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The games we play
FOR THE PAST COUPLE OF MONTHS, labour negotiations have been in the news a lot – certainly more than those in the supply chain would like.
These negotiations, many of which have stalled, have impacted workers, employers, shippers and consumers – essentially everyone – on both sides of the border. As I write this, dock workers at U.S. ports along the East Coast just ended a two-day strike. I was recently at a conference in Nashville, where a panel of industry experts was supposed to provide an overview of the supply chain industry in 2023 and its outlook for 2024, but the potential impact of the strike (which had just occurred prior to the panel) dominated the discussion.
Canadian ports like Halifax could have been greatly affected by a lengthy strike. The Port of Montreal could have also felt the impact, but it is dealing with its own strike concerns, with two terminals shutting down for 72 hours after workers walked off the job Sept. 30. The Grain Workers’ Union also issued a 72-hour strike notice to the Vancouver Terminal Elevator Association Sept. 21, with workers walking out the morning of Sept. 24.
For the most impactful strikes, like railways in Canada and port workers in the U.S., it’s been interesting to watch the political posturing from governments in both countries. In Canada, the railway strike lasted less than 20 hours before the government stepped in, forcing CN and CPKC to resume operations while negotiations continued. In the U.S., the government did nothing to force a return to work. Several people I talked to, however, hoped it would to avoid a lengthy strike.
The Canadian government’s approach is amusing, disingenuous and, frankly, insulting to many in the industry, in my opinion. Do they really believe people don’t see through this kind of showmanship? Allowing unions and workers in such essential services to shut down operations, only to force them back to work the next day, is nothing more than virtue signalling from a government that wants to show it support for the union, while also admitting a work stoppage is too disruptive and cannot continue. The irony is how unions then criticize the government for forcing workers back to work, often using language like, “This government does not care about our hard-working labour force,” and claiming to vehemently disagree with the government’s “aggressive action.”
It’s an obvious move in a government’s playbook: Allow the strike to happen but stop it before it causes too much damage. This way, the government can claim to support workers and unions while also standing up for consumers and businesses.
A win-win for the government, a partial win for the union and its members and a calculated scare for the general public, offering a glimpse of how much worse things could have been if the government hadn’t stepped in to “save the day.”
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Union opens negotiations with CN Rail 9 SHIPMENTS UP
St. Lawrence Seaway sees increase in iron and steel shipments
U.S. East Coast port strike ends, minimizing impact
By Inside Logistics Staff
+ SHAKERS
Appointments and promotions
IN A JOINT STATEMENT OCT. 3, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) announced the two sides had reached a tentative agreement, putting port employees back to work.
Both organizations said they reached an agreement on wages and have agreed to extend the master
The Ease Coast port strike in the U.S. may have ripple effects in Canada. Image courtesy of Port Authority of New York & New Jersey.
contract until Jan. 15, 2025, and plan to return to the bargaining table to negotiate all other outstanding issues.
“Effective immediately, all current job actions will cease and all work covered by the master contract will resume,” the statement read.
The ILA closed all ports from Maine to Texas on Oct. 1, with ILA members setting up picket lines at waterfront sites along the Atlantic and Gulf Coasts.
The ILA rejected USMX's final proposal made on Sept. 30, setting the stage for the first ILA coast-wide strike in almost 50 years.
ILA said in a statement prior to the strike that USMX’s last offer fell far short of what union members were demanding in wages and protections against automation.
“ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing,” the ILA said in a release.
USMX also released a statement before the strike saying it and ILA had traded counter offers related to wages.
“The USMX increased our offer and has also requested an extension of the current master contract, now that both sides have moved off their previous positions. We are hopeful that this could allow us to fully resume collective bargaining around the other outstanding issues – in an effort to reach an agreement,” USMX said in the release. “Our offer would increase wages by
nearly 50 per cent, triple employer contributions to employee retirement plans, strengthen our health care options and retain the current language around automation and semi-automation.”
Inside Logistics reported earlier in the month how a strike at U.S. East Coast ports could impact Canadian ports, with Frank Kenney, director of industry solutions at Cleo, an end-to-end supply chain integration software company, saying it would significantly increase traffic through the Port of Halifax and Port of Montreal due to their proximity to rail carriers.
“This makes them ideal for inbound and outbound freight. However, the challenge lies in moving goods in and out of Halifax, which often involves rail transportation through the Midwest of the United States, with Chicago as a major hub,” said Kenney. “Berthing at Port Newark in New York offers easier access to East Coast highways and rail systems, but Chicago lies 960 miles to the west, adding at least a day to move freight from there to key hubs in the east. The bottleneck is likely to occur at Port Huron, Mich. This combination of factors—added transit days, double border crossings, maritime operations in Halifax and rail in Huron—will not be optimal.
Kenney said he also expects maritime activity to surge during a port strike, as manufacturers and retailers look to stock up on goods ahead of a work stoppage and the Holiday season.
Integrated Security Solutions
Union opens negotiations with CN Rail
UNIFOR LOCAL 100 and Council 4000 announced they have begun negotiations with CN Rail, stating their focus will be on securing higher wages, pensions, benefits and work ownership protection for rail employees. “Our members at CN Rail go above and beyond to make sure the trains operate and cargo moves across the country,” said Unifor national president Lana Payne. “Unifor and our members know how to fight and we expect to win important improvements for rail workers.”
Unifor says some employer wages, pensions and benefits have gone unchanged for over 20 years. The union said its bargaining priorities will include addressing long-standing concerns with the pension plan, while also protecting members’ job security.
The current collective agreement is set to expire on Dec. 31, 2024. Unifor represents CN Rail members at Local 100 and Council 4000, who work at CN terminals and HQ
across Canada, including rail car technicians, heavy-duty mechanics and diesel engine mechanics, crane operators, machinists and electricians, as well as clerical and administration, customer support and fleet mechanics among others.
Air Canada pilots reach deal, cargo shipments proceed as normal
AFTER THE ANNOUNCEMENT of a provisional agreement on a new four-year contract between Air Canada and the Air Line Pilots Association (ALPA), Air Canada Cargo informed its customers that all temporary acceptance policies have been lifted, allowing them to book and proceed with shipments as usual. Air Canada said it has reached a tentative, four-year collective agreement with the ALPA on Sept. 15, representing more than 5,200 pilots at Air Canada and Air Canada Rouge.
Air Canada said the new agreement recognizes the contributions and professionalism of the airline’s pilot group, while providing a framework for the future growth of the company.
Terms of the new agreement will remain confidential pending a ratification vote by the membership, expected to be completed over the next month, and approval by the Air Canada board of directors.
Unifor has opened contract negotiations with CN Rail.
A tentative new agreement between Air Canada and the ALPA was reached Sept. 15.
Iron and steel shipments up 35 per cent on St. Lawrence Seaway
BY THE END OF AUGUST, 19.5 million metric tons of cargo had been transported through the St. Lawrence Seaway this season, solidifying its role as a vital binational system in the North American supply chain.
