A blue and red background with a Canadian maple leaf and the text overlay says "CARM - CBSA Assessment and Revenue Management"

CARM: New Canada Importation System Starting May 2024

Karolina Mazur Featured, News, Uncategorized

On May 13th, 2024, the CARM (CBSA Assessment and Revenue Management) digital system will become the office system of record that importers and other trade chain partners will use to pay import duties and taxes. If you have not registered, please get in touch with sales@canaangroup.ca immediately since there is a potential waiting list for the April 30th, 2024 deadline. Note that the CARM Portal will not be available in the first two weeks of May. 

What is CARM? 

CARM stands for the CBSA Assessment and Revenue Management program. It is a new initiative by the Canada Border Services Agency (CBSA) that aims to modernize and streamline the process of importing goods into Canada. CARM will introduce a new electronic portal for importers and customs brokers to submit their trade data, process payments, and manage their accounts with the CBSA. The system will provide more transparency and accuracy in assessing and collecting duties and taxes and improve compliance with customs regulations. CARM will also introduce new risk assessment tools and features to enhance trade security, reduce processing times, and increase customs clearance efficiency.

Do I have to sign up for CARM? 

As a business that imports goods into Canada, you must register for the Canada Border Services Agency’s (CBSA) Assessment and Revenue Management (CARM) system. CARM is a new system designed to modernize how the CBSA processes import/export data and collects revenue on goods entering Canada. You can register yourself or ask your Canaan sales representative to assist you.

Who does CARM apply to? 

CARM, or the CBSA Assessment and Revenue Management project, applies to businesses and individuals who import goods into Canada. This includes importers, customs brokers, freight forwarders, and carriers transporting goods across the Canadian border.

Do I need a Canadian customs bond for CARM? 

Yes, you do need a Canadian customs bond to participate in CARM. The bond is a financial guarantee that you will pay any fees or penalties that may be assessed by the Canada Border Services Agency (CBSA) for non-compliance with Canadian customs regulations. A customs bond can be obtained through a licensed customs broker such as Canaan Transport Group or a surety company that provides bonding services. The bond amount will depend on your business type and the value and volume of the imported goods into Canada.

If you have further questions, please get in touch with Canaan Group sales or email sales@canaangroup.ca.

Three people on a red backdrop sitting on the stage of the TPM 2024 - Transpacific Maritime Conference

Elevating Insights from TPM 2024

Karolina Mazur Events, Featured, News, Uncategorized

As we navigate through the uncertainties marking the end of the first quarter of 2024, the supply chain landscape presents a myriad of challenges and changes. At the heart of staying ahead in this dynamic environment is the annual Transpacific Maritime (TPM) Conference, a pivotal gathering in March 2024 that drew industry leaders, including the management team from Canaan Group, into insightful discussions about the future of shipping and logistics. Here, we distill the essence of the conference, encapsulating our key takeaways into three transformative insights: Global Supply, Gemini Service, and the Go-Green Initiative.

Global Supply Dynamics: Navigating Uncertain Seas

The unveiling of new container ships over the next 3-4 years casts a shadow of uncertainty over supply-demand dynamics, particularly in light of the disruptive Red Sea Attacks, which have curtailed capacity by 8% to 16%. Coupled with the International Maritime Organization’s (IMO) stringent decarbonization mandates, the industry faces a scenario where older vessels are more likely to be decommissioned than redeployed, signalling a future marked by rate volatility. These shifts underscore the critical need for agility in responding to an evolving maritime landscape.

Gemini Service: Charting a New Course

The buzz at TPM 2024 centred around the anticipated Gemini Service, a groundbreaking collaboration between Hapag Lloyd and Maersk set to commence in February 2025. This venture, which represents 22% of global container capacity, promises a hub-and-spoke model to enhance service reliability through reduced port calls. Yet, its inception may disrupt the current equilibrium within “THE Alliance,” sparking discussions on potential carrier realignments. For shippers, the imperative to adopt a diversified carrier strategy has never been more apparent as a means to cushion against service disruptions.

The Go-Green Imperative: Steering Towards Sustainability

Under the stewardship of the IMO, the maritime sector is steering towards a sustainable horizon, with ambitious targets to slash CO2 emissions by at least 40% by 2030. The pivot towards alternative fuels such as methanol and LNG emerges as a pivotal strategy, with shipping lines at the forefront of this transition. However, this green evolution comes with cost implications that are likely to ripple through to BCOs and NVOCCs. Moreover, adopting slow steaming practices as a norm underscores a commitment to environmental stewardship and hints at longer transit times ahead.

As we reflect on the insights garnered from TPM 2024, it’s evident that the path forward requires a blend of strategic foresight, adaptability, and a concerted effort toward sustainability. For Canaan Group and our esteemed clients, these insights prepare us for the challenges ahead and open avenues for innovation and resilience in the ever-evolving tapestry of global supply chain management.

If you have further questions, please get in touch with Canaan Group sales or email sales@canaangroup.ca.

An image of a rail yard like CN rail or CPKC. The rail yard is empty and not busy due to the CN rail and CPKC possible strike or lockout.

