MINUTES 60TH ANNUAL GENERAL MEETING May 13, · PDF fileRoberta Strange Panalpina Inc. Regular ... The Competition Bureau of Canada is an organization that investigates anti-competitive

Canadian International Freight Forwarders Association Inc. Association des Transitaires Internationaux Canadiens Inc.

170 Attwell Drive, Suite 480, Toronto, ON M9W 5Z5 Tel. (416) 234-5100 Fax. (416) 234-5152 [email protected] www.ciffa.com

MINUTES

60TH ANNUAL GENERAL MEETING May 13, 2009

Crowne Plaza Montreal Airport

Index

1. Call to Order 2. The Competition Act 3. Roll Call 4. Notice of Meeting 5. Time of Remembrance 6. Minutes of Previous Meeting 7. President‘s Address 8. Finance 9. By-Laws 10. Education 11. Seafreight 12. Airfreight 13. Customs 14. Security 15. V.P. I Report / Global Issues 16. FIATA 17. Judicial 18. Ways & Means 19. Public Relations 20. Membership 21. Ethics & Standards 22a. Eastern Region 22b. Central Region 22c. Western Region 23. Election of the National Board of Directors 24. Banking Motion 25. Appointment of Auditors 26. 61

st Annual General Meeting

27. New/Other Business 28. Adjournment

AGM Minutes May 13, 2009 2



2008 – 2009

OFFICERS AND DIRECTORS

R. Walker President Carson International D.J. Lucky Immediate Past President Cole Freight Inc. P. Lobas Secretary ITN Logistics Group M. Robbins Treasurer Expeditors Canada, Inc. M. Bibeau V.P. I Overseas Express Consolidators (Canada) Inc. D. Letterio V.P. II DHL Global Forwarding (Canada) Inc. M. Soubry V.P. III Agility Logistics Co. C. Gillespie Director Gillespie-Munro Inc. W. Gottlieb Director David Kirsch Forwarders Limited G. Vince Director DHL Global Forwarding (Canada) Inc. R. Bourque Director Schenker of Canada Limited C. McKay Director Rutherford Global Logistics J. Kennedy Eastern Chair Sameday Right-O-Way S. Valentine Central Chair Cargo Alliance Ltd. A. Gumboc Western Chair Schenker of Canada Limited G. Magrath Legal Counsel Magrath O‘Connor LLP R. Snowden Executive Director CIFFA M. Massoud Secretary-Manager CIFFA D. Burek Director, Education CIFFA




RECORD OF ATTENDANCE

First Name Surname Company Affiliation Member Affiliation Greg Gill (ABH) Oversize Direct Ltd. Regular Bob Walker Carson International Regular Donna Pietromala CFR Confreight Maritime Lines

Canada Inc., Subsidiary of LCL

Navigation

Regular

Don Lucky Cole Freight Inc. Regular Paul Courtney Courtney Agencies Ltd. Regular Bill Gottlieb David Kirsch Forwarders Ltd. Regular Donna Letterio DHL Global Forwarding (Canada)

Inc. Regular

Gary Vince DHL Global Forwarding (Canada) Inc.

Regular

Chris Gillespie Gillespie-Munro Inc. Regular Tony Young LCL Navigation Ltd. Regular Louise Allen Logfret Regular Mark McKendrick Logfret Regular Denis Couroux Mercator Transport International

Inc. Regular

Ted Chazin Milgram International Shipping Inc. Regular Roberta Strange Panalpina Inc. Regular Rachelle Anger Quad City Port Services, Inc. Regular K. H. Legler Rutherford Global Logistics Regular Joelle Herpert Savino Del Bene Corp. (Canada) Regular Joe Montanaro SDV Logistics/Logistiques

(Canada) Inc. Regular

Roger Gening SDV Logistics/Logistiques (Canada) Inc.

Regular

Linda Lizoth SDV Logistics/Logistiques (Canada) Inc.

Regular

Paul Glionna Universal Logistics Inc. Regular Vagn Danielsen UTi, Canada Inc. Regular Anchor International Freight Services Inc.

In the name of Tony Young, LCL Navigation

Proxy Regular

Atlas International Freight Forwarding Inc.


Proxy Regular

AWF Forwarding & Logistics Ltd.


Proxy Regular

Bellville Rodair International

In the name of Thomas Kamps, Bellville Rodair International

Proxy Regular

Cargo Alliance Ltd. In the name of Tony Young, LCL Navigation

Proxy Regular

Colbeck & Clarke Inc. In the name of Tony Young, LCL Navigation

Proxy Regular

DSV Air & Sea Inc. In the name of Tony Young, LCL Navigation

Proxy Regular

UPS Supply Chain Solutions

In the name of Erick Valiquette, UPS Supply Chain Solutions

Proxy Regular

Brian Gottlieb Avalon Risk Management (Canada), Inc.

Associate

Robert Macher Avalon Risk Management (Canada), Inc.

Associate




Phillip Amodea Avalon Risk Management (Canada), Inc.

Associate

Sandy Santos Brent Packaging & Logistics Limited

Associate

Ed Perdue Brent Packaging & Logistics Limited

Associate

Alison Warwick Brent Packaging & Logistics Limited

Associate

Larry Lopper Brent Packaging & Logistics Limited

Associate

Victor DeMarco Brisset Bishop Associate Gavin Magrath Magrath O‘Connor LLP Associate & Legal

Counsel Ruth Snowden Executive Director CIFFA Doug Burek Director, Education CIFFA Marilyn Massoud Secretary-Manager CIFFA

Voting Members: 19 Voting Proxies: 8




MINUTES

1. Call to order The President called this meeting to order at 13:10 hours. R. Walker asked our legal counsel, G. Magrath to read our competition clause. 2. Competition Bureau Canada Clause

Commitment to full compliance with both the letter and the spirit of the antitrust laws is a fundamental commitment of the Canadian International Freight Forwarders Association (CIFFA). The Competition Bureau of Canada is an organization that investigates anti-competitive practices and promotes compliance with the laws under its jurisdiction. The following is CIFFA's directive: “This meeting is being conducted in compliance with the provisions of anti-competitive practices under the Competition Bureau of Canada. This meeting will not discuss or take action on any subject related to restraint of trade, price fixing, compensation, reimbursement, rate settling, marketing strategies and any other topics that could be considered anti-competitive."

3. Roll Call & Call for Proxies I trust that you all have signed the attendance record and filed your proxies with our Secretary-Manager. Should this not be the case, may I ask that you do this now. Members are reminded that there is only one vote per Regular CIFFA Member. May I ask Marilyn Massoud to confirm the number of proxies filed and to confirm that a quorum is present according to the Association‘s By Laws, duly constituting a proper meeting? M. Massoud confirmed there is a quorum present. The following proxies have been received:

Anchor International Freight Services, in the name of LCL Navigation, T. Young

Atlas Cargo, in the name of LCL Navigation, T. Young

AWF Forwarding & Logistics, in the name of LCL Navigation, T. Young

Bellville Rodair International, in the name of Bellville Rodair International, Thomas Kamps

Cargo Alliance Ltd., in the name of LCL Navigation, T. Young

Colbeck & Clarke, in the name of LCL Navigation, T. Young

DSV Air & Sea Inc., in the name of LCL Navigation, T. Young

UPS Supply Chain Solutions, in the name of UPS Supply Chain Solutions, Erick Valiquette 4. Notice of Meeting The Notice having been sent to all Members of the Association in accordance with our Bylaws and a quorum being present, I declare the meeting to be properly constituted for the transaction of business. 5. Time of Remembrance May I ask all present to stand in memory of those colleagues and friends that have passed away in the course of last year, and in particular we would like to recognize:

Tom Olesch, Kuehne & Nagel, Mississauga Frank Scardocchio, Beacon International, Montreal Rita Budhu, UTi, Mississauga John Fox, Air Canada, Montreal




Mayur Contractor, FIATA Senior Vice President, Mumbai, India

6. Minutes of Previous Meeting I would now like to call for a motion to accept the Minutes of last year‘s meeting. Moved by D. Letterio, Seconded by B. Gottlieb, unanimously accepted.

