CBCNews – April 15, 2014: Gasoline prices in Canada are climbing to two-year highs, and could be going higher, according to industry watchers. In Toronto, gas prices are at 137.9 cents a litre, the highest they’ve been in two years, according to TommorowsGasPriceToday.com. At the beginning of the year, gas was 10 cents a litre cheaper. In Vancouver, a fill-up costs 149.1 cents a litre, 20 cents more than at the beginning of the year.
Why does it happen? Get to know the 5 reasons why you pay high gas prices
1. Crude Oil Prices
It starts with crude oil. Although Canada may produce more oil than it consumes, the country is at the mercy of global markets for the commodity. Increased Middle East instability, sparked by popular uprisings, has lead to concerns about supply. Better-than-expected economic growth, especially in developing nations such as China and India, has also increased demand.
2. Refining Oil into Gas
The next link in the supply chain is refining. In order to turn thick, black crude oil into useful products such as gasoline, diesel, heating oil and jet fuel, it must be sent through a mind-boggling array of pipes and tanks, heaters and condensers to sort the components of the substance from lightest to heaviest. This is a complex and costly process, and is paid for by what is known as the “crack spread,” or refining margin. This represents the difference between prices fetched for the products produced, and the cost of crude oil inputs.
3. Transportation to Retailers
Once the oil has been refined into gasoline, it must be transported to retail outlets across the country. This is accomplished through a network of 23 terminals – from St. John’s to Nanaimo, B.C. — forming the backbone of the distribution network.
4. Retail Mark-Up
The retail mark-up averaged 7.6 cents per litre in April. This national average masks wide variation, from lows of 4.6 cents in Calgary up to highs of 25.8 cents in Whitehorse, according to Kent Marketing Services, an industry-consulting group.
5.Taxes at the Pump
Emily Corbett of Mechanicville, N.Y., pump gas at a station in Mechanicville, on Wednesday, May 11, 2011. New York, Indiana, Illinois and New Hampshire are among the first states talking about temporarily suspending part or all of the state and local taxes that can add 14 cents to nearly 50 cents to a gallon of gas.
Original article available at huffingtonpost.ca
An effective supply chain creates a strong competitive advantage for the firms involved within it for three key reasons, they are:
1. The broad-based experience of Third Party Logistics companies can add fresh ideas, new options and money-saving alternatives to the status quo;
2. Third Party Logistics means client organizations pay for service only, they do not pay for staff, pensions, vacations, allowances, etc.;
3. Third Party Logistics companies already have security clearances, rates in place with airlines, truckers and marine carriers, and compliance with international transportation regulations, all of which contribute to a faster and smoother supply chain.
New ideas, money saving options and a faster turnaround all contribute to a win-win-win on the bottom line.
Definition: a system of transporting freight by aircraft.
Air cargo transports goods worth in excess of $6.4 trillion on an annual basis. This is approximately 35% of world trade by value. The sector itself generates nearly $70 billion every year and is an important component of the aviation industry, which collectively supports 57 million jobs worldwide.
The Global Air Cargo Advisory Group:
The industry is focused on developing partnerships to strengthen air cargo. The Global Air Cargo Advisory Group (GACAG) comprises the International Federation of Freight Forwarders Associations (FIATA); The International Air Cargo Association (TIACA); the Global Shippers Forum (GSF); and IATA. Their work is focused on the priority areas of e-commerce, customs and trade facilitation, security, and sustainability.
The Cargo Services Conference (CSC) is responsible for developing and maintaining industry-wide standards for the various aspects of air cargo transportation. These include:
- Dangerous Goods
- Live Animals
- Unit Load Devices (ULD)
- Air Mail
- Air Waybill (AWB)
- Cargo Security
- Customs & Trade Facilitation
IATA e-Cargo projects (e-freight and e-AWB) aim to move the air cargo industry to the digital era by taking the paper out of cargo and replacing it with the exchange of electronic data and messages.
Top 10 international + Domestic cargo airlines by scheduled freight tonne-kilometres flown (iata.org – WATS 57th edition – 2013)
|4||Cathay Pacific Airways||84,335|
|5||Korean Air Lines||81,446|
Transport Links on the Web by CIFFA
Since 2008 MELLOHAWK Logistics has participated in the world-famous SIAL international food marketplace which brings together exhibitors and buyers from around the world for the retail and food service industries. This year the event was in Montreal (it alternates between Toronto and Montreal in odd/even years) and hosted over 14,000 professional visitors from 61 countries to see 750 exhibitors from 45 countries. Worldwide, SIAL has a presence on 4 continents (Paris, Montreal/Toronto, Shanghai, São Paulo and Abu Dhabi) with 7,500 exhibitors.
