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WE ALL PLAY FOR CANADA - NEIL MCKENNA LOOKS TO GROW - Canadian ...
NOVEMBER 2019

                           PUBLISHED SINCE 1898 | WRITT
                                                  WRITTEN
                                                      TEN FOR BUYERS
                                                                   S OF
                                                                     OF TRANSPORTATION SERVICES

                     WE ALL
                     PLAY
                     FOR
                     CANADA
                     NEIL MCKENNA
                     LOOKS TO GROW
                     CANAD N TIRE'S
                     INTERNATIONAL
                     FOOTPRINT

                                                                            OUTLOOK 2020
                                                                            The state of Canada’s supply chain

                                                                            RESEARCH
                                                                            Transportation Buying Trends
AGREEMENT 40063170

                                                                            www.canadianshipper.com
WE ALL PLAY FOR CANADA - NEIL MCKENNA LOOKS TO GROW - Canadian ...
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WE ALL PLAY FOR CANADA - NEIL MCKENNA LOOKS TO GROW - Canadian ...
CONTENTS

                                                                                                                                             NOVEMBER 2019

 DEPARTMENTS

 5 | Editor’s Foreword
 Carbon costs
                                                                                                                                        10
 6 | In the news
 Industry Q&A: Wendy Zatylny;
 FedEx cuts ties with Amazon in the
 U.S., but not in Canada;
 SUPPLY STATS; New supply chain
 lab opens in Alberta

 35 | Coaching Corner
 Office hero                                                                                                              COVER STORY
 38 | The Bigger Picture
 Making a choice
                                                                                        EXECUTIVE
                                                                                       OF THE YEAR
                                                                                                                                Neil McKenna

  30

                                                                                                                                                                   Photo: Peter Power
                                        During his nearly 25 years with Canadian Tire Corporation, Neil McKenna, FMA’s Supply Chain Executive of the Year, has
                                                              helped to create one of the best-in-class transportation supply chain operations in North America.

                                      FEATURES

                                      2020 OUTLOOK | 15
                                      The future of the transportation supply chain
                                                                                                                                                15
                                      IMO 2020 | 24
                                      Canada’s marine transportation industry
                                      readies for new fuel regulations

                                      RAIL INFRASTRUCTURE | 27
TRANSPORTATION
        RTATION                       Class 1 railroads continue to grow
                                      their capital spending programs
BUYING TRENDS
        RENDS
Find out what transportation
                   sportation
will cost you in 2020
                   20

                                                                                                        www.canadianshipper.comNovember 20193
WE ALL PLAY FOR CANADA - NEIL MCKENNA LOOKS TO GROW - Canadian ...
WE ALL PLAY FOR CANADA - NEIL MCKENNA LOOKS TO GROW - Canadian ...
EDITOR'S FOREWORD
                                                                                                                              John Tenpenny

                     November 2019
                 Volume 122 Issue No. 6

                      EDITOR
            John Tenpenny (416) 510-6880
                  john@newcom.ca

               EDITORIAL DIRECTOR
             John G. Smith (416) 614-5812
                 johng@newcom.ca

           MANAGING DIRECTOR,
     TRUCKING AND SUPPLY CHAIN GROUP
                Lou Smyrlis
              lou@newcom.ca

                     ART DIRECTOR
                     Anita Balgobin
                                                                   Making plans
                    CONTRIBUTORS
           Carolina M. Billings, Mark Cardwell,