7. President’s Address Dear Members: Welcome to the 60

th CIFFA AGM.

First and foremost, this will certainly not be a message of gloom which we are so often inundated with in the various media of today. Your Association has had a very successful year, no doubt because of its leader. My two year term as your volunteer President of the Board comes to an end shortly and before I list a few of our Association‘s accomplishments during 2008, I hope you give me just a bit of time to thank the Members of the Board and the Secretariat. I‘m sure every so often they would see me head for the microphone and all take a deep breath and say a little prayer – ‗please don‘t let him say anything controversial.‘ And I didn‘t! At least not yet! Seriously, when I first had my arm twisted to become the President, I had the usual worries of what I was in for. I wish I could describe to each and every one of you the support that the Members of the Board have given me. Obviously there have been some difficult times but it was so very encouraging when Members of the Board, whether just newly elected or some who have been around several years, would take the time to offer their full support to help overcome whatever might appear. Several times I have told others, people not on the Board, what strength my fellow Board Members have given me and now I want to thank the Board Members personally. ‗Board Members‘, for all of your support, I thank you tremendously. Our Secretariat, Ruth, Marilyn, Doug and their staff: These people have come together to show the strength of our Association. We should be proud of our present position and where this Association is heading. I just held on to their coattails. And they always ensured that the President was seen in the best possible light – they had a difficult chore and definitely were up to the task. Over the past year, CIFFA has begun to focus on three core elements – three core ‗competencies‘ if you will. We are deploying our energies and our resources on Membership, Education and Advocacy. On our soon to be revealed new website you will see Membership – with growing Membership numbers, renewed communication channels, a revitalized Forwarder magazine, enhanced Member Benefits and much, much more. Paul Lobas will share some of the more memorable details in his Membership report. In the Education report – can I steal some of your thunder Craig? –In the Education report you will hear how more than 1600 people participated in a CIFFA education event last year. You‘ll hear how Seneca College has signed two new agreements to provide CIFFA graduates with advanced learning opportunities and career progression paths. You‘ll hear how George Brown College in Toronto and the Beirut Academy in Lebanon and the freight forwarding association in Australia have signed agreements to deliver the CIFFA Certificate and Advanced Certificate programs in international freight forwarding. Under the leadership of Doug Burek, it has been an unbelievably productive and exciting year for CIFFA in fulfilling our education mandate. During 2008, the Voice of Freight Forwarding was heard in many halls and meeting rooms and news outlets across the country. Our third focus as an Association is Advocacy – and if anyone has had a container held for formaldehyde examination, or has prepared a Cargo Security Plan and entered into the Regulated Agent program or who has problems with in-transit export declarations, or anyone who has had a groupage export container stopped for CBSA inspection or anyone who has cargo transiting through the USA can attest – there are plenty of issues! CIFFA‘s daily e-Bulletin, Forwarder magazine and web-site contain submissions to many government agencies, letters to the CBSA on various topics and many opportunities for Members to provide input. When you read in the eBulletin of an issue that affects your business or when you receive a request for input – please respond. To be effective, CIFFA must be representative and responsive. The Secretariat needs your input.




I do have a bit of housekeeping from last year‘s AGM and wish to inform the Members that CIFFA has come to an agreed upon settlement with our former Executive Director that was similar to our initial offer of compensation. Both parties have signed and this is no longer an issue for CIFFA. I certainly do not wish to steal Mike Robbin‘s thunder but what had been budgeted for as a very poor year certainly has an amazing new look to it. He will provide the details but I just want him to know that while others twisted my arm for Presidency, I twisted his for Treasurer, and I could not have chosen better. It is always encouraging to see the banker looking so calm. As Mike steps down from the Board, I want to thank him for the excellent job he has done as Treasurer. And finally, Ladies and Gentlemen, we come to a matter close to my heart. With major assistance from Ruth and the full support of the Board, I am pleased to announce the introduction of the CIFFA Scholarship Program. One of CIFFA‘s primary functions is to provide education opportunities. Funded partially by portions of all networking events across the country, by your participation in FCA‘s, Golf Tournaments, etc, CIFFA is pleased to announce the introduction of our annual Scholarship Program. There will be from one to three scholarships awarded annually to any child of an employee of a CIFFA Regular Member. The objectives of the CIFFA Scholarship program are to:

Promote higher learning in international trade, logistics and commerce.

Increase awareness of freight forwarding as a career among children of CIFFA Regular Members‘ employees.

Support the children of CIFFA Regular Members‘ employees in achieving higher learning designations

Exact details will be forthcoming soon and the scholarship awards will be for students beginning in the Fall of 2010. Remember, it is important to participate and by participating you will assist further generations to continue the strength of the Canadian Freight Forwarding Industry. Thank you. Respectfully submitted, Robert (Bob) Walker President May I now move to have this report accepted? Moved by K. Legler, Seconded by D. Letterio. All in favour, unanimous. It is now time to move to the various committee reports. As advised by e-Bulletin, all reports are posted on our website under the ‗Members Only‘ hangar. I trust that you have had a chance to read up on the various issues. The chairs will now be called upon to touch on the highlights of their reports. I would like to call on Mike Robbins, our Treasurer to give his report. 8. Treasurer’s Report Ladies and Gentlemen, The Accounting firm of Hinchcliffe-Sapi of Toronto has audited CIFFA's financial statements for fiscal year ending December 31, 2008. The final draft has been duly circulated and approved by your Board of Directors. A printed copy of the statement will be 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 June.




After a loss of $331,339 in 2007, I am pleased to report a significant improvement for 2008 with an excess of revenue over expenditures of $136,947. I wish to remind our Members that the loss from 2007 was attributed to four main areas:

1) Salaries rose with the addition of new staff and the increasing workload within the Secretariat. 2) Legal fees were much higher for a variety of reasons including Transport Canada reviews, Termination costs, Competition reviews, etc. 3) Educational Courses and Development Software was taken as a full, onetime expense. 4) Investment losses shown at market value vs. Book cost.

At this time last year we advised that 2008 would see us eliminate many of these onetime issues. We anticipated a modest profit in our budget, but with significant gains coming from Education programs and good expense control we delivered better than expected results. I congratulate the Education teams and our Secretariat for these results. We continued to work on improving policies and improving internal controls to safeguard the finances of CIFFA. I am happy to report we have made further progress this year. We centralized banking functions and allowed for improved budgeting in the regions while improving visibility and control. Our finances are in good shape and we have transparency and integrity with the numbers as reported. My thanks go out to all of the staff of the Secretariat team headed by Ruth Snowden, and to Marilyn Massoud. Their efforts have been paramount in the financial success of our Association. This is my last meeting as Treasurer and my last meeting as a Board Member. I wish to thank all past and current Board Members and the Secretariat for their cooperation and service to CIFFA over the years. I wish you continued success in the years ahead. Respectfully submitted,

Mike Robbins Treasurer, CIFFA May I have someone move to accept this report? Moved by P. Glionna, Seconded by T. Young. All in favour, unanimously accepted. I have one other item that needs your attention: Over the past decade, CIFFA has developed a world-class education program -- our Certificate and Advanced Certificate programs. Our course material has become integral, not only to our own Membership based Certificate programs, but to the curriculum of several 2-year college diploma programs in Canada, and for other associations around the world. As we all know, change is the only constant in our world of international trade and transportation. Ongoing research and regular updates must be undertaken to ensure the integrity of our course material. In order to maintain the high regard in which our material is held and to continue in our growth trajectory, CIFFA must invest now in the human resources needed to manage our Certificate Programs. The association has an identified risk. CIFFA has the financial resources to address that risk. In order to continue the level of excellence that is demanded by our Members, the industry, and our education partners, the CIFFA National Board of Directors is asking the Membership to approve this financial undertaking by CIFFA and to approve the following motion:

“I move that the CIFFA Secretariat be authorized to spend up to $60,000.00 annually, on an ongoing basis, in order to manage the Certificate and Advanced Certificate Programs (according to Article IV, Section 12 of the CIFFA By-Laws). I ask for a seconder.”