“The Great Lakes-St. Lawrence Seaway System continues to provide shippers a reliable route for a diverse range of commodities flowing in and out of the U.S. heartland,” said Adam Tindall-Schlicht, administrator, Great Lakes St. Lawrence Seaway Development Corporation (GLS). “Cargo numbers continue to improve
thanks to the dedicated workers at U.S. and Canadian ports and on the vessels who are keeping vital products like grain and steel moving efficiently through the Great Lakes maritime supply chain.”
Cargo that showed significant increases compared to the same period in 2023 are:
Grain: 5.2 million metric tons of Canadian and U.S. grain, up by 277,000 mt or 5.6 per cent
Potash: 849 thousand metric tons of Potash, a product mined in the prairies and used in agricultural fertilizers, up by 145,000 mt or 21 per cent
Petroleum: 1.8 million metric tons of petroleum products, up by 385, 000 mt or 27 per cent
Iron and steel: 1.3 million metric tons of iron and steel, up by 347,000 mt or 35 per cent
“The St. Lawrence Seaway is a vital link in the supply chain that keeps our economies moving,” said Jim Athanasiou, president and CEO of the GLS. “Marine shipping on the Seaway is an environmentally friendly method for transporting goods. That’s why we’re actively working with the Great Lakes St. Lawrence Seaway Development Corporation on initiatives like the Green Shipping Corridor to further increase our sustainability.”
The Great Lakes-St. Lawrence Seaway System supports over 350,000 jobs across the U.S. and Canada, shipping food, materials and fuels.
As the season progresses, GLS expects tonnage levels to remain on trend.
St. Lawrence Seaway shipments are up. Neil
Alberta labour supply up, but material handlers see job losses
TRUCKING HR CANADA’S (THRC) most recent Alberta Labour Market Information (LMI) report reveals that pressures in the province’s trucking and logistics sectors are easing, with employment rising, unemployment falling and job vacancy rates decreasing.
According to the report, employment in Alberta’s trucking and logistics sector is up by 2.8 per cent with 5,300 more transport truck drivers employed in Q2 2024 compared to Q2 2023. But job losses for material handlers was steep at 28 per cent during that same period.
“The numbers are telling a positive story, but as always, it’s the details that matter,” said Craig Faucette, chief program officer, THRC.
“Second quarter total employment was 109,000 workers, down 1.2 per cent from Q1 2024 but up by 2.8 per cent or 3,000 than Q2 2023.”
The Alberta Motor Transport Association (AMTA) stated it is pleased to see the province’s labour market pressures continuing to ease. Efforts by the Association and groups like Trucking HR Canada are coming to fruition, and we will continue to work together to continue focusing on decreasing those numbers through programs, initiatives, and work with membership, partners, and government.
Highlights of the report include:
Employment among transport truck drivers in Alberta increased by 11 per cent in Q1 2024, with an additional 5,300 drivers employed compared with Q2 2023. Employment for transport truck drivers on the national level remained stable with a 0.1 per cent increase in Q2 2024 from Q2 2023.
Employment among shippers and receivers is up 5.9 per cent from Q2 2023, and up 21 per cent for delivery and courier service drivers.
Job losses from Q2 2023 to Q2 2024 were highest among material handlers (28 per cent) and general administration (12 per cent).
Labour supply in the sector increased just 0.2 per cent from Q2 2023 to Q2 2024, with 111,000 people employed or actively seeking work — a significant drop from Q1 2024 when the labour supply was almost 117,000.
The total supply of labour across Canada’s trucking and logistics sector in Q2 2024 was up by 2.8 per cent but the supply of transport truck drivers was more stable, increasing by just 0.4 per cent compared to Q2 2023.
The number of unemployed people in the
sector decline by 2,800 from Q2 2023 and the unemployment rate dropped from 4.3 per cent to 1.8 per cent.
The number of job vacancies decreased by 1,100 positions or 29 per cent in Q1 2024, compared to Q1 2023.
The Alberta snapshot, produced by THRC in partnership with the AMTA, was funded in part by the Government of Alberta.
THE FUTURE OF INTRALOGISTICS IS INTEGRATED
Build smart. Stay agile. Now is the time to take a broader look at your overall intralogistics strategy and optimize. Making adjustments to combat today’s challenges will prepare you for a strong and sustainable future. And we can help.
Together, we’ll analyze the strategy and systems you’ve built to move, manage, store and protect goods and bring forward new ideas to enhance or secure the investments you’ve already made. Let’s get started.
Walmart workers in Mississauga vote to unionize
ACCORDING TO A UNION RELEASE, employees at Walmart’s warehouse in Mississauga have voted to become members of Unifor, which is Canada’s largest private sector union. It is Walmart’s first warehouse to unionize in Canada.
“This victory is the result of uniting around a belief in workplace democracy and better working conditions,” said Unifor national president Lana Payne. “Walmart workers in Mississauga stood up for their rights, and we are excited to get to work on their first collective agreement.”
More than 40 per cent of the workers at the facility signed a union card this summer and the Ontario Labour Board awarded the workers a vote, which was held Sept. 10–12.
“These Walmart workers are showing warehouse workers across Canada what’s possible when we stand together," said Unifor Ontario
THE FEDERAL MARITIME COMMISSION has authorized a proposal from Maersk and HapagLloyd to establish the Gemini Cooperation, enabling the two companies to share vessels in trade routes between the U.S. and Asia, the Middle East and Europe.
The agreement was originally filed at the Commission May 31, 2024. The Commission issued a Request for Additional Information (RFAI) July 12, which required the filing parties to provide the data necessary for completing an economic analysis of the competitive effects of the agreement.
The agreement was reviewed by the agency under statutory timeframes pursuant to applicable sections of the law, to assess its likely competitive impacts and its compliance with other statutory requirements and prohibitions.
In January, Maersk released a statement saying as part of its “Network of the Future,” the company had entered a long-term operational collaboration with Hapag-Lloyd called the Gemini Cooperation, which will be implemented from February 2025, immediately after the conclusion of the current 2M Alliance.
Maersk said the 2M Alliance is still a highly reliable network for the east-west trades and MSC remains a valuable partner. Maersk will continue its collaboration with MSC between now and the end of the 2M agreement in January 2025, followed by a transition to the new Gemini network.
Maersk said its expertise, fleet, terminal asset base and network vision were complementary with Hapag-Lloyd’s, ensuring that the partnership would make a real difference to its customers, business and the wider industry.
The ambition is to reduce network complexity with mostly single operator loops and fewer
port calls per service, and incorporate terminals with the highest level of productivity and operational efficiency.
The network will consist of 27 to 29 ocean mainliner services and an extensive network of interregional shuttle services. It covers the Asia-U.S. West Coast, Asia-U.S. East Coast, Asia-Middle East, Asia-Mediterranean, Asia-North Europe, Middle East-India-Europe and Transatlantic trade scopes.
Maersk said it will return to the Red Sea when it is sufficiently safe to do so. As the situation remains highly dynamic, the company will be prepared for either scenario. As such, it is presenting two network options in preparation of two scenarios – a return to the Red Sea, or a continuation of the alternative route south of the Cape of Good Hope. Irrespective of whether the Gemini partnership will begin with a Trans Suez or Cape or Good Hope network, the company’s ambition is to provide industry-leading reliability.
