protected] www.CIFFA.com

mailto:[email protected]

http://www.ciffa.com/

MINUTES CIFFA 69th ANNUAL GENERAL MEETING – MONTREAL, QC – JUNE 14, 2018

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ATTENDED OFFICERS AND DIRECTORS

Paul Lobas Secretary ITN Logistics Group

Troy Cowen Treasurer Maltacourt (Canada) Ltd.

Bruce Rodgers V.P. I Vandegrift Canada ULC

Angelo Loffredi V.P. III, Eastern Region Chair Traffic Tech International Inc.

Larry Palmer Director UPS Supply Chain Solutions

Paul Glionna Director Universal Logistics Inc.

Paul Hughes Director Agility Logistics, Co.

Arnon Melo Director Mellohawk Logistics

William Gottlieb Director ITN Logistics Services Inc.

Paul Courtney Director, Western Region Chair Courtney Agencies Ltd.

Edna Carr Director, Central Region Chair Trade Link International Ltd.

Gavin Magrath Legal Counsel Magrath’s International Legal Counsel

Ruth Snowden Executive Director CIFFA

RECORD OF ATTENDANCE

First Name Surname Company Affiliation Member Affiliation

Paul Lobas ITN Logistics Group Regular

Troy Cowen Maltacourt (Canada) Ltd. Regular

Bruce Rodgers Vandegrift Canada ULC Regular

Angelo Loffredi Traffic Tech International Inc. Regular

Larry Palmer UPS Supply Chain Solutions Regular

Paul Glionna Universal Logistics Inc. Regular

Paul Hughes Agility Logistics, Co. Regular

Arnon Melo Mellohawk Logistics Regular

William Gottlieb ITN Logistics Services Inc. Regular

Paul Courtney Courtney Agencies Ltd. Regular

Edna Carr Trade Link International Ltd. Regular

Gavin Magrath Magrath’s International Legal Counsel Associate

Vagh Greve Danielsen Axxess International Inc. Regular

Mario Mastropasqua Cole International Inc. Regular

Shun Yin Alex

Wong ICNT Logistics Inc.

Regular


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Theodore Chazin Milgram International Shipping Regular

Tere Blake Overseas Container Forwarding Inc. Regular

Paul Liton UPS Supply Chain Solutions Regular

Ruth Snowden CIFFA

Anna Loginova CIFFA

Stephen McDermott CIFFA

Julia Kuzeljevich CIFFA

Roberta Strange CIFFA PFF

Nasy Panahi CIFFA

Mike Mildenberger ACI Air Cargo Inc. Associate

James Catney ASP Security Services Inc. Associate

Mark Burnett ASP Security Services Inc. Associate

Robert Bassett Canadian National Railway Associate

Patrick Bohan Halifax Port Authority Associate

David Peace ICC Compliance Center Inc. Associate

Danny Di Nardo Simard Associate

Jackson Chen Trade Tech, Inc. Associate

Ken Ortloff Trade Tech, Inc. Associate

Mederick-Philippe Alcime Zim Integrated Shipping Services

PFF

Voting Members: 15 in attendance + 4 proxies = 19 votes

As of June 14, 2018 the following proxies have been received:

Proxy from Member Company Accredited Member Representative

Member Representative Designated

FMC International Rodair Jeff Cullen

Skyway International ITN Paul Lobas

Rodair Vandegrift Bruce Rodgers

OEC ITN Bill Gottlieb

Total

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TIME: 3:15 – 4:30 pm DRESS: Business Attire Competition Bureau Canada Clause B. Rodgers called the meeting to order at 3:15 pm. A. Loginova read the Competition Bureau Canada clause: “All meetings will be conducted in compliance with the provisions of the Competition Act. Meetings will not discuss or take action on any subject related to restraint of trade, price fixing, compensation, reimbursement, rate setting, marketing strategies and any other topics that could be considered anti-competitive.”

1. Call to Order, Roll Call & Call for Proxies

Everyone in attendance was reminded that Regular Members only have one vote per company. Associate Members and PFF’s are not eligible to vote. A. Loginova confirmed that there was a quorum of voting Members present.

2. Notice of Meeting

The Notice has been sent to all Members of the Association in accordance with our By-Laws. 3. Time of Remembrance

We will take a moment of silence in memory of those colleagues and friends that have passed away in the course of the last year. In particular we would like to remember:

- Ian Kennedy, ITN Logistics - John “Ian” McGarrity Sr, Beacon International And for those whose names are not mentioned here, but who we hold in our hearts and our memories.

4. Minutes of the previous meeting (These are posted on our website under MEMBERSHIP/

Annual General Meeting. http://www.ciffa.com/membership/agm/ )

Moved by B. Rodgers

Seconded by P. Glionna

Any Discussion No Discussion

All in favour 19

Opposed 0

Abstained 0

Carried

http://www.ciffa.com/membership/agm/


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5. President’s Address – read by B. Rodgers

Dear CIFFA Board, CIFFA members and honoured guests, In my final year as your President I would like to say how pleased I am to have been at the helm of the association during a time of tremendous change. One of the great achievements I am proud to be able to champion as President is CIFFA’s 70th anniversary which we are celebrating with a conference, GLOBAL SUPPLY CHAINS IN A DIGITAL FUTURE: INNOVATION AND INSPIRATION in Toronto on October 16 and 17, 2018. We hope you will be part of this tremendous occasion marking the 70th and CIFFA’s close partnership with TIACA and Multimodal Americas who are hosting concurrent trade shows that week. We are pleased to partner with them. We know this will be a huge draw and put the association and the industry on the map. It’s not by accident that we’ve chosen digital future as a key theme-digitization comes with promise, but not without challenges. We feel that CIFFA is up to these challenges, and to guiding its membership toward the optimal route in meeting them. How will we meet them? Through collaboration, evolution, adaptation and innovation. In fact, innovation will be a key theme at the event. Recently I had the opportunity to participate in a panel on innovation. I made the point that, from a freight forwarder perspective, innovation has not really been adopted as I would have hoped, nor has it been adopted by the supply chain in general. One of the things, speaking specifically around standards, is that everybody has a different operating standard electronically, in terms of how to interface with data. Today, data is gold, and is key to having transparency into how we perform in the overall supply chain. But there are barriers to accessing good data. One thing that we continue to do as an industry is that when we move cargo through the supply chain, there are in some cases up to 14 different touch points that that cargo would impact. People are having to rekey data. It’s very redundant in terms of process. The number of touchpoints, the lack of standards, and the ability for us to get to that next level of innovation is a pain point. Customers, exporters, manufacturers, supply chain partners, all want visibility into what’s happening. We could do such a better job if we could come to an agreement on just what are the standard touch points, and use these more for exceptions, than for the actual flow of cargo. In reality, you just want to know that everything’s going well. There are also still a lot of restrictions from the regulatory bodies governing the industry in terms of being able to embrace better collaboration. Certainly, we will need better collaboration to get to that next level in terms of technology standards. We will also need to prioritize efforts to move to electronic environments, eliminating redundancies and errors that can occur as we generate too much paper. Cargo security is of huge importance to all of us, and on the air freight side, Transport Canada has done a great job. We can look forward in the next couple of years to moving forward with the adoption of canine screening and all-cargo screening, with hope for seamless transition amongst all players.