                                                                   U
           Dan Goodwill, Carroll McCormick,                               nder new International Maritime Organization (IMO) regulations set to take
             James Menzies, Peter Power,                                  effect January 1, 2020, the container shipping industry will have to reduce
                 Ian Putzger, Leo Ryan
                                                                          greenhouse gas (GHG) emissions by at least half compared with 2008 levels by
              PRODUCTION MANAGER
                                                                   2050. Shippers have and will be impacted and should—if they haven’t already— make
              Jwad Khan (416) 510-6779
                 jwad@newcom.ca                                    plans accordingly.
                                                                      The industry is under the same pressures as other sectors of the transportation
                  SALES MANAGER
            Anthony Buttino (514) 292-2297                         industry to decarbonize. Under the IMO strategy released last year, the United Na-
                anthonyb@newcom.ca                                 tions agency aims to finalize short-term measures by 2023 and medium-term mea-
              CIRCULATION MANAGER                                  sures to reduce carbon dioxide emissions by potentially 40 per cent by 2030. Encour-
              Mary Garufi (416) 614-5831                          agingly, and thanks mainly to slower sailing speeds, the global merchant fleet is 60
                 mary@newcom.ca                                    per cent larger than it was in 2008 but emits 18 per cent less carbon.
                        PRESIDENT                                     While IMO 2020 will help significantly reduce air pollution, these new standards
                        Joe Glionna
                                                                   may have an initial negative impact across the industry: most notably the additional
               CHAIRMAN & FOUNDER                                  cost to the entire container freight industry, which is estimated to be $10 to $12 bil-
                    Jim Glionna
                                                                   lion each year.
                                                                      Carriers won’t simply eat these extra costs; they will be passed down to shippers
                                                                   and, ultimately, to consumers. Some of these costs have already started to filter
                                                                   through as shipping lines start using low-sulfur fuels and installing scrubbers.
           5353 Dundas Street West, Suite 400,
                                                                      The impact is also not limited to cost, as capacity will temporarily be reduced as
                 Toronto, ON M9B 6H9                               vessels are out of commission while scrubbers are installed. Some capacity will even
  Canadian Shipper is written for Canadian transportation          be permanently eliminated due to the additional space scrubbers and LNG tanks will
  and logistics professionals who manage product flow
  from manufacturer to point-of-sale. Editorial is focused on
                                                                   occupy on ships, as well as older vessels being phased out rather than converted to
  reporting, analysis and interpretation of Canadian logistics     new types of fuel.
  trends and issues. It is published by NEWCOM MEDIA INC.
                                                                      Although the regulation doesn’t come into effect until the first of the year, ship-
                    SUBSCRIPTIONS:
            Contact us at: mary@newcom.ca
                                                                   pers must prepare now to mitigate the effects on their businesses. Shippers should
                    Tel: (416) 614-5831                            have conversations with their carriers to understand what fuel pricing and capacity
                    Fax: (416) 614-8861                            will look like, and plan ahead: booking capacity earlier than usual will be critical to
             Website: canadianshipper.com
              (click on subscription button)                       mitigating the potential disruptions. CS
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                                                                    John Tenpenny,                                     Canadian-Shipper
                                                                    Editor
                                                                    john@newcom.ca

© iStock                                                                                                    www.canadianshipper.com    November 2019    5
WE ALL PLAY FOR CANADA - NEIL MCKENNA LOOKS TO GROW - Canadian ...
INDUSTRY Q&A

The evolving nature of Canadian parts
Wendy Zatylny, president, Association of Canadian Port Authorities