Amazon to open specialized fulfillment centre in Ontario
AMAZON LAUNCHED its latest fulfillment centre Sept. 29, YHM2, in Cambridge, Ont. The facility spans nearly one million square feet and is designed to accommodate over 1,000 employees.
The new facility will offer in-demand skills training and career growth opportunities while helping optimize Amazon’s regional operations network in the ar ea.
At YHM2, Amazon product inventory will be stored, managed and distributed to regional Amazon Robotics fulfilment centres, allowing them to fulfil a wider selection of customer orders at the fastest-possible delivery speeds.
“YHM2 will bring the best of Amazon’s logistics expertise to Cambridge while making the city an important part of how we support our local fulfilment network and offer a leading product selection to customers,” said Greg Clutton, YHM2 site lead. “We are proud to be creating good jobs while making important contributions to the local community.”
Because of Cambridge’s location, YHM2 will play a key role in supporting Amazon fulfilment centres in southwestern Ontario as the company prepares for the holiday season. The site will launch with more than 250 jobs, and has the capacity to scale to more than 1,000 jobs as operations ramp up. Employees will have the opportunity to build new skills and grow their careers by participating in training and certification programs related to the technology operated by the site, including forklifts.
With the launch of YHM2, Amazon now operates 12 fulfilment centres, two sortation centres, 16 delivery stations and two AMXL delivery stations in Ontario.
movers + shakers
Prince Rupert Port Authority
The Prince Rupert Port Authority (PRPA) said Peter Lantin has been appointed as chair by its board of directors for a two-year term, which took effect July 1.
Lantin has more than two decades of experience in financial administration and governance and was the elected president of the Haida Nation from 2012 to 2018. Prior to that position, he was chair for the Gwaii Trust, a society that owns and manages a perpetual fund for the benefit of all the people of Haida Gwaii. He was also the chief operating officer for TRICORP, an Indigenous-owned capital corporation that supports and finances economic development initiatives, local entrepreneurs and small business and skills and training for Indigenous communities throughout northwest B.C.
Canadian Pacific Kansas City Limited
Canadian Pacific Kansas City (CPKC) announced the appointment of Arturo Gutiérrez Hernández to the CPKC board of directors, effective Nov. 1.
Gutiérrez, of Monterrey, Mexico, has been the chief executive officer of Arca Continental, the second largest Coca-Cola bottler in Latin America, since January 2019. Prior to being named CEO at Arca, Gutiérrez served as deputy chief executive officer and previously held several company positions over the last 23 years, including chief operating officer, director for the Mexico Beverages Division, along with leadership positions in human resources, planning and legal.
Arctic Gateway Group
with WestJet. His mandate will be to ensure Arctic Gateway’s self-sustainability, building upon the reliability and growth of the trade corridor and making it a beacon for Indigenous economic reconciliation.
Halifax Port Authority
The board of directors of the Halifax Port Authority announce that Fulvio Fracassi, LLM will succeed Captain Allan Gray as president and chief executive officer of the Halifax Port Authority, effective Sept. 26.
The Arctic Gateway Group (AGG) announced the appointment of Chris Avery as the company’s new chief executive officer, effective July 15. Outgoing CEO Michael Woelcke, who joined AGG from VIA Rail in 2022, will retire in September 2024. Avery brings a wealth of experience operating in the north. He has served as president and CEO of Canada’s major northern and Arctic airline and has held senior leadership positions as vice-president
Fracassi brings a wealth of marine industry experience to the Port of Halifax, having served in senior executive roles at Transport Canada – Transports Canada and Emploi et Développement social Canada (EDSC) / Employment and Social Development Canada (ESDC) and as the chief executive officer of the Administration de pilotage des Laurentides / Laurentian Pilotage Authority in Montréal, Qué.
China launches investigation with World Trade Organization over Canadian tariffs
CHINA HAS LAUNCHED an anti-discrimination investigation following the Canadian government's decision to impose tariff increases on electric vehicles (EVs) and on steel and aluminum products imported from China.
The Government of Canada announced a series of measures to, what it said, “level the playing field” for Canadian workers and allow Canada’s EV industry and steel and aluminum producers to compete in domestic, North American and global markets.
The tariffs include implementing a 100 per cent surtax on all Chinese-made EVs, which will be effective Oct. 1 and includes electric and certain hybrid passenger automobiles, trucks, buses and delivery vans. The surtax will apply in addition to the Most-Favoured Nation import tariff of 6.1 per cent that currently applies to EVs produced in China and imported into Canada.
“When setting the surtax rates, Canada has blindly followed the United States without conducting its own investigation or research, a move that is extremely subjective, vicious and unscrupulous,” said Liang Ming, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the MOC.
The Canadian government also plans to apply a 25 per cent surtax on imports of steel and aluminum products from China, effective Oct. 15.
China’s State Council Information Office posted that its anti-discrimination probe into Canada’s tariffs will be initiated in accordance with relevant stipulations of China’s foreign trade law, and corresponding measures will be taken subsequently in light of actual conditions, a spokesperson of the Ministry of Commerce (MOC) said in an online statement.
China says Canada has adopted discriminatory, unilateral, restrictive measures targeting imports from China, in disregard of opposition from various parties, according to a spokesperson, noting that China is “strongly dissatisfied with and firmly against” such moves.
China will file an appeal to the World Trade Organization (WTO) dispute settlement mechanism against these practices, according to the spokesperson. The country will also launch anti-dumping investigations into rapeseed imports and certain chemical products from Canada.
CONNECTIVITY FOR THE FUTURE OF WAREHOUSING AND LOGISTICS
How private cellular networks can improve coverage, security and reliability
As Canadian organizations look to futureproof their supply chains, many are integrating the principles of Industry 4.0 into their operations. This transformation is giving rise to Logistics 4.0—a digital framework that fundamentally relies on connectivity to support automation, Internet of Things (IoT) applications and enhanced data collection in warehouses and supply yards. A significant catalyst for this push toward digital transformation is the remarkable rise in e-commerce. According to the International Trade Administration, 78 per cent of the Canadian population is expected to shop online by 2025. To accommodate consumer demands, supply chains are expanding with more—and larger—warehouses and supply yards. However, like many other sectors, the logistics industry is grappling with labour shortages.
Against this backdrop, logistics organizations are focusing on streamlining workflows through Logistics 4.0. Digitally connecting warehouses enhances efficiency, productivity and safety. Key tools enabling this connection include IoT sensors for predictive maintenance, scanners for inventory management, drones for monitoring stock and employee safety and machine vision cameras for quality control and collision avoidance.
The importance of a resilient mobile network
A robust mobile network forms the backbone of this digital connection, linking all devices utilized by employees to boost productivity and safety. However, many warehouses rely on Wi-Fi as their primary network option, which often fails to meet the demands of their dynamic environments.
An alternative solution is the implementation of private cellular networks (PCNs). These dedicated networks blend the control and fixed costs of a private network with the flexibility, security and macro-network advantages
of cellular technology, positioning them as ideal for leveraging Logistics 4.0.
Addressing unique challenges
Warehouses and outdoor storage yards face distinct challenges that necessitate an always-on network. They generally require wide-area coverage—both indoors and outdoors—and support for multiple asset management applications and devices. Using a Wi-Fi network in these scenarios can lead to unreliable connectivity, often halting operations and frustrating employees. Expanding Wi-Fi networks may also present limitations and interference due to the design of warehouses or yards.