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The concept of “disintermediation” and e-commerce has now become a daily topic of conversation. The shift away from the traditional bricks and mortar retailer and the move to e-retailers has been moving at a rapid pace. Again, we must reflect how this will impact us and what we as CIFFA need to start doing to support this shift in consumer habits. As consumers’ appetite for online purchases grows so does the need for speed, and the idea of goods being delayed due to regulatory red tape is not something that will be accepted by the typical consumer. Customs processes and mindsets must adapt to this new world. We have seen firsthand through the implementation of eHBL and e-Manifest how difficult this can be. In the months ahead, we continue to push for process change, for system fixes, and for transparency into how this will take place and how the forwarding community can benefit. As we have done since our incarnation in 1948, CIFFA is and will continue to be source of guidance in the advocacy arena, a trusted advisor to governments, carriers and shippers, and will work ahead of the curve as members evolve along with their very dynamic job descriptions and tasks. As CIFFA continues to strive for continuous improvement in all modes of our transportation sectors and regulatory bodies, our mandate to meet the professional demands of members remains unchanged. What has changed are those demands of our membership and the need for CIFFA to adapt and change along with all of you. Gary Vince President 6. Treasurer’s Report – T. Cowen Ladies and Gentlemen: The accounting firm of RSM, formerly Collins Barrow of Toronto has audited CIFFA's financial statements for fiscal year ending December 31, 2017. They have provided the Secretariat and the Board with guidance on accounting practices for “not-for-profit” organizations and we thank them for their professional assistance. I would also like to thank Ruth and the Secretariat for their continued assistance, support and overall dedication. The final draft of the 2017 financial statements has been duly circulated and approved by your Board of Directors. Printed copies of the final financial statement are available at the AGM, or can be requested from the CIFFA Secretariat via email. The full minutes of this AGM will be posted on the Members Only section of our website by early July. As your Treasurer, I am pleased to share with you these strong financial results. CIFFA has maintained a positive cash flow and retained a solid member surplus. The 2017 budget was basically a breakeven budget. We came in $906.00 over the set budget. 2017 Revenues – $1,879,184 2017 Expenditures – $1,860,244 Member fund surplus rose to - $990,285 Revenue is broadly based, with a good mix from membership, events and education, with our Education portfolio contributing approximately 56% of our total revenue. We continue to see excellent support and growth from the CIFFA Certificate programs offered by our College Partners.


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We also had another excellent year controlling costs. Expenses came in at 7.1% under budget. The Secretariat does a great job at maintaining a disciplined budgeting process, producing monthly profit and loss statements. Approximately 10% of the member fund surplus is invested in Canadian equities while the remainder is invested in various guaranteed investment certificates and short-term deposit notes with major financial institutions.

Moved by T. Cowen

Seconded by P. Lobas


All in favour 19

Opposed 0

Abstained 0

Carried

7. Volunteer Recognition – recognition of individuals who have contributed significantly to the

association. B. Rodgers acknowledged the recognition of individuals who have contributed significantly to the association: “On behalf of the membership and my fellow directors I would like to recognize and thank the following people who have served on the national board of directors for many years and who are stepping down. Wendy Trudeau, (formerly with FedEx Trade Networks), Toronto: Director and member of the Executive Committee Garry Mooney (Gillespie Munro), Vancouver: Director and Chair of the National Seafreight Committee Jeff Cullen (Rodair International), Toronto: Past President Please join me in thanking these volunteers.”

8. Judicial – G. Magrath (nothing to report) 9. Education – P. Glionna Ladies and Gentlemen, this is my Education Report for the CIFFA AGM June 14, 2018 I am pleased to report that 2017 was another successful year for CIFFA Education. Highlights from 2017 First some highlights from the past year. In 2017 the education programs had 1776 students enrolled in all education offerings. This includes Dangerous Goods, Certificate programs, Air Cargo Security and workshops. In 2017, education revenues totaled $1,043,478. This is 6.5% decline from 2016, which was our strongest revenue year in history. CIFFA continues to produce strong revenue, and will continue to find innovative and effective ways to keep expenses manageable. Some notable results for enrollment in 2017 include:


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• Participation in the Certificate Program was down slightly, with 835 enrolments in 2017, compared to our record breaking number 880 enrollments in 2016. Overall enrolment is still strong over the past 5 years.

o This is a combination of CIFFA run courses and College run courses

• The e-learning on-demand delivery for the Certificate programs continues to outperform the scheduled virtual classes for the third year in a row with 232 students enrolled.

• Participation in Dangerous Goods Programs for Air, Ocean and Land, increased with 449 students enrolled compared to 402 in 2016, showing that CIFFA is the premier choice for members and non-members for Dangerous Goods training.

• The Schulich management courses had its strongest enrolment of 56 students, many of whom are students working towards their PFF designation.