How To Prepare In the Event of a Possible Strike or Lockout at CN and CPKC in May 2024

Karolina Mazur Featured, News, Uncategorized

The union representing nearly 9,300 workers at Canada’s largest rail operators, CN and CPKC, faces a potential work stoppage due to stalled negotiations over working conditions and wage increases. Teamsters Canada, led by François Laporte, accuses both rail companies of wanting to remove essential safety-critical rest provisions from collective agreements, which are crucial for combating crew fatigue and ensuring public safety. Despite seeking a negotiated settlement, the union finds the companies’ demands unacceptable.

CN and CPKC filed notices of dispute in late February 2024, marking the beginning of a process that could lead to a strike or lockout by early May. The union claims that the railroads prioritize profits over the well-being of supply chains, farmers, or small businesses and are prepared to force a work stoppage to meet their goals.

The dispute involves 6,000 CN workers and 3,200 CPKC workers in Canada, covering conductors, engineers, and yard workers, plus around 80 rail traffic controllers represented by TCRC’s Rail Canada Traffic Controllers division. The current collective bargaining agreements expired on December 31st, 2023.

Despite the onset of strikes or lockouts in Canada as part of the business landscape, many companies are unaware or have not placed enough effort to mitigate these potential risks. As a leading forward-thinking organization, Canaan Group continues to discuss with customers how to begin planning for cargo re-diversion, alternative planning, and cargo risk mitigation. At the TPM 2024, Canaan Group started to consult with several companies to prepare for a strike or lockout with the 2 Class 1 Railway companies.

If you have further questions, please get in touch with Canaan Group sales or email sales@canaangroup.ca.

A woman holding an electric bicycle containing a lithium ion battery. This is a cover photo for an article about importing e-bikes containing lithium ion batteries as dangerous goods in Canada.

Integrating E-Bikes Into Sustainable Transport: Navigating the Lithium Battery Challenge

Karolina Mazur Featured, Resources, Uncategorized

In recent years, electric bikes (e-bikes) have surged in popularity, heralded for their potential to offer an eco-friendly and cost-efficient mode of transportation. This surge is backed by various Canadian provinces, which have rolled out incentives and subsidies to make e-bikes more accessible. For instance, British Columbia has introduced income-based rebates on eligible e-bikes from authorized dealers, offering $350 to $1,400 to make e-mobility an affordable option for its residents.

However, the core of e-bikes—the lithium-ion batteries that power them—presents a complex challenge in terms of shipping and transportation. Due to their flammable electrolyte and high energy density, lithium batteries are recognized as dangerous goods (DG). They require careful handling, specialized packaging, and adherence to a myriad of regulations and carrier requirements. This complexity underscores the need for expertise in logistics, as the consequences of mismanagement range from supply chain delays to severe accidents.

The lithium-ion battery market, poised to grow from USD 44.5 billion in 2022 to USD 135 billion by 2031, is predominantly driven by the demand for electric vehicle (EV) batteries. With significant growth expected in Southeast Asia and India, the logistics sector must adapt to new shipping lanes and regulatory landscapes. Unlike lithium metal batteries, which are non-rechargeable, lithium-ion batteries are rechargeable and power a wide array of devices, including e-bikes, necessitating stringent shipping protocols to mitigate risks of overheating and ignition.

Shipping lithium-ion batteries—whether by air or ocean—is fraught with restrictions. Ocean freight, given its capacity for larger volumes and fewer restrictions compared to air transport, dominates international shipping for EV batteries. Stringent regulations apply across the entire supply chain, demanding specialized knowledge for safe and compliant transportation.

The logistics of shipping lithium-ion batteries involves detailed documentation, such as the Dangerous Goods Declaration and material safety data sheets (MSDS), alongside factory tests to ensure the batteries’ resilience to heat, vibration, and more. Packaging protocols are rigorous, requiring non-metallic inner packaging to prevent short circuits and physical damage. Adherence to special marking and labelling guidelines is also required to identify the goods’ nature clearly.

Given the heightened risks associated with lithium-ion batteries, additional insurance coverage is often necessary to mitigate potential liabilities, including damage to adjacent cargo in the event of a fire. Therefore, the choice of a logistics partner becomes crucial. Opting for a freight forwarder or 3PL with proven experience in handling dangerous goods can mean the difference between the seamless integration of e-bikes into the sustainable transport ecosystem and facing the significant repercussions of regulatory non-compliance or shipping mishaps.

As the e-bike movement continues to gain momentum, bolstered by governmental support and consumer interest in green transportation, the challenge of safely and efficiently transporting lithium-ion batteries remains a critical piece of the puzzle. Addressing this challenge head-on, with the proper knowledge and partners, is essential for realizing the full potential of e-bikes as a cornerstone of sustainable urban mobility.

At Canaan Group, we specialize in handling DG cargo. Several of our colleagues hold a DG license that is renewable every two years. If you have questions on shipping e-bikes or anything DG-related, please get in touch with sales@canaangroup.ca or contact us here.

A cargo ship at a port as part of an article about balancing cost and reliability when shipping cargo or freight.

Balancing Cost and Reliability

Karolina Mazur Featured, News, Resources, Uncategorized

Most customers direct much of their focus on cost per TEU, kg, CBM, or other metrics. However, only a few customers focus on the reliability of deliveries as a KPI. The reliability factor introduces some hidden costs, including cash flow management, inventory stock, and delayed payments for the final cargo delivery. Canaan Group continues to track and emphasize costs and the reliability of vendors’ key strengths and weaknesses. Our logistics professionals subscribe to various real-time data analysis sources to formulate a strategic vendor selection process to match customers’ needs. 

