January/February 2024 Inside Logistics

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CONTENT S

In every issue:

5 Taking Stock Weathering the storm

6 Supply Chain Scan News and numbers from around the world

11 Movers + Shakers Appointments and promotions

28 Operations Outlook How to find the right job

29 Trade Update Canada and the UK postBrexit

30 Safety First Sharing Ontario’s safety

Publisher | Delon Rashid (416) 459-0063

delon@turnkey.media

Editor | Emily Atkins (416) 262-4106 emily@turnkey.media

Contributing Writers | Victoria Jones, Jim McMahon, Ted Rowe, Shazan Siddiqi, Christian Sivière.

Creative Director | Samantha Jackson

Video / Audio Engineer | Ashley Mikalauskas, Nicholas Paddison

Sales | Delon Rashid, (416) 459-0063 delon@turnkey.media Peter Bulmer, (585) 653-6768 peter@turnkey.media

Production and Ad-ops | Tracy Stone tracy@turnkey.media

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Weathering the storm

HOW YOU WEATHER the storm depends on where you sit. While that may not be a common aphorism, it seems to hold true in our current global environment. To illustrate my point, I invite you to read two articles in this issue.

First is our cover feature, “Tempest in a teapot”, It looks that at the disruptions being generated by conflict in the Middle East and Red Sea as little more than a blip that will soon correct itself. The second, in the Supply Chain Scan section, reports on the concern felt at the United Nations Conference on Trade and Development (UNCTAD) over how the disruptions are affecting global trade. The agency expresses a gloomy view of the outcomes.

Our articles came to two slightly different conclusions, based on competing analyses, but the bottom line shared by both is that those with means are best able to adapt and flex their supply chains to prevent the worst impacts.

UNCTAD is concerned that the increased shipping prices and delays, along with rising fuel costs will harm developing countries the most because they have the least buffer that would enable them to ‘suck it up’ until the situation settles down.

By contrast, analysts in the shipping industry point to numerous signs demonstrating the situation is not that dire. Their view is that larger shippers, along with the giant carriers that move containers from continent to continent are robust enough businesses that they can eat the additional costs, or at least get away with passing them on to their customers.

Nobody argues that the situation is without pain, but it’s definitely consumers, small businesses and the smaller countries that are feeling the pain. As if the real effects of inflation and rising prices weren’t already bad enough, this latest round of trade and supply chain disruption is exacerbating the pain for many.

It’s reassuring to know that there are many smart and well-informed analysts who believe it’s a blip, and the world will return to some form of normalcy relatively quickly. But sometimes their 50,000-foot view of the world doesn’t quite capture the experience of everyone involved.

President & Managing Partner | Delon Rashid Head of Sales & Managing Partner | Peter Bulmer

Corporate Office

It’s great to be a giant liner company, or a massive consumer goods retailer with cash and assets in reserve to see you through the tough times. But for all those small and medium-sized businesses, many of whom barely made it through the pandemic, another blow like this is hard to take.

I’m interested to hear how your company is weathering this storm. Please drop me a note and share your ideas.

SEAWAY UPTICK

Waterway sees tonnage bump

8 TRADE DISRUPTION

UN body worried over impacts

9 MOVERS + SHAKERS

Appointments and promotions

11

Worker shortages highlighted in new research

Three quarters of bosses can’t find staff

By Emily Atkins

THE NUMBERS ARE STARK

A recent survey by Descartes found that more than 75 percent of supply chain and logistics leaders are experiencing notable workforce shortages in their operations. And 37 percent would characterize the resource shortage as high to extreme.

In Ontario alone, there are 19,000 unfilled jobs in the manufacturing sector, while another 7,000 new jobs are about to be created and thousands are on the verge of retiring. According to Canadian Manufacturers & Exporters (CME), these vacancies underscore the most pressing challenge facing manufacturers today.

The Descartes study, “How Bad Is the Supply Chain and Logistics Workforce Challenge?”, showed the issue is affecting companies’ financial, peak season and logistics partner performance, and is taking a toll on customer service, with 58 percent specifying that workforce shortages have negatively impacted service levels.

“With economies cooling and COVID more manageable, the general thinking has been that companies would see the workforce shortages of the past few years subside; however, this does not appear to be the case,” said Chris Jones, EVP, industry, at Descartes.

The competition for supply chain and logistics resources is widespread, but the severity of the workforce challenge varies by organizational function. According to the survey, the areas suffering the most from resource shortages were transportation operations (61 percent) and warehouse operations (56 percent).

While these areas are admittedly extremely labour-intensive, findings also revealed that 55 percent of supply chain and logistics leaders said knowledge workers are the hardest to hire – and they are becoming increasingly important as supply chain and logistics operations become more technology-enabled and data-driven.

CME also anticipates problems finding knowledge workers. Anticipating the shortages and the fact that many of these new jobs require advanced skills and

“With economies cooling and COVID more manageable, the general thinking has been that companies would see the workforce shortages of the past few years subside; however, this does not appear to be the case.”

– Chris Jones EVP, industry, at Descartes.

expertise, CME is calling on the Ontario government to strengthen its approach to training and upskilling in a new report, “Manufacturing Ontario’s Future”.

The report recommends the Ontario government do more to bring industry and education institutions together to address skills gaps and better plan training opportunities with Regional Industry Councils, as well as boosting the Ontario Made Manufacturing Investment Tax Credit with matching support for employer-led training.

“More than ever, manufacturing is critical to Ontario’s future,” said Dennis Darby, president and CEO of CME.

“Recently announced manufacturing investments signal that Ontario is on the path to restoring a welcoming manufacturing climate. However, the reality is that we do not have the trained workforce to fulfill the jobs these investments will deliver.”

New intermodal service connects Hamilton and Montreal

HAMILTON CONTAINER TERMINAL (HCT), in collaboration with Hamilton-Oshawa Port Authority (HOPA Ports) and Canadian National Railway (CN), have launched a direct intermodal rail service between Hamilton, Ontario, and Montreal.

The Hamilton-Montreal intermodal freight train will become a regular weekly service. The partners

expect to gradually increase volumes through the new terminal, pending Canadian Border Services Agency approval for bonded movements. The new rail terminal is located at Pier 18 on Hamilton’s Bayfront, operated by the Hamilton Container Terminal (HCT).

Approximately 20 percent of southern Ontario-bound containers from Canadian ports are destined for the Hamilton region in the Greater Toronto-Hamilton Area (GTHA). The partners aim to use the new terminal to increase supply chain capacity in southern Ontario, reduce truck movements and greenhouse gas emissions (GHGs). It is estimated the service will keep at least 200 truck movements per day off local highways. This amounts to approximately 70,000 tons of reduced carbon emissions annually.

“It is Hamilton Container Terminal’s mission to connect our region with all Canadian gateway ports. Transferring containers in close proximity to the customer contributes to a more efficient transportation network. Our first trial, establishing HCT as an intermodal hub within the CN rail network for container movements to and from this area, is a significant step toward achieving this goal," said Amandeep Kaloti, CEO of HCT.

The GTHA is Canada’s most populous and economically dynamic region. The partners recognized the need to build supply chain capacity now, as the regional economy continues to grow, with congestion already a strain on southern Ontario highways, said Doug MacDonald, executive vice-president and chief marketing officer at CN.

“We are focused on practical solutions to enhance supply chains in southern Ontario. By taking a regional perspective, we can help to optimize shipments according to the best mode; in this case, keeping containers on rails longer, reducing the truck kilometres associated with shipments,” said Ian Hamilton, president and CEO of HOPA Ports.