This financial success allows CIFFA to invest in new training development, improved infrastructure, and the advocacy leadership that members have come to rely on, and in 2018 the focus will be on improving content and registrations in all courses with special focus on the certificate program. I am very appreciative of the continued support of our members in 2017. Being a not-for-profit association, we heavily depend on Member support to fill our programs with participants and because of that support, the CIFFA Education team is able to revise and update current programs, while developing new program offerings. For 2018, we anticipate similar participation numbers overall, as well as the continued support and growth of college institutions offering the CIFFA certificate, we expect a stable 2018. Looking Forward to 2018 CIFFA is dedicating 2018 to improving the delivery of the Certificate programs. CIFFA will also introduce a new online course in 2018. Certificate / Advanced Certificate improvements:

• Introduction of a new e-Textbook – For years CIFFA has offered printed textbooks to its students. For 2018 CIFFA has introduced a new e-Textbook app. Students can download a copy of the textbook on three devices (laptops, tablets, smart phones).

• This new app gives many advantages to the learner over traditional printed textbooks, but printed textbooks are still available for purchase. Effective in the fall of 2018, only e-textbooks will be provided to students. These e-textbooks are already successfully implemented to College partners, and with our e-learning on demand students.

• New delivery of Virtual Classes – In the Fall of 2018, the CIFFA Certificate course will alter its delivery method to improve effectiveness. The biggest change will be in making the weekly live sessions fully interactive, and grant students more time to ask questions with our amazing group of instructors.

Colleges:

• CIFFA enjoys educational partnerships with 12 Colleges in Canada who offer Supply Chain and International Business programs. We encourage our members who are looking to hire new employees to consider hiring from one of our partner schools where many students graduate with an existing CIFFA Certificate.

• In 2018 we will maintain a consistent focus on new college partnerships, and the expansion of those partnerships.

PFF Requirements: As part of the renewed emphasis on the CIFFA Professional Freight Forwarder Designation (PFF), all new PFF applicants must complete the CIFFA Schulich management program as part of the new


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requirements. For existing PFF’s these courses must be complete, or an exemption granted by January 1, 2019. Ethics Course In addition to this, an Ethics course specific to Freight Forwarders, will be provided online by CIFFA, and all PFF’s will be required to complete this short course. This course is not limited to PFF’s, and we encourage CIFFA members to offer it to their employees. We expect to launch this course in July or August of 2018. Conclusion CIFFA continues to plan and deliver initiatives that work towards our strategic imperative of “Excellence in Education”. We will continue to develop and deliver education and training initiatives of high quality that are relevant not only to our members, but to others in the international transportation, trade, logistics and supply chain industries. We will continue to develop strategic partnerships with other parties who are like-minded and who can provide benefit to CIFFA and our members. We will continue to be financially responsible. Above all, we will continue to provide value to our members. Special Thanks I am especially thankful of the support that the CIFFA National Board of Directors, under the direction of the President, Gary Vince who has provided great support to CIFFA’s education endeavors. Without their ongoing and continuing support and guidance, we would not be the success we are. CIFFA has a great education team in place to manage our education and training initiatives. Stephen McDermott Director of Education and Marketing, is focused on ensuring that members receive the most current training and education possible while continuing to innovate and provide the best possible learning alternatives. Petra Javornikova continues to thrive in her role as a program design specialist where she assists in developing and maintaining CIFFA online course offerings and ensuring all partners have what they need to successfully deliver CIFFA material. Mike Drake Program Delivery Specialist, has an integral role in executing the delivery of Certificate programs internally and at the College level. This includes his role as producer on blended e-learning courses, and in the successful launch and expansion of new college partnerships. Nasy and Sanket shoulder the co-ordination and administration duties and support our students and instructors throughout the education year. Without their dedication and diligence the CIFFA program could not run as efficiently as it does. Respectfully submitted, Paul Glionna Chair, Education

Moved by A. Loffredi

Seconded by P. Hughes


All in favour 19

Opposed 0

Abstained 0

Carried


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10. Seafreight – L. Palmer Dear members Before sharing some of the key activities that were undertaken by the committee, I would first like to define the roll of the sea freight committee Today’s international freight forwarder is equally recognized as a “carrier” when it enters into contract of carriage with shippers by issuing its own marine or multimodal bill of lading. While the distinction has created opportunities and benefits for the forwarder and their clients, it has also created challenges in the commercial and legislative arenas. Even as an agent, the roll of an international freight forwarder as a professional offering services for a fee has taken on a level of responsibility and liability far exceeding that which was envisioned in the past. The seafreight committee is mandated to promote the interest of membership and enlighten them on matters of concern. The seafreight committee is comprised of members from firms from across Canada. Now I would like to share with you some of the key activities from the past year. 180312 CIFFA wrote a Letter to Minister of Transport on Intermodal Congestion: Asking the government Of Canada to take action following a year of deteriorating performance across the country. CIFFA posted a similar letter and asked Members to submit their input. 23 letters came to CIFFA. Examples of some of the issues were - August - Severe congestion at CN rail across Canada that caused dray operators to introduce new Fees such as waiting time, - Sept - Prince Rupert rail expansion that caused dwell times to spike from 2-3 days to weeks, - Oct - On dock dwell at all West coast terminals in some cases increased to weeks - Jan – increased gate times at the port of Montreal resulting in dray companies introducing wait time. The minister wrote back to say that he recognizes the quality of the transportation infrastructure and the efficiency of our trade corridors are key to the success of Canadian firms in the Global market. A total of 2 billion over 11 years has been allocated under the National Trade corridors Fund ( NTCF) program to improve the transportation network. The Port of Prince Rupert recognized our concerns and advised they would be working together with CN on a recovery plan to improve dwell. They also supported the call for renewed focus on gateway strategies in Canada. Strike deadline at CP Rail

- Letter was sent to Ministers ( Hajdu Minister of employment, , Garneau, Minister of Transport,

Champagne, Minister of Trade and Bains Minister of Innovation ) urging the Government to take

necessary action to keep the railroad operating.

CN RAIL: After voicing our concerns to CN about lengthy delays at terminals,

- Received a response from JJ Ruest President and Chief executive officer at CN recognizing the

challenges and sharing actions being taken to improve dwell time at west coast terminal and

measures being taken to ensure truckers get in and out of the terminals quickly. The target is to

turn trucks around in 45 minutes.