In the latest release by Sea Intelligence with the Global Liner Performance (GLP) report, the data shows that the reliability of global schedules is still sitting at 50%, primarily due to the Red Sea Attacks. 

Depending on the trade lanes, on average, there is at least a 6-day delay in vessel arrivals. Some trade lanes can accumulate up to 15 days of delay depending on the routing and the shipping line. Additionally, on a year-on-year basis, schedule reliability in January 2024 was 0.8 percentage points lower than in January 2023. Notably, the average delay for late vessel arrivals worsened due to round-of-Africa sailings, rising by 0.59 days month-on-month to reach 6.01 days.

In January 2024, CMA CGM emerged as the most reliable carrier among the top 13, boasting a schedule reliability of 54.7%. Following closely were four other carriers surpassing the 50% mark. The rest of the carriers maintained schedule reliability within 40% to 50%, with Yang Ming ranking as the least reliable carrier with a schedule reliability of 42.2%. Notably, in January 2024, the difference in schedule reliability between the most and least reliable carriers narrowed to its lowest point since February 2023.

If you have further questions, please get in touch with Canaan Group sales or email sales@canaangroup.ca.

Revitalizing Global Trade Routes

Karolina Mazur Featured, News, Uncategorized

In a bold move signaling the evolving dynamics of international shipping, the announcement of the Gemini Alliance, set to commence in 2025, marks a significant milestone. This pioneering collaboration between Danish and German shipping lines epitomizes the industry’s ongoing shuffle, akin to a strategic game of musical chairs, promising enhanced service offerings and operational efficiencies across the globe.

ONE/WAN HAI: New Transpacific Service

Amidst this backdrop of change, ONE and WAN HAI are set to launch a groundbreaking Transpacific service, the AP1, by the end of April or early May. This new route, connecting Vietnam, China, Taiwan, and California, is poised to replace Wan Hai’s standalone AA3 service, symbolizing a fresh synergy in the Asia-North America shipping corridor. The joint venture will operate on a 56-day fixed round trip schedule, featuring a fleet of seven vessels – five from Wan Hai Line and two from ONE, as reported by Alpha Liner 2024. With a capacity ranging from approximately 5,500 to 14,000 TEU, this alliance underscores a minimum 12-month commitment to bridging economies across the Pacific.

MSC: Redefining North America-South America Connections

In a parallel stride, MSC is redefining its USA to South America East Coast (SAEC) String 1 loop. By streamlining its port calls—eliminating stops at Port Everglades, Caucedo, Suape, and Colon, while introducing new southbound calls at Freeport (Bahamas) and Cristobal—MSC is set to enhance its service efficiency. This recalibrated route will now encompass a comprehensive network, from New York down to Rio de Janeiro and back, encapsulating the essence of MSC’s strategic refocus on key transatlantic trade lanes.

ZIM: Expanding Horizons in the Americas

ZIM, not to be outdone, is reshaping its Colibri Express service between the U.S. East Coast and the West Coast of South America (WCSA). This revamp introduces the Chilean port of Lirquen into its itinerary, streamlining its operations by omitting Balboa and Buenaventura, alongside a southbound call at Guayaquil. The enhanced route promises a six-week turnaround, leveraging a fleet of six vessels, including the notable 1,717 TEU OPHELIA, which marked the inaugural sailing from Lirquen on February 15th. This strategic adjustment not only extends ZIM’s operational footprint but also reinforces its commitment to serving burgeoning markets in the Americas.

For detailed insights into our enhanced global shipping routes and new services, we invite you to connect with our Canaan Group Sales team. Elevate your logistics experience by discovering the tailored solutions we offer to meet your specific needs. Contact us for professional guidance and support.

Possible Lockout or Strike at CN and CPKC by May 2024

Karolina Mazur Featured, News, Uncategorized

The union representing nearly 9,300 workers at Canada’s largest rail operators, CN and CPKC, is facing a potential work stoppage due to stalled negotiations over working conditions and wage increases. Teamsters Canada, led by François Laporte, accuses both rail companies of wanting to remove essential safety-critical rest provisions from collective agreements, which are crucial for combating crew fatigue and ensuring public safety. Despite seeking a negotiated settlement, the union finds the companies’ demands unacceptable.

Notices of dispute were filed by CN and CPKC this week, marking the beginning of a process that could lead to a strike or lockout by early May. The union claims that the railroads prioritize profits over the well-being of supply chains, farmers, or small businesses, and are prepared to force a work stoppage to meet their goals.

The dispute involves 6,000 CN workers and 3,200 CPKC workers in Canada, covering conductors, engineers, and yard workers, plus around 80 rail traffic controllers represented by TCRC’s Rail Canada Traffic Controllers division. The current collective bargaining agreements expired on December 31, 2023.

CPKC responded to the union’s accusations by stating they have offered wage increases, quality-of-life improvements, and predictable schedules with assigned days off. However, they acknowledge a significant gap remains on these issues. CPKC proposed two options for renewed contracts, emphasizing safety and employee well-being, while CN highlighted regulatory changes that necessitate a modernization of the compensation model to maintain a predictable, efficient service for both employees and customers, suggesting a structured workweek with ample rest periods and consecutive days off.

