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Trade News

Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.

 

Canada facing intermodal challenges

Monday, January 29, 2018 > 09:28:55
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Lloyd's Loading List

Increasing regulation and a shortage of trucks is causing slowdowns in Canada’s intermodal supply chain, according to Hapag-Lloyd.

In a note to customers, the German carrier warns that Canada’s domestic and international trucking industries are facing challenges that are having a dramatic effect on truck availability.

These challenges include regulations on electronic log devices in the US, infrastructure weakness and congestion, a shortage of drivers and increasing costs of operation.

For beneficial cargo owners, the problems are being compounded by high service demand for hazardous, reefer and other specialist cargo. The situation is exacerbated by limited free time at US and Canadian rail depots.

“All of these challenges make on-time door deliveries increasingly difficult, increase the risk of demurrage, detention, storage and dry run charges for the account of the cargo and exert continuing upward pressure on drayage rates,” Hapag-Lloyd said.

The carrier was being forced to make improvements to schedules to avoid bunching of vessel arrivals. It wants to improve schedule data flow and container volume information to truckers in advance of arrivals.

Hapag-Lloyd is advising customers to take advantage of customs clearance at the port of entry and avoid using rail while goods are still bonded.

At the same time, it advises establishing flexible receiving times for cargo and warns that customers should “understand the impact of government regulations to your delivery expectations”.


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