5th Annual Canada Maritime ConferenceSeptember 14 – 15, 2010

Fairmont The Queen Elizabeth HotelMontreal, Quebec

INTERNATIONAL FREIGHT FORWARDINGPAST, PRESENT AND FUTURE

Christopher J. GillespiePresident & C.E.O.

Gillespie-Munro Inc.

Forwarders of the 60’s

• Staffing

• Automation

• Operations

Moving to the Present Day

• Systems & Processes

• Marine Carriers

• Changing Role

• Compliance Issues

FAA Fines Eleven Companies for Hazmat Violations

• The Federal Aviation Administration this month fined ten shippers and one express carrier for shipping undeclared boxes of flammable products by air in violation of hazardous material safety regulations.– Boston Scientific of Natick, Mass. - $91,000 for a shipment of medical-grade

silicone fluid. DHL employees at the company’s Cincinnati sorting hub discovered the leaking box.

– Westfield Coatings Corp., Westfield Mass. - $78,000 for a shipment of paint.– Fragrance Resources Inc., Clifton, N.J. - $54,000 for shipping an undisclosed

flammable liquid, possibly perfume given the company’s name.– Flight Options LLC, Cleveland - $65,000 for transporting isopropyl alcohol.– Hammelman Corp., Dayton, Ohio - $54,000 for shipping methanol.

FAA Fines Eleven Companies for Hazmat Violations

– Kemet Electronics Corp., Simpsonville, S.C. - $58,000 for a shipment of silver paint.

– MSI Aircraft MTC SVS International GmbH, Ruesselsheim, Germany - $56,000 for shipping a fuel control unit to FedEx for transport to Miami.

– FedEx Express, Memphis, Ten. - $65,000 for allegedly accepting a box of an unspecified toxic, corrosive liquid classified as poison. An FAA hazmat special agent identified the mislabeled shipment before it could be loaded on an aircraft.

– Vitacost, Lexington, N.C. - $54,000 for a shipment of flammable liquid and a non-hazardous material.

– Cardin Health, Madison, Miss. - $91,000 for a shipment of skin care products via DHL.

– PSS Medical, Lubbock, Texas - $54,000 for a box of ammonium nitrate.

Exotic Pests

Challenges of the Future

• Ever greater complexity

• Government initiatives

• Infrastructure

• Marine carriers

• The environment

• Closing remarks

EU Regulation 1875/2006 – Entry Summary Declaration (ENS) coming into effect December 31, 2101

1. Ocean container shipments from outside the EU .

The carrier will be responsible for the timely electronic transmission of the Entry Summary Declaration (ENS), and will transmit one ENS per B/L or Seaway Bill.

ENS transmission must be carried out no later than 24 hours prior to start of the loading of vessels, from a non-EU load port, which are bound for an EU port. To comply with this regulation we will require complete and accurate shipping instructions. The documentation closing times is similar to other “advance manifest” 24 Hour Rules for shipments to locations such as USA, Canada or Mexico.

The transmission of ENS is mandatory for all cargo to be discharged in an EU port (including trans-shipment cargo) as well as FROB cargo (Foreign Cargo Remaining on Board), i.e. cargo which is discharged in a port outside the EU after the vessel has called at an EU port.

EU Regulation 1875/2006

To enable the submission of an ENS, the following information is required in your shipping instructions:

• Full name and address of shipper and consignee • Full name and address of notify party where goods are carried under a negotiable “to

order” B/L • Container number • Goods description (general terms for example “consolidated cargo” or “general cargo”

cannot be accepted) • Minimally first four digits of the HS code. • Number of packages • Cargo gross weight • Seal number • UN dangerous goods code where applicable • Method of payment in case of prepaid, for example “payment in cash”, “payment by

cheque”, “electronic credit transfer”, etc.

EU Regulation 1875/2006

The ENS will be sent to the Customs office of the first port of entry (first port of call) in the EU. This Customs office will carry out a security risk assessment. In the situation where a risk is identified, subsequent ports and port of loading will be informed:

Risk Type A = do not load Risk Type B = interception of a suspicious shipment at the first port of entry Risk Type C = interception of a suspicious shipment at the port of discharge

A written consent from the carrier is required when a freight forwarder wants to file the ENS.