Seaway sees uptick in volumes

ALMOST 38 MILLION tonnes of cargo transited the St. Lawrence Seaway in 2023, representing an overall increase of more than 3.4 percent from the previous year.

The Canadian St. Lawrence Seaway Management Corporation (SLSMC) and U.S. Great Lakes St. Lawrence Seaway Development Corporation (GLS) recently unveiled their 2023 results.

“Again in 2023, the St. Lawrence Seaway demonstrated its resilience and reliability, as well as emphasizing its role as an essential component of the Green Shipping Corridor. Compared to the previous year, the season ended with goods shipped through the waterway increasing by 3.4 percent, which helped drive the North American economy,” said Terence Bowles, president and CEO of the SLSMC.

Despite challenges posed by climate change, producers successfully mitigated global issues, resulting in an overall increase of nearly five percent compared to 2022 figures, reaching 10.4 million tonnes. Notably, Canadian grain experienced a significant year-over-year growth of more than 11 percent.

Agricultural and construction supply chain materials, including potash, gypsum, cement and stone, exceeded 12 million tonnes,

representing five percent growth compared to 2022. Liquid bulk moves amounted to 3.6 million tonnes in 2023, representing a 3.4 percent increase from the previous year. Petroleum products were the primary contributors with 2.6 million tonnes, followed by liquid chemicals, which increased 11 percent.

The Seaway system’s efficiency contributed to economic development on both sides of the border, with fewer transits in ballast and an additional 1.2 million tonnes of cargo.

“Marine commerce on the Great Lakes and St. Lawrence Seaway plays a key role in supporting 246,000 jobs and US$36 billion in economic development activities across North America,” said Adam Tindall-Schlicht, GLS administrator. “Our binational partnership delivers results, and we are proud of our resiliency and increased tonnage results this year.”

Marking the longest scheduled shipping season in history, the Montreal-Lake Ontario section of the Seaway, including the U.S. locks, closed on January 5, with the Welland Canal closing on January 7. Both the SLSMC and GLS are using the winter months to undertake annual multi-million-dollar maintenance and infrastructure renewal programs.

Endorsed LOGISTICS EMPLOYER Organization

Are you committed to your people? Then make it official.

Ask about becoming an Endorsed Logistics Employer with CITT –Canada’s Logistics Association

It’s never been more important to stand out as an employer in logistics. CITT-Endorsed Logistics Employers are organizations that understand that people are the heart of our industry. When your organization is endorsed by Canada’s Logistics Association, it tells industry and talent that you’re serious about your employees and your employee value proposition.

Being an Endorsed Logistics Employer also shows you’re continuously working to make your employees more engaged, better-performing, and more satisfied. That’s why CITT provides Endorsed Logistics Employers with exclusive benefits to help you deliver on your commitment.

CITT-Endorsed Logistics Employers receive:

• Formal recognition and promotion of your status as endorsed by CITT – Canada’s Logistics Association

• Completely customized training and professional development plans for your employees

• Complimentary memberships in CITT

• Priority placement of your job postings, invitations to exclusive VIP events and more

If you believe your organization merits endorsement as a logistics employer by Canada’s Logistics Association, start the conversation today. Reach out to Daniele Lippi at DLippi@citt.ca or visit our website to learn more.

UN trade body concerned over global disruptions

THE UNITED NATIONS Conference on Trade and Development (UNCTAD) has expressed profound concerns over escalating disruptions in global trade.

Geopolitical tensions affecting shipping in the Black Sea, recent attacks on shipping in the Red Sea affecting the Suez Canal and the impact of climate change on the Panama Canal have given rise to a complex crisis affecting key global trade routes.

UNCTAD underscored the critical role of maritime transport in international trade, responsible for over 80 percent of the global movement of goods.UNCTAD estimated that the weekly transits going through the Suez Canal decreased by 42 percent over the last two months.

The ongoing conflict in Ukraine has triggered substantial shifts in oil and grain trades, reshaping established trade patterns. Simultaneously, the Panama Canal, a pivotal conduit for global trade, is grappling with diminished water levels, resulting in a staggering 36 percent reduction in total transits over the past month compared to a year ago. The long-term implications of climate change on the canal's capacity are raising concerns about

enduring impacts on global supply chains.

The crisis in the Red Sea, marked by Houthi-led attacks disrupting shipping routes, has added another layer of complexity. Major players in the shipping industry have temporarily suspended Suez transits in response. Notably, container ship transits per week have plummeted by 67 percent compared to a year ago, with container carrying capacity, tanker transits, and gas carriers experiencing significant declines.

UNCTAD underscored the far-reaching economic implications of these disruptions. Prolonged interruptions, particularly in container shipping, pose a direct threat to global supply chains, potentially leading to delayed deliveries and heightened costs. While current container rates are approximately half of the peak during the Covid crisis, passing on higher freight rates to consumers takes time, with the full impact expected to manifest within a year.

Developing countries are particularly vulnerable to these disruptions. UNCTAD emphasized the need for adaptations from the shipping industry and robust international cooperation.

movers + shakers

Julie Gascon has been appointed president and CEO of the Montreal Port Authority (MPA). She took over the position on February 12, 2024. Gascon was CEO of the Pacific Pilotage Authority. From 2005 to 2015, she worked as a regulator at Transport Canada. From 2015 to June 2020, she was appointed first as assistant commissioner Central and Arctic Region, and then as director general, operations at the Canadian Coast Guard. In July 2020, she returned to Transport Canada as director general, marine safety and security. From Greater Montreal, she began her career as a graduate of the Canadian Coast Guard College. She holds a bachelor’s degree in business administration from the University of Montreal, and a bachelor’s degree of technology in nautical sciences from the University College of Cape Breton. Starting on the West Coast fleet in 1998, she also spent time on very large crude carriers and large passenger vessels to complete her Master Mariner certification.

André Morneau, president of Groupe Morneau since 1988, has passed leadership of the company to his children, Catherine Morneau and David Morneau. They are now co-presidents. They are the fourth generation of Morneau family to assume leadership of the company. André Morneau continues as chairman of the board.

As part of an IT transformation, Canada Post‘s new chief information officer (CIO) is Franco Chirichella, president and CEO of Innovapost. He leads a team of former Innovapost leaders who join him managing the postal services information technology.

Stephen Barr retired from the Andlauer Healthcare Group Inc. on December 31, 2023. Barr served as the company’s president, transportation, since its initial public offering in December 2019. He is succeeded by Sandro Caccaro who serves as president, transportation – Canada. Caccaro joined Andlauer Healthcare in June 2023, and has more than 20 years of experience in the Canadian trans-

portation industry. Before joining Andlauer, Caccaro spent eight years at VersaCold Logistics Servces, most recently as chief operating officer. Barr will be offering his consulting services to AHG for special projects for the foreseeable future.

Lesley Veldstra Killingsworth has been appointed vice-president of pricing and market strategy at the Polaris Transportation Group. Director of traffic and pricing since 2016, Killingsworth is based out of California. She has eighteen years to the trucking industry in previous director roles. For twelve years, she has served as a member of the National Motor Freight Traffic Association (NMFTA), and in 2023, she made history as the first chairwoman of the NMFTA Board of Directors.

J. Mark MacKeigan has been reappointed as a member of the Canadian Transportation Agency for a term of four years, effective November 28, 2023. Marisa Eva Victor has been appointed as a member for a four-year term, effective January 9, 2024.