In participation with the Brazil Booth which hosted over a dozen companies, manufacturers and distributors displaying food products from all over Brazil, like: chocolate and coffee; fruit juices, concentrate and pulp (including açai and coconut water); as well as baked goods like: cookies, biscuits and cheese bread, MELLOHAWK Logistics President Arnon G. Melo gave a widely attended workshop on how to import food products into Canada. The food industry is a challenging market where the Canadian Food Inspection Agency (CFIA) plays a huge part with labelling compliance and healthy food security, and the market itself is fickle and unpredictable. For MELLOHAWK Logistics it is an opportunity to reach new potential clients but it is also a chance to inspire others to tap into a foreign market and thrive.
“During the event I could personally meet our main partners in the Food and Beverage Industry, and make decisions on strategies to speed up execution and cut off costs in the supply chain” said Arnon G. Melo, “but in our presentation my personal story of immigrant success…is also really helpful to new companies trying to crack the North American market. At the end many people left saying they were inspired and motivated to keep at it. I am honoured to be a part of that, in even the smallest way. ”
Lately, the international and domestic logistics markets have faced a series of obstacles which require special attention and very clear and continued communication with customers and partners. Stay on top of everything that is happening and plan accordingly
The Canadian International Freight Forwarder Association (CIFFA) newsletter:
Lufthansa Pilots union is in a three-day strike action causing severe disruption to flight operations at Lufthansa and Lufthansa Cargo. Expect delays.
Vancouver Port has a new demurrage charge policy in light of the long storage times for containers during the truck strike. The Port will assess a maximum of 15 days demurrage to any import container, provided the container is picked up from the terminal on or before April 4, 2014 and the demurrage payment is settled prior to the delivery date. Full demurrage rates will apply for import containers picked up on or after April 4, 2014.
In Chile the ports of Arica, Patache, Iquique and Mejillones are closed pending earthquake damage inspections from the Chilean Maritime Authority. Tocopilla port is closed due to marine weather conditions. All other Chilean ports are opened and operating normally. The earthquake measuring 8.2 degrees hit about 90 KM northwest of Iquique port in Chile on April 1, 2014.
Shippers should be aware of refused containers into the U.S. due to the presence of insects. Ultimately the importer is responsible for any additional charges for trucking, fumigation and any additional costs related to the re-exportation of infested containers. Since last fall, the import containers refused entry into the United States due to the presence of insects found in have been allowed by Canada’s CFIA to be railed back to the West Coast port for fumigation because of the below freezing temperatures. With the better weather, effective immediately, such shipments will have to be fumigated before they are railed back to Canadian West Coast ports. All costs for trucking, fumigation, customs bond and other associated costs will be invoiced to the respective Shipping Line and ultimately the customer.
Brazil has been ranked number 65 out of 160 countries in the World Bank’s 2014 Logistics Performance Index (LPI), which is topped by Germany, with Somalia ranked lowest. It means a fall of twenty positions comparing to the previous study (2012), in which Brazil was number 45.
The report draws on data arising from a survey of more than 1 000 logistics professionals and bases its LPI rankings on a number of trade dimensions, such as customs performance, infrastructure quality, and timeliness of shipments. This is the worst result for Brazil since the ranking was released in 2007.
Portuguese article available at http://economia.estadao.com.br
Since 2011 when MELLOHAWK Logistics was honoured as the winner for the Small Business Big Impact in Leadership Scotiabank/CFIB Challenge contest, we have been reference to other small/medium companies in hiring and integrating immigrants.
Thus, Peter Hawkins, representing MELLOHAWK Logistics, participated today at the World of Talent on Your Doorsteps 2014 workshop as a speaker sharing with participants MELLOHAWK Logistics business case on benefits of hiring immigrants.
We have hired employees from other countries since the beginning of our history, and it has directly been the main factor of our success. Especially for a freight forwarder company like us in which connections in other countries are keys to expand markets and to speak different languages is more than just an asset, it is a necessity, hiring immigrants is basic and determines how fast we grow.
Peter Hawkins, MELLOHAWK Logistics managing director
This event was planned to help other companies in exchanging experiences on how to integrate new Canadians into their team and benefit from international experience, connections and perspectives. The participants had also the opportunity of expand their network and get to know more about some service providers.