In warehousing operations, various mobile devices—such as smartphones, tablets and handheld scanners—are employed for real-time data sharing. However, Wi-Fi’s connectivity issues can result in frequent disconnections as devices move between access points.
Network security is another critical consideration. Warehousing and logistics organizations often handle valuable assets, and some operations, particularly in retail, may store customer data. Industrial networks, alongside the sheer volume of devices, can create blind spots that malicious actors might exploit, leading to denial-of-service attacks and ransomware incidents.
Disruptions in network connectivity can result in customer dissatisfaction, misplaced assets and lost revenue.
The benefits of PCNs
Compared to Wi-Fi, PCNs offer four main advantages for warehousing and logistics operations:
1. Coverage: PCNs provide enhanced coverage and flexibility. A single private network can support all business-critical connectivity needs for both warehouses and outdoor stor-
age yards. For instance, a Wi-Fi network may require three to five times more access points than a PCN to cover the same area due to the lower noise floor and higher-powered radios utilized by private networks.
2. Security: In an environment where cyberattacks can lead to costly downtime, PCNs enhance security through robust encryption measures founded in larger mobile network operation standards. Each device accessing a PCN requires an authorized subscriber identity module (SIM) card, ensuring a higher level of protection.
3. Mobility: PCNs are deterministic, providing more reliable device handoffs compared to Wi-Fi. This consistency in coverage is crucial for tracking assets, such as raw materials, as they move in, through and out of the warehouse. Organizations can manage device connections via central network control, optimizing signal strength in real-time.
4. Reliability: The combination of coverage, security and mobility makes PCNs the most reliable choice for warehouses. This reliability translates into fewer workflow interruptions, reduced downtime, timely deliveries and improved profitability.
To navigate the growing dependencies on e-commerce, every stage of an organization’s supply chain must mitigate disruptions and meet escalating expectations.
Today’s supply chains must be “always on,” and achieving this necessitates warehouse network solutions that are equally reliable. Private networks provide the mobility, security, reliability and coverage necessary to build a robust foundation for enterprise supply chains, enabling them to adapt to evolving consumer demands and prepare for future challenges
Jason Falovo is vice-president and general manager, Canada, Enterprise Wireless Solutions at Er icsson, a cloud-delivered LTE and 5G wireless network and security solutions company.
COMMITMENT TO CUSTOMERS, SAFETY AND THE FUTURE OF NEWFOUNDLAND
Oceanex leads the charge in on-time, safe and eco-friendly shipping
For more than a century, Oceanex has connected Newfoundland to the rest of North America with more reliable, greener and safer transportation solutions.
Originating from humble beginnings in 1909 with a service to Corner Brook, the company expanded into St. John’s in 1949. Through the merger of Atlantic Container Express from Montreal and Atlantic Searoute Ltd. of Halifax in 1990, Oceanex was formed. The following year, a marine terminal operator in Newfoundland merged its operations with Oceanex, creating a major integrated transportation infrastructure provider in Atlantic Canada.
Since 1991, Oceanex has grown significantly. Having operated as an income trust until 2007, the company was privatized under new ownership, led by executive chairman, Captain Sid Hynes, who has since focused on building Oceanex into one of the most successful transportation companies in Eastern Canada.
More recently, the addition of the Oceanex Connaigra, the largest Canadian-flagged ConRo (combination container and roll-on/ roll-off) ship in the country, was a substantial addition to its fleet.
“One of the most environmentally friendly ships in the world, the Oceanex Connaigra was custom designed to provide continuous,
year-round efficient service to the province, operating on a fixed weekly schedule,” explained Deron O’Reilley, vice-president of sales and marketing for Oceanex.
Today, Oceanex imports nearly half of all goods and more than 90 per cent of new automobiles to Newfoundland and Labrador through its two weekly sailings from Montreal and weekly sailing from Halifax. As a leading provider of transportation solutions to and from the province, Oceanex offers door-to-door and pier-to-pier services for its customers, with three terminal locations in Montreal, Halifax and St. John’s.
“Our customers and the industries we serve span all sectors of the economy, including retail, grocery, food services, industrial and new and used automobiles, to name a few,” said O’Reilley.
Oceanex’s range of services includes full load transportation for large quantities of cargo and less-than-truckload for smaller shipments. The company also provides movement of new automobiles, oversized and heavy equipment, temperature-controlled goods, all while partnering with major steamship liner services, offering seamless end-to-end transportation solutions to connect global markets to Newfoundland and Labrador.
“The relationship with Oceanex spans more than a decade. At Coca Cola Canada Bottling Ltd., we have appreciated the collaborative efforts consistently made by Oceanex to service our business needs.” – David Keenan, director of transportation, Coca-Cola Canada Bottling Ltd.
Living by its core values
Customer satisfaction, safety and continuous improvement aren’t just words, they are the values Oceanex lives by.
With over 97 per cent per cent on-time performance, Oceanex doesn’t just claim to be best-in-class; it delivers on its promise.
“It’s a true distinguishing factor between us and our competition,” said O’Reilley. “Our customers rely on us for our quality service and on-time performance. Measuring and exceeding those on-time delivery commitments allow us to be proactive with our customer communication.”
“The Oceanex team provides reliable service to support our stores and customers. Their willingness to work together and offer resilient solutions to our supply chain gives us the necessary service and consistency. Frequent communications and updates ensure we know what is happening with our products while working collaboratively to plan for the long term.” – Mark Price, assistant vice-president transportation, domestic operations, Canadian Tire Retail
With these kinds of numbers, many companies would become complacent, but not Oceanex. Continued progress is always at the forefront, looking for and identifying issues or service breakdowns, knowing there’s always room for improvement.
“Our Quality Management system involves regular data collection and analysis, customer feedback, and performance benchmarking,” said O’Reilley. “By proactively monitoring processes across our business and seeking areas for enhancement, we can ensure that our services remain efficient, reliable and aligned with customer expectations.”
“As a long-term business partner of Toyota Canada, we appreciate Oceanex’s alignment to core Toyota values including kaizen (continuous improvement), effective communication and respect for the environment. Oceanex works hard to provide its customers with proactive updates with regards to any challenges encountered through the course of business. In addition, their focus on environmental initiatives and sizeable investment in vessel upgrades, sets them up well for success in the future. TCI is proud to partner with Oceanex in support of our Newfoundland Toyota dealers.” – Jonathon Recchia, manager, transportation and operations, vehicle logistics department, Toyota Canada
Through all its success, one core value Oceanex refuses to ignore is safety. To ensure its employees are provided with a safe and healthy workplace, Oceanex has implemented several initiatives, including regular toolbox talks to address specific safety concerns, review protocols and promote awareness. Safety inspections across their network are regularly conducted to identify potential hazards and ensure compliance and employees are required to report any incident or near-miss so an investigation can be done to determine the cause and prevent similar occurrences.
“Our commitment to a safe working environment has resulted in a strong safety culture within Oceanex. This dedication is reflected in our health & safety statistics, which consistently demonstrate a positive safety performance,” said O’Reilley. “By prioritizing safety, we create a workplace where employees feel valued, protected and motivated to contribute to a safe and productive environment.”