Seven quarters of contraction for transport industries

ACTIVITY ACROSS THE transport and logistics sector remained in contraction territory for the seventh straight quarter in Q4 of 2023.

Tradeshift’s latest Index of Global Trade Health, which analyses the flow of purchase orders and invoice traffic across global supply chains, revealed that transaction volumes across the transport and logistics sector grew at six points below its expected range in Q4. Activity levels

across the manufacturing sector also stayed in contraction territory in the fourth quarter.

Total trade activity across all sectors showed modest signs of improvement in Q4, albeit from a relatively low base. Global trade transaction volumes improved to four points below the baseline in Q4, having sunk to six points below anticipated levels in the previous quarter.

DAILY DIRECT SERVICE

Much of the improvement in overall trade activity stems from a surprising jump in new orders during Q4. Order volumes grew five points above the expected range in the final quarter of 2023, having tracked below expected levels for the preceding nine quarters.

“Ordering patterns give us useful clues as to how businesses are viewing demand signals for the next six months,” said James Stirk, CEO, Tradeshift.

“If order volumes continue to rise in Q1, then we should start to see activity levels begin to climb in areas such as transport and logistics.”

In the US, total transaction volumes stabilized at three points below the baseline in Q4 having softened in the previous quarter. Orders in the US rose at six points above the expected range in Q4, marking the most substantial acceleration in two years.

“If order volumes continue to rise in Q1, then we should start to see activity levels begin to climb in areas such as transport and logistics.”

– James Stirk CEO, Tradeshift.

Transaction volumes across the Eurozone, which had fallen to nine points below the anticipated level in the previous quarter, rose to four points below the expected level in Q3. Order volumes across the region tracked three points above the baseline in Q4. UK trade activity remained low compared to other markets with total transactions five points below the expected level. Order volumes grew at one point above the expected range in Q4.

In China, overall trade activity remained in contraction territory, showing only modest signs of improvement from a mid-year slump. Transaction volumes across local supply chains grew at five points below the baseline in Q4, compared to a six-point deficit in the previous quarter.

LTL

PROUDLY RECOGNIZED AS

Free working at heights safety briefing

INSURER TT CLUB has published its latest brief, “Understand and mitigate the risks of working at height.”

Working at height is common throughout the supply chain, and prioritizing safety is of the utmost importance to prevent accidents and injuries.

TT looks at the steps that should be taken to reduce risk, ensure the safety of your workforce when working at height, avoid exposure to injury claims and safety prosecutions, along with reputational damage.

A TT Brief is a two-sided infographic-style advice sheet, each aimed at a specific risk. It is designed to offer guidance on general good practice to avoid loss. It can also be used as a poster in the workplace as a reminder to both employees and management. It is free to download at http:// tinyurl.com/ttclub-height.

TT’s managing director, loss prevention Mike Yarwood pointed out the relevance of the brief.

“Globally, there is no consistent regulation that outlines at which height a worker is at risk of serious injury should they fall. Therefore, simply complying with regulated safety provisions may not be enough to protect a workforce from potentially fatal accidents. Our advice is a considered guideline on the minimum measures that employers – be they warehouse, port or terminal operators, road haulers or other

carriers – should put in place.”

Recognizing the range of operational conditions across the transport and logistics industry, the advice raises several points to consider relating to infrastructure design and improved working practices.

Safe stowage of cargo is also discussed,

along with the use of technology such as drones to carry out inspections or stocktaking, and deployment of fall prevention platforms. Training programs and the encouragement of a strong safety culture should be in place throughout any operation.

Image: freepik/freepik.com

TEMPEST IN A TEA POT

Red Sea disruption not as severe as scaremongers would have us believe

Empty shelves, shortages of toys and decorative items, and severe price increases? If you’ve been reading the news and analysis, these are the consequences you can expect from the conflict taking place in the Red Sea.

But there is an alternative point of view. Ralf Duester of supply chain software provider Setlog says these predictions are nothing more than fearmongering.

"Consumers will hardly feel any effects for fast-moving consumer goods imported from Asia at the moment," said Duester, board member of Germany-based Setlog.

His opinion is based not only on discussions with importers and freight forwarders, but also on an analysis of 50 brands from the

fast-moving consumer goods sector conducted by his company. According to this analysis, imports of decorations, clothing and other goods from the Far East are being delayed by an average of 3.5 to seven days due to the situation in the Middle East.

For the sample, the experts compared data from the beginning of the attacks on Red Sea shipping by Yemeni rebel Houthis in November 2023 to January 17, 2024, with figures from the same period a year ago. They analyzed in detail the transport time between Asia and the western ports – from the departure of the ships at the port to the arrival of the goods at the central warehouse.

The delays in delivery are happening because most of the major liner carriers – Maersk, Hapag-Lloyd and so on – are diverting their

ships away from the Red Sea and Suez Canal, the preferred shortcut from Asia to Europe. The detour takes them instead around the Cape of Good Hope at the southern tip of Africa, and then up the west side of the continent through the Atlantic Ocean towards Europe. Depending on the speed of the ships, this journey takes between seven and 20 days longer than the trip through the 164-kilometre Suez Canal.

Options to mitigate delays

According to Duester, many importers are able to compensate for the lost time thanks to better planning, and using software to track containers and react quickly to changes in the schedules of freight forwarders and shipping companies. "Leading companies have digitized supply chain management, work with SCM software, tracking tools, contingency plans, flexibility agreements and collaborate closely with all partners," he said.

Importers are currently looking more closely at shipping companies, the loops at the western ports and time savings on the onward journey by switching modes of transport to shorten the longer transit time from the Far East to Europe. Many have also reconsidered which suppliers they will work with.

In this context, Duester warned against scaremongering. He referred to statements made by large companies regarding failures or delivery delays in retail. Discount retailer Aldi Nord, for example, emphasized on its website that it is working closely with suppliers and logistics partners to find solutions. "Thanks to this work in the background, the situation in the Red Sea is not expected to have any noticeable impact on our customers," it said.

The situation is different for the automotive industry. Volvo reported a few days of production stoppage in Ghent, Belgium, due to supply bottlenecks for gearboxes. Tesla had to largely suspend its production near Berlin for almost two weeks starting January 29.

ing: according to Hapag-Lloyd, the situation on the Red Sea is causing additional costs in the high double-digit million range every month for the largest container shipping company in Germany.

Prices for container transportation from China quickly increased at the beginning of January. "For a 40-foot (high cube) container from China to Europe, importers paid an average of US$1,500 on the spot market in the first week and more than $5,000 in the second week," reported Patrick Merkel, managing director of Prologue Solutions in Hamburg.

Chinese New Year, which began on February 10, also contributes to rising shipping rates. "Every year, companies try to get seasonal goods out of China for spring and summer before Chinese New Year," Duester said. "The demand for containers and capacity for the routes to Europe and the USA has increased due to this short peak season, but it is below the previous year's level. Shippers are therefore accepting higher costs in the short term, as the outflow of goods from the production facilities has top priority."

Demand for containers in China has skyrocketed, with container manufacturers taking orders for more than 750,000 units since the Red Sea disruption began.

Seth Frederickson, vice-president of product management at FourKites, said Chinese New Year could have longer, lingering impacts in this context.

“If these reroutes and delays exist for another few weeks, retailers that rely on Chinese supplied products will have further delays due to the Chinese New Year. Retailers planning for Spring sales events typically want their good shipped before annual delays caused by the Chinese New Year. If the Red Sea disruption lasts another two to three weeks, I expect to see product shortages on shelves in April and May, except for those higher end retailers that have the margins to support shifting to air freight so as to not miss on the revenue side,” Frederickson said.