What is the ACPA’s reaction to                                                            would be to see the modernization of
recent infrastructure funding                                                             the ports, but specifically the mod-
announced for some of its                                                                 ernization of the Canada Marine Act
member ports?                                                                             and supporting regulatory and policy
We were really happy with the monies                                                      underpinnings, including processes
that were allocated to the NTCF [Na-                                                      to amend our letters patent, the abili-
tional Trade Corridors Fund] and                                                          ty to increase borrowing limits, as
were even happier that the Minister of                                                    well as allow the port authorities to
Finance advanced the second and                                                           become at least become equity inves-
third rounds of proposals. In fact,                                                       tors in their own projects within their
they advanced the second round of                                                         own port. Right now, we are con-
funding that wasn’t supposed to take                                                      strained in how we can invest in proj-
place for another couple of years; to                                                     ects within the port. But, now as port
this January and turned it into a roll-                                                   authorities develop into managing
ing call for proposals.                                                                   logistics parks and intermodal facili-
    That spoke to the recognition of                                                      ties, we want to be able to branch out
government of the pent up demand for                                                      into those functions. Currently we are
funding for infrastructure projects                                                       restrained from doing that with the
across all of the port authorities and in                                                 Canada Marine Act.
fact all the players within the trans-
portation supply chain.                       “Where once we were                         What else is on the ACPA’s
    What will be important now is to                                                      radar?
                                              simply a place where ships
ensure the funding agreements con-                                                        The next frontier of port efficiency is
tinue to get signed expeditiously and         arrived and cargo was                       data management. There are a number
that the funds begin to flow because                                                      of initiatives globally that are explor-
                                              loaded and unloaded, we
it’s one thing to have the announce-                                                      ing things like blockchain-supported
ment, but you need to have to have the        have become so much                         applications, such as the Maersk-IBM
actual agreement signed, which is the         more than that now.”                        TradeLens platform. What we’d like to
next step and that the ports can put                                                      see is two things. One, recognizing the
this money to use.                            Wendy Zatylny, president,                   importance of data and the sharing of
    The rules governing matching con-         Association of Canadian Port                data, that Transport Canada’s Data
tributions say that only the expenses                                                     Initiative be fully supported for a good
                                              Authorities
that began after the agreement was                                                        10 years and that supply chain part-
signed are eligible. So we’re hoping that                                                 ners be encouraged to ensure as much
Transport Canada will have another                                                        transparency and data sharing as pos-
look at that because we’ve had to work        and most importantly, we have be-           sible so that we can work together to
to keep these projects on the boil. That’s    come data managers and logistics ex-        eliminate the speed bumps in the sup-
the important next step.                      perts. That really is the heart of what a   ply chain. The second element is that
                                              port authority is right now. It’s ex-       we called on the government to devel-
What would the ACPA like see                  pressed in terms of cargo and people,       op a working group with the port au-
come out of the Ports                         but we are logistics experts.               thorities and related partners to start
Modernization Review?                             The problem is the Canadian Ma-         exploring and developing a Canadian
What we tried to do in our submission         rine Act dates back to 1998 and the leg-    standard for the utilization of data and
was to capture the evolving nature of         islation is inconsistent with what port     data exchange with a view to improv-
port authorities. Where once we were          authorities have now become and what        ing efficiency. We have a lot of individ-
simply a place where ships arrived and        they need to do to continue to be able      ual initiatives, but we need to stan-
cargo was loaded and unloaded, we             to grow and compete in a very competi-      dardize those because that would
have become so much more than that            tive and dynamic global sector.             allow Canada, its ports and transpor-
now. We are facilitators of trade, we             Out of the results of the ports mod-    tation sector to help guide and shape
help develop businesses and markets,          ernization review, a top line desire        global standards. CS

6   November 2019   www.canadianshipper.com                                                                         Photo: ACPA/Michelle Valberg
WE ALL PLAY FOR CANADA - NEIL MCKENNA LOOKS TO GROW - Canadian ...
IN THE NEWS

Breaking up is hard to do
FedEx cuts Amazon ties in U.S., but not in Canada                                                                                   By John Tenpenny

