Ontario 2013 International Transport and logistics Chapter 3: Actors of the logistic chain

1. Ontario 2013 International Transport and logistics Chapter 3: Actors of the logistic chain

2. Relations with partners There are numerousprofessionals in the international transportation and logistics world. Carriers, forwarders, customs brokers, transport brokers, warehousers, consolidators, 3PL, 4PL, consultants, etc. • Make sure thatthey have the capacitiesthey are stating and the someofthefollowing certifications: ISO, IATA, CIFFA, CBCA, C-TPAT, PEP, OEA, etc. Obtain the certification numbers. • Visitperiodicallytheirphysical sites for compliance; • Know yourrepresentative(s) and alsooperationskey personnel. Establishrelationships • Make sure your have the numbers (phone, cell) and email to easilyjointhemwheneverneeded.

3. OCEAN PROFESSIONALS A. STEAMSHIP LINES or VOCC’s Own and operate their vessels. Are issuing ‘Bill of lading’ (BOL). Ruled by the FMC. You need a large volume to deal directly. Maersk, China Shipping, Cosco, Evergreen, etc. B. NVOCC’s orNon-vessel operating common carrier Negociate space with the VOCC’s. Can issue their own BOL’s. Agility, UPS SCS, Delmar, BAX, etc. C.INTERNATIONAL FORWARDERS Negociate space with VOCC’s and NVOCC’s.Can not issue their own BOL’s. Can book any type of transport mode. Axxess, Panalpina, SDV, Cargolution, etc.

4. FREIGHT FORWARDING

5. PROFESSIONALS • FREIGHT FORWARDER • Alsoruled by the CIFF(Canada). Usuallynon-assetcompanies. Do not issue BOL’s. • Services: • Quotationsfor all modes: Ocean, rail, road and air cargo movements and other services, to move cargo from point of origin to destination. • Performreservations and coordination with the carriers in the four (4) modes of transportation. • Prepare/revise transport and customs documentation. • Makesure that documentation iscompliant to requirementsregardingletter of credits, quotas, permits, Incoterms, etc. • Maketheir profits on documentation preparation, margins and on bulksavingsfrom the carriers.

6. DEFINITION FREIGHT FORWARDER • SomeFreightforwardersconsolidatevariousgoodsfromdifferentconsignorsinto one full load for ocean or road transport. This isoftenknown as ‘groupage or consolidations’. • Forwarderscan arrange: • FTL / LTL • FCL / LCL • Parcels • Over dimensions, etc. • SomeforwarderscanalsobeNVOCC’s. • Someforwarderscanalsoact as Customs Brokers (need a license).

7. CANADIAN FREIGHT FORWARDING ASSOCIATION

8. THE PLAYERS IN AIR CARGO ? • AIRLINES: Owners of airplanes. Cargo and passengers. Air Canada, Lufthansa, British Airways, etc. • INTEGRATORS: Owners of airplanes. Cargo only. UPS, FEDEX, DHL, etc. • CHARTERS: Owners of airplanes or renting them as operators or to airlines. • FORWARDERS and BROKERS: No airplanes. Negociate space and rates. Axxess, Panalpina, Delmar, etc. • SPECIAL SERVICES: • 911 • Organs, etc.

9. AIR PLAYERS • AIRLINES: Owners or renters of passengers/cargo airplanes. Air Canada, Lufthansa, British Airways, Cathay Pacific, etc. Knowned also as the Commercial lines. • Members of IATA. • In general, passengers are located on the ‘upper deck’ and cargo in the ‘lower deck or the ‘belly’. • International flights: Mississauga is the main.

10. AIR PLAYERS • INTEGRATORS: Owners or renters of airplanes. Cargo only. Example: UPS, FEDEX, DHL, etc. • Carrying envelopes, boxes, skids, No passengers. • Are using ‘upper and lower deck’ spaces. Doors at max 98 inches high.

11. ROAD CARRIERS • CARRIERS: Owners or renters of tractors and trailers. Cargo only. FTL and LTL transport. • Transforce, Kriska, Manitoulin, etc. • Have to be registered to road authorities in the different provinces / states where they are driving. • In the USA also federal with DOT. In Canada with Transport Canada. • FORWARDERS:Negociate space and rates with carriers on behalf of their customers. FTL and LTL. Non assets. Members CIFFA. • TRANSPORT BROKERS: Non asset, just offices and phones. Negociate rates with carriers. Are using internet to identify trailers in certains regions that are running empty to fill them. They are not regulated by any agencies.

12. RAIL CARRIERS • CARRIERS: In Canada, two (2) dominant players, CN (Canadian National) and CP (Canadian Pacific). They have their own railway system (dedicated). • CN also strong in the USA after many acquisitions. • Members of the Federal Railway Association (FRA), US entity. • Many other small other operators on smaller or less beneficial lines (example of MMA, now popular with Lac Megantic events). • BOOK: You can use forwarders to book with them or book directly.

13. OTHER PLAYERS 3PL’s: A ‘third-party logistics’ (3PL) supplier or sometimes a TPL is a firm that offers extended services to their customers, including logistics transport and coordination, outsourcing internally or externally all or portions of logistics chain operations. 3PL’s are specializing in integrated operations, warehousing, ‘pick and pack’ and transport, that the can adapt to the needs of their customers, market conditions, delivery requirements, etc.

14. OTHER PLAYERS 4PL’s: A ‘Fourth-party logistics’ou4PL, is a consultation firm in logistics. They usually offer the same services as the 3PL’s but can also handle customs, financial and human resources aspects. With the advancement of technologies, this segment is growing rapidly and services are just adding month after month.