“Consumers will hardly feel any effects for fastmoving consumer goods imported from Asia at the moment.”

– Ralf Duester, Setlog

Even if consumers notice little of the attacks on ships by the Houthi rebels, the impact on cost for companies is significant. This is because around 10 percent of all global trade passes through the Suez Canal, with up to 19,000 ships passing through the Egyptian sea route every year.

According to an analysis by credit insurer Allianz Trade, the number of freighters passing through the Suez Canal has fallen by around 30 percent since the Houthi attacks began. At the same time, shipping traffic around the Cape of Good Hope has almost doubled.

Due to the crisis, prices for insurance premiums for transportation through the canal have skyrocketed. And the detour via the Cape of Good Hope results in up to 30 percent higher fuel costs for shipments. The consequences are annoy-

The crisis on the Suez Canal came at an inopportune time for importers. To keep rates stable liner companies had begun to cancel connections on many routes or not call at individual ports (blank sailings) on a large scale due to lower demand. "Around 25 percent of total capacity was taken out of the market from December," explained Merkel. The situation in the Red Sea then suddenly increased pressure on the reduced capacities, leading to a massive price increase and a considerable capacity crunch.

"However, the wave should have passed by March, although some follow-up problems are expected due to a shortage of empty containers because distribution is currently no longer working. We expect demand to ease and freight costs to fall as a result in March," Merkel added.

Supply chain executives in the food and beverage industry face challenges when balancing production runs, inventory volumes and delivery schedules. Warehouse managers are increasingly required to store more products in existing warehouses, to retrieve them faster for growing volumes of just-intime orders to retail stores, make more efficient productive use of labour, reduce energy consumption and improve cost efficiencies.

Space within production warehouses is at a premium, and these facilities are consistently running out of space. Finished products are frequently stacked on floors and aisles, which contributes to increased fork truck accidents and equipment damage, spillage and damaged products, and lost and expired inventory. The continuous increase in the cost of land, construction, labour and facilities has put a heightened value on space conservation within these production warehouses.

These factors have forced food and beverage manufacturers into using 3PLs or renting outside space to store manufactured prod-

ucts. But this presents a new set of issues. Although most contemporary 3PLs run highly efficient operations, transporting pallets of product to off-site storage incurs rental costs, increased transportation costs, and loss of last-touch product control, which can increase product damage and returns.

Consequently, manufacturers are more closely looking at their distribution and storage models, and how they can more optimally balance their inventory against production and delivery.

A growing number of manufacturers are moving away from fork trucks, and instead employing fleets of laser-guided vehicles (LGVs). Similarly, they are shifting their high-volume, palletized SKUs away from stationary rack storage locations, away from floor staging, and away from remote warehousing sites. Instead, they are embracing highly automated, robotic shuttle-based pallet

Continued on pg 19

deep-storage systems, which provide excellent density and flexibility to fit within existing variable-ceiling-height facilities.

Automated distribution

One such manufacturer is Niagara Bottling. Family owned since 1963, Niagara owns and operates 35 combined production/distribution facilities throughout the U.S., Canada and Mexico, bottling water and other beverages.

In 2010, Niagara selected E80 Group (E80) to fully automate each of its distribution operations. E80 develops automated logistics solutions for consumer goods manufacturing and distribution, with a focus on integrated robotic systems, such as laser-guided vehicles (LGVs), robotic palletizing, layer picking and repacking, and automated storage and retrieval (AS/RS) high-density warehouses. The company has considerable experience in food and beverage.

“For our warehouse automation we were using forklifts, double front end forklifts, to move our product around,” said Bill Hall, executive VP, manufacturing and engineering, at Niagara. “In 2009 I was touring a plant that had E80 LGVs in operation, and I thought we could apply LGVs in our distribution. I was particularly interested in loading pallets onto trucks with LGVs for shipping, which E80 LGVs were capable of doing. We had E80 automate one of our plants and have continued partnering with them to automate our remaining facilities.”

Since 2010, E80 has automated distribution operations at Niagara’s 35 plants with fleets of unmanned LGVs moving pallet loads from end-of-line bottling through all phases of distribution, including pallet rack storage, floor staging for shipping, and loading directly into truck trailers for shipping.

“The LGVs floor stack everything in our facilities,” added Hall. “They handle 2,500-pound pallets of water, while each of our facilities are making 50 to 60 turns of inventory annually.”

These distribution functions are standardized for each of these facilities, and custom-integrated with E80’s Smart Decision Maker (SDM) warehouse control system (WCS), which ties into Niagara’s ERP within each plant. All distribution functions are coordinated and controlled by E80’s SDM, enabling streamlined robotic pallet handling.

Robotic pallet movement and storage

Niagara’s biggest and most complex plant produces 120,000 bottles of water and beverages per hour, 24/7/365, and employs a fleet of 56 E80 LGVs to move the palletized water and beverages through the warehouse into pallet rack storage and shipping.

The facility not only handles water, but also hot-fill beverages and soft drinks. In 2019 the plant planned to add three new process lines, for a total of nine. But the use of space for production would have eliminated too much of the facility’s storage space. More product would have been produced than the warehouse, and its off-site storage locations, could store. Multiple off-site locations were already being used for supplemental finished-product storage.

Niagara wanted to reduce the plant’s dependency on external warehouse space, while maintaining more control over the speed of delivery to its customers. The bottler turned to E80 to design a solution.

“We outgrew the facility very quickly and wanted to maximize the square footage of the building on the site,” continued Hall. “We looked at real estate expansion, but it was cost prohibitive, so we decided to go with vertical storage inside of the building. Once we made that decision, we looked at three or four different suppliers, including E80 who has always been one of our preferred partners.

“We had E80 automate one of our plants and have continued partnering with them to automate our remaining facilities.”

– Bill Hall, executive VP, manufacturing and engineering, at Niagara Bottling

We felt technology-wise, cost-wise and execution-wise E80 was the right choice.”

High-density storage

The E80 team proposed a customized version of its SmartStore solution to be installed inside the plant’s distribution space. It would be a high-density 160,000 square-foot, five-level, mobile robotic shuttle-based storage and retrieval system (AS/RS), with 33,000 pallet positions, designed for deep storage of palletized loads. The system would consist of five modular sections that can be expanded or contracted by adding or deleting pallet positions and shuttles. This would replace the existing pallet racking in the warehouse.

“Although the SmartStore provided an ideal solution for pallet storage at the Rialto facility, it posed a significant challenge to execute the transition,” explained Dallasta. “The challenge was twofold. First, we had to build SmartStore within an existing building, and determine the module configurations to take full advantage of the space in the most efficient way, factoring in existing ceiling heights and supporting columns. Quite different from a greenfield solution.”

The second challenge was that this distribution facility was a high-volume working plant. Bottling production and distribution could not stop. The project needed to be executed with minimum impact on the plant’s operation, a considerable challenge.

“During installation of SmartStore we expected to have some interruption of our existing throughput because we never could really shut the entire factory down,” explained Hall. “We timed it to where the interruptions were during the off season to minimize the impact. E80 worked with us to keep the interruption down to about 20 percent of throughput at any given time. The modularity

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of SmartStore is what allowed us to continue to run during installation.”