If you have lately done business with Brazilian companies, you probably have faced some situations like:
- Someone speaking in very close proximity with lots of physical contact with you.
- You have changed your negotiation team and consequently lost the business or had to start over again.
- You have arranged an informal lunch with some important Brazilian partners, and they got in the restaurant 15 minutes late.
- You brought lots of numbers and reports expecting them to analyze everything very carefully before and during the meeting, but what they actually do is to ask you “when are you gonna start?”, “Ok, but what do you think?”, or “Could you explain to me what did you mean with those numbers?”
For you do not get surprise with those or any other Brazilian habits, start by participating in a series of 2 webinars offered by Brazil-Canada Chamber of Commerce where Paola Saad, Mandala Group‘s president, will give a presentation on what are the 10 key do’s and don’ts when doing business with a Brazilian company.
“Paola Saad has worked with us many times and will have terrific insight into the Brazilian business psyche.”
Peter Hawkins, MELLOHAWK Logistics managing director
Go to the Brazil-Canada Chamber of Commerce website for more information and to access the webinar.
Image credit: vepar5 / 123RF Stock Photo
The workshop held last Wednesday (March 19) in the MELLOHAWK Logistics International Training Center exceeded expectations. Because of limited space there was a waiting list. “We didn’t expect that many registrants. We launched the event on Friday, and by Saturday night there were no more seats” said Arnon G. Melo, MELLOHAWK Logistics managing director. “I personally see the success of this workshop by the number of people who actually came to me asking specific questions on importing from Brazil and others who were extremely curious about how to improve their career path through international trade, and by their feedback, they see MELLOHAWK Logistics as role model.”
“We saw that the entrepreneurial spirit is alive and well in the Brazilian expat community here,” said Peter Hawkins, MELLOHAWK Logistics managing director, “Many of the attendees have some really good ideas.”
Primeiro quero parabenizar você e sua equipe pela excelente apresentação de ontem. Foi impecável. Tenho um sonho de abrir meu próprio negócio aqui no Canadá e futuramente ver a possibilidade de exportar algo para o Brasil ou trazer algo do Brasil pra cá. Parabéns mais uma vez pelo excelente trabalho. Sua história é muito inspiradora.
Aluino Rocha, Entrepreneur, Workshop participant
Arnon and Peter, thank you for opening your doors to share some of your knowledge and experience with us – truly appreciated.
Dayse Gonçalves, Marketing Coordinator BDG Group, Workshop participant
We would like to greatly thank all who participated. We have already started planning our next events. The success of this first one made me wanted to go further, we will offer it in English, and not only here in GTA Toronto. Once more, thank you all and see you in the next workshop shortly.
Arnon Melo, MELLOHAWK Logistics Managing Director, Workshop speaker
This first event targeted Brazilian business people who are interested in boosting their business or starting a new one in international trade between Brazil and Canada. Its goal was to provide a chance to exchange knowledge on exporting to and importing from Brazil and MELLOHAWK Logistics to share its history and projects to help the Brazilian community located in GTA Toronto. Following are the topics discussed during the workshop:
- MELLOHAWK Logistics history
- What is a Freight Forwarder?
- Exemples of logistics projects
- The Canadian logistics market: geopolitics, and taxes of import and export
- The Brazilian logistics market: geopolitics, and taxes of import and export
Deciding if you want to start a business on international trade
- Important tips
- The next steps of an international trade entrepreneur
On Thursday, March 13th, Arnon Melo, as a Seneca alumni and representing MELLOHAWK Logistics, took part in the Seneca Alumni panel sharing key career tips with International Business students. Other Successful International Business grads also participated as panel speakers such as Leonard Isayev (Regional Business Manager Guess/Gc watches Europe Middle East and Asia), Priscila Kallfelz (Marketing & Business Development Specialist at Mandala Group), Tania Rashid (Education Program Assistant at TakingITGlobal) and Gordon Scheel (Business Development & Export Advisor for Regional Municipality of York), and they were joined by Henry Zhang (Vice President of Marketing at Landpower Real Estate Ltd. Brokerage) and Augusto Mari (Educator at lululemon athletica).
It is the second time we have participated in the panel, and every year I get surprised by how much we can help doing so little. I wish those students the best in their careers, and for sure, I will see them speaking in our place in the future. And remember, whatever passion you have, it will guide you to your destination, so follow it.
Arnon Melo, MELLOHAWK Logistics Managing Director
* This is an annual event organized by the School of International Business (SIB) and Career Services, and was co-sponsored by Seneca Alumni.← Older posts