By terminating its U.S. business relation-
ship with Amazon, FedEx admitted what
many in the industry have known for
awhile now: that Amazon is competing
with established shipping companies.
    The announcement about ending the
contract for deliveries through the FedEx
ground network came two months after
an earlier decision to drop Amazon from a
domestic air shipping service.
    FedEx says that Amazon represented
less than 1.3 per cent of its total revenue in
2018, or less than US$850 million, of
which 80 per cent was moved by air.
    While the moves caught some by sur-
prise, there were warning signs.
    A month earlier, FedEx warned in a gov-
ernment filing that Amazon’s fledgling de-
livery business could lower prices, hurt its
revenue and “negatively impact our finan-
cial condition and results of operations.”
    Previously, in a regulatory filing of its
own in February, Amazon altered the de-
scription of its business to say that competi-
tors included transportation companies.
                                                 While FedEx opted not to renew its ground and domestic air shipping contracts with Amazon in the U.S.,
    Dean Maciuba, a former FedEx execu-          nothing has changed north of the border.
tive who now works as a consultant at Lo-
gistics Trends and Insights, said FedEx had
good reasons to cut ties with Amazon.                Rather than dropping shipping part-                 partner with shippers such as UPS, Puro-
    “They could not afford any longer to         ners, Amazon is adding them in Canada.                  lator and Canada Post.
directly support a competitor,” he said.             The company recently announced a                        Over the years, UPS has made more
    Amazon has been growing its own              new strategic partnership with Canadian                 money shipping Amazon packages than
fleet of air and ground transportation in        air freight line Cargojet. The deal offers              FedEx has, says Maciuba.
the U.S., giving it more control of how its      Amazon up to a 14.9 per cent minority                       “Their scale is bigger,” he said. “Histori-
packages are delivered, while reducing its       stake in Cargojet, contingent on Amazon                 cally, they’ve always been able to offer
reliance on FedEx, UPS and the U.S. Postal       providing a specific amount of business.                lower rates on the express and ground
Service (USPS). The Seattle-based com-               “We view the agreement positively as                side than FedEx for very large customers
pany has leased jets, built package-sorting      it de-risks that growth profile and re-                 and profit more from them.”
hubs at airports, and launched a program         moves what little chance there was that                     Estimates suggest that Amazon ac-
to let its contractor drivers start their own    Amazon might get creative on how it                     counts for 5-8 per cent of UPS’ annual rev-
businesses delivering packages in vans           moves overnight volume in Canada,”                      enue in the U.S., and while Maciuba hasn’t
stamped with the Amazon logo.                    wrote Canaccord Genuity analyst Doug                    seen an agreement between the two, “I
    Despite these actions, the Amazon-           Taylor in a note to investors.                          don’t think UPS would put themselves at
FedEx business relationship north of the             Access to air shipping modes is vital to            risk without some guaranteed revenue.”
border remains unchanged. “E-com-                provide the fast delivery times required by                 UPS also adds value on both sides of
merce is an exciting growth opportunity          Amazon Prime. Amazon launched that                      the border by way of its retail outlets,
in the Canadian market, and Amazon               service in Canada in 2013, and member-                  which support Amazon’s return activities.
continues to be a valued FedEx customer          ships doubled between 2017 and 2018.                        “[UPS Stores] do returns very well. Cus-
in Canada,” says FedEx Express Canada                Canada’s large geographic footprint                 tomers walk in, they scan the original pack-
spokesman James Anderson.                        also ensures that Amazon will continue to               age, they get a receipt and walk out.” CS

Photo: Amazon/FedEx Express Canada                                                                      www.canadianshipper.com      November 2019        7
WE ALL PLAY FOR CANADA - NEIL MCKENNA LOOKS TO GROW - Canadian ...
IN THE NEWS

                                                         750,000
SUPPLY                                                   trucks
STATS                                                    Daimler Trucks North America
                                                         has produced its 750,000th
                                                         truck—a Freightliner Cascadia
                                                         for UPS—at its production
                                                         facility in Cleveland, N.C.
                                                         Freightliner acquired the plant
                                                         in 1989, to assemble medium-
                                                         duty models. Today the facility
                                                         also produces the Western Star
                                                         4700, 4900 and 5700XE, and right-hand-drive Freightliner Coronados
                                                         and Columbias for Australia and New Zealand.

                                                                                              23,000-TEU
100,000 vans                                                                                  containership
Amazon, which ships more than 10 billion                                                    TThe CMA CGM Group announced
items a year on fuel-guzzling planes and trucks,                                            the launching of the world’s largest
said it has ordered 100,000 electric vans from                                              containership (23,000 TEU) —CMA
Rivian, the largest order ever of electric delivery                                         CGM Jacques Saade—powered by
vehicles, that will start delivering packages to                                            liquefied natural gas (LNG). In 2017,
shoppers’ doorsteps in 2021. It also plans to                                               company chair and CEO Rodolphe
have 100% of its energy use come from solar                                                 Saadé, announced the decision
panels and other renewable energy by 2030.              to order a series of nine 23,000-TEU containerships. According to the
That’s up from 40% today.                               company, LNG helps to reduce: emissions of sulphur oxides and fine
                                                        particles by 99%; nitrogen oxides emissions by up to 85% and carbon
                                                        dioxide emissions by around 20%.

                                                         $1 billion
                                                         investment
                                                         C.H. Robinson C.H. Robinson

50th anniversary                                         president and CEO Bob
                                                         Biesterfeld (right) announced
In celebration of its 50th anniversary, DHL              the that the 3PL has committed
opened its Americas Innovation Center in                 to investing $1 billion in
Chicago, a state-of-the-art 28,000 square                technology over the next five
foot facility that provides a collaborative              years, doubling its previous
space for DHL to work with its customers, its            $1 billion investment in technology over the last 10 years. With more
technology partners, and academics as well               than 1,000 data scientists, engineers and developers, the company is
as tap the innovative power of its employees.            continuing to invest in global talent in this critical area.