Seconded by L. Allen.




K. Legler asked if this pertained to Module I and II, or other courses. R. Walker responded that yes, it is only for our two certificate courses. T. Chazin asked if there was any online assistance and would this spend cover this issue. D. Burek responded by saying CIFFA is looking at online assistance, but it is not in place currently, and secondly, the motion does not include this issue. A vote was taken, all in favour - 27 yeas; Oppose – none. Unanimously approved. Thank you. The President asked M. Robbins to stay at the podium for a minute longer. As Mike Robbins is stepping down after today‘s AGM, R. Walker presented a plaque to M. Robbins in thanks for his contribution to the Association during his tenure on the Board over the past two years. As Mark Soubry is not in attendance today, I will ask Donna Letterio to present the report on his behalf. 9. By Laws Ladies and Gentlemen: I would like to propose you approve the following changes to the By Laws will be voted on this afternoon. Article VI, Section 2: Current: Regional Committee - Each Regional Committee shall consist of a Chairperson and Vice-Chairperson, elected on an annual basis but limited to two full terms, who will be chosen from Regular Members, plus at least five additional committee Members who are representatives of different Regular or Associate Member firms, or Personal Members. The Chairperson and Vice-Chairperson will have authority to sign on the Regional bank account. 30 days prior to the AGM the Regional Committee shall meet to elect from their Members, within the Region, the Chairperson and Vice-Chairperson for the coming year.

i) Each Regular Member will have one vote. ii) Regional Committees will set Regional functions and participate in educational/training programs. They will deal with all matters of interest, however approval from the N.B.D must first be obtained for all matters beyond the local territory level. iii) They may hold any event should it not require National funding however should support be required, the Committee should present an event budget and rationale to the N.B.D for sanction. iv) No Regional Committee should be authorized to use the name of the Association for any correspondence other than those mentioned above, without the consent of the N.B.D.

Each Committee must be governed by the Bylaws of the Association. Article VI, Section 2: Proposed: Regional Committee - Each Regional Committee shall consist of a Chairperson and Vice-Chairperson, elected on an annual basis but limited to two full terms, who will be chosen from Regular Members, plus at least five additional committee Members who are representatives of different Regular or Associate Member firms or Personal Members. The Chairperson and Vice-Chairperson are responsible to approve Regional expenses. No less than 30 days prior to the AGM the Regional Committee shall meet to elect from their Members, within the Region, the Chairperson and Vice-Chairperson for the coming year.

i) Each Regular Member will have one vote. ii) Regional Committees will set Regional functions and participate in educational/training programs. They will deal with all matters of interest, however approval from the N.B.D must first be obtained for all matters beyond the local territory level.




iii) Regional Committees may hold any event. For any event with a financial commitment of + $2500 the Committee must present an event budget to the N.B.D for approval no less than 30 days prior to undertaking any formal financial commitments. iv) No Regional Committee is authorized to use the name of the Association for any correspondence other than those mentioned above, without the consent of the N.B.D.

Each Committee must be governed by the Bylaws of the Association. Rationale:

Regional bank accounts no longer exist, so no signing authority required.

Add the phrase ―No less than‖ to allow flexibility in timing of Regional Meetings.

Add the requirement for N.B.D budget approval of any Regional event with a significant financial commitment at least 30 days before committing the Association. (ie – before signing of contacts etc.)

Change ―should be‖ to ―is‖ for clarity. V. Danielson wanted to know when the Regional committee is elected, he was not aware of this being done in Eastern. K. Legler asked if the Region has an annual meeting where each Member has a vote, and asked if this was circulated. R. Walker responded by saying he would look into this and ensure that notices were circulated in future when the Regions were electing their committees. May I have someone move to accept these proposed changes in by laws. So Moved by G. Vince, Seconded by T. Young. A vote was taken: All in favour – 27 yeas; Oppose – none. Unanimously approved. I would like to thank the Members for approving these changes to the By Laws. As our Director of Education, Craig McKay is not in attendance, may I ask Doug Burek to deliver his report? 10. Education Ladies and Gentlemen, this is my Education Report for the CIFFA AGM May 2009. 2008 was had an outstanding year for CIFFA education! 2008 Accomplishments

The CIFFA Academy continues to expand its student database. In 2008, the CIFFA Academy taught 1,617 students overall, our highest number ever! This is an increase of 154% over 2007!

We continue to update Modules I our Certificate Program and Module II our Advanced Certificate Program, to reflect our changing industry and regulations. For example, we have added a new Part on “The Greening of Transportation” in Semester 4. We now seem to be on an almost yearly cycle of updates, which is becoming increasingly more difficult to manage given our resources. In 2008, we taught 680 students, which is an increase of 21% over 2007!

Our Certificate Programs have been acknowledged as superior education programs by FIATA at the World Congress in Vancouver. This is further demonstrated by the sale of our Module I and II Certificate programs to Australia. We continue to have ongoing correspondence with other organizations, indicate a further need for our




program in other countries, and possible additional partnerships ... British International Freight Association, Vietnam Freight Forwarder‘s Association, Global Logistics Network, Post Office of Netherlands Antilles, and Panalpina China. In addition, there was wide interest shown at the FIATA World Congress from other associations.

George Brown College in Toronto, signed an education agreement with us, similar to what we have with several other educational institutions. These agreements not only bring in additional revenues to CIFFA (with little expense), but they also provide a Member value service, as when our Members hire graduates from these colleges, the Member does not have to pay for further education.

We launched the George Kuhn Award for Excellence, to recognize the student in each region, who achieves the highest Final Grade in our Advanced Certificate Program.

Ocean DG e-Learning course was updated for 2009, and a further update included cargo security information. Again, there was wide interest shown at the FIATA World Congress from other associations, as Ocean DG training will become mandatory next year (it has always been mandatory in Canada). In 2008, we taught 133 students, which is an increase of 33% over 2007!

Our International Trade Workshops have been revised, and we have brought on-board several new instructors, who are subject matter experts. There is a possibility of making these workshops available as e-Learning, later in the year. In 2008, we taught 229 students in Workshops, which is an increase of 154% over 2007!

We continue to work with Transport Canada (TC) in the implementation of their Air Cargo Security Program, both in discussions and in training. In a TC security meeting held in Ottawa in at the end of November, CIFFA was highly praised in the meeting (attended by about 40 airlines, unions, associations), as being proactive, cooperative, and supportive of TC. We were the only group acknowledged. In 2 separate conversations with senior TC officials, they indicated the TSA is interested in reviewing our training materials, as they hear from their field inspections that our training programs are superior to those in the U.S. In 2008, we taught air cargo security to 317 students, which is an increase of 148% over 2007!

We signed two new agreements with Seneca College in Toronto for a Customs program, and two Business Essentials programs. These are for our Module I, Module II Certificate Program graduates, and for our PFFs who are looking for further education, but are unable to attend formal college classes. These Seneca programs are delivered totally through e-Learning, so they are available to any of our graduates or PFFs across the country.

CIFFA continues to offer high quality and highly relevant education and training programs to our Members and the public. Our Certificate programs are the de-facto source of education materials in several colleges across Canada, and our programs are well known and well respected around the world. I look forward to continuing excellent in 2009! Respectfully, Craig McKay Chair, Education T. Chazin commented that his company supervised several students that were on e-learning, and he made resources available to answer questions, but some could not be answered. We asked CIFFA to supply an advisor for e-learning students to call for support. D. Burek advised that next week CIFFA is having its annual education meeting in Toronto and this will be a topic of discussion. T. Kamps commented on the fast tracking through Seneca customs courses. D. Burek replied that yes this is correct; this applies to CIFFA Module II Advance Certificate Program graduates. They only have to take 3 of the 6 Seneca customs courses. K. Legler commented that the IMO DG courses seem to show a decrease in numbers, what would be the reason? D. Burek responded that numbers fluctuate and we do not have any control over this, but we monitor the stats and we continue to issue advertising regarding our course information etc. to solicit registrations.