Palletized product is stored in five modules of highly dense rows, up to 20 pallets deep, of the same SKUs. Lithium-ion battery-powered shuttles travelling at speeds up to 10 feet per second (fps) transport pallets within the system’s aisles and rows. The shuttles carry a satellite on board that collects and transports the pallets in the channels of the rack, recharging the battery at the same time. Lifts and transfer stations vertically move pallets between aisle levels. The result is a solution of maximized storage density, operating frequencies and system modularity.

“SmartStore has proved to be a very dependable and repeatable ASRS solution,” said Hall. “We are thrilled with the outcome.”

Laser-guided vehicle fleet

The warehouse’s fleet of 56 LGVs incorporates the most recent automation developments in laser-guided vehicles for pallet movement. Using a combination of logic software and wireless navigation, these LGVs can perform tasks that are not possible with other transport systems – such as the uniform movement and positioning of pallet loads to within a fraction of an inch of their designated targets, without noise, and with a high degree of safety for workers and their operational environment.

“Most of the LGVs operating in the warehouse are transporting pallets, two at a time, from the nine stretch wrapper discharge locations in the end-of-line bottling area, to the high-density storage induction platforms, or directly to floor staging in shipping,” said Dallasta. “Similarly, these LGVs transport pallets from high-density storage to floor staging in shipping. All pallets staged in shipping are loaded directly into trucking trailers with LGVs.”

These LGVs are E80 model CB30 Dual Drive, with extendable forks and dual side-by-side pallet carrying capability. They can lift pallets to a height of 31 feet, with a lift capacity of up to 6,000 pounds, and a maximum speed of 4.9 fps.

The second type of LGV in the warehouse is the E80 model Reach. It is used to store and supply raw material pallets to the bottling floor with items such as corrugated for packaging machines, stretch wrapper film, and ingredients for carbonated beverages. The pallets in the raw materials warehouse are stored in racks four to five levels high.

The Reach LGV is a single-pallet vehicle with extendable forks for double-deep pallet storage. It is used for selective storage systems where the LGV’s forks allow it to pick and place multiple product codes. It can lift pallets to a height of 39 feet, with a lift capacity of up to 6,000 pounds, and a top speed of 4.9 fps. The vehicle is designed to maneuver in tight spaces, with a turning radius of 10.2 feet.

Integrated warehouse controls

The smooth functioning of the LGV fleet and SmartStore depends on E80’s SDM WCS, which coordinates orders received from the plant's ERP, then directs the work to the LGVs and SmartStore to execute. SDM controls the traffic of the LGVs in the warehouse, and where pallets will be stored in SmartStore and shipping.

“SDM ensures that the automated systems (LGVs and shuttles) are used in the most efficient way to distribute the workload to available resources, optimize LGV routes and balance throughput and product distribution in SmartStore,” explained Dallasta. “The WCS also plans product movement between different warehouse areas to maximize warehouse saturation. It identifies opportunities for optimization and defragmentation as required.”

It ensures automated management of systems and flows, communicating with the nine bottling line palletizers and wrappers. The logistics flow of the distribution environment is managed from one integrated logistics platform coordinates and optimizes all operations. The SDM control system guarantees total product traceability and safety.

Niagara has standardized on the SDM WCS not only in its Rialto warehouse, but in all of its plants. This integrated standardization has streamlined and supported the company’s overall efficiency.

“The SDM software is really performing well for our inventory, tracking and visibility, well above 99 percent accuracy in all of our facilities,” explained Hall. “It is fully integrated straight to our ERP, so all the information is automatically handed off between SDM and our ERP. It gives us confidence in our finished goods inventory, and is an easy tool to use at the facility level as well as for senior management at headquarters.”

Fully operational since June 2021, the benefits to Niagara’s Rialto distribution facility include elimination of downtime, mistakes and product damage; reduced distribution costs; shorter delivery times; and improved sustainability of the warehouse’s supply chain.

Niagara builds approximately five new facilities each year. Each operation needs to make the best use of the available space. Turnaround and process time is very important.  How fast it can turn a truck through its facilities is critical.

“E80 automation has taken the warehouse from 40 square feet per pallet position down to 20 square feet per pallet position,” added Hall. “It has taken mission time from 12 minutes down to six or seven minutes. LGVs require less traffic to do the same job.”

“It is all very seamless,” continued Hall. “This is one of the beautiful things about choosing E80 for our LGVs and SmartStore. The LGVs are upstream and downstream of SmartStore, and E80 is handling all of the transactions. The integration is really very easy for our leadership team.”

Over the last 20 years Niagara has become the biggest water company in the U.S.,” said Hall.  “Maybe, by volume, the biggest in the world. Now, for the first time in our history we are transitioning from a strictly water company to beverage company. Automation will continue to play a central role in our facilities as we expand into new markets.”

LGVs load and unload trailers at the Niagara Bottling facility.

CHALLENGES REMAIN AS EV MANDATES LOOM

Research suggests coming boom in sales

MAJOR FLEETS HAVE committed to transitioning at least 30 percent of their new heavy-duty truck purchases to be zero-emission vehicles, including electric models, by 2030.

However, many companies are daunted by the extra upfront cost of electric trucks, as well as challenges like the limited availability of chargers.

Nonetheless, the benefits of electric trucks, increased availability of more makes and models, investments in charging infrastructure, the rapid improvement of the upfront and long-term economics, and policy incentives all point to a near-term boom in their adoption.

IDTechEx’s report, “Electric and Fuel Cell Trucks 2024-2044: Markets, Technol-

ogies, and Forecasts”, finds that the future of electric trucks hinges on continued innovation in battery technology, further expansion of charging and hydrogen refueling infrastructure, and acceptance of fuel cell trucks.

Regional outlook

Electric truck sales shares remain low across most major markets. With the exception of China, Germany, and the Netherlands, the cumulative electric mediumand heavy-duty truck sales to date number in the hundreds in most countries (just over 6,000 electric trucks were sold across the entire EU, EFTA and UK regions in Q1 to Q3 2023). Sales shares generally remain well under one percent in medium- and

heavy-duty segments, with major logistics companies running demonstrations of electric trucks in regional and long-haul electric operations.

BEVs with plug-in chargers still dominate in China, but their market share has been in decline since 2020. Between January and June 2023, a total of 11,500 electric heavy-duty trucks were sold in China. Of these, 5,728 were battery-swap capable, taking up roughly 50 percent of the market share. The research finds that battery swapping will remain a key technology pathway for heavy-duty trucks in China in the coming years.

In the United States, improved models and infrastructure additions signaled a stronger electrification push in 2023. The

single-charge driving range of various models was improved by increasing the number of battery packs and sticking to more energy-dense chemistries.

Furthermore, 10 states have signed up to the Californian ‘Advanced Clean Trucks’ regulation, which requires manufacturers to sell a gradually increasing proportion of electrically powered heavy duty trucks, vans and pickup trucks by 2035.

IDTechEx forecasts that zero-emission trucks will take up 13 percent of the medium- and heavy-duty truck sales in the US by 2030.

Registrations surge

New electric truck registrations in the EU surged by an impressive 321.7 percent, totaling 3,918 units in the first three quarters of 2023. Germany and the Netherlands were the main drivers of this growth, making up 65 percent of EU electric truck sales. Electric trucks now represent 1.5 percent of the market, marking significant progress from the previous year’s 0.4 percent.

Volvo Trucks is the current market

leader in battery-electric truck sales in Europe. Strong CO 2 standards for trucks are needed to ensure frontrunners keep their promises and laggards catch up. Combined with the support for battery supply chains from the Inflation Reduction Act (IRA), legacy US truck brands could quickly catch up and outpace European brands.