Company info OCEANEX INC.
Corporate Headquarters
Suite 701
10 Fort William Place
St. John’s, Nfld., A1C 1K4
Toll-free: +1 (888) 875-9595
Company size
www.oceanex.com
~470 employees and ~600 contractors across Eastern Canada Services
• Door-to-door/Pier-to-pier
• Containerized Full Load and Less than Truckload (LTL)
• Temperature controlled transportation
• Rolling freight (vans/trailers)
• Over-dimensional and Project Cargo
• Automobile transport
• 3PL
Equipment
• Three Canadian owned and flagged Ice-class Container/Con-Ro ships
• Fleet of equipment consisting of over 3,750 containers, road trailers and chassis
• Combination of company trucks, owner operators, and 3rd party road carriers
Green
machine
Green transportation solutions are important to Oceanex, which is evident in the company’s fleet and land-based measures that reflect its environmental stewardship.
In addition to reducing sulfur emissions from its fleet of vessels, which included the introduction of the Oceanex Connaigra and moving its other vessels to cleaner fuel sources, –– the company has achieved several environmental milestones. Oceanex is certified by Green Marine, operates under the “just in time” arrival principle to reduce GHG emissions, has a truck fleet that is “certified clean idle” and ensures its marine partner carriers are equally responsible to the environment.
Oceanex is also collaborating with the Port of Montreal and QSL to create a domestic green shipping corridor aimed at eliminating carbon emissions on a shipping route between Montreal and Newfoundland.
For the best transportation solutions to Newfoundland and Labrador from anywhere in North America, visit oceanex.com and get your shipment to its destination on time.
THE CASE FOR INTERMODAL
Study says intermodal freight more sustainable and cheaper, but still lags in market share
IN 2023, BILL LOFTIS co-authored a study on how intermodal rail could be a viable option to help decarbonize freight. The study, titled Decarbonizing Long-Haul Freight and conducted with Therese Langer, examined the sustainability benefits of intermodal freight and how rail could be the best transportation mode to advance this effort, as Loftis presented during the ASCM Connect conference in Austin, Texas, last month.
Loftis, owner and principal of Supply Chain Ecology, highlighted several advantages of using rail, including cost savings, reduced road deterioration, the ability to move larger volumes of cargo, and lower emissions.
“If you can go from diesel to electric, you’re going to be far more sustainable,” Loftis said. “Diesel rail is even more sustainable than electric truck.”
Loftis believes the transportation industry lacks a solution for sustainable, high-performance, long-haul land freight, noting that alternative fuels are still extremely expensive, technically challenging, and years away from becoming viable options.
Emphasizing the benefits of intermodal, Loftis noted that it is 10 to 20 per cent less expensive than truckload shipping, with 95 per cent of shippers choosing intermodal for its cost savings. He also pointed out that 70 per cent of road deterioration is caused by trucks, not passenger vehicles, and that a single train can move the equivalent of 280 trucks, reducing highway congestion and cutting carrier costs by US$94.6 billion, or 1.27 billion hours.
Loftis added that intermodal is five times safer than trucking and 75 per cent more efficient, whether using electric or diesel energy.
Despite these advantages, the market share of intermodal freight is low and declining, with the international market share peaking in 2015. Intermodal grew rapidly from 2000 to 2015 but has since dropped 10 to 20 per cent since 2018.
Reliability is one reason behind intermodal’s decline. Loftis noted that shippers need confidence in their service providers, and trucking has long been seen as more reliable. Data shows that trucking has better on-time delivery rates. For short trips between 450 and 900 miles, intermodal has an 8.5 per cent lateness rate, but this rises to approximately 31.5 per cent for longer shipments.
Shippers often require intermodal experts to ensure service quality, and those using third-party logistics providers (3PLs) seldom consider intermodal as an option.
To become a more viable option, intermodal must remain cost-effective while covering longer distances and higher densities. However, intermodal’s one-size-fits-all business model, lack of competition, and limited regulatory oversight continue to drive declining volumes.
Loftis emphasized the need for more intermodal hubs across the U.S. and beyond. One disadvantage of rail is its limited proximity to shippers and receivers, often requiring cargo to be transferred to trucks for the final delivery leg.
Loftis stated that intermodal should account for less than a third of the total transport distance, making proximity to a hub essential.
“To put that in intermodal perspective, we need more intermodal hubs,” said Loftis, noting that the cost of a new hub is around US$47 million. “I’m not saying we shouldn’t electrify…what I’m saying is that we can’t electrify everything.”
Loftis also mentioned an innovative rail car known as a bogie that could be a game-changer for intermodal.
A bogie is an autonomous, battery-powered, truck-like rail car that does not require a locomotive. With a range of 500 miles, bogies would be a low-volume, electrified addition to the rail industry, designed to address intermodal’s density challenges.
To bring intermodal closer to customers, Loftis recommended building more short-line or regional routes to connect communities and customers not served by main networks. These regional routes could also connect to the Class 1 network.
“We need more connectivity if we want to win this game,” said Loftis.
Statistics according to Decarbonizing Long-Haul Freight study
• 1 train = 280 truckloads
• Intermodal is 75% more efficient than truck
• 70% of GHG emissions from transportation originate from road vehicles
• 95% of shippers say cost is the primary reason for choosing intermodal
• Intermodal lateness – 8.5% for short trips, 31.5% for long trips
• Truckload market in U.S.: US$432 billion; Intermodal: US$41 billion
• 70% - percentage of road deterioration due to trucks
• International intermodal market share of longhaul trips in 2015: 5.7%
• U.S. intermodal market share of long-haul trips in 2018: 7%
BUILDING SMARTER WAREHOUSES
The technologies used in today’s modern warehouses have come a long way, from automation and inventory management to robotics, data analysis and artificial intelligence (AI). However, navigating the myriad of available options can be daunting for both small businesses and large corporations. Omer Rashid, vice-president of operations development, automation, innovation and analytics for DHL, explains that when considering warehouse technology, businesses must focus on three main categories: systems, physical automation and data and analytical tools.
How AI, automation and data are helping to shape the future
One system DHL uses is advanced shipping notices (ASNs), which streamline, track, plan and manage inventory before products even arrive at the warehouse.
“The ASNs give us visibility, which helps streamline delivery, driver check-ins and move products to the optimal dock,” says Rashid. “Once in the warehouse, the most common technology is a warehouse management system (WMS).”
WMS serves as the system of record for all inventory in the warehouse, helping manage receiving, replenishment, scanning technologies and several other facets of warehouse operations.
“Technology tracks a product through every step of material handling,” Rashid says. “With WMS, we maintain visibility and drive efficient storage, slotting, replenishment and shipping activities.”
Adding automation to a solution further enhances productivity by integrating with the WMS, Rashid adds.
“The most common way we improve inventory management is through automated cycle counting,” he says. “This brings inventory out of storage, eliminates unnecessary walking and improves accuracy by making it easier to count.”
WAREHOUSES
Physical automation and robotics
Physical automation, including mechanical solutions and robotics, supports materials management, such as offloading cases or pallets from inbound trailers, all integrated with the WMS.