Can I have someone move for acceptance of this report? Moved by P. Lobas, Seconded by T. Young. All in favour, No Oppose, unanimous. I would like to call on Chris Gillespie our Seafreight Chair who is also the Chair of the FIATA Multimodal Transport Institute to give his report. 11. Seafreight Committee Dear Members: There is no doubt that in this past year the CIFFA Seafreight Committee has faced no shortage of issues, some raised by the continuing cooperation and participation of our Members, while others and in many instances those which are most significant, brought on by the poorly conceived and ill-informed policies established by government agencies. We struggled through this past year with the growing difficulties surrounding container inspections, both import and export, the delays and expenses, both direct and indirect, and damages resulting from same. I would like at this juncture to make it very clear that in virtually every communication we have had with our customs authorities we have stressed that the forwarding industry and in particular, CIFFA Members, are fully committed to assisting our government in fulfilling their commitment to health, safety and security issues giving rise to the need for inspections. We have repeatedly stressed the fact that our industry is perhaps one of the, if not the best partner to engage in these initiatives, and that this needs to be more than simply a one-sided effort to cooperate and facilitate these processes. No one ever suggested that we opposed ventilation of containers which registered high levels of fumigants however, when it was decided that formaldehyde would be included in this testing process, even though it is not used as a fumigation product and never has been, and even though it is present in many of the commodities we import into Canada and in fact even in the very floors and walls of the containers themselves, we requested that this decision be reconsidered, given the extensive delays to import containers, a huge proportion of which were testing positive even though customs could not identify any source of the formaldehyde. This problem has still not been addressed by customs and we continue to see absurd delays in containers testing positive for a product that would test positive in the lumber section of your local hardware store or a funeral parlour you may be visiting to pay your last respects to a loved one. Smoking is also an excellent source of formaldehyde. The whole concept of container inspections needs to be reviewed. Costs are at levels which are unheard of on both the export and import side. Moving containers from a terminal to an inspection facility where they are incapable of unloading the commodity is an exercise in futility and a huge waste of time, money and resources. CIFFA is committed to continuing its efforts to arrive at some kind of reasonable solution to this problem. Bolt seals were an interesting development in the past year as countries started to mandate their requirements and the U.S.A. in particular imposed this requirement which then applied to all FROB cargoes from Canada. We even suggested to Canada Customs that they consider replacing their traditional seals with bolt seals given that those destinations for which bolt seals are required, when examined by Canada Customs, would have bolt seals removed and replaced by Canada Customs‘ seals, then exposing the foreign importer to penalties as a consequence. While ISPM 15 has been in place for a few years now, the issue of what qualifies as an acceptable treatment to fulfill its requirements still gave rise to confusion during the past year and we reiterated the fact that while methyl bromide fumigation of wood packing materials is an acceptable fumigation treatment process to render wood ISPM 15 compliant, fumigation of a loaded container is not. In other words, wood that is branded with the proper ISPM 15 insignia may have been either heat treated or fumigated but fumigation of a loaded container to fulfill ISPM 15 is not acceptable. We struggled again this year with container numbers on groupage shipments based upon a customs belief that everyone knows in advance of their CAED filing, the container number their cargo would be loaded in at that time. Those of us who have been in the business for a few years are well aware of the fact that it is unlikely that the actual container number into which an LCL shipment, booked perhaps a week or two in advance of loading, will be loaded is ever available. Last minute stow issues, DG compatibility and additional cargo all contribute to this being




virtually impossible. The best that can be hoped for is that the number be added to a corrected CAED entry upon sailing/loading. One of the issues that was recently discussed in a conference call with customs was the difficulties they have with NDR‘s i.e. no declaration required and while the list of NDR‘s is fairly specific and in fact simply indicates that a declaration is not required if a shipment falls within one of these categories, this seem to pose no end of confusion for customs inspectors, in fact in order to address the fact that ocean carriers were not cancelling in bond cargoes (U.S. origin) on their outbound manifest and simply indicating NDR 9 thereon, the decision was made to eliminate this NDR, a decision that while workable within the air mode did nothing to resolve the larger problem in the marine mode. Another example of how these two modes are very different. In fact NDR 9 served to indicate to marine carriers that goods were in fact in bond and that they would have to cancel the bond upon export. Now we are left with a very confusing situation. We also addressed in the past year the issue of vehicle imports and soil contamination carried on vehicles and in fact anything that may have been in touch with foreign soil, pallets, skids, etc. etc. CFIA‘s stated policy in this regard was zero tolerance and many of our Members have seen containers being returned to origin because of failure to comply. We made it clear to our Members it is important to ensure that overseas agents and correspondents are fully aware of this policy. Again this gave rise to regional disparity which is another issue that we have encountered, in that some jurisdictions permitted washing of the offending imports while others did not. We have continually highlighted the need for uniformity in the application of rules. Our industry can address pretty much anything as long as it is applied in a uniform manner. Allowing some units to be washed is counterproductive and in fact only gave rise to confusion over what kind of facility would be acceptable for washing contaminated vehicles. We again had to clarify the issue of B-13s being used as instruction forms at rail terminals. The railways insisted that a paper copy of a B-13 be supplied upon return of a container for export. Needless to say this is a significant problem for exporters who are reporting under a summary report, EDI and CAED electronic reporting and in fact complying with these requests has led to the filing of dummy B-13‘s with customs by the railways and in consequence fines (AMPS penalties) assessed for their not being completed accurately. We believe that this problem has finally been resolved. We also reissued the clausing suggested for our Members to use when releasing and/or delivering FCL‘s to importers. Many of us have encountered difficulties when ocean carriers invoice us months, and in one recent case, years after containers have been returned for demurrage and detention charges. Essentially the clause alerts the importer or broker to their liability for any such charges. Several countries in the past year have proposed to implement systems similar to Canada‘s ACI and the U.S.A.‘s AMS systems. It is often difficult or next to impossible to secure accurate information concerning these programs and all your national association can do in this regard is try and obtain the best possible information available; in particular the version of the program implemented in China still remains somewhat questionable and there appears to be no English language version of the requirements available, the result being a wide variation in interpretation by carriers and agents concerning this program. For those of you who followed the reports during the past year, it is clear that I have not touched on every item that we addressed, but suffice it to say that many of our greatest challenges, both now and in the future, appear to be presented by our customs authorities. All we can do is to ensure that our Members are informed as to the requirements and implement them accordingly. We welcome and embrace our inclusion in initiatives considered by customs that will impact our industry and most importantly, the importers and exporters upon whom Canada‘s economy relies on so heavily. Clearly this past year‘s problems have shown how important and critical consulting us can be. In closing I can only hope that our continued efforts to facilitate processes will be seen as constructive and lead to a better understanding of our roll in Canada‘s economy. Respectfully submitted,