Infrastructure strides in 2023

Electric trucks have so far relied on offshift charging for much of their energy. This is largely achieved at private or semi-private charging depots, and often overnight when energy prices are lower. There is a global effort to scale up fast or ultra-fast charging as a prerequisite for making both regional and long-haul operations technically and economically viable.

Commercialization of chargers with rated power of 1 MW will require significant investment, as stations with such high power needs will incur significant costs for both installation and supply grid upgrades.

Alternative solutions include installing stationary storage and integrating local

renewable capacity, combined with smart charging, which can help reduce both infrastructure costs related to grid connection and electricity procurement costs.

Slow uptake of hydrogen

The number of hydrogen-powered fuel cell electric trucks (FCETs) sold can still be counted on fingers and toes, but that number should grow in 2024 as players like Nikola, Toyota, Honda, Daimler, Volvo, and Hyundai are scaling up their fuel-cell truck development plans. The partnership between Daimler and Volvo (Cellcentric) appears to be something of a hedge to cover bases if significant funding by governments in hydrogen production and infrastructure makes FCETs viable in the medium term. Nikola produced 42 hydrogen fuel-cell-electric trucks in ‘23 and has inked a 10-year strategic partnership with FirstElement Fuel to supply hydrogen. IDTechEx believes the fundamental issue with efficiency and production of green hydrogen will remain barriers to the wide uptake of FCETs.

Shazan Siddiqi is a senior technology analyst at IDTechEx.

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SEE YOU IN ATLANTA!

MODEX 2024 is ramping up to be another blockbuster show

THE 2024 MODEX SHOW takes place March 11 to 14 in Atlanta, Georgia at the Georgia World Congress Center.

Organizer MHI expects over 1,100 exhibitors this year, showcasing equipment and solutions designed to keep supply chain operations operating at their most efficient. It will include five solutions centres: manufacturing and assembly; information technology; fulfillment and delivery; transportation and logistics; and emerging technologies.

MHI reports that 35 percent of people planning to attend the show are looking to spend over US$1 million in the next 18 months. More than two thirds are looking for solutions for distribution centres or warehouses supporting manufacturing, while almost a quarter are looking for solutions for manufacturing facilities.

The show is free to visit. More info is online at www.modexshow.com.

Here’s a sample of products and services you’ll be able to see at the show: VisionNav will showcase an advanced trailer truck loading and unloading system, at booth C4075. The system integrates an autonomous forklift, the VNST20 Pro, with the RCS fleet scheduling system.

PAC Machinery, in booth C4488, will show its flexible Rollbag R3200 Fulfillment Automatic Bagger that can run with three different types of material. This includes PAC Machinery’s sustainable poly bags made with at least 25 percent recycled resins. Additionally, the R3200 works with

Frendix bills the Mantis as the world’s first rough terrain portable forklift

Fiberflex curbside recyclable paper packaging that will be running on the machine at the show.

Frendix USA will introduce the Mantis – billed as the world's first rough terrain self-loading portable forklift at booth A13109. With large, rubber, power-driven wheels, this design allows one person to deliver up to 2,200-pound loads across challenging terrain. Now distribution fleets can deliver larger payloads to paint stores, building supply stores, and other retail establishments, as well as construction sites, food and beverage distributors, schools and universities, and more.

RiteHite is debuting Rite-Hite ONE Digital at booth B4007. Rite-Hite ONE is a platform that lets customers optimize facility throughput, prioritize maintenance, mitigate safety incidents, reduce demurrage and act on data analytics from Rite-Hite’s line of smart equipment. In addition to connecting Rite-Hite’s smart-enabled high-speed doors and loading dock equipment (such as levelers, barriers, vehicle restraints and controls), it also collects and analyzes data from that equipment, helping facility managers to see trends and make data-based decisions. The Rite-Hite ONE platform was developed with input from customers, including major manufacturers, distribution centres, 3PLs, and food processing facilities. Rite-Hite will release upgrades to its ONE Digital software on a regular basis.

The C6675 control cabinet Industrial PC (IPC) from Beckhoff supports requirements for adaptive manufacturing, machine learning (ML) and other applications. Building on Beckhoff technologies, the new IPC meets these demands through its ATX motherboard and high-performance GPU cards. The C6675 consolidates complex automation tasks previously handled by separate controllers into one high-powered

device. Beckhoff will be at Booth B5628.

RightHand Robotics will be showing its new RightPick 4 system in booth #C6479. The piece-picking system boosts the autonomy and reliability of robotic order fulfillment in modern warehouse operations and distribution centres. The RightPick 4 system uses AI-based software algorithms, an upgraded sensor suite, and newly designed hardware that enables a larger picking range of item SKUs, advanced item handling capacity, and increased system autonomy. Its advanced gripping strategies allow it to pick and place more items, even those it has never seen before.

Tompkins Solutions will be showcasing warehouse robotics and automation solutions in booth #A11323. These include: Soft Robotics mGripAI high-speed picking solution that uses AI and 3D vision technology; the Geek+ P800 shelf-to-person picking solution; and Tompkins Robotics’s tSort portable, automated unit and parcel sortation system and Tompkins Solutions’s Cornerstone warehouse control system (WCS).

ProVeyance Group will be introducing their new Conveyor Pulley product line in booth A13818. The company manufactures specialty steel rollers and roller assemblies, including tapered, grooved, motor-driven, sleeved and precision-fabricated tube products for niche applications.

DON’T LEAVE MONEY ON THE TABLE

Duty recovery: A missed opportunity to recover customs costs

In addition to economic uncertainty, escalating geopolitical tensions, and managing compliance with evolving global trade sanctions, businesses importing goods into Canada – whether based in Canada or non-resident importers (NRIs) located outside its borders – are bracing for the implications of the Canada Border Services Agency’s (CBSA) proposed amendments to the Valuation for Duty (VFD) regulations..

According to the Canadian government, the proposed revisions to determination of VFD are meant to rectify the unfair advantage NRIs currently enjoy with respect to customs duty imposed on imported goods. While the amendments may be aimed at NRIs, Canadian importers will also face increased duty payments if CBSA’s proposed VFD amendments are approved as is.

Against this legislative and regulatory backdrop, leading importers will increasingly be looking for ways to reduce costs and protect the bottom line – not only from VFD changes but also from an increasingly competitive business-to-consumer (B2C) and business-to-business (B2B) landscape, stubbornly high inflation, and the fallout stemming from geopolitical unrest, such as fluctuating energy prices and costly supply chain disruptions.

Shoring up the bottom line

Taking advantage of duty recovery and optimization is a smart but often overlooked strategy for trimming costs. Many importers overpay customs duties without realizing it. For companies that regularly bring in large volumes of goods or operate in an industry subject to high duty rates, missing the opportunity to recover funds can be a costly mistake.

Specialized duty recovery practices enable importers to recoup duty overpayments and reduce the amount of duty paid in the future and even in the past. Companies can claim transactions up to four years retroactively.

Given that an estimated 80 to 90 percent of Canadian companies overpay customs duties or miss out on available refunds, focusing on duty recovery can have a big impact on reduc-

ing operating expenses and boosting future profitability.

And with the government of Canada planning to collect an extra $1 billion-plus in customs import duties over the next four years (increasing from $6.5 billion in 2023-2024 to an estimated $7.7B in 2027-2028) it is in importers’ best interest to limit the amount of duty paid, when and where legally possible.