“This technology can enhance or mechanize most processes in the warehouse,” Rashid says.
Automated systems such as AI-driven robotics and radio frequency identification (RFID) tagging are also transforming inventory control. Robert Khachatryan, founder and CEO of Freight Right Global Logistics, notes that these technologies are boosting accuracy while reducing manual labour.
“RFID technology for inventory management has shown improvements in accuracy by up to 13 per cent, compared to conventional tracking methods and manual assessments in some cases,” says Khachatryan. “This is especially beneficial in the retail sector, where maintaining precise inventory levels is a persistent challenge.”
Harnessing data for efficiency
Another advantage of modern technology is the ability to collect and analyze data, which, when implemented properly, can improve warehouse efficiency.
“You can harness data in real time to support warehouse management on the shop floor,” says Rashid. “We use AI to optimize inventory management. For example, automating data gathering and visualization on an inventory dashboard allows managers to make real-time decisions.”
The role of AI in warehousing
AI may seem broad and intimidating, but it’s proving to be a valuable tool across various areas of warehouse operations. At DHL, AI is particularly useful in robotics and the data generated by the company’s systems.
“We’re developing tools to learn from that data to assist with warehousing applications,” says Rashid. “This includes inventory management, optimizing product placement in the warehouse, task assignments and picking sequences.”
The industry is also exploring the potential of generative AI (GenAI) for future applications.
“For GenAI to be effective, especially in machine learning use cases, we need data from every process so the AI can learn and help automate decision-making,” Rashid says.
Khachatryan adds that businesses adopting automated inventory systems have seen improvements in efficiency and lower operational costs. For instance, incorporating AI for demand forecasting has led to a 25 per cent decrease in surplus inventory.
In Canada, automated warehouse management systems (AWMS) are primarily used in e-commerce and retail.
“The e-commerce sector leads the market due to increasing online retail activity and the demand for efficient order fulfillment,” Khachatryan says. “Retail also plays a key role, with AWMS improving inventory management and delivery efficiency in both physical stores and omnichannel operations.”
Building resilience with AI
“The ASNs give us visibility, which helps streamline delivery, driver check-ins and move products to the optimal dock.”
– Omer Rashid, vice-president of operations development, automation, innovation and analytics for DHL
AI is also helping to mitigate global disruptions, such as weather events or other risks, by creating business models that allow for quick responses.
“We have a tool that can assess the risk of shipping as planned or offer alternative routes,” Rashid says. “This is crucial for maintaining resiliency.”
Looking ahead
Rashid sees AI continuing to enhance supply chain resiliency by improving production strategies, inventory positioning and cost-effective solutions.
“I expect continued investment in robotic technology,” he says. “Robotic solutions are becoming more advanced, and AI capabilities are further enhancing them.”
Khachatryan agrees, saying that AI will become more predictive, improving the accuracy of inventory forecasts.
“McKinsey estimates that AI-powered predictive analytics can reduce forecasting inaccuracies by 20 to 50 per cent, and cut inventories by 20 to 30 per cent,” he says.
THE USE OF AI TO ENHANCE SUPPLY CHAIN EFFICIENCY
How AI is being used in today’s logistics sector and how it can benefit supply chain operations
When it comes to artificial intelligence (AI), there is a general feeling of concern across several sectors, including the supply chain. This sentiment is often relayed to He Yuangie, department chair and professor in the technology and operations department at California State Polytechnic University, Pomona, by those in various industries.
“I talk to many people, and their general feeling about AI is concern. Will we still have jobs?” Yuangie said during a presentation at the Association for Supply Chain Management Connect conference in Austin, Texas, in September.
But as Yuangie pointed out, AI is nothing new. It has been studied for more than 70 years, and even Microsoft Excel has been used as an early form of AI for several years.
Yuangie believes that all areas of AI can help solve problems in the supply chain and that there are three basic ways to use the technology: machine learning, deep learning and generative AI.
Generative AI (GenAI), for example, allows supply chain professionals to create something that previously did not exist by using prompts.
“Our prompts really have to be content-based,” said Yuangie. “The more specific the prompts, the better the result you get.”
GenAI can help anyone become an analyst by analyzing and predicting physical and information flows within the supply chain. Yuangie noted that the main function of AI in the supply chain is robotic automation, which increases efficiency and overall flow.
Pedro Neto, a supply chain data scientist at HP, said the exciting thing about GenAI is its versatility across different areas in the supply chain sector.
Workers shouldn’t view this as a negative, Neto said. If GenAI is used to handle what he calls the “grunt work,” the soft skills each individual possesses will become more important in the workforce. For example, if you didn’t learn how to write computer code in school, that’s fine; AI can help with that, allowing your unique skills to shine.
Current uses for AI in the workplace include enterprise AI, which employs machine learning, natural language processing and predictive analytics to improve business outcomes and decision-making. Large language models can also recognize, analyze and generate text, and AI can enhance other tools, such as search engines and drawing, coding and writing applications.
Challenges
As with any advancing technology, AI presents challenges. Safety, privacy, security and government regulations are just some of the issues associated with AI. One of the main hurdles supply chain professionals face is related to data quality and reliability.
Neto explained that GenAI is a good “guessing machine” and can analyze data to ensure a company’s operations are aligned.
Neto and Yuangie suggested that when considering future readiness in AI, companies should focus on small-scale benefits in everyday workflows rather than large-scale projects. Continuous learning is crucial to adapt supply chain talent for AI roles and keep pace with the rapid changes the technology will bring.
“This really is an opportunity for personal growth,” said Yuangie.
Neto and Yuangie highlighted examples of how companies like Walmart and Maersk are using GenAI. Walmart, for instance, uses Practum’s chatbot to negotiate with suppliers, with 83 per cent of suppliers reporting a positive experience. Maersk also uses the same platform to negotiate ocean freight rates.
Looking ahead, Neto and Yuangie said agentic AI—which involves more autonomous decision-making, allowing systems to perceive their environment through sight, sound and text—is on the horizon.
“Our prompts really have to be content based. The more specific the prompts, the better the result you get.”
– He Yuangie, department chair, professor, California State Polytechnic University, Pomona
THE IMPORTANCE OF CREATING A WAREHOUSE ASSESSMENT PLAN
ENSURING YOUR WAREHOUSE operates at optimal efficiency should be top of mind for all businesses, regardless of size, scope of services, or industry. But with so many areas to cover, it can be difficult to know where to begin.
Sunil Bharadwaj, a managing partner with ImpactEazer Consulting with more than 20 years of experience in the supply chain sector, provided a roadmap for warehouse assessments during the Association for Supply Chain Management’s Connect conference in Austin, Texas.
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As Bharadwaj pointed out, when it comes to warehousing, organizations can break this down into six categories:
Plan: demand management, planning and forecasting, sales and operations planning.
Make: production planning, operations, capacity planning, scheduling, quality, safety and maintenance.
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Deliver: warehousing, transportation, order management, customer service, distribution and last-mile delivery.
Return: product returns, reverse logistics, recycling, refurbishment, and reuse.
Enable: knowledge management, training, operations excellence and business excellence.