                                          62% of Canadians
                                          Key insights from the 2019 UPS Pulse of the Online Shopper survey indicate Canadian
                                          online consumers show a low appetite for paying for shipping. Sixty-two per cent
                                          of Canadians will consider cheaper, yet slower shipping and 96 per cent consider it
                                          important to have visibility of various shipping option prices. Abandoned carts are
                                          often due to a lack of transparency and almost half of Canadians abandoned an online
                                          purchase because the cost of delivery was higher than expected.

8   November 2019   www.canadianshipper.com
WE ALL PLAY FOR CANADA - NEIL MCKENNA LOOKS TO GROW - Canadian ...
IN THE NEWS

In the lab
CN supports supply chain analytics at Mount Royal University

A new $500,000 analytics lab at Calgary’s                   form opens the potential for further ana-
Mount Royal University lets students seek                   lytics programming. We’re thankful to CN
out and analyze live and historical busi-                   for its support of this lab.”
ness data crucial to navigating Canada’s                        The lab includes 15 Refinitiv Eikon li-
new economy.                                                cences to support 12 student terminals,
   The industry-leading technology in                       one for an instructor in the lab and two
the CN Supply Chain Analytics Lab pro-                      available for professors to use for curricu-
vides students with dedicated space to                      lum and research requirements. It can ac-
work on the Refinitiv Eikon Data Platform                   commodate up to 36 students, with
                                                                                                                  In the CN Supply Chain Analytics Lab, Bissett
that accesses the inner-workings of com-                    groups of three using one terminal each.
                                                                                                                  School of Business students work alongside Brian
panies around the world in real time. Data                  CN says the lab reflects the importance of            Fleming, PhD, left, associate professor in supply
from this platform shows students how                       supply chain management to the trans-                 chain management.
ethics, the environment and other factors                   portation industry that helps drive the
combine with price to influence decision-                   Canadian economy, and provided the                     lytics Lab at Mount Royal University,” says
making and the supply chain.                                $500,000 donation for its development.                 Lonny Kubas, assistant vice-president of
   “The analytics lab will provide a vital                      “Supply chain innovation is part of our            supply chain at CN. “Knowing firsthand the
learning environment,” says Elizabeth Ev-                   DNA at CN and we are very proud to en-                 important role that analytics plays in sup-
ans, dean of the Faculty of Business and                    gage the next generation of leaders through            ply chain management, it is really an hon-
Communication Studies. “The Eikon plat-                     our support of the CN Supply Chain Ana-                our to be a part of this project.” CS

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Photo: Mount Royal University                                                                                     www.canadianshipper.com          November 2019      9
WE ALL PLAY FOR CANADA - NEIL MCKENNA LOOKS TO GROW - Canadian ...
SUPPLY CHAIN AWARD

                                                                  WE ALL
                                                                  PLAY FOR
                                                                  Neil McKenna's leadership helped establish
                                                                  Canadian Tire’s supply chain in Canada and now
                                                                  his sights are set on an international footprint

                                                                  BY JOHN TENPENNY

     During his nearly 25 years with Canadian Tire Corporation,
     Neil McKenna has helped create one of the best-in-class
     transportation supply chain operations in North America.

10   November 2019     www.canadianshipper.com                                                                  Photo: Peter Power
SUPPLY CHAIN AWARD