Avoiding unnecessary overpayments

Ninety-five percent of the duty overpayments incurred are not due to importer error but are the result of businesses failing to use the best tariff codes when importing goods. For importers that regularly bring in large volumes of goods or operate in an industry subject to high duty rates, using the most cost-effective tariff code can make a significant difference to the amount of customs fees paid annually.

Unfortunately, inadvertently using suboptimal tariff codes is a common issue for importers. In fact, more than half of Canadian businesses across multiple industries – grocery, medical supplies, apparel, agriculture, consumer electronics, commodities – overpay their import duties by 10 to 15 percent every year.

Unlike in the U.S. where a reduction in the amount of duty charged on a specific Harmonized System (HS) code is published in the public domain – enabling all importers to benefit from a tariff reduction – the Canadian system is a bit more cloak and dagger. Any changes to tariff codes executed by an individual company remain private, leaving businesses operating without this specialized knowledge.

Adding complexity to classification best practices, tariff codes and tariff reclassification are open to greater interpretation in Canada, based on the nuances of individual goods. This flexibility makes it possible for two companies to import the same product into Canada but be subject to different amounts of duty. For those importers able to take advantage of reclassification opportunities, duty recovery practices provide a distinct compet-

itive advantage on the landing cost of imported goods.

Identifying duty recovery opportunities

The process of uncovering and recovering customs duty overpayments and reclassifying goods to prevent future overpayment requires both a deep visibility into Canadian customs classification schedules and the specialized expertise to interpret tariff codes for importers’ benefit.

The role of customs consulting teams is to assist clients in identifying duty recovery opportunities by addressing key areas such as tariff re-engineering, end-use of imported goods, valuation (e.g., transfer pricing, discounts), application of free trade agreements, and duty drawback. Indeed, recapturing overpayments through these types of adjustments delivers immediate and ongoing bottom-line results, as well as the following competitive advantages:

 Paying less duty reduces operational costs.

 Refunds go directly to the bottom line.

 Lowering or eliminating duty going forward boosts future profitability.

 Private reclassification information provides competitive differentiation against businesses operating without that specialized knowledge.

 Refunds going back four years are available for duty overpayments in Canada.

 Duty recovery consultants manage the duty recovery process from start to finish – without any financial, time or resource commitments from importers.

Given the shifting CBSA regulatory landscape, ongoing trade and geopolitical tensions, and uncertain economy, now is the time to identify where your organization is overpaying customs duties on goods you regularly import. Reclassifying goods with CBSA approval allows you to take advantage of lower, unpublished rates to reduce your duty spend. At the same time, by following up on reclassification opportunities, you can recover a potentially sizeable refund for past overpayments.

Ted Rowe is director of business development & international solutions at Descartes.

HOW TO FIND THE RIGHT JOB

Advice from hiring specialists

A RECENT STUDY by Descartes shows that 75 percent of supply chain executives in the warehousing industry are facing difficulties in hiring and meeting demand. So, how do you land the ideal job? What are employers looking for?

Dave Macdonald, president and owner at Better Together Group, uses a three-pillar staffing model called “The Three Is” in his recruitment agency. It stands for Integrity, Intensity and Intentionality.

“Integrity is the baseline for every employee hire; the problem is people often lie about whether they have integrity or not,” Macdonald explained in an interview. “Intensity is the second pillar, and it is best described as the fire that burns inside of someone, the passion to do the work. But intensity alone can be problematic. Intentionality is the final pillar and can be described as the roadmap for where you want to go with your intensity,” Macdonald said.

But what does that all mean when it finally comes down to an interview? Tom Pauls, managing director at SCL Search, has been in the recruiting industry for over 20 years.

“The industry has changed over the past 20 years in the sense that hiring managers used to be more willing to settle with someone with minimal experience. Clients are more selective with a list of must-haves that has really grown,” Pauls said. “They are looking for the best of the best and are not willing to pay a finders fee for someone who is not a good fit.”

Pauls recommends keeping your resume basic and simple, avoiding preset templates. “In logistics we look for quantifiable accomplishments and look for resume substance over how it looks. Things to make sure you include are your location, at least the city you live in, we want it to be obvious what you do for work. Logistics coordinator positions, for example, exist in trucking, air

VICTORIA JONES

is a Logistics and Inventory Specialist at Tyers Foods

and ocean, LTL, FTL, asset, and non-asset based, we can’t tell just from your job title,” he said.

He also recommends applying to jobs that are a match: “A pet peeve of most recruiters is that 99 percent of applicants are not even in the ballpark for the jobs they are applying for. We tend to look for someone who may possess the skills already that match the open jobs we have, rather than waiting for someone to apply.” Pauls notes that he rarely posts jobs online and refers rather to a proprietary database that is made up of past applicants and word of mouth referrals.

Macdonald shares this sentiment and commented that he doesn’t invite people to interview any longer, but would rather sit down and have a conversation.

“Most of the industry is doing the opposite of what I am doing,” he said. “The industry is looking to screen humans out, I want to screen humans in, without AI, without KPIs. I can’t do anything more than give candidates an opportunity, but we cannot give opportunity to everyone. Employ -

ers are looking for the strongest and best candidates.”

I am reminded of my own experience. Pauls had my resume on file from a previous job I had applied for. He took the opportunity and reached into his database to reconnect and discuss the position with me, which, I’m happy to say, worked out for the both of us, as I was awarded the position I have now with Tyers Foods International.

Matthew Zarzycki is currently looking for a job and is using recruiting agencies, as well as direct job searching. “There is never harm in casting a wider net and having greater visibility,” he said.

When he is looking through job openings he is doing the research before applying. “I do it based on the company and their reviews in their work environment and culture. There are lots of hidden gems out there. I stay clear of multiple posting positions that are hiring for all levels, those usually indicate a lack of direction.”

For anyone who is currently on the job hunt, Zarzycki recommends going to events. “Get out and go to events like the CITT events that are within the network, they might not be offering jobs, but they might know someone who is. The more you go meet people, the higher your chances are.”

Zarzycki also advised job seekers to remember that you are for more supported by those around you than you think. “I have had previous competitors reach out to me and offer support. Don’t try to grind through tough times, reply on your support network and don’t be shy to ask for help.”

Pauls strongly recommends honesty during the interview process. “Don’t pretend to be someone you’re not. If the job you are applying for is a match, call the hiring manager and talk to them. Most people who know the job is not a right fit don’t call the manager,” he said.

NO DEAL ON CHEDDAR Canada-UK trade post-Brexit

WHILE BREXIT, the withdrawal of the United Kingdom from the European Union, officially took place on January 31, 2020, the parties had agreed to an interim period, during which it was ‘business as usual’ until January 1, 2021. Brexit became operationally effective after that date.

We’ve had the Canada-European Comprehensive Economic and Trade Agreement (CETA) with the E.U. since September 2017. To preserve our UK trade, we agreed to cut and paste CETA and transfer it into a Canada-United Kingdom Trade Continuity Agreement (CUKTCA), which came into force on April 1, 2021. The period between January and April was covered by temporary remission orders, enabling Canada-UK duty-free trade to flow uninterrupted.

At the time, CETA was praised as our most comprehensive agreement, a ‘new generation FTA’. It had taken eight years to negotiate, so its instant transfer to the CUKTCA, to which the EU could have objected, was daring but effective.

Brexit was sold to the UK public as a silver bullet that was going to solve all the country’s problems, take control, bring seamless trade, deliver a new era of prosperity and even reduce immigration. But instead of prosperity, Brexit has delivered a mess.