- Cn have been proactive since the New Year in reaching out to CIFFA with various information

and updates.

- CN held two forwarder receptions; increasing its outreach to the forwarding community. The aim

is for more transparency ahead as its infrastructure investments go forward.


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Container Examination Cost Survey:

- May 2018 CIFFA launches annual request for data on Container Exam demurrage costs:

container release an ongoing issue again in 2018. New marine CEF at Vancouver costing $30

million should be up and operational by Q1 2019.

Examples for All Canadian ports are welcome. GCT reservation System GCT Canada introduced a pilot program to improve gateway efficiency through the normalization of truck gate fees. The program is to commence on June 1 at GCT Vanterm and Deltaport and last until Dec 31, 2018. On May 9 CIFFA sent a request to have GCT reconsider their pilot program. CARGO M CIFFA has asked Cargo M to have a CIFFA member on its board of directors which would increase collaboration between organizations. A Cargo M board member was asked to join our committee to report on cargo M. This is just a brief representation of the key items the committee worked on throughout the year. In conclusion I would like to thank the Seafreight Committee for their involvement and support In addressing the concerns of our industry on behalf of its members. Larry Palmer, UPS SCS (Montreal) (Chairperson) Michael Long, Carson International (Vancouver) Kimberley Gallacher, Delmar International Inc (Toronto) Karl-Heinz Legler, Rutherford Global Logistics (Montreal) Gavin Magrath, Legal Counsel for CIFFA (Toronto) Respectively submitted. Larry Palmer Oceanfreight Committee Chair

Moved by L. Palmer



All in favour 19

Opposed 0

Abstained 0

Carried

11. Airfreight – W. Gottlieb Dear Fellow CIFFA Members, Thank you for the opportunity to report on the various activities of your Airfreight Committee. Air Cargo Security program CIFFA continues to participate in various Transport Canada meetings on air cargo security. Unfortunately, the new regulations which took effect in October 2016 removed from the program, unwisely in the view of the Airfreight Committee, those forwarders who did not physically handle or screen air cargo, including ACA training requirements. In CIFFA’s view this is ridiculous, as air cargo security is a basic security and safety program which needs to be inclusive of the entire air cargo supply chain. We are heartened that there are some within Transport Canada who would like to see the majority of the


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forwarding industry back into the program, ending the current policy which marginalizes and disenfranchises freight forwarders. We glad to see that our government is moving towards allowing canine screening, and we have been advised of a timeline which would have initial certification of Explosives Detection Dog and Handler Teams (EDDHT) in the fall of 2019. Another government initiative which is ongoing, the 100% screening of All-Cargo Carriers both International and Transborder operators. Transport Canada plans to implement screening requirements by 2021. Requiring cargo to be secured using an approved Transport Canada screening method. eAWB Penetration Canada Update Another standard feature of the Airfreight Committee report is the status of eAWB penetration. IATA reports that the current penetration is about 53% globally (April 2018 figures) and the target set for the end of 2018 is 68%. Canada who ranks 17 among countries has a penetration of 50%. CIFFA encourages its members who have yet to adopt the e-AWB, to seriously consider the enhanced efficiency it provides its users. IATA DG Autocheck IATA is rolling out a software with has the potential to change the way forwarders handle HAZMAT by air. DG AutoCheck checks the compliance of the Shipper’s Declaration for Dangerous Goods (DGD) against relevant rules and regulations contained in the IATA Dangerous Goods Regulations / ICAO Technical Instructions Manual. It has Optical Character Recognition (OCR) technology to transform a paper DGD into electronic data. This data is then processed and verified automatically using this software. AutoCheck will also provide a pictorial representation of the package with the marking and labelling required for air transport. While no pricing for the software has yet to be made public, we hope that IATA will see the benefit in providing this at a low cost to ensure the broadest possible usage by forwarders, which in turn will save IATA member airlines considerable time, money and resources in undertaking compliance checks on Dangerous Goods shipments. CIFFA and FIATA will be monitoring the roll-out of this software, in part to judge its acceptance in the air cargo supply chain, and consideration of its impact on training rules which currently are based only on the manual processing of DGR shipments.

Ground Handlers Survey Airfreight’s brand is speed, and while the world’s airlines move cargo at upwards of 600 miles per hour from airport to airport, once the cargo is on the ground little consideration is given to its efficient handling, leading for example to bottlenecks and delays at GHA facilities, who are squeezed on price by the carriers, and must cut back on services. CIFFA wants to provide a mechanism for its members to monitor the level of service provided at our major airports by the various ground handlers, be they airline or GHA operated. We hope through this means, we can reach out to this segment of the supply chain and constructively identify areas where improvement is needed, with the goal of speeding up the efficient flow of cargo while on the ground. The survey is currently under construction and we hope to be able to test it with our members shortly.

CASS Update - Late Remittance Fee IATA continues to fine tune their Cargo Accounts Collection System – code for always seeking more ways to protect the interest and pocket book of IATA member airlines, at the expense of the forwarder.


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In July 2017 IATA members collectively agreed to introduce globally a Late Remittance Fee of US$ 125 + Interest, on any forwarder who fails to pay their CASS statement in full and on time. For over three decades no such fee was ever considered, but airlines recently cried that it was costing them .00001 percent of the CASS turnover to ensure all airlines were paid in time and in full, even if a forwarder had not paid in full and on time. When the forwarder advocates suggested that perhaps airlines should not expect to be paid in full and on time when a forwarder has not remitted in full or on time, the response was, based on our (read airlines) rules this is not possible. So the forwarder needs to pay. This Fee was introduced in Canada, however CIFFA then reminded IATA that under IATA’s own rules such a change cannot be introduced in Canada without forwarder agreement at a duly convened Canadian Air Cargo Program Joint Council. IATA has rescinded this fee in Canada, and promised to return any monies collected since 2017 from Canadian forwarders. Meanwhile the CACPJC will meet in the coming months, and this item will be on its agenda.