Canaan Group remains committed to delivering timely market insights to our esteemed clients, focusing on risk mitigation and strategic planning. Should your shipments depend on intermodal services, we encourage you to consult with the Canaan Group team to explore strategies for overcoming potential challenges.

Starlux Airlines Elevates Cargo Capabilities With Airbus A350 Freighter Order

Karolina Mazur Featured, News, Uncategorized

Starlux Airlines, a Taiwanese airline that began operations just four years ago, has recently made a significant move in the aviation industry by ordering five A350 freighter airplanes from Airbus. This decision marks Starlux as the first Taiwanese airline to operate this next-generation cargo jet, signaling its entry into cargo transportation, particularly focusing on the global demand for electronic components and semiconductors—a market Taiwan is prominently known for.

The deal was announced during the Singapore Airshow and highlights Airbus’ competitive edge over Boeing, particularly in the race to supply the future of cargo aircraft. Starlux’s choice of the A350 freighter is strategic, given its plan to deploy these aircraft on major intercontinental trade routes, leveraging the expected rise in demand for cargo capacity.

The A350 freighter is still under development and is anticipated to offer significant advantages in terms of payload capacity, range, and fuel efficiency. Capable of carrying up to 122 tons of cargo over 4,700 nautical miles, the A350 freighter also boasts the largest main deck cargo door in the industry and a construction that utilizes advanced materials for over 70% of its airframe. These features contribute to its 20% better fuel efficiency and lower CO2 emissions compared to current models like the Boeing 777 and 747-400.

Airbus has received 55 orders for the A350 freighter from various airlines and leasing companies, indicating a strong market interest. However, Boeing’s 777-8 freighter, which also has 55 orders, remains a close competitor, with certain advantages in payload capacity and cargo volume. The industry’s preference between Airbus and Boeing often depends on existing fleet compositions, as operating a homogeneous fleet can reduce costs related to pilot training, maintenance, and operations.

This move by Starlux not only reflects the growing competition between Airbus and Boeing in the cargo aircraft market but also highlights the cautious optimism in the air cargo industry, which is slowly recovering from a recent downturn. The decision underscores the importance of advanced technology, fuel efficiency, and environmental considerations in shaping the future of air freight.

Although most of the services of Starlux is focused on Intra Asia, this announcement will present new opportunities for Asia /North America and Asia / European Lanes for the future. 

The Canaan Group airfreight team consistently collaborates with leading airlines including JAL, EVA Airlines, KLM/Air France, Air Canada, ANA, Lufthansa, Qatar, Turkish, and many others to offer extensive global service points, ensuring the most efficient transportation of your urgent cargo.

The Complexities of Global Trade

Karolina Mazur Featured, News, Resources, Uncategorized

Despite shifts in geopolitics and the relocation of manufacturing hubs to countries like Vietnam and Mexico, China maintains its position as a key trading partner with both Canada and the USA. By redirecting trade through these nations, China has crafted a viable strategy to circumvent tariff barriers. This is exemplified by China’s tactical diversion of exports via Mexico, a strategy that undermines US efforts to lessen its reliance on Chinese goods. An analysis of trade data underscores a significant increase in the volume of goods moving from China to Mexico, with the number of 20ft container shipments escalating from 689,000 in the first three quarters of 2022 to 881,000 over the same timeframe in 2023. This development has positioned Mexico as the leading exporter to the US (as highlighted in last month’s newsletter), underscoring the challenges faced by the US in disentangling its supply chains from the grip of Chinese manufacturing.

China is shipping far more goods to Mexico indicating that China is routing shipment through Mexico into the US more and more.

According to the research from Financial Times this month, despite efforts initiated by the Trump administration and continued under Joe Biden to lessen US reliance on Chinese products by imposing tariffs, less than 15% of US imports now come directly from China, down from over 20% in 2017. However, this has not significantly diminished the presence of Chinese goods in the US market, as these are still entering via Mexico without facing the same tariffs.

Chinese manufacturers, especially in the auto industry, have capitalized on this route. For instance, Chinese-owned companies in Mexico exported $1.1 billion worth of auto parts to the US in 2023, up from $711 million in 2021. Mexico’s imports of vehicle parts from China also surged to nearly $9 billion last year.

This situation demonstrates the challenges the US faces in shifting away from Chinese-manufactured goods. Despite new tariffs and investment screening measures introduced by Mexico and the US, the deep integration of Chinese products into global supply chains poses significant obstacles to these efforts.

A line graph showing total Mexican trade in US is growing.

The data and proposed graphs underscore the intricate dynamics of global trade and the difficulty in altering established supply chains, reflecting the broader geopolitical and economic interdependencies that challenge US policy objectives.

In response to the evolving global landscape of diversification, innovative logistics routes are emerging. If you’re looking to explore new lanes and routings with competitive pricing, reach out to Canaan Group for tailored solutions.


Financial Times. (2024, February 21). “China Circumvents US Tariffs by Shipping More Goods via Mexico.” Claire Jones, Christine Murray, and Keith Fray. Retrieved from https://www.ft.com/content/2ca4da83-f858-4215-88e7-544adf0aa18e.