Immigration is currently the highest it has been: with Brexit, about 86,000 EU citizens left the UK. They were ‘replaced’ by migrants from Asia (mainly China, India and Pakistan) and Africa (Nigeria). Net migration now stands at a historic high: with 745,000 net entries between December 2021 and December 2022, and 682,000 net entries between June 2022 and June 2023.

Economically, Brexit has been a disaster, with UK businesses dealing with delays, complications, extra formalities and costs when trading with the EU, their neighbour and largest trading partner. The UK economy has been lagging its main trading partners.

According to a survey released in December by the Opinium Institute, a majority of Britons feel Brexit has been bad for the economy and has failed the UK. They are negative about personal finance

CHRISTIAN SIVIÈRE runs Solimpex, and is an international trade consultant and lecturer. christian.siviere@videotron.ca

and goods prices, the effect on the health service, and the impact on immigration. Brexit has also fueled the Scottish Independence and Irish reunification movements. In the 2016 referendum, voters in both Scotland and Northern Ireland voted to remain in the EU.

Back to business, one of the proBrexit claims was that leaving the EU’s single market and customs Union would turn the UK into a champion of trade, enabling it to make better trade deals with the world. This is an interesting fallacy: how would a relatively modest entity, the UK, get better deals than a much larger one, more than six times its size?

The reality is the UK was able to get trade deals, but on less favourable terms than those the EU had made. For example, in the FTA with Japan the UK had to agree to eliminate import duties on auto parts immediately, whereas the EU eliminated them over several years. On cheese, Japan refused to give quotas for British cheese, and instead offered to give the UK any quotas not used by the EU.

This brings us to the situation with Canada, where something similar happened, as we agreed to give some cheese quotas to the

UK under the CUKTA, on an interim basis for three years. And rightly so: how could any Canadian government justify giving additional cheese quotas, over and above those conceded to the EU, which included the UK then.

Will the EU agree to reduced quotas, enabling us to give some to the UK? Of course not! Losing their cheese quotas was just one of the many, predictable, negatives consequences of leaving the EU.

On our side, we would like our hormone-fed beef to be able to access the UK market, which is something the UK is unlikely to agree to, as it would jeopardize their own exports to the EU. The EU does not allow hormone-fed beef and would likely ban all beef imports from the UK if Canada got this back-door entry into Europe.

Meantime, after two years of negotiations, the Canada-UK trade talks broke down. This amounts to political posturing more than anything else, and it sends the wrong signals to the public.

This is particularly true for Canadian SMEs, which are focussing on the US market and might assume from this bad news about Canada-UK trade negotiations that there is no trade deal in place. In fact, we have a perfectly fine trade deal, mirroring the CETA agreement with the EU, the one we called our most advanced.

Our importers and exporters can benefit from duty-free entry for most products in both directions, and can develop business with certainty, both with the UK and the EU, to lessen our dependence on the US market. Unfortunately though, our governments are sending the wrong signals, almost misleading the public, when we need clarity.

Some may lament that British cheddar might become in short supply in Canada due to the expiration of the temporary duty-free allowance. But let me mention two facts, to counter this: first, we make great cheddar in Canada, and secondly, thanks to CETA, we get superb European Union cheese in our stores, so Canadians will survive a shortage of British cheddar!

TOP 10 HAZARDS IN THE FOOD AND BEVERAGE INDUSTRIES

What other provinces can learn from Ontario-based risk assessment

WHEN WORKERS AND employers from the food and beverage wholesale distribution industry in Ontario came together in 2023 to determine their top risks, it was a reminder about how much we can accomplish when everyone works together. The risk assessment workshop for the industry engaged worker and management representatives, with the support of various stakeholders, to gain a deeper understanding of the occupational health and safety risks they face at work.

The food and beverage wholesale distribution industry is an integral part of Ontario’s food system. Almost everything purchased from a grocery store has passed through a wholesale food and beverage distributor before it appears on the store shelf. They are the link between manufacturers and retail outlets.

Why wholesale distribution?

It was concerning to see in 2022 that the food and beverage wholesale distribution industry had a much higher lost-time injury (LTI) rate (1.22) than the general services sector (0.67). Wholesale distribution workers were getting hurt more often than workers in the other sectors WSPS serves.

Because of this, WSPS decided to apply the proven risk assessment and root-cause analysis methodology introduced by Ontario’s Ministry of Labour, Immigration, Training and Skills Development (MLITSD). “Food and beverage wholesale distribution was chosen for this initiative because it had the highest subsector risk rating in the service sector and the third highest across the three sectors WSPS serves,” said Rishma Brenner, health and safety consultant with WSPS. Rishma co-facilitated the risk assessment workshop.

“This process has proven to be a systematic way to rank industry-specific risks as identified by the workers, supervisors, and employers who are working with and have the most knowledge of these hazards,” said Jody Young, president and CEO of WSPS. “It moves participants

WORKPLACE SAFETY & PREVENTION SERVICES (WSPS), is an Ontario government-funded Health and Safety Association, supporting employers and workers in the agricultural, manufacturing, and service sectors.

away from pinning responsibility for safety on one group or another within an organization to collectively identifying ‘what keeps everyone up at night’ regarding their safety in the workplace.” It leverages the collective experiences of all involved to identify risks, rather than relying on lagging indicators.

WSPS invited workers, supervisors, and employers from companies of various sizes to participate in the risk assessment. These representatives volunteered their time to identify, discuss, and analyze the leading risk factors in their industry. In advance of the workshop, they submitted their top health and safety concerns.

“We asked the participants to think about what was hurting them or could potentially hurt people or make them ill,” Brenner explained. “In total, 51 hazards were identified before the workshop. Three more were added the day of the workshop, and one more was added post-workshop. So, 55 hazards were ranked, assessed, and validated.”

Top 10 risks identified

The top 10 risks that emerged from the risk assessment process were:

1. Musculoskeletal disorders related to manual material handling. The most common was overexertion related to lifting, pulling, and pushing

2. Low risk perception among workers and employers – they are not aware of or don’t

fully understand the risks they may be encountering at work

3. Slips, trips, and falls

4. Workers’ heads struck against racking

5. Pedestrian safety

6. Fatigue and stress

7. The presence of temporary workers (i.e., workers from a third-party agency)

8. Motor vehicle incidents during the transportation of goods

9. Moving pallets

10. Powered material handling equipment collisions with fixed structures/objects

Collaboration a positive experience

“Using an open, transparent, and collaborative process ensures that different perspectives and viewpoints are heard,” Rishma said. Her comments are echoed by Monica Sohi, health and safety manager for Metro Ontario Inc: “This method of risk assessment is effective because it considers the larger picture of the industry. It allows for group input and discussion. The approach gave companies with different processes, products and work environments the opportunity to share knowledge.”

Cameron Melin, a worker representative from Gordon Foods enjoyed the collaboration. “I was happy to put my experience to use. A risk assessment can sometimes be very one-sided and may favour a desired viewpoint. Because we were such a varied group, it led to an unbiased result,” Melin said. “It helped build positive relationships.”

The next step for the food and beverage wholesale distribution industry is to complete a root-cause analysis workshop. The group  will come together again to drill down on the top identified risk – musculoskeletal disorders related to manual material handling – and will examine what is causing them.  The results will be shared by WSPS, system partners, and other industry stakeholders and the information used to develop resources specifically targeting the hazards in this subsector.