CASS Update – New Global Model for CASS Associates In March 2018, despite a recommendation to the contrary by the airlines and forwarders composing the IATA FIATA Consultative Committee, IATA members collectively agreed to introduce globally a New Model for CASS Associates. Canada it should be noted, has the second highest number of CASS Associates 457 companies out of a total 4537. This new model starts a process in January 2019, to require CASS Associates to provide Financial Security to IATA to guarantee 100% of the forwarders 60- 70 day average outstanding. Depending on how the new model is rolled-out, the amount of financial guarantees which forwarders would have to pay for, could exceed US$500 million dollars, which is 370 times the amount of airline unrecovered sales, in 2016. If this is not taking a sledge hammer to kill an ant, I don’t know what is. CIFFA will be expecting this issue to also come before the Canadian Air Cargo Program Joint Council, later this summer. CASS Update – 2017 CASS Settlement and Unrecovered - Canada CIFFA and FIATA continue to dialogue with IATA, seeking to ensure that all parties recognize the historical low credit risk of Canada’s IATA accredited forwarders. CASS settlements 2017 - USD 263 million 2016 - USD 230 million CASS defaults unrecovered 2017 - USD 144,869.00 2016 - USD 4,465.00 Percent of settlement unrecovered 0.00055% 0.00002% Status IATA FIATA Air Cargo Program (IFACP) Last year at this time we were very optimistic that Canada would have a successful roll-out of the IATA FIATA Air Cargo Program (IFACP). In fact by late November 2017, 80% of the current IATA accredited forwarders signed the new agreement and the IFACP was to be fully implemented. However, the airlines noting that 5 of the top 10 multi-nationals had not signed, and requested that the Canadian roll-out be suspended. This is currently the status of the IFACP. Discussions are ongoing to resolve the issues which were raised during the Canadian implementation, and we hope that further positive information will be relayed to our membership and the 110 IATA accredited forwarders soon.


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In closing I would be remiss not taking a moment to thank the CIFFA Secretariat and our membership, who have allowed their staff to volunteer their time and talents, making my job as Airfreight Committee Chair an easy one. Marc Bibeau OEC Group, Montreal Jeff Cullen Rodair, Toronto Bill Gottlieb ITN Logistics, Montreal Niki Layonis Gillespie-Munro, Montreal Mike Buckley Cargolution, Montreal Richard Gervais Axxess International, Montreal Kathy Teune DHL Global Forwarding, Toronto Gavin Magrath CIFFA Legal Counsel Ruth Snowden CIFFA Julia Kuzeljevich CIFFA Respectfully submitted Bill Gottlieb – Chair

Moved by B. Gottlieb



All in favour 19

Opposed 0

Abstained 0

Carried

12. Customs – P. Hughes Dear fellow CIFFA Members, This has been another active year for the Customs Committee, and also CIFFA’s ever-increasing interaction with the Canada Border Services Agency (CBSA) in many diverse program areas. Once again eHBL and its full implementation continue to remain our biggest concern, as it has since the original announced start date of July 1, 2014! CIFFA has cultivated an exceptionally strong relationship with CBSA senior management over the last several years. Various program areas within CBSA have benefited enormously from the feedback provided by CIFFA members, through both CBSA committee meetings and the eHBL webinars. In the process CBSA has learned more about the tasks and details Freight Forwarders must take into consideration on a daily basis to successfully move cargo and be compliant on a client’s behalf. On that note, CBSA made a major change last year under the new CBSA Commercial Stakeholder Engagement Model, to strengthen their business relationships with stakeholder groups. The BCCC (Border Commercial Consultative Committee) has been replaced with three new BCCC Committees, with each Committee comprised of several Working Groups:

• Policy and Projects Committee, focused on upcoming program changes

• Commercial & Operations Committee, focused on commercial program operational issues

• Trade & Recourse Committee, focused on policies, program plans and tools for CBSA’s trade compliance and recourse programs.


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These working groups are targeted to address specific issues that can meet a 6 month or shorter deliverable time frame (where possible), and report progress back to their respective BCCC Committee (continuing to meet twice a year). The main thrust of this new approach is to provide CBSA with increased success and a quicker turnaround on program & policy changes (where possible). Due to this expanded CBSA Stakeholder Engagement Model, there is an increased need for volunteers and CIFFA has reached out over the last year to members with particular expertise / subject knowledge of the issues at hand to participate on these Working Groups. CIFFA is well represented in these Working Groups, where there is a direct impact to CIFFA members’ business, by a combination of regular members and / or committee members and the CIFFA National office. At the end of this report is a listing of the CIFFA representatives on these BCCC Committees and Working Groups. Over the course of the last year there have been various meetings with CBSA (in person or webinars) on the major topics listed below. eHBL (Policy and Projects Committee) As noted in last year’s AGM report, system issues will continue to be the major impediment to eHBL success. This was highlighted by the CBSA announcement last July requesting freight forwarders to suspend the eHBL transmission of single shipments (back to back shipments) on goods destined for release at a primary warehouse. CIFFA has had separate meetings last year with both the BC Chamber of Shipping and the Shipping Federation of Canada, to identify and review open issues and challenges the ocean carriers are facing under eHBL. CIFFA and CBSA have had numerous meetings since June of last year, discussing the revised plan for eHBL roll-out. The CIFFA Customs Committee and CBSA reviewed the CBSA planned system changes over three separate webinars. These changes will be rolled out in two phases:

• Phase 1, tentatively due for release late fall 2018, primarily addressing validation rule changes on the allowable movement types under eHBL within a consolidation

• Phase 2, tentatively due for release either late Q1 or Q2 2019, with the balance of the major system changes, including allowing customs release on back to back single shipments at primary terminals, and also rules to allow customs release where a buyer’s consolidation is involved.

These system changes will address many of the open issues under eHBL, however there remain a number of open issues, requiring CBSA policy updates, with clear communication and education of the trade chain partners. The main ones are listed below:

• Terminals and warehouses (Air & Ocean) are still not subscribed to receive the CBSA eManifest Responses and D4 Notices:

o Warehouses are uncertain on their requirements for arriving cargo in their facilities; particularly where there is more than one freight forwarder involved in a container:

o A warehouse will send a WACM (Conveyance Arrival Certification Message) for the master loader HBLs, without sending a WACM for the other forwarders’ HBL; they rely on receiving the Customs RNS (Release Notice) to allow the cargo to leave their facility.