Christopher J. Gillespie Chair May I have someone move for acceptance of this report? Moved by T. Young, Seconded by P. Glionna. Any discussions? T. Kamps asked if CIFFA can do more to overcome these problems outlined by C. Gillespie, with CBSA, saying the cost spend by the industry is just escalating. C. Gillespie advised we are addressing this with the President of CBSA. C. Gillespie commented that as an Association we have tried to establish a relationship with government officials, but as they retire we have to re-establish new connections again. We have various working groups dealing with this issue and we continue to get through to the various government departments, getting them to listen to us. If Members have problems with CBSA, please send the information to the CIFFA Secretariat and we will add the issues to the list of examples. R. Snowden also commented that our Customs chair, D. Lucky, sits on the BCCC committee and will bring this issue to that committee as well. It was advised that CIFFA has also started working group on export container problems to work on a formal submission to Customs. T. Young referred to the understanding we had with Doug Waldie (formerly of Customs) 7 years ago, did this ever get to a D Memo? C. Gillespie advised that it did not. T. Young suggested that the D Memo has to be amended. Everyone was in agreement, and the issued is being addressed now. K. Legler commented that CBSA has admitted they do not have export procedures in place and are looking at this for 2010. C. Gillespie commented that yes that is true, but in the meantime containers are being stopped—this is not acceptable. P. Courtney asked that when CIFFA speaks to CBSA regarding the costs of these examinations, are they say the CBSA has nothing to do with the costs (?) these are the comments we get from the Western Region. R, Snowden commented that what Mr. Courtney said, that is part of the policy framework – that the exporter pays. The BCCC will be discussing driving accountability. CIFFA is drafting a policy on this. Joe SDV, regarding the costs, the freight forwarder pays out on behalf of clients, when the shipments are delivered damaged, where is the liability in this situation, and how can this be proved? T. Young commented that if you can prove Customs caused the damage, it is exempt. Mr. Young also asked who is billing the formaldehyde invoices. C. Gillespie advised that Customs is taking the cost of the ventilation, there might be 10-15 days grace, but there is still an exam fee of about $1500.00. T. Chazin asked about the issue of 315. It was advised this would be brought up under Other Business. There being no further questions this report was unanimously accepted. Our Airfreight chair, Roberta Strange will now give her report. 12. Airfreight Committee

Dear Members: IATA Industry Review and Outlook:




In this most recent downturn air freight growth turned negative in June 2008 and started to fall sharply in September 2008. Growth in overall world trade volumes turned negative in November and then fell very sharply in December. One of the major drivers of the collapse in air freight from September last year was the emergence of an extremely large inventory overhang in the US and elsewhere – as the recession hit sales much harder and more quickly than expected by firms.

The big shock at the turn of the year 2009 was the collapse of freight demand, which was down an unprecedented 23%. The shrinkage of air freight by almost a quarter has never been experienced before in post-war years typified by expanding globalization and reducing trade barriers. At best, conditions suggest manufacturers‘ shipments and air freight volumes will continue to move sideways or may get a little boost from the manufacturing inventory cycle later this year/early 2010. A return to more normal growth rates may not arrive until 2011. e-freight initiative: One of the key Airfreight Initiatives in early 2008 was the e-freight pilot project. The e-freight initiative was focused on the development of a paper free environment within the air cargo sector. Since the inception of the pilot project in January 2008 there have been over 1000 master bills and 3500 house bills shipped in a paperless environment. Bill Acheson of IATA asked CIFFA to have two or three small or medium sized Members participate in the IATA e-freight initiative this year. CIFFA also attended 4 or 5 conference calls to review and validate the agent to agent information. IATA e-freight marked a major project milestone with the publishing of the IATA e-freight handbook on its website November 2008. The handbook provides a comprehensive guide to IATA e-freight. Main topics include:

Overall vision and strategy:

Business benefits airlines, shippers and freight forwarders can expect from IATA e-freight

Business process, standards and technology supporting IATA e-freight

How countries become e-freight locations

A step-by-step guide to implementing IATA e-freight in a new location

How to join the e-freight network in live locations

The handbook may be found on the IATA e-freight homepage (iata.org). As the project progresses updates of the handbook will be made available.

IATA Time and Temperature Task Force

FIATA and the Air Freight Institute (AFI) invited CIFFA to participate at the ―IATA Time and Temperature Task Force‖ meeting in Montreal, October 28-30, 2008. Two Ciffa Members attended the meeting. IATA's intention is to update/revise the Live Animal Regulations (LAR) as well as the Perishable Cargo Regulations (PAR).

CIFFA will assess the need to get involved with regard to 'processes' regarding handling of live animals as well as handling of time sensitive and temperature sensitive cargo, especially as it pertains to medical and pharmaceuticals.

Update on C2K Toronto Local Associations

The Toronto C2K association has been meeting about 4 times a year since June 2006. The Members have shared results for the key milestones: FWB, RCS, DEP, RCF, NFD and DLV on an airport to airport basis, inbound and outbound, in percentages of milestones reached at a shipment level basis. All carriers, all C2K lanes are measured.

http://cts.vresp.com/c/?IATA/5fe0513809/e919bc8098/4fc81b8e4c

http://cts.vresp.com/c/?IATA/5fe0513809/e919bc8098/a23fb360ce




Over the last year we have selected one or two milestones in each meeting in order to drill down and report cause, effect, and corrective action. The percentages were a good benchmarking exercise but in order to go forward it was clear we had to drill down. For example, an FWB message not sent, or a late delivery to the airline RCS failure, can affect DEP, which has the potential of course to delay the shipment. For several of the carriers, AF/KL, CX and AC for example, C2K is a mainstay of their internal KPI measurements. KAN are measuring door to door performance based on C2K milestones and DGF are definitely headed that way as well. (Report from Barry Edwards DHL [email protected])

Air Canada: Montie Brewer resigned as Air Canada's President and Chief Executive Officer as of Monday March 30

th 2009

Air Transat appointed a new GSA. Respectfully submitted,

Roberta Strange Airfreight Chair

May I have somebody to move for acceptance of this report? Moved by P. Lobas, Seconded by P. Glionna. This report was unanimously accepted. Can I now ask Don lucky to deliver his Customs report? 13. Customs Dear Members: The Customs Committee continues to interact with the CBSA in representing the interests of the Members of the Association. This activity is time sensitive in many cases and is reported on as it occurs. This review will be very brief and touch only on the major matters that prevail. The Amps review is close to drawing to an end. It currently awaits presentation to the BCCC and final approval before being implemented. The major changes are the reduction in the number of contraventions as a result of reorganization, a criteria of fairness based on risk, clarity in the guidelines and a grid for risk and penalty amount ranking. While some contraventions have been eliminated, most have been combined and give the impression of reductions. In truth, penalties will still be applied as before but under the new terminology and designation. It is anticipated that more contraventions will be introduced over time. The eManifest project continues to move forward in the development of a process of obtaining Importer Admissibility Data (IAD) for purposes of risk assessment. CIFFA has representation on the working group which is establishing with Customs, the criteria for this program. The reporting to Customs will be electronic and non paper functionality. The design, once completed, is intended to minimize delay at the frontier ports of entry. The primary issue currently confronting the industry is that of examinations of import and export shipments including the performance of inspectors and the extended delays that are prevalent. This has become a major problem for the industry. Early in the year, a meeting was held with the President and senior management of CBSA to express our concerns on the issue and other significant matters in an attempt to obtain resolution. It has not been achieved. Discussions are continuing as it is having a negative impact on both importers and exporters. We hope it is resolved very soon.

mailto:[email protected]




As the representative of CIFFA I attended and participated in the Border Commercial Consultative Committee meeting held on April 28

th and 29

th. The meeting deals with a number of issues, some of which are of interest to the

freight forwarding industry. As part of a government initiative, Customs are involved in reducing the complexity and paper flow in their operation. The Business Simplification program has a reduction target of 20% which they expect to achieve very shortly. It includes the re-writing of policy and memorandum papers and the elimination of them where possible. The AMPs program is in its final stages of review before being presented to management for approval. CIFFA has made a request that Customs eliminate the penalty for ‗voluntary discloser‘ on the basis that it is detrimental to the desired goal. Other departments currently do not apply a penalty and Customs should adopt the same policy. If accepted, Customs would still apply the penalty where a voluntary disclosure is made after a notice of audit has been issued. Customs are currently examining broker licensing with the possibility of there being regional licenses or a national license and a longer duration for the license. Accounting is also under review which can include the security status of the current program. The export process and reporting program is also under review including consultation with various groups. The Agency is setting up a contingency program in conjunction with various other departments, provincial and local governments to be implemented in the event there is a disaster that would impact the movement of goods. This includes ensuring that goods continue to move freely across the border and domestically and access for emergency services as required. CBSA provided an update on the soon to be implemented Western Hemisphere Travel Initiative, the use of Nexus by drivers of highway transports and the progress being made in having OGD‘s become participants in the single window program. CIFFA made an extensive presentation on the subject of import/export examinations outlining the failure of the process as well as the recognition of the substantial costs being incurred by the private sector. Proposals were made to the CBSA for consideration as a means of reducing both the costs and the delays in having goods examined. Customs are taking the various points under advisement and have set up an internal group to attempt to overcome the problems. Respectfully submitted, Don Lucky, Chairman May I have someone move to accept this report? Moved by D. Couroux, Seconded by G. Vince, All in favour, no Oppose, unanimously carried. Gary Vince will now present his report. 14. Security Dear Members: Cargo security continues to be an issue of significant concern for our industry. While the perception may be that little has been accomplished during the past year Transport Canada have actually done a significant amount of work aligning policy with future legislation and regulation. The balance between voluntary based programs and programs that are regulation based require a sizeable investment in time and effort on all of the stakeholder‘s parts. One of those key stakeholders is the USA. 100 percent cargo screening mandated by the US senate will undoubtedly drive more change here in Canada. TC