Shipping Perishable Goods: Meats, Seafood, Food Items

Karolina Mazur Featured, Resources, Uncategorized

Shipping perishables is a critical task that demands careful consideration of various factors to ensure the goods reach customers in top quality. The choice of packaging is paramount, as it affects the freshness and quality of perishable goods and impacts space utilization, liability, and profitability. Within this realm, the Canaan Group excels, offering tailored solutions and leveraging the team’s extensive experience to optimize packaging strategies and transportation methods for perishable shipments.

When it comes to transporting perishables, the mode of transportation is a crucial decision influenced by the nature of the goods and the priority of delivery times. Air freight is often preferred for its speed, which is essential for maintaining high quality and extending the shelf life of perishable products. This mode of transportation is particularly suitable for perishables that need to be delivered quickly to retain freshness and maximize sellability. However, air freight comes with higher costs, making it necessary to conduct a cost-benefit analysis to determine its viability based on the perishable goods’ required freshness and shelf life.

However, the Canaan Group team also understands the advantages of ocean freight for perishable shipments with longer shelf life. With advancements in refrigerated container technologies and controlled atmospheres, the company harnesses the potential of ocean freight to transport perishables over long distances at competitive rates. Despite potential risks such as port congestion, our dedicated operations team mitigates these challenges through meticulous planning and proactive communication, ensuring a smooth shipping process for its clients.

Canaan Group’s logistics expertise shines through when performing a careful assessment of the goods’ shelf life, the importance of delivery speed, and the potential risks associated with each transportation mode to create an optimized shipping route. Our team also proactively maintains relationships with the top air and ocean shipping lines in order to secure the most competitive pricing for our clients.

Contact our sales team for more information about shipping perishable items to and from virtually anywhere in the world!

Insights Into 2024 – 25 Shipping Contracts Amid Supply Chain Disruptions and Negotiations

Karolina Mazur Featured, News, Uncategorized

In the midst of the ongoing Red Sea Crisis, which has disrupted transportation through the Suez Canal for over five weeks now, experts like Lars Jensen, a renowned shipping analyst based in Denmark, are closely monitoring developments. Despite the passage of time, the situation in the Red Sea has seen little change, prompting shipping companies to continue adapting by rerouting vessels through the Cape of Good Hope.

Traditionally, annual contract rates from Asia to North America and Europe expire at the end of March each year. However, the uncertainty stemming from the Red Sea crisis, compounded by the recent Lunar New Year spot rates, has cast a shadow over the outlook for the remainder of the year.

Mid-size shippers are bracing themselves for anticipated rate hikes in their trans-Pacific contracts for 2024-25, driven by escalating carrier costs. However, negotiations have hit a snag due to disagreements over supply-demand dynamics and the lingering uncertainty surrounding the Red Sea crisis. Larger retailers, who often set the pricing benchmarks, are striving to maintain stable rates despite carriers’ claims of increased costs attributable to the Red Sea situation.

Amidst these negotiations, concerns have been raised by shippers regarding surcharge waivers and potential shortages of space and equipment. Re-routings prompted by tensions in the Red Sea, as well as potential disruptions at key transit points like the Suez and Panama canals, have further compounded these worries. Shippers are now seeking greater flexibility in routing options to mitigate the potential impacts of these disruptions.  Various associations in North America have also voiced concerns about potential equipment shortages, particularly in light of longer voyages necessitated by routes around Africa. These shortages could significantly impact transit times and overall logistics operations, underscoring the need for proactive measures to address emerging challenges in global shipping routes.

As the Lunar New Year approaches, there’s a brief lull in activity. Many companies, including Canaan Group, are holding off on serious contract negotiations until after the Journal of Commerce’s annual Trans-Pacific Maritime Conference (TPM) in Long Beach. This conference, which Canaan Group attends every year, serves as a pivotal event where industry stakeholders gather to gain insights from economists, analysts, and executives. At #TPM24, scheduled from March 3-6, Canaan Group will eagerly seek clarity on the supply-demand dynamics shaping the shipping landscape for 2024 and beyond.

Mexico Gains Competitive Edge Through Near-Shoring Initiatives

Karolina Mazur News, Uncategorized

In a recent Business Insider article, it was reported that Mexico emerged as the leading source of goods imported into the US in 2023, surpassing China for the first time since 2020. This development signals a notable shift in global commerce dynamics amid ongoing tensions between the US and China. While this milestone underscores Mexico’s rising prominence as a trade partner with the US, its implications for Mexican companies warrant closer examination.

The concept of near-shoring, which involves relocating manufacturing operations closer to end markets, is reshaping international trade practices. Unlike traditional offshoring, near-shoring prioritizes simplified supply chains and heightened market responsiveness. This approach is gaining traction as global trade patterns evolve. Kreim Kfurii, President of The Altas Network, notes that China is actively embracing this trend by expanding its manufacturing footprint into countries like Mexico. Rather than signaling a retreat in manufacturing dominance, this strategic move reflects a necessary adjustment to evolving market dynamics.

The shift toward near-shoring offers numerous advantages that extend beyond geographical convenience. By situating production facilities closer to consumer markets, businesses can significantly reduce lead times, facilitating faster delivery of goods and enabling prompt responses to market demands. This logistical efficiency supports leaner inventory models, thereby reducing costs and risks associated with excess stockpiles.

Moreover, near-shoring enhances supply chain control, quality management, and risk mitigation, while potentially lowering logistical expenses. The cultural and regulatory similarities between near-shore countries foster smoother operations and collaborative efforts. Through the establishment of manufacturing hubs in these regions, China shares its expertise, technology, and production capabilities, driving economic growth, job creation, and industrial advancement in countries like Mexico.