• Timing of Conveyance Arrival Certification Messages (CACM) by marine carriers; clear understanding by marine terminals in the timing of WACM messaging on arriving cargo

• Cargo discharging at US ports and then in-transit to Canada via truck or rail

• Flying trucks and a clear process to be followed by carriers and Air Ground Handlers Time Frames for Release of Commercial Goods (Policy and Projects Committee)


16

This CBSA initiative has a major impact on freight forwarders responsible for delivery on FCL cargo customs cleared at a primary rail terminal. The start date for these new time frames will coincide with the revised start date of eHBL. In December 2013 CBSA requested comments on a draft Customs Notice on this subject. After review of the impact, several associations (CIFFA, CSCB, Air Canada, AICBA, the Chamber of Shipping BC, and the Canadian Chamber of Commerce) issued a joint letter to CBSA outlining the shared concerns to this change. In particular in the marine mode, an extra day of storage incurred on 150,000 containers (as an example) would result in an additional $15 million in costs incurred, with a significant increase if goods arrive on an evening or weekend. CBSA has been unmoved by all arguments presented, as they say it will level the playing field for all parties, without recognizing the additional financial burden to all Canadian consumers. Rail terminals today only allow pick-up reservations to be made once the cargo is Customs released. Free time is 24 hours from cargo arrival at the terminal. Effectively this change will only allow customs release of cargo upon a Warehouse Arrival Certification Message (WACM) sent by the terminal upon cargo arrival at their facility. CBSA Montreal Operations (Commercial & Operations Committee) This has been an ongoing issue annually in Montreal during the summer months and over the Christmas holidays, affecting de-consolidation manifests; cargo re-manifests and abstract manifest processing. Over the last year this has mushroomed significantly where delays of several days have become common at the Montreal Long Room. The Customs Committee members based in Montreal have kept a close eye on this, advising the CIFFA National office, who has addressed this issue numerous times directly with CBSA Montreal, with limited results. CBSA has mentioned resources are being diverted to process the refugees crossing at the Quebec border. It became one of the major points addressed within a Working Group under the new Committee framework. It has taken a lot of dialogue between CIFFA and the local CBSA Long Room and this Working Group, and has finally resulted in a very reasonable turn-around time for this paper processing. Export Reporting (Policy and Projects Committee) After languishing as a BCCC Sub-Committee for the last couple of years due to lack of funding, CBSA now has the funding and has allocated the necessary resources. The main topics being addressed by this Working Group:

• Export Regulatory Amendments, including paper-based reporting; Definition of Exporter; and changes to the Summary Reporting program;

• CAED replacement scheduled for implementation in January 2020, known as CERS (Canadian Export Reporting System). CERS is a web-based, self-service portal, for the electronic reporting of export declarations, including Summary Reports.

Customs Committee Our Customs Committee has had six conference call meetings over the course of the last year. We have a very strong group of committed individuals addressing CBSA-related issues, with a major focus on eHBL issues.


17

I would like to thank the member firms for allowing their staff for their valuable time and dedication in addressing the concerns of our industry, and making my role as chair easier. I wish to acknowledge and thank everyone on this committee. Paul Courtney, Courtney Agencies Ltd. (Vancouver) Gillian Chang, Livingston International Inc. (Toronto) Naomi Yamanaka, Kintetsu World Express (Canada) Inc. (Mississauga) Luc Proulx, Delmar International (Montreal) Ted Chazin, Milgram International Shipping (Montreal) Wayne Bibeau, OEC Group (Montreal) Julia Kuzeljevich / CIFFA Toronto Ruth Snowden / CIFFA Toronto In closing I would also take a moment to thank the CIFFA Secretariat and my fellow Board Directors for their support throughout the year. Respectfully submitted, Paul Hughes Chair, National Customs Committee BCCC Committees / Working Groups & CIFFA Representatives Policy and Projects Committee

• Ruth Snowden (CIFFA)

• Paul Hughes (Agility) Working Groups eCommerce

• Ruth Snowden (CIFFA) Export Reporting

• Chris Gillespie (Gillespie Munro)

• Karl Heinz Legler (Rutherforfd Logistics)

• Kimberly Gallacher (Delmar)

• Julia Kuzeljevich (CIFFA) eManifest Freight Forwarder Implications


• CIFFA Customs Committee Trusted Trader Improvements

• Paul Hughes (Agility) Commercial & Operations Committee


• Paul Hughes (Agility)


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Working Groups Maritime Working Group: Container flows and exam costs; supply chain analysis at multiple Sea Ports

• Ruth Snowden (CIFFA) Manual Operations: cash entries, date stamping, manifest stamping, receipt of cash, c-type entries, general entry accounting, and system outages

• Ted Chazin (Milgram) Trade & Recourse Committee

• CIFFA representation currently not required. This Committee also has no Working Groups

Moved by P. Lobas

Seconded by P. Courtney


All in favour 19

Opposed 0

Abstained 0

Carried

13. Membership – P. Lobas Membership Statistics 2016 2017 2018 Regular members 246 249 246 Associate members 139 143 133

Regular members retention rate is high and stable (95% this year, vs. 96% last year). Associate members retention rate has declined (85% vs 91% last year due to mergers and changes in ocean carrier market.


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The following companies joined the Association since January 1, 2018: Regular

• Trinity Logistics

• Great Circle International Inc.

• ICNT Logistics Inc.

• Coast Logistics Associate

Professional Freight Forwarder designation (PFF) Effective January 2017 new PFF requirements were implemented. These changes provided a variety of enhancements to benefit our members and greater distinction to the already prestigious PFF designation. Since then 68 have met the new requirements (by exemption or completion of management curriculum) and 18 are expected to complete the required training by January 1, 2019. CareerConnect. Enhancing Membership Value In response to members’ requests CIFFA launched its own job portal in September 2017. CareerConnect has been customized for CIFFA members and for the industry's specific requirements. The portal focuses on global logistics services providers and will offer a broad scope of available job candidates. All CIFFA members -- both freight forwarding and associate member firms -- will be able to post jobs for free. Non-members are also welcome to post jobs, for a competitive fee. Our connection to college networks ensures that job posters are hiring the best and the brightest, including CIFFA-trained grads boasting skills and expertise at any level required in an organization.