continues to work towards achieving mutual recognition of our security programs with the USA but in reality, until legislation in Canada is invoked, this may be difficult to achieve. There has recently been a significant change of leadership with TC as Steve Conrad takes a leave of absence and Shari Currie takes over as Director of Air Cargo Security. Shari likely will move the program in different directions so we look forward to working with her in the coming months. Below are some of the significant events which have occurred during the past year;

TC has begun validating regulated agent programs and has begun acceptance of Cargo Security Plans

TC has begun to do actual audits of the forwarders who have signed MOU‘s and submitted cargo security plans.

o It is expected that the first round of inspections will be unobtrusive but will likely come with the significant recommendations as to suggested alterations and modifications.

TC has rolled out the Secure Supply Chain Management System and is now looking for industry feedback on any issues that forwarders are coming across with the SSCMS structure and or guidelines;

o TC still has an expectation that forwarders will use the SSCMS on a shipment by shipment basis rather than on an exporter level. For example, if you receive multiple shipments on any given day from the same exporter you are expected to validate each shipment via the SSCMS system. CIFFA has brought this issue forward to TC as a major concern knowing how this will negatively impact efficiency and productivity.

TC has notified industry that the pilot program for the cargo security generator has ended and that the actual software will not be supported by them.

o Forwarders who wish to continue to use the software to generate the CSP‘s will have to establish bilateral agreements with the supplier. TC have gone back to the original Word based document and suggested industry use this template.

TC has begun discussing the possibility of regulating actual shippers and has begun looking for companies who could be pilots for this program.

3rd

party service providers have begun supplying TC with letters as to cargo security readiness. o TC will continue to not include third parties in the regulated agent program and will not include them in

the SSCMS database. If TC elects to audit a 3rd

party they will contact the regulated agent(s) who have listed the 3

rd parties in their CSP and advise them of any security deficiencies.

Respectively submitted, Gary Vince Air Cargo Security Chair K. Legler commented cargo security is a pet peeve of his, and it is becoming a cumbersome burden, the costs etc. and stated he has found some futility in all of this; and we are still not getting anywhere. What is CIFFA doing/saying to these organizations/regulations other than paying lip service? G. Vince agreed with the concept of what was said, there is no question the TC program has not gotten to where it was supposed to be, but advised that TC has made changes further to suggestions from CIFFA. In the U.S. there is no choice, you have to be compliant. K. Legler stated it is very important on the export program to make sure CIFFA has input. V. Danielson asked about 3

rd party contractors, where are we? G. Vince advised that TCV states they have no

personnel to monitor; it is up to the freight forwarder to audit the 3rd

parties. TC will look at the 3rd

party plan, but will not look at the facility.




Moved by T. Young, Seconded by R. Anger, this report was unanimously accepted.

As M. Bibeau is not present this afternoon R. Walker read his report. 15. VP I / Global Issues Dear Members: As VP1, alongside Members of the National Board, it has been a dynamic year on all fronts. As an Association, we have successfully accomplished a large part of the initiatives set forth. In my area of responsibility, the main concern for 2008 was to remain active on the carrier front and port relationships throughout Canada while working with CTSA and non-CTSA carriers while bridging the gap towards greater transparency within our respective Membership. We had several forums and meetings with our President, Bob Walker and Secretariat Executive Director, Ruth Snowden, along with respective carriers and stake holders, where we raised the importance of transparency and effective communication. Issues were primarily BAF, CAF, GRI and surcharges. Our message was clearly stated and we as a National Board are of the opinion that we have given voice to our Membership so that their concerns are clearly heard by carriers. We have seen notable improvement. We thank CTSA and non-CTSA carriers for the opportunity to meet and for assisting in providing a forum to our Membership‘s voice, as well as their collaboration in creating a united front in order to address industry challenges. We continue similar strategic initiatives with CP and CN on visibility, throughput and congestion via Vancouver, Montreal and Halifax; resulting for the most part in favourable outcomes. CIFFA has created a strong alliance with CP and CN that has enabled responses for issues and delays to be resolved with fluid and consistent delivery of our containers from each respective port. There has been great improvement by the rail carriers overall due to their conscientious efforts and the decrease in volume of cargo entering Canada. We will continue to foster strategies with CP and CN, while ensuring that Membership concerns and wishes are heard, respectively. On another note, I would like to give a special thanks to Ruth Snowden, Doug Burek, Marilyn Massoud and the entire office, who work passionately day in and day out, assisting the National Board and Regional Directors through their tireless efforts. They are true assets to our Association and Membership and continue to add value on all fronts. This concludes my annual report. Respectfully submitted, Marc Bibeau VP1

Thank you, can I have someone move for acceptance of this report? Moved by D. Couroux, Seconded by R. Anger, All in favour, no Oppose, carried. As Members are aware, Bill Gottlieb is currently the President of FIATA, and has done an excellent job on behalf of CIFFA. Bill will now report on our general involvement with FIATA. 16. FIATA Dear Ladies and Gentlemen; For third year all CIFFA Members are automatically granted FIATA Individual Membership, and are kept well informed on the actives of our global organization, through the bi-monthly FIATA Review.




I will therefore only briefly touch on a few areas of interest. In September FIATA in conjunction with CIFFA held its annual Congress in Vancouver, the amount of positive feedback from the participants was overwhelming. The delegates were very satisfied with the Congress and I want to again publicly thank Marilyn Massoud, Ruth Snowden and the secretariat for going above and beyond to make this a truly positive Canadian experience. Also we were very fortunate to have Craig McKay, Chris Gillespie and Bob Walker join Marilyn on our organizing committee, the amount of effort these persons put in to the Congress was phenomenal and the event‘s success is due in large part to their leadership and hard work. CIFFA has done itself proud and FIATA is grateful for all the support it received from CIFFA. FIATA‘s role is to advocate on behalf of the forwarding industry and in that regard it takes direction from its Membership. The Airfreight Institute meets regularly with IATA bureaucrats and carriers, to discus and review significant issues that the forwarding industry has with eFreight, Cass, Cass Statistics, Cargo Agency Programs, TACT, and Security. Members wishing to voice any concerns regards to IATA programs or policies are asked to contact the secretariat or the airfreight chair. In the area of Airfreight training FIATA and IATA have finalized a new training agreement effective January 2009, this will allow for FIATA Members such as CIFFA to be the primary distribution channel for IATA Agency Agreement mandated training. In addition to classroom and self study as in now available, there will be the ability to offer eLearning, which will permit CIFFA to better serve it Members training requirements, providing internet based Air DG and Basic Cargo training on demand, in all regions across Canada. The Multimodal Transport Institute (MTI) and the Advisory Body Legal Matters (ABVT) have closely monitored the UNCITRAL process in what will become known as the Rotterdam Rules. While FIATA‘s Working Group Sea took a position to oppose ratification, the MTI adopted a neutral position and CIFFA along with other FIATA Members must study the information provided with their local legal representatives and arrive at their own conclusion, as to support or oppose this convention. A unique service offered by FIATA is a group bond program to meet US FMC regulations. Some CIFFA Members already utilize this bond program, should you require such bonding, please contact the CIFFA secretariat. In closing CIFFA‘s involvement in FIATA remains strong, the CIFFA Board has recently approved the re-nomination of Chris Gillespie as the chairman of the MTI, and I will step down as FIATA President in September, while remaining of the Presidency for the next two years. Both Chris and I sincerely thank the Membership for your support and confidence in our representation on behalf of CIFFA. Respectfully submitted William Gottlieb May I have a motion to accept this report? Moved by K. Legler, Seconded by G. Vince, there being no discussion this report was accepted unanimously. Gavin Magrath, of the law firm Magrath O‘Connor, is CIFFA‘s legal advisor and will give his report. 17. Judicial Dear Members, As this is the first AGM I am attending as a Board Member, I want to begin by thanking you all for your invitation, an honour I am proud to accept. This report addresses two major developments; the UNCITRAL convention is also the subject of my address to the AGM. UNCITRAL / Rotterdam Rules The Convention formerly known as UNCITRAL, and now called the ―Rotterdam Rules‖, has been adopted by the General Assembly and is scheduled for signing at Rotterdam in September 2009. Whether or not it is broadly