The recent merger of CP Rail and Kansas City Southern into CPKC heralds the creation of the first transnational rail network in North America. This development has significant implications, as shipments from China can now be routed directly to Mexico, where value-added processes can be applied. Subsequently, these products can be transported via rail from Mexican railyards, such as Lazaro Cardenas, to destinations across the US and Canada.

As businesses increasingly adopt near-shoring strategies, there arises a pressing need to reassess their supply chain architecture. Canaan Group maintains partner offices throughout Mexico, including Mexico City, Veracruz, Guadalajara, Laredo-Nuevo Laredo, Tijuana, and more. This extensive presence positions us to offer comprehensive support for your business needs. Whether it’s optimizing supply chain operations or navigating the complexities of international trade, our team stands ready to provide tailored solutions to drive your success.

National Supply Chain Office Starts Its Inaugural Meeting for 2024

Karolina Mazur Featured, News, Uncategorized

In December 2023, the Minister of Transport, the Honorable Pablo Rodriguez, made a significant announcement regarding the enhancement of Canada’s logistics landscape: the establishment of the National Supply Chain Office. Led by Assistant Deputy Minister Robert Dick, this office will be headquartered in Vancouver, British Columbia, Canada. This initiative underscores the government’s recognition of the pivotal role that supply chains play in sustaining and bolstering Canada’s economic competitiveness.

The Federal Government has outlined four primary objectives for this newly formed office:

  1. Development and Implementation of a National Supply Chain Strategy for Canada: This strategic roadmap will serve as a guiding framework to optimize the efficiency and resilience of Canada’s supply chains.
  2. Provision of Support and Solutions during Significant Supply Chain Disruptions: Recognizing the increasing frequency of disruptions, such as extreme weather events and labor disputes, the office will provide assistance and innovative solutions to mitigate their impact.
  3. Facilitation of Data Sharing and Efficient Movement of Goods: By fostering collaboration and facilitating the exchange of data among stakeholders, the office aims to streamline the movement of goods across the country. This initiative will support informed policy, regulatory, and investment decisions at both governmental and industrial levels.
  4. Leadership, Coordination, and External Outreach: The office will provide overarching leadership and coordination to foster collaboration among stakeholders, including provincial, territorial, and global partners. External outreach efforts will ensure proactive engagement with pertinent supply chain issues, both domestically and internationally.

On January 25th and 26th, the office convened the Western Corridor conference meeting, inviting a diverse array of stakeholders from across the supply chain spectrum. Participants included representatives from provincial and federal governments, transportation entities, ports, terminals, importers, exporters, and third-party logistics providers (3PLs). The objective of this gathering was to strategize and collaboratively chart a course for building an effective supply chain strategy aimed at enhancing the flow of goods into and out of Canada.

Canaan Group, a logistics company with over 45 years of experience, actively participated in the conference. The company remains committed to partnering with the National Supply Chain Office in pursuit of these objectives, leveraging its expertise and resources to contribute to the advancement of Canada’s logistics infrastructure.

Evaluating LTL Carriers In The Midst of Continued Failed Trucking Companies

Karolina Mazur Featured, Resources, Uncategorized

Recent events in the trucking industry, such as the bankruptcy filing of Newsome Trucking and the closure of Yellow despite substantial government funding, highlight the challenges facing trucking companies. With over 75% of Canada’s trade conducted with the USA and a significant portion relying on trucking, it’s crucial to carefully vet your Less Than Truckload (LTL) vendors.

LTL shipping, wherein goods share trailer space with other shippers, is popular among retailers and small businesses for its cost efficiency. However, selecting the right LTL carrier involves more than just pricing. Here are some aspects you should consider when searching for the perfect LTL carrier to work with:

Transit Time:

Whether sending or receiving freight, transportation speed is a critical consideration. Be sure to consider stated transit times when selecting an LTL carrier. Long-haul carriers typically require more time for delivery compared to regional carriers. Advanced planning and scheduling help calculate shipping times accurately, minimizing delays and disruptions.

Freight Liability:

While every freight carrier offers a certain level of liability coverage, it may not fully protect the declared value of your cargo in case of damage. It’s advisable to obtain comprehensive freight insurance to safeguard your shipment. Understanding the level of liability coverage is essential for ensuring shipment safety and mitigating potential losses due to external factors.

Accessory Services:

Beware of hidden costs associated with additional services when booking shipments based solely on low rates. If your freight requires special handling, inside delivery, or is destined for limited access areas, inform your logistics provider in advance. This proactive approach not only prevents unexpected charges but also fosters a stronger relationship with the carrier.

At Canaan, we have cultivated enduring relationships and secured agreements with financially stable trucking vendors. We’re here to lend our expertise and support to meet your needs effectively. 

Exploring Indonesia’s Economic Growth and Trade Dynamics

Karolina Mazur Featured, News

On February 14th, 2024, Indonesians will head to the polls to elect their next president as President Joko Widodo completes his two-term tenure. Under his leadership, Indonesia has emerged as a success story in Southeast Asia. President Widodo’s policies, including export bans that compelled companies to refine resources like nickel domestically, have propelled the nation up the global value chain. This strategy has significantly boosted investments, reaching a staggering $47 billion last year, nearly double the figure from when he assumed office.