Company Name Category

CANdata Systems IT/Software/eCommerce

INTTRA IT/Software/eCommerce

TechBlocks Inc. IT/Software/eCommerce

Allegheny County Airport Authority Port Authorities

Canadian Alliance Terminals Trucking/Warehousing

L3 Wescam Other (Aerospace & Defense)

Sum Trade Corp. Other (Import/Export, Agriculture)

K+S Potash Canada GP Other (Mining)

A.S.P Security Services Inc. Security

http://r20.rs6.net/tn.jsp?f=0013oRsZ9XnEhiYMhi8e0Y3FGrkODUTrbpqVTjVNAM7pL3ydvyw7H0CQqbQYrIhgVJnPXCQcRD8oA7W3LgQhmTUNYOHowvfu7dLaCK9RKxCi9VVlsgMHkrlNdR1bou5i_fMdMGOHxflifk7bqsycq8E_svd02HBAqBtcE8RTF31hl0g4UdmQKP6i0XaQEf2UwaIHx5_l4pWkyWqnRr-dWbI9NOqmU4a6D4i&c=ssN9y_y-U8MZzO5RjAb4vm95791iG5KMdkZfhZKNMTeT5akpLY4EqA==&ch=fSlGo5uykghNn2CJEPMUDfk4qrjgGx2chkHSDhxOAlWmLXdpTaB9Eg==


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Job seekers will also have access to the leading employers in the supply chain industry, in a wide range of positions. Jobs will be searchable by type, location and employer, and job seekers will find it easy to manage their application history and receive job alerts. Since the launch there has been considerable interest in the portal both from job seekers and job posters: 192 jobs and 172 resumes have been posted. Through its extensive advocacy efforts CIFFA continues to be the Voice of Freight Forwarding in Canada. Thousands of hours are spent making sure our interests are heard both nationally and internationally by Government, NGO's, at Conventions, Carriers, IATA and FIATA. In addition to the above CIFFA continues to provide its members with guidance in 5 distinct areas, Airfreight, Ocean Freight, Customs, Security and Education. As we move on to a new year CIFFA will continue its efforts to represent its members at the highest level of professionalism and to deliver the value of membership that CIFFA members have come to expect. Respectfully Submitted by Paul Lobas Secretary Membership Chair




All in favour 27

Opposed 0

Abstained 0

Carried

14. By Laws – E. Carr (nothing to report)

15. Ethics & Standards – L. Palmer (nothing to report) 16. FIATA - M. Bibeau (as posted)

Dear National Board of Directors, It has been a relatively quiet year on the FIATA-IATA front and the politics of the IFACP. The program did not move as planned and as you are aware the launch in Canada has been suspended until further notice. I did not participate in the FIATA headquarter meetings this past March. Ruth will cover the developments in her report. I have been very busy working on other initiatives involving carrier relationships, the ports, the Transpacific Maritime Conference and assisting CIFFA with the Ocean Freight Chair on different strategic projects. I look forward to a more dynamic year with FIATA following the October world congress in India. In closing, I would like to thank Ruth and the office for their dedication, support and relentless efforts in making CIFFA one of the industry leading associations, worldwide.


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I would also like to give special thanks to the Board for their contribution and continuous efforts. This concludes my report. Respectfully submitted, Marc Bibeau CIFFA Director FIATA Vice President

Regional Reports

a) Eastern – A. Loffredi Dear Members: I would like to take this opportunity to personally thank all the Member employees that sit on the Eastern Region Committee, without whom our social events could not be as successful as they are today. Ellen Kumpic- DHL Global Forwarding (Canada) Inc. Maureen Samit- Rodair International Emmanuelle Etur - Air Canada Lana Belysheva Bayer- Expeditors Karisa-Dawn Machika - Expeditors Brian Gottlieb- ITN Logistics Group Carlo Plescia- Overseas Express Consolidators (Montreal) Inc. FCA Eastern Region would like to thank the Members and sponsors in Montreal for their continued support for the FCA events. As I write this report, we are at 290 guests’ and have a great evening planned to celebrate CIFFA’s 70TH Anniversary. GOLF Sept. 21, 2018 – We will start to work on this event right after the FCA and registration should be on our sight by end of June. We will be returning at the beautiful Elmridge Golf Course. CIFFA Bowling for KIDZ Summer Camp 2017 – May 10, 2018 We had to postpone this event that was originally scheduled for May 3rd due to a few conflicts that our regular supporters were unable to attend. We had 128 bowlers and 130 people attending our event. We raised $2413.00 for the dancers that are part of EXTRAVADANZA which have performed at the FCA last year and will be back thius year to help us celebrate our 70TH Anniversary. Respectfully submitted,

Angelo Loffredi Eastern Committee Chair




All in favour 19

Opposed 0

Abstained 0

Carried


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b) Central – E. Carr (as posted)

Dear Members, June 1st, 2018. 2018 members of CIFFA Central Region consist of:

Edna Carr Central Chair Trade Link International Ltd Paul Glionna Universal Logistics Inc. Amit Arora Convoy Logistics Providers Ltd. Joe Chan Rutherford Global Logistics Jaime Parker Niccols Jas Forwarding Worldwide Wendy Trudeau Vania Gava Marsh Canada Limited Tom McGinn Coast Underwriters Ltd. Ana Da Cunha Gillship Navigation Inc. Hakob (Jake) Amso Freight Partners International Inc. Jodie Wilson Rodair International.