adopted it will be the most significant legal development for some time: broad adoption will create an updated legal multimodal framework, while rejection would likely spur a fairly rapid fragmentation. Tony Young has prepared an excellent report that I commend to all Members. The central decision at this point is what position we would like Canada to take in respect of signing and ratifying the new Rules. In addition to this main question, I also draw attention to the following very short list of issues that will be most relevant to Members and the broader industry:

1. The dispute resolution and jurisdiction provisions would appear to oust s.46 of the Marine Liability Act, which preserves a right of action in Federal Court for most Canadian interests. Should Canada opt-out of this provision?

2. Will dominant players in the market abuse the ‗freedom of contract‘ or ‗volume contract‘ provisions, effectively eviscerating the Rules?

3. Is the intended extension of the Rules, including their limitation provisions, to inland transport constitutional under Canadian law? Is it desirable?

4. The present regime is also implemented as domestic regulation for purely domestic operators (e.g. ferries and short-shippers). Should the new regime be similarly adopted?

Teamsters v Fastfrate This pending Supreme Court decision was addressed more fully in an opinion prepared by counsel on 14 November 2008. The central issue is whether CFF is a local undertaking subject to Alberta statute or an interprovincial undertaking subject to the Canada Labour Code. Factually, the Court may take the opportunity to describe more fully what nature of activity leads an organization to be interprovincial, whether it is physical, contractual, or even simply purposive. Legally, while the case itself arises from a conflict of Labour Code provisions, there is no reason that a similar analysis would not hold in other fields of regulation, and so a clear decision may have a much broader impact. There are two other cases that are of interest, (1) CH Robinson 3

rd party auto insurance and (2) Stephens Transport

being fined AMPS. Last but not least, there will be a review of the CIFFA Standard Trading Conditions this year and they will be presented at the next AGM. All of which is respectfully submitted, Gavin Magrath Magrath O‘Connor LLP May I move to have this report accepted by the Membership? Moved by P. Glionna, Seconded by V. Danielson, All in favour, no Oppose, carried. 18. Ways and Means As there was no activity in this committee over the past year, there is no report. I would like to call on Paul Lobas to present his reports on Public Relations and Membership. 19. Public Relations Colleagues: CIFFA continues to use the print media to promote our Members and our education programs. Our trademark ―You Deserve the Best‖ full page ad was redesigned and placed in 3 industry publications along with a banner ad on a freight website. The E-Bulletin continues to provide timely and relevant information to our Members. Advertising revenues from ads placed in CIFFA publications, The Forwarder Magazine – published 3 times per year and the CIFFA Directory was a combined $44,000.




Over the last few months CIFFA has been hard at work to redesign our web page. The new web page which you can see here, on the screen provides a fresh new look and ease of use. One click of the mouse will get you to the information you are looking for. Your Directors and Secretariat have been very busy representing CIFFA Members by participating on numerous regulatory committees, industry committees, FIATA meetings across the country and around the world. In addition CIFFA Directors and its Secretariat have been attending, chairing, and speaking at industry seminars and functions. These activities continue to provide CIFFA and its Members with the profile and clout in the industry confirming that CIFFA is the Voice of the Freight Forwarding Industry in Canada. Respectfully Submitted by Paul Lobas Public Relations Chair Moved by D. Couroux, Seconded by D. Letterio, All in favour, no Oppose, carried. 20. Membership Ladies and Gentlemen: Membership in CIFFA is sound. Our current Regular Membership stands at 224 and Associate Membership stands at 137. There is a slight decline in Regular Membership over 2008 figures due to the amalgamation of several of our Members; and a minimal increase in Associate Membership. In addition, at time of writing there were 9 applications for new Regular Members. Our conservative Membership target for 2009 is 229 Regular Members which we should easily achieve over the next 2 months.

We continue to solicit new Members through print media, targeted mailings and personalized follow-up. As you have heard these methods continue to attract freight forwarding companies to CIFFA. Respectfully Submitted,




Paul Lobas Membership Chair Moved by P. Glionna, Seconded by P. Courtney, All in favour, no Oppose, and report unanimously accepted. Our Ethics & Standards Chairman, Donna Letterio will give her report. 21. Ethics & Standards Ladies & Gentlemen: CIFFA reviews all complaints or concerns submitted to the chair in accordance with our Ethics and Standards by-laws. These concerns are addressed at the National Board of Directors Meetings and the Chair or the Secretariat responds to both the complainant and the Member company. In 2008 the Chair and the Board found there to be no breeches of our by-laws in any of the complaints received. Respectfully Submitted Donna Letterio Ethics & Standards Chair Moved to accept by G. Vince, Seconded by P. Glionna, unanimously carried. It is now time for the Regional Reports of our three regions. As J. Kennedy is not available to give her report, would someone table to accept this report as posted on the website, so moved by D. Lucky, seconded by P. Glionna, all in favour, no oppose, carried. 22. a. Eastern Region – Jennifer Kennedy Dear Colleagues: My Members of the Eastern Committee are: Ellen Kumpic - DHL Global Vice Chair Denis Couroux - Mercator Group Education Bob Walker - Carson International National Juerg Hertner - DHL Global Treasurer Bonnie Weldrick - Carson International Events committee Danny Dinardo - Simard Transport & Warehousing Events committee Veronique Miljour - Simard Transport & Warehousing Events committee Steve Viger - Traffictech Events committee Eddy Dumouchel - Shipco Events committee Peter Marcotte - ADAMAR Events committee Sebastien Suicco - Cosco Events committee FCA – 2008 Was a success – we had close to 400 people attending the event held at the Crowne Plaza. AGM - FCA – 2009 At this time we are over 400 people attending our event. We are honouring the trucking companies in the industry who work with the forwarders. I believe that this is a lower attendance than last year, but considering the economic situation, attendance is exceptional. Graduation – 2009 Looking at holding the event as the Crowne Plaza for the dinner for June 11th. Dennis Couroux, our Education Coordinator is looking at approximately 130 students attending. Eastern Region Members are invited to support our graduates by attending this event. Please contact Dennis for registration details.