                                            “A role or title doesn't entitle you to be a leader. Only your actions

I
   n the eyes of Neil McKenna, failure
   is a rite of passage for every leader.   will define if you are an effective leader or not.”
   People make mistakes. But only by
   being accountable for them and           —Neil McKenna, Vice-President,
learning from them can leadership be        Transportation Projects at Canadian Tire Corporation
formed, says the vice president of
transportation projects at Canadian
Tire Corporation (CTC) and the 2019
recipient of the Freight Management         port as CTC looks for new global mar-        flexibility in how and when they want
Association of Canada’s Supply Chain        kets for its products.                       to shop. This has altered the function of
Executive of the Year award.                    To grasp the scope of Canadian Tire’s    supply chains, that now, in addition to
   His leadership style is revealed in      transportation supply chain, you must        shipping large volumes of products to
the latitude he gives those who report      understand that the company is more          stores, must also deliver individual
to him, to empower them in making           than your local Canadian Tire outlet.        items ordered directly by customers to
hiring decisions.                               In addition to its 500 general mer-      their home or closest store for pick-up.
   “When one of my AVPs (associate          chandise retailers, CTC also owns the            Transportation is the artery that
vice presidents) would need to hire a       SportChek, National Sports, Pro Hock-        provides an uninterrupted flow of
manger, they would seek my opinion          ey Life, and Atmosphere banners,             goods from manufacturers all over the
and then ask me to approve their            combing to create Canada’s largest na-       world to CTC’s store shelves.
choice,” he tells Canadian Shipper in an    tional sporting goods retailer; Mark’s           The company’s transportation oper-
exclusive interview.                        (380 stores), a clothing and footwear        ations are Canada’s biggest importer of
   “If I have to approve of a hire then     retailer; Canadian Tire Automotive,          freight (22nd in North America), ship-
that’s like me doing the hiring,” ex-       with 5,600 service bays; Canadian Tire       ping more than 160 million cubic feet of
plains McKenna. “I want them to be          Petroleum, one of the largest indepen-       product to its retail network, utilizing
accountable for their decision.”            dent gasoline retailers, which pumps         Canada’s largest fleet at over 14,000
   McKenna joined Canadian Tire in          more than one billion litres of gasoline     pieces of equipment. Handling all that
1994 as finance manager in the trans-       each year at over 260 outlets; Part-         merchandise is done at four transload
portation division. During his time at      source (91 stores), an automotive parts      facilities—three in Vancouver and one
Canadian Tire, McKenna has been in-         specialty chain; and as of this year,        in Halifax—and six distribution cen-
volved in just about every aspect of the    Party City Canada (65 stores), a pre-        tres, three in the Greater Toronto Area,
company’s transportation supply             mier retailer of costumes, accessories       two in Calgary, and one in Montreal.
chain, from director of international       and decorations.                                 Managing transportation opera-
transportation, where he was respon-            In 2018, CTC acquired Helly Hansen,      tions in such a complex supply chain
sible for bringing in product from          a global brand in sportswear and work-       requires constant innovation, some-
around the globe, to ensuring those         wear, with wholesale and retail distri-      thing McKenna excels at, according to
products made it on to the shelves of       bution capabilities across more than 40      his successor as vice president of trans-
CTC’s nearly 500 Canadian Tire Retail       countries. The addition of Helly Hansen      portation, Gary Fast.
(CTR) stores as director of domestic        has accelerated CTC’s ability to distrib-        “Under Neil’s tenure CTC’s transpor-
operations. In 2008 McKenna was pro-        ute its consumer brands international-       tation capabilities have become a mod-
moted to vice president, transporta-        ly, which is where McKenna plays an          el of innovation and represent supply
tion, a position he held for 11 years be-   important role in expanding the com-         chain best practices. He has been a
fore moving into his current role, where    pany’s supply chain capabilities.            trailblazer in our industry.”
he oversees the development of CTC’s            McKenna’s latest role is evidence of         Fast highlights several important
e-commerce delivery capabilities            the evolving retail landscape. Over the      projects headed by McKenna during his
across the enterprise, as well as work-     past few years, the company has trans-       term, including Canadian Tire becom-
ing closely with the consumer brands        formed to become a leading e-com-            ing the first carrier in Ontario to run
division, providing supply chain sup-       merce organization, offering customers       longer combination vehicles (LCVs)