Bharadwaj said warehouse assessments should include a structured, systematic, and detailed review that encompasses end-to-end operations, processes, activities, employees, infrastructure and the systems in use. Above all, warehouse assessments need to be unbiased, impartial and honest.
The need for an assessment
There are various reasons organizations might need to perform a warehouse assessment. Changing product profiles and customer expectations, operational speed and accuracy, inventory management, delivery paradigms and returns management can be fluid and in need of review.
“These are issues we are constantly grappling with,” said Bharadwaj, adding that businesses need to consider current warehouse trends and best practices during their assessment. These trends include
automation, a multi-skilled workforce, process excellence, customer focus, sustainability and risk and resilience.
Creating an assessment plan
A warehouse assessment framework starts with establishing an objective and scope. It should then include area checklists, a scoring methodology, visits from third-party logistics providers (3PLs) and stress tests, performance scores, observations, identifying areas for improvement
and finally, recommendations and a way forward.
As for the areas an assessment should examine, Bharadwaj said to include inventory accuracy, put-away logic, visual management, space utilization, returns management, warehouse layout, staff productivity, warehouse management system (WMS) utilization, safety and security and customer service.
Key points
As Bharadwaj highlighted, clarifying the objectives of a warehouse assessment is key to its success. This begins with creating a focused checklist and questionnaires prior to the assessment that address all aspects of the warehouse’s operations.
“We are talking about warehouse control systems instead of just management systems,” said Bharadwaj.
Allowing time for site visits and walkthroughs, taking videos of inbound and outbound activities, discussing the findings and establishing solutions to what needs to be addressed are all steps to creating a successful warehouse assessment.
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photo by: Derek Clouthier
Sunil Bharadwaj explains the importance of a warehouse assessment plan.
GRINDING TO A HALT
The impact of Canada’s historic 17-hour railway shutdown
ON AUG. 22, CANADIAN RAILWAYS
came to a halt, marking the first time both Canadian National Railway (CN) and Canadian Pacific Kansas City Railway (CPKC) locked out employees simultaneously due to stalled contract negotiations between the railways, their employees and the Teamsters Union. While the shutdown lasted a total of four days in an on-again, off-again fashion, the impacts on the supply chain were still felt across Canada and the shipping world.
In the 10 days leading up to the lockouts and corresponding strike actions—known as the cooling-off period—over-the-road prices doubled and, in some cases, tripled compared to market rates from weeks earlier as the option for rail service dwindled. Some carriers even cancelled pre-booked shipments at regular rates to capitalize on urgent road capacity needs, a tactic that backfired once the strikes were called off.
Cargo containers sat at ports with nowhere to go, delaying berths and vessel schedules as vessel offloading wait times increased due to the backlogs.
Shipping lines discussed rejecting Canadian-bound cargo required to ship inland by rail. The embargo on reefer containers moving inland from the ports was put on hold entirely, resulting in further backlogs at Canadian ports.
CPKC implemented a timeline to try to minimize the impact on stranded cargo:
Aug. 12: An embargo on all toxic-by-inhalation and poisonous-by-inhalation dangerous goods traffic originating in Canada or destined for a Canadian location took effect.
Aug. 15: CPKC stopped accepting loaded intermodal shipments classified as dangerous goods at all intermodal facilities for both domestic and international shipments destined for or originating from terminals and ports in Canada.
Aug. 17: The embargo expanded to include other dangerous goods, including all Rail Security Sensitive Materials (RSSM) and time-sensitive commodities.
Aug. 19: The embargo expanded further to
VICTORIA JONES
is a supply chain specialist at Tyers Foods
all other dangerous goods shipments.
Aug. 20: Embargoes were extended to all shipments originating in Canada, all shipments originating in the United States destined for Canada and all carload traffic destined for Canadian interchange.
As I write this column, containers carrying my product that arrived at the Port of Montreal Aug. 20—days before the rail strike—are still moving across the country to Vancouver over 20 days later, a journey that would normally take five to 10 days on average.
Around 70 per cent of all intercity surface freight and half of Canada’s exports are moved by rail, including over 22 million tonnes of potash—accounting for 46 per cent of global exports. The question of whether rail transportation is an essential service has a clear answer: yes.
While the strike was avoided after government intervention, which is now being challenged in court by the Teamsters Union, the potential impact was enough to cause panic across the Canadian economy.
Industries that were bracing for impact included:
The food chain: Meat processing plants were expecting to lose up to $3 million per week, which would have resulted in full plant shutdowns after one week of strike action,
taking weeks to resume normal operations.
The automotive sector: Both railways distribute automobiles and parts across Canada and the U.S. Midwest.
Access to chemicals like chlorine for drinking water: Chlorine cannot be transported by any mode other than rail.
Farmers approaching harvest season: Grain, legumes, canola, wheat and barley were approaching prime harvesting time, and farmers lacked the storage space to stockpile grain that could not be shipped.
Commuter trains were also heavily impacted by the strike, putting 32,000 commuters at an impasse, including passengers in Vancouver and the Greater Toronto and Hamilton Area, where the Milton Line and Hamilton GO services were temporarily suspended.
In a historic first for Canadian railways and the supply chain, the lockouts and corresponding CN and CPKC strike lasted just 17 hours before the federal government stepped in, with the Teamsters reporting that workers would return to operations Aug. 23. It was estimated that the rail stoppage cost the Canadian economy $341 million in just one day.
Labour Minister Seamus O’Regan issued a directive for binding arbitration and ordered employees to resume operations until new contracts could be reached. While this action halted a critical issue for consumers and industry alike, it raised a new question: What does this precedent mean for the future of unions’ abilities to negotiate safe conditions and fair wages?
As a result of O’Regan’s directive, the Teamsters Union, which represents nearly 10,000 workers at both CN and CPKC, is taking legal action against the federal government. Four separate appeals have been filed with Toronto courts, citing a breach of the union’s freedoms under the Charter of Rights and Freedoms.
CN, CPKC and the Teamsters met in September for the first time since the strike and lockouts occurred, marking an early phase in determining the timeline for binding arbitration.
SLIPS, TRIPS AND FALLS
Preventing hazards in Canadian warehouses and distribution centres
SLIPS, TRIPS AND FALLS are significant hazards in warehouses and distribution centres across Canada. These incidents can lead to debilitating injuries for workers and high costs for employers. Here are two real-life examples:
A worker rushes outside in snowy, wet weather to start a vehicle and warm it up. He slips, realizes he’s falling and uses his arm to cushion the impact. He starts to feel nauseous, faint and is in considerable pain. The worker has suffered a dislocated shoulder and must wear a sling, attend physiotherapy and miss work for months. For the employer, this may mean higher workers’ compensation and health-care costs, as well as expenses to hire a replacement worker.
An employee is offloading a pallet from a truck with a pallet jack, walking backwards and trips on a pallet lying flat on the floor. The worker falls, hitting their head. The employee calls in sick the next day. Two weeks later, the worker dies as a result of the head injury. The employer is charged under provincial legislation and fined $60,000.
Employers in warehouse and distribution centres need to be particularly proactive when it comes to prevention because the potential for slips, trips and falls is everywhere. They can occur in the yard, on the warehouse floor, in transition areas between the outside and inside (uneven or slippery floor surfaces), while products are being loaded or unloaded (empty pallets, debris or spills) and while working at heights on ladders.