A vote took place in March, and I have been elected as Chair for Eastern for another 2 year term. Respectfully submitted Jennifer Kennedy 22. b. Central Region – Paul Glionna Dear Members: As I am new to the position of Central Region Chair, this report was prepared by W. Trudeau. The Central Region Forwarder‘s Choice Awards Dinner was held on April 2, 2009 at the Mississauga Convention Centre and was a great success. Our attendance exceeded 535, down from previous years but better than forecasted considering the current economic state. Our graduation boat cruise is scheduled for June 11, 2009 and we are expecting a large number of graduates and guests to attend. The Region‘s fall golf tournament is booked for Wednesday, September 16, 2009 at Kleinburg. We believe this will be the last year that this venue will be available. Steve Valentine was re-elected as Central Region Chair at our March meeting. However, he has since resigned from the committee and the committee has elected Paul Glionna to the position. Joe Cappiello has been re-elected as Vice Chair. Both Jodie Wilson and Joe Chan have resigned from the committee. We have recently elected Chris Barnard and Amit Arora in their place. We will certainly miss Steve, Jodie and Joe and wish to thank them for their contributions to CIFFA Central. CIFFA Central Region is in good financial standing. CIFFA Central Committee Paul Glionna – Universal Logistics Central Chair Joe Cappiello – SDV Logistics (Canada) Vice Chair Vania Gava – Marsh Canada Secretary Tom McGinn – Subrogateway Inc. Treasurer Amit Arora– Gillespie-Munro Inc. Chris Barnard – ITN Logistics Group Bob Burns – Carson International Skip Hughes – Near North Customs Brokers Wendy Trudeau – Agility Logistics Respectfully submitted, Wendy Trudeau Representing CIFFA Central Region There being no questions, D. Lucky moved to accept this report, seconded by D. Letterio, unanimously carried. 22. c. Western Region – Paul Courtney Dear Members: Paul Courtney introduced himself as the new chair for Western. My thanks to C. McKay for preparing this report.




It seems many of the forwarders located on the West Coast were the last to feel the effects of the downturn in the economy. Many forwarders have in fact recorded good export revenues in the last year. Nevertheless we are all optimistic that the present world economy has bottomed out and that we should see a slow growth as we move into this year. Earlier this year, unfortunately our Western Chair Ms. Amy Nerona had to resign from the Committee owing to a heavy work schedule, and we thank her for all the work she did as Chair. We are pleased to advise that we have found a new Western Chair in Mr. Paul Courtney of Courtney Agencies Ltd. Paul was a former Western Chair of the Customs Brokerage Association and brings with him a wealth of knowledge and experience. Together with his new team we all wish them well in the year ahead. Numerous meetings have been held with Canada Customs, Port of Vancouver, Transport Canada etc during the year addressing concerns of the Western Region. We are also seeing more interest in Membership in our association as freight forwarders witness the excellent work in Industry matters that CIFFA performs. On the social side of things we will again be arranging our very successful Golf Tournament on July 9

th, as well as

our Forwarders Choice Awards Event for October and Christmas luncheon later in the year. Last year the Region once again was able to donate a truck load of toys to the Salvation Army at Christmas. Other functions are planned including seminars and luncheons with great speakers during the course of the year. On the Education side we had another successful year with students in both Module 1 and Module 2. Our graduation ceremony is planned for early June, 2009 and we look forward to presenting the students with their awards together with the Dean of British Columbia Institute of Technology. Our local Directors are as follows: Regional Chair Mr. Paul Courtney – Courtney Agencies Mike Teixeira - Ecu Line Travis Linfoot – Gillespie-Munro Inc. Robbin Olafson – Perishables International Madelaine Kersey – O.C.F. (Overseas Container Forwarders) Martin Bertrand – Simard Craig McKay – Adanac / Rutherford We would confirm that this Region remains in good financial standing. This report is respectfully submitted. Yours truly, Wm. Craig McKay National Education Director Western Region There being no questions, D. Lucky moved to accept this report, seconded by P. Glionna, unanimously carried. Now is the time to move on to the election of the National Board. According to the By-Laws of our Association, a nominations committee has been duly appointed with Mark Soubry, Agility Logistics, as the Chair. Due notice has been served with our March 26, 2009 e-Bulletin for nominations to the National Board. Due to Mark‘s absence, may I now ask Paul Lobas to review the procedure of the election of Members to the Board.




23. Election of the National Board of Directors As circulated in the March 26, 2009 CIFFA eBulletin, there are 5 positions up for renewal consisting of a two year term. Current directors who were holding 4 of these terms and who have agreed to stand for election on May 13, 2009 are: Marc Bibeau, OEC, Montreal, currently VP I Donna Letterio, DHL, Mississauga, currently VP II Mark Soubry, Agility, Mississauga, currently VP III Gary Vince, DHL, Mississauga, currently Security Committee Chair Therefore one two-year term is up for election due to a resignation from the Board effective May 13, 2009. The following person has submitted his name to stand for election: Jeff Cullen, Bellville Rodair International As there are no other nominations and those nominated do not exceed the vacant positions. May I therefore ask the Members to ratify the nominations as presented? The Board is approved by acclamation. Moved by D. Letterio, Seconded by K. Legler; Vote: All in favour - 27 yeas, Oppose – none. Unanimously elected.

Your full Board: Directors: R. Walker Carson International D.J. Lucky Cole Freight Inc. P. Lobas ITN Logistics Group M. Bibeau Overseas Express Consolidators (Canada) Inc. D. Letterio DHL Global Forwarding (Canada) Inc. M. Soubry Agility Logistics Co. C. Gillespie Gillespie-Munro Inc. W. Gottlieb David Kirsch Forwarders Limited G. Vince DHL Global Forwarding (Canada) Inc. C. McKay Rutherford Global Logistics T. Young LCL Navigation J. Cullen Bellville Rodair International R. Strange Panalpina Inc. Regional Chairs: J. Kennedy Sameday Right-O-Way P. Glionna Universal Logistics Inc. P. Courtney Courtney Agencies Legal Counsel: G. Magrath Magrath O‘Connor LLP

Finally, I beg your indulgence for two more items. Namely:




24. Banking Motion It is proposed that the President, Secretary, Treasurer and Executive Director of the Association be authorized to carry out the responsibilities of all financial transactions on behalf of the Association with the co-signing of cheques and other activities by any two of the afore mentioned and in accordance with our by-laws. Moved by P. Glionna, Seconded by G. Vince, All in favour, unanimously carried. 25. Appointment of Auditors I would now like to entertain a motion to appoint Hinchcliffe Sapi, Chartered Accountants LLP of Toronto as the Auditors for the fiscal year 2009 at remuneration to be fixed by the Board of Directors. Moved by R. Anger, Seconded by D. Couroux, All in favour, no Oppose, unanimously carried. 26. 61st Annual General Meeting In accordance with our long tradition, the next annual general meeting will take place in May 2010. The exact date and location will be advised at a later date.

27. New/Other Business a. T. Chazin brought up the issue of the carrier release system that came to the attention of his company that a container made it into the position of the consignee, who was NOT entitled to the goods. The house bill was not recognized by the steamship line and leaves liability exposure for the freight forwarder. It is the position of Milgram that CIFFA should continue to work with the carriers. This was unannounced to the industry, and is extremely troubling. T. Chazin asked the Board to address this issue and see some push back from CIFFA. R. Walker advised this procedure started in Vancouver about a year ago, and agreed that none of the terminals have advised CIFFA or our Members. R. Snowden advised CIFFA is in ongoing discussions with carriers and terminals and will continue to do so. R. Walker agreed it is an issue, and asked Members for examples of specific cases to be forwarded to the CIFFA Secretariat. T. Young suggested a solution may be to obtain the original bill of lading until you receive the client‘s bill of lading, and if the steamship line releases the container, the carrier would be liable. V. Danielson commented we are the consignee and he does not see how the steamship line can release. C. Gillespie said on an express bill you (the freight forwarder) do not hold title, saying that is the issue. R. Snowden suggested a sub working group be formed, with the Board‘s approval, under the auspices of the Seafreight Committee Chair. b. D. Lucky advised that this will be the last AGM that Bob will preside over as President, and presented him, as outgoing President with a thank you gift. (Applause) Bob thanked Don and the Board and the Secretariat. The New President of CIFFA will be announced after the June Board meeting.




28. Adjournment There being no further business, may I have a motion to adjourn? Moved by D. Lucky, Seconded by B. Gottlieb. Unanimously carried. Thank you, Ladies & Gentlemen. This Annual General Meeting is adjourned at 15:50 hours.

Recorded by:

M. Massoud, Secretary- Manager CIFFA Posted on CIFFA Website: May 25, 2009

Documents

MINUTES 60TH ANNUAL GENERAL MEETING May 13, · PDF fileRoberta Strange Panalpina Inc. Regular ... The Competition Bureau of Canada is an organization that investigates anti-competitive