Special thank you to all Member firms who allow these people to give their valuable time to the Region and the Association. FCA Mississauga Convention Centre, Thursday April 12th, 2018. Event theme evolved around CIFFA’s 70th Anniversary / Birthday. Total in attendance 421. Fun evening with live performance by New Hollywood, Pyro lighting, Balloons, Candy Station, Popcorns machine, 3 Caricatures artists and $2000.00 cash total door prizes. Great giveaway with CIFFA luggage wraps. Congratulations to Lucia Pinheiro from Damco for Donna Letterio’s Leadership Award Congratulations to Associate members for their years of service at various levels. Congratulations to Kendyl Baptiste, Bollore Logistics Canada Inc. for YIFFA Award. Congratulations to all Professional Freight Forwarder (PFF) Recognition Thursday May 16th, 2019 shall be our next Central FCA event along with our Annual General Meeting and Board Meeting. And a special thank you to our National and Event Sponsors. Event Sponsors Gold Plus Techblocks Gold Arthur J. Gallagher Canada Limited, formerly The CG&B Group Gillship Navigation. LCL Navigation Ltd. Marsh Canada Limited MELLOHAWK Logistics Inc. Odyssey Shipping Ltd. Rodair International Silver COSCO SHIPPING Lines Canada Inc. Shipco Transport (Canada) Inc. Bronze Dangerous Goods Packing Services Inc. Inttra Magrath's International Legal Counsel North American Crating Inc. Overseas Express Consolidators (Montreal) Inc.


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TriOS College A special thank you to CIFFA team for our event sponsors. GOLF September 14th, 2017, Central team hosted and enjoyed a very successful tournament held at Cardinal Redcrest Golf Tournament. Total 135 players, we played the 18-hole course. Weather and food were fantastic. Overall feedback was a great event. September 13th, 2018 is schedule for another memorable event at Cardinal Redcrest Golf Tournament. Respectively submitted, Edna Carr. Central Committee Chair

c) Western – P. Courtney (As Posted)

First of all, a big thank you goes to our members for their continued trust in allowing me to continue to serve as their Western Region chair. My primary role over the last year has been to oversee our successful social events that include our golf tournament, our ‘Forwarders Carriers and Associates’ (FCA) event, our Xmas luncheon and our Spring Thaw event. We continue to hold our FCA and Spring event at the beautiful Four Seasons Hotel in downtown Vancouver and even though attendance has been a little flat year over year, we are optimistic for bigger and better things in the coming year. We have strived to create a different committee structure over the past year. The idea is to create a sub-committee for each individual event. I believe this will help to rejuvenate our events, bring in new ideas and increase member involvement overall. However, it is a work in progress as we work to bring in new committee members. In addition to ensuring that our networking events remain successful, the committee and I get the opportunity to represent CIFFA in many other ways. Some of those include;

• The Port of Vancouver (POV) Board Nominating Committee - I continue to represent the CIFFA on the PoV Nominating Committee. This is an ongoing commitment to ensure a continual renewal of the PoV board. I also had the opportunity to serve on the interview sub-committee this year.

• The CIFFA Western Graduation Event in June that provides the opportunity to meet and congratulate the graduates in our region and specifically those students with top marks.

Our local committee continues to be stable, strong and active. Without the commitment of our committee members, our events would not be what they are so a huge thank you goes to the following individuals and their companies:

Name

Company

Primary Responsibility

Paul Courtney Courtney Agencies Ltd Chair Michael McKay Rutherford Global Logistics Vice Chair, Spring Thaw Chair and

Xmas Luncheon Chair Jeff Haley Rodair FCA Chair Nicole Rozinbaum ITN Logistics Golf Chair Martin Bertrand Simard Social Ken Chau Fraser Surrey Docks Social Gary Schoen Bronco Transportation Spring Thaw committee

Respectively submitted, Paul Courtney. Western Committee Chair


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17. Election of National Board of Directors – B. Rodgers The following four directors have one year remaining on their two-year term: Marc Bibeau, OEC Overseas Express (Canada) Consolidators Inc., Montreal

Gary Vince, DHL Global Forwarding, Toronto

Bruce Rodgers, Vandergrift, Toronto

Troy Cowen, Maltacourt (Canada) Ltd., Toronto The following three regional directors have one year remaining on their two-year term: Eastern Region Director: Angelo Loffredi, Traffic Tech International Inc., Montreal

Central Region Director: Edna Carr, Trade Link International, Toronto Western Region Director: Paul Courtney, Courtney Agencies Ltd., Vancouver

There are 8 seats open for election: 6 two-year term seats 2 one-year term seats The following five Directors will complete their two-year term and have agreed to stand for re-election to another two-year term:

- Paul Hughes, Agility Logistics, Co., Montreal - Paul Glionna, Universal Logistics Inc., Toronto - Arnon Melo, MELLOHAWK logistics, Toronto - Paul Lobas, ITN Logistics Group, Calgary - Larry Palmer, UPS Supply Chain Solutions, Montrea

The secretariat has received the following nominations:

- Barry Murphy, Country Manager – Canada, BDP International, Inc., Toronto - Karl-Heinz Legler, GM, Rutherford Global Logistics, Montreal - Mark Banfield, President, FMC International, Edmonton - Flavia Iuston-Blair, Country Head of Human Resources Canada, Panalpina, Toronto - Kurtis Hinz, President, TAM International, Saskatoon

After counting votes, B. Rodgers announced the election of the following Directors: Paul Glionna, Universal Logistics Inc., Toronto, Paul Hughes, Agility Logistics, Co., Montreal, Flavia Iuston-Blair, Country Head of Human Resources Canada, Panalpina, Toronto, Karl-Heinz Legler, GM, Rutherford Global Logistics, Montreal, Paul Lobas, ITN Logistics Group, Calgary, Barry Murphy, Country Manager – Canada, BDP International, Inc., Toronto, Arnon Melo, MELLOHAWK logistics, Toronto, and Larry Palmer, UPS Supply Chain Solutions, Montreal.


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18. Appointment of Auditors

B. Rodgers moved to appoint RSM Toronto LLP, Chartered Accountants as the Auditors for the fiscal year 2018 at remuneration to be fixed by the Board of Directors.

Moved by B. Rodgers

Seconded by T. Cowen


All in favour 19

Opposed 0

Abstained 0

Carried

19. 70th Annual General Meeting – April 2019 in Toronto

20. Adjournment of AGM

There being no further business, this meeting was adjourned at 4:30 pm.


Seconded by E. Carr


All in favour 19

Opposed 0

Abstained 0

Carried

Recorded by: A. Loginova, Office Manager/Recording Secretary Posted on CIFFA website: June 2018

Documents

Canadian International Freight Forwarders Association Inc · forwarder perspective, innovation has not really been adopted as I would have hoped, nor has it been adopted by the supply