The following 10 tips can help significantly reduce the risk of slips, trips and falls in your warehouse or distribution centre, creating a safer and healthier environment for workers.
1. Implement good housekeeping practices:
Clean up spills and wet surfaces immediately. Common areas prone to slips, trips and falls include high-traffic areas and entrances.
Keep walkways and aisles clear of obstacles and clutter.
Ensure proper storage and organization
NORM KR AMER, CRSP, P.MM, provides expert, in-depth health and safety consulting services for Workplace Safety & Prevention Services (WSPS) as a warehouse specialist in the Greater Toronto region.
of materials.
2. Regularly inspect and maintain flooring, including cleaning and repairing cracks or uneven surfaces.
3. Ensure adequate and unobscured lighting in walkways, staircases and high-traffic areas. Also, consider outdoor lighting levels. During low-light conditions in the fall and winter, it is more difficult to see obstructions due to poor housekeeping or pavement imperfections. During regular inspections, walk through the yard when it is dark outside to identify risks.
4. Use brightly coloured warning signs to alert workers to a slip hazard, such as a wet floor. When the hazard is gone, remove the sign. If left in place indefinitely, warning signs will not be taken seriously.
5. Identify the causes of unsafe behaviours (e.g., rushing, distractions, overreaching, fatigue). Is your company sending the message that productivity is more important than health and safety? Are you communicating
your policies and practices effectively? Are supervisors adequately enforcing your safety practices?
6. Address seasonal risks. For example, watch for pools of melted snow in transition areas or icy patches on potholes in the yard. Repair potholes and clear snow, applying salt and sand as needed. Stock up on salt and sand, keeping it readily available close to the hazard or walking path. Remember that not only are your workers at risk but so are contract drivers.
7. Ensure drivers or workers don’t track in rain or snow. Place mats at each entrance so that those entering the building can dry their feet before walking on concrete floors. Replace mats if they become saturated with water, and make sure this is part of your housekeeping protocol with assigned responsibility.
8. Pay attention to the loading dock area, especially during inclement weather. Review your dock seals or shelters to ensure that air entering the dock will not cause condensation or wetness on the steel dock plate, contributing to slip hazards and lift trucks skidding. A poor seal may also allow snow or rain to enter the dock area. Preventative maintenance includes ensuring a good seal around trailers parked at your loading dock.
9. Don’t overlook risks associated with ladders and mobile equipment. Train your workers to:
Always use handrails.
Carry objects with one hand if permitted, leaving one hand free to grip the handrail.
Only carry loads that fit within the handrail.
Face the ladder when ascending and descending if required by the manufacturer.
Avoid overreaching a handrail or guardrail.
Keep the ladder close to the work and be positioned to achieve three-point contact (two feet and one hand).
10. Encourage workers to report hazards and near misses. Take immediate action to correct the problem.
NAVIGATING TURBULENT WATERS
The impact of global conflicts and regulatory changes on trade
WE OFTEN HEAR the term “geopolitics” in the context of international challenges. The word originates from ancient Greek, meaning “earth, land and politics,” and refers to how geography influences politics and international relations. The modern term “geopolitics” was coined by Swedish political observer Rudolf Kjellén in the early 20th Century, and its use spread across Europe after the First World War. Today, “geopolitics” is commonly used as a synonym for international affairs. Its impact on global trade can be well illustrated by the Iranian Revolution of 1979, which saw the overthrow of the secular Shah of Iran and the rise of Ayatollah Khomeini, a religious leader whose ideology continues through his successors today. The ensuing U.S.-Iran hostage crisis, where 53 American diplomats were held for 444 days, shaped U.S.-Iran relations and led to international sanctions that remain in place. Notably, China and Russia do not adhere to these sanctions.
One current issue affecting global supply chains is the repeated attacks on commercial ships in the Red Sea by Yemeni Houthis since October, in support of Palestinians. Despite a strong naval presence by the U.S. and the European Union to protect commercial shipping, the attacks continue due to ongoing support from Iran. As a result, international shipping faces higher costs and longer transit times, with many ships now opting for the longer route around South Africa’s Cape of Good Hope instead of the traditional, shorter route via the Red Sea, Suez Canal and Mediterranean. This creates ongoing challenges for the shipping industry.
As demonstrated by these examples, long-standing conflicts or rivalries between nations can have lasting effects on global trade and supply chains. The situation in Israel and Palestine is a prime example. Since the establishment of the State of Israel in 1948, peaceful coexistence with Palestinians has been elusive. The barbaric attack by
CHRISTIAN SIVIÈRE runs Solimpex, and is an international trade consultant and lecturer. christian.siviere@videotron.ca
Hamas on Israel on Oct. 7 was followed by predictable Israeli retaliation in Gaza and the West Bank. However, Israel has expanded its military actions into Lebanon to target the Hezbollah militia, backed by Iran, which holds de facto power in Lebanon. Could this escalate into a larger war in the Middle East, disrupting oil and gas flows and halting commercial shipping, potentially sparking another global crisis, inflation, or even a recession? No one knows for sure.
The war in Ukraine is another classic example of geopolitics at play. After Ukraine regained full independence with the fall of the Soviet Union in 1991, its people established democracy during the Maidan Revolution in February 2014. This displeased Russia, which subsequently invaded and annexed Crimea, then part of Ukraine, in March 2014. Emboldened by the relatively muted international response, Russia launched a full-scale invasion of Ukraine on Feb. 24, 2022. Most democracies, including the U.S., Canada, the European Union, the U.K., Japan and South Korea, imposed sanctions on Russia. However, several countries, led by China, India, Brazil and South Africa, along with numerous authoritarian regimes
in Africa, the Middle East and Asia, have not imposed sanctions, effectively supporting Russia’s actions. This has contributed to global divisions and significantly affected the cost and availability of key resources such as minerals, metals, grains and fertilizers, exacerbating inflation worldwide. Canadian supply chain managers must account for these factors in their risk management strategies, develop contingency plans and stay as proactive as possible. In addition to heightened risks and uncertainties, moral and ethical concerns arise—often referred to as ESG (environmental, social and governance) considerations. Do we want to source products from countries that support Russia and disregard the rule of law?
When discussing geopolitics and its impact on supply chains, we tend to think of distant lands, but it can also hit closer to home. A prime example is forced labour laws. Canada has implemented high-level legislation prohibiting forced and child labour in supply chains—essentially, a “thou shalt not” policy. However, the primary obligation for Canadian companies is to issue an annual report to the government. The U.S., in contrast, has stricter laws targeting products from China’s Xinjiang region, where the Uyghur minority faces persecution. The U.S. bans the import of any goods made in whole or in part in Xinjiang, citing forced labour concerns. Canadian companies that do business in the U.S. must navigate this.
In a recent development, a bipartisan group of U.S. lawmakers urged Canada (and Mexico) to adopt similar laws to prevent goods from Xinjiang from entering North America through Canada or Mexico. This would mark a significant shift from mere reporting to actual enforcement at Canadian ports of entry. With such ever-evolving challenges, some may wonder if artificial intelligence is the answer. Will AI save or enslave us? That will be the subject of my next column.
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