Indonesia now boasts the world’s largest reserves of nickel, a crucial material for various industries such as electric vehicles and solar panels, essential for the global transition towards green energy. Additionally, it is the largest palm oil producer, a major exporter of coal, and a significant contributor to the pulp-for-paper industry. Given its economic prowess, Indonesia holds immense potential for expanding trade relations, particularly with countries like Canada and the United States, ranking 19th and 23rd respectively in its trading partnerships.

The nation’s key ports, including the Port of Jakarta in Java (Tanjung Priok), Surabaya (Tanjung Perak), and Semarang (Tanjung Emas), play pivotal roles in facilitating trade. Presently, no direct shipping services connect Indonesia to North America, resulting in transit times of approximately 35 to 40 days, depending on the North American port of discharge. Meanwhile, Soekarno-Hatta International Airport, Indonesia’s largest airport, serves the bustling Jakarta metropolitan area and the island of Java.

For further information regarding shipping to and from Indonesia, interested parties can contact our Canaan Sales team. They stand ready to coordinate with our partner offices in Indonesia, ensuring smooth and efficient shipping operations.

Unpacking Warehousing Trends in 2024

Karolina Mazur News, Uncategorized

As the year begins in 2024, a notable shift is observed in the landscape of warehousing accessibility spanning both Canada and the United States. Even in traditionally constrained markets such as Vancouver, Los Angeles, and Chicago, an increased availability of warehousing space is discernible. This transformation is primarily attributed to the strategic destocking of inventories and the successful culmination of numerous construction endeavors across North America.

Colliers Market report reveals a noteworthy evolution in Canada’s industrial warehouse vacancy rates, ranging from 1.5% in Vancouver to 4.5% in Edmonton. Concurrently, the overall US warehousing vacancy rate has ascended to 4.9% as of the close of Q4 2023. While surpassing pre-pandemic averages, these rates suggest that capacity constraints persist, exerting pressure on costs within the realm of third-party logistics (3PL).

During the crazy times of COVID-19, finding a place to store and move goods was like searching for a needle in a haystack.  Overstocked inventories precipitated a decline in the US vacancy rate to 3.4% by the conclusion of 2022. The subsequent phenomenon of the Great Destocking in 2023 witnessed a substantial 20% downturn in inflation-adjusted US inventories through September, albeit remaining 7% higher than 2019 levels. Consequently, warehousing vacancy rates rose to 4.9% by Q3 2023, below the pre-pandemic average of 7%, coupled with a 4.2% decline in employment.

Looking ahead in 2024, numerous shippers display a cautious stance, deferring warehousing decisions considering the slowing down of economic growth in both Canada and the United States.  In addition, there continues to be the completion of construction industrial warehousing projects.  The trajectory of US Southeast port cities, from Norfolk to Savannah, witnessed a substantial surge in developmental initiatives in 2023, a trend anticipated to endure through 2024. Notably, the warehousing and cross-dock space in Laredo, Texas, the largest US-Mexico border crossing for truck freight, remains constrained. The ongoing diversification in US entry points is poised to incite heightened demand for warehousing and storage at inland nodes as cited in the Journal of Commerce. However, the uncertain events like the Red Sea attacks and the oscillating dynamics of on-shoring and off-shoring initiatives also cause certain companies to look at restocking more inventory to mitigate some of the delays in shipment. 

For more information about your warehousing needs, please contact your local Canaan sales and customer service representative.

LTL and Full Truck Load capacity and rates for Q1 2024

Karolina Mazur Resources, Uncategorized

In the first quarter of 2024, predictions indicate stability in Less-Than-Truckload (LTL) rates with subtle fluctuations, while truckload rates are expected to persist near the lows established in Q2 of the previous year. AFS and TD Cowen jointly released these insights as part of the TD Cowen/AFS Index, offering a forward-looking snapshot of pricing trends in the Less-Than-Truckload (LTL) and the truckloads market in North America.

For LTL rates, the index forecasts a 58.9% increase above the January 2018 baseline in Q1 2024, representing a marginal 0.7% decrease from Q4 2023 but a 0.8% YoY increase. This level is maintained since Q2 2022, influenced by the Yellow collapse in Q3 of 2023. The LTL market appears in a state of stasis due to soft demand, though the recent auction of former Yellow terminals to carriers like XPO and Estes is expected to enhance network efficiency and overall capacity in the long run.  The overall net effect is that there will not be much changes on the LTL markets both in capacity and pricing for Q1 2024.

In the truckload sector, the rate per mile index is projected to be 4.6% above the January 2018 baseline in Q1 2024, showing a 0.2% decline QoQ and a 2.9% YoY decrease. Despite consistency since establishing a floor in Q2 2023, the average linehaul cost per shipment has declined in tandem with miles per shipment. Short-haul shipments, covering less than 500 miles, increased from 79.8% in Q2 2023 to 84.9% in Q4 2023. While truckload rates may not rebound in Q1 2024, macroeconomic conditions, including easing inflation and potential interest rate cuts, suggest the possibility of upward momentum later in the year. 

For now, there does not seem to be much shift in these 2 trucking areas both the LTL and the truckload rates.  For more information on specific trucking lanes, please contact your local Canaan staff and customer service. 

This article was summarized from the reports of InsideLogistics.ca.

Port of Montreal Faces Continued Threat of Potential Strike

Karolina Mazur News, Uncategorized

Federal officials are involved in preventing a potential third labour stoppage in four years at the Port of Montreal, where dock workers have been without a labour deal since their agreement expired on December 31.  The Maritime Employers Association (MEA) in Montreal, which includes approximately 1,290 longshore workers and 165 checkers, is in ongoing negotiations with union representatives. The Federal Mediation and Conciliation Service experts are assisting in these discussions.

Pressure tactics, like strikes or lockouts, are pending a ruling by the Canada Industrial Relations Board on the MEA’s request to deem all longshoring activities at the port essential. A decision is expected after the parties submit more information by mid-February 2024.  The Port of Montreal experienced labour disputes during the first year of the COVID-19 pandemic, leading to significant supply chain disruptions. The federal government intervened with back-to-work legislation during the second conflict.

Montreal serves as Eastern Canada’s primary trading hub, supporting around 75% of the country’s manufacturing capacity and nearly two-thirds of the population. Ongoing labour negotiations are considered crucial for maintaining a stable business environment.  Preliminary figures indicate a 2% volume decline at the Port of Montreal in 2023, reflecting a global economic slowdown. Container volumes, specifically, dropped by 8.8% due to decreased consumer demand for imports.  Prime Minister Justin Trudeau expressed concern about the potential long-term consequences of a strike at the Port of Montreal, highlighting the impact on supply chains and the risk of customers choosing alternative transportation methods permanently.

For more information, please get in touch with our Canaan Group sales team.

Beyond the Horizon: The Maritime Musical Chairs of 2024

Karolina Mazur News, Uncategorized

In the upcoming year of 2024, the maritime industry is poised for a transformative phase akin to a sophisticated game of musical chairs, particularly within the realm of shipping lines. Analogous to the strategic alliances observed in the aviation sector, wherein airlines align themselves under banners like Star Alliance, One World, and Sky Team, the container shipping sector operates under similar collaborative frameworks.

Much like Air Canada, serving as the national carrier of Canada within the Star Alliance, shipping lines form alliances to leverage synergies in the highly competitive maritime landscape. These alliances, such as 2M, Ocean Alliance, and THE Alliance, are instrumental in fostering cooperation among two or more container shipping companies. The primary objectives encompass an expanded network, cost efficiencies, and the preservation of individual operational autonomy.

In the container shipping domain, 2M represents a coalition of Maersk, holding a 14.7% market share, and MSC with a 19.5% share. Meanwhile, the Ocean Alliance comprises COSCO (10.8%), Evergreen (5.8%), CMA (12.5%), and OOCL, which is part of COSCO. THE Alliance includes Hapag Lloyd (7.0%), Yang Ming (2.5%), Hyundai (2.8%), and ONE (6.1%). A pivotal development on the horizon is the expiration and dissolution of the MSC and Maersk alliance by 2025. In response, Maersk and Hapag Lloyd are set to forge a novel alliance named the Gemini Alliance, thereby leaving THE Alliance to contend with a notable void in its network services, particularly on the Asia-Europe route.

Concurrently, independent carriers, exemplified by Zim Line, navigate the seas with distinctive services, predominantly focused on dedicated lanes. Zim Line’s recent announcement of the Pacific Northwest Xpress (ZPX) underscores this paradigm, introducing an express container service between Asia and the West Coast of North America. This service caters specifically to e-commerce shippers, while concurrently unveiling a north-south express service tailored for reefer cargo.

Against the backdrop of these dynamic shifts, an invaluable opportunity emerges for stakeholders to reassess the services engaged by Canaan. Canaan, strategically aligned with service contracts across all three major alliances, is well-positioned to empower its clientele with an expansive global reach.

For further inquiries, we encourage you to reach out to your dedicated Canaan Sales and Customer Service representative, who stands ready to provide comprehensive assistance.

From Sea to Sky: Hybrid Shipping Solution in the Face of Changing Tides

Karolina Mazur News, Resources, Uncategorized

Back in the 1980s and 1990s, container ships were smaller and slower. This meant it took a good 50 to 60 days for urgent shipments from Asia to Europe. Air cargo, on the other hand, was too expensive for high-value goods, making it hard to justify the cost.

To tackle this, logistics companies like Canaan came up with a solution. They combined sea and air cargo by consolidating shipments from Asia into a single container. The container would then go to Vancouver, BC, or Seattle, WA, and from there, it would be transferred to a cargo or passenger plane and flown to Europe. This approach saved time compared to pure air cargo and was a bit more expensive than pure ocean shipping.

But over the last 20 years, improvements in both cost and transit times for vessels made this hybrid sea-air transport less competitive. However, recent disruptions in the Red Sea have led to a 20% increase in demand for sea-air transport at Canaan. During the pandemic, Canaan had already been offering this product, and now, with ocean carriers changing routes around Africa, resulting in longer transit times from Asia to Europe, the demand for this hybrid solution is making a comeback.

In the face of these challenges, exporters and importers are hesitant to fully switch to air freight due to the costs involved. At this stage, Canaan is well-placed to provide customers with access to this hybrid capacity. If you want more information about this service, feel free to reach out to our customer services and sales team at Canaan. They’ll be happy to help with any questions you may have.