                                                                                        www.canadianshipper.com   November 2019   11
SUPPLY CHAIN AWARD

with containers, developing the world’s           “At that time construction of our     53-foot container was identical to
first 60-foot container and 40-60-foot         Montreal DC had been completed but       that of a trailer.”
sliding chassis, as well as spearheading       had yet to begin operations. We en-         According to McKenna, within 72
the integration of all CTC’s transporta-       gaged a retired Ontario Ministry of      hours of the parking lot demonstra-
tion functions and banners.                    Transportation engineer to construct     tion, Ontario allowed containers to
    From McKenna’s perspective, get-           an exact replica of two Ontario inter-   be part of the approved LCV program,
ting the province of Ontario to approve        sections in the DC’s parking lot.”       soon followed by Nova Scotia and
the use of containers as part of its LCV          Working with their partners at        New Brunswick.
program is one of his most satisfying          Robert Transport, McKenna’s team
accomplishments.                               assembled every possible longer com-     Managing expectations
    “When Ontario was on the verge of          bination configuration of contain-          Key to McKenna’s success during
allowing LCVs on its highways, which           ers— two 53-foot, two 40-foot, and a     his nearly 25 years at Canadian Tire
were already allowed in Quebec and Al-         53-/40-foot.                             has been his mastery of what he calls
berta, they were only going to allow LCV          “We invited all the Transportation    the “theory of competing margins.”
trailers. We had 5,000 intermodal con-         Ministers from Ontario, Quebec,             “Transportation is essential to the
tainers that would have been excluded,         Nova Scotia and New Brunswick for a      success of any retailer and it is a neces-
which would have put us at a consider-         demonstration and spent a day edu-       sary cost. So, it is incredibly important
able competitive disadvantage.”                cating them on why containers should     that it be managed efficiently and opti-
    Instead of the usual lobbying of gov-      be included in any LCV program. They     mally, but it’s not as simple as just
ernment officials, McKenna came up             took turns riding the LCVs, executing    moving the product,” he says.
with an ingenious plan that involved the       on- and off-ramp turns, which dem-          “When you are responsible for every
use of an empty 200-acre parking lot.          onstrated that the turning radius of a   step in the supply chain, from the man-

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ufacturer’s loading dock to a Canadian          It is during this complex journey             For McKenna, managing people is
Tire retail store’s shelf, there can be as   that McKenna’s theory comes alive.           different than leading them.
many as 20 different touch points               “Normally you’d think that our                “Managers manage people and/or
along the way.                               margin would be the difference be-           processes. Leading inspires people to
    “Once a purchase order is sent to a      tween what we paid the manufacturer          be better. If you have never been asked
factory, we then engage our offshore         for the unit and what we sold it to our      by someone who reports to you about
logistics provider, who trucks the           customers for,” he says. “But in reality,    leadership characteristics, you don’t
product from the factory to either a         every trucking company, third-party          have them, and you are not leading,”
consolidation location and then to the       consolidator, ocean carrier, terminal        he emphasizes.
port or to the port directly in the case     operator and railway did their part at a         “Leadership is operating and perform-
of full loads.”                              cost, for which they would also like a       ing in such a way that gives people confi-
    From there, it is a dizzying array of    margin, which eats into the only real        dence. A role or title doesn’t entitle you to
moves, as first an ocean carrier deliv-      margin. So the real difference between       be a leader. Only your actions will define
ers a container to a Canadian port,          what we pay and what the customer            if you are an effective leader or not.”
where it is trucked to a transload facil-    pays is less all the costs in getting the        Fast is among those who count
ity to be transferred into a domestic        product from there to here.                  McKenna in the former category.
container, before being driven and              “The more effectively you can man-            “Above all, Neil’s mentoring has pro-
loaded onto a train. Next up is another      age margin expectations across the           duced many senior leaders within Cana-
truck trip to a distribution centre,         supply chain, the more competitive you       dian Tire’s supply chain and his collabora-
where the goods are unloaded again           will be, and CTC is known throughout         tive approach and passion for developing
and stored before the final-mile deliv-      North America for this kind of best-in-      talent is infectious and drives those
ery—by truck—to a retail store.              class management.”                           around him to be their best.” CS

                                                                                         www.canadianshipper.com   November 2019    13
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OUTLOOK 2020

                                                                                            which reduces their lead time to plan a
                                                                                            transition if their current device is not
                                                                                            certified. That can be problematic and
                                                                                            time-consuming if the device is inte-
                                                                                            grated into back office systems.”
                                                                                                On the two-year implementation
                                                                                            period, Transport Minister Marc Gar-
    TRANSPORT                                                                               neau said: “The two-year implementa-
                                                                                            tion period may seem quick for some
    Transport Canada announces ELDs                                                         truck owners, but I want to reassure
    to be required by 2021                                                                  you that this period will allow them
                                                                                            time to set up and install the devices.
    BY JAMES MENZIES
                                                                                            In doing this we are looking to reduce
                                                                                            truck and bus crashes due to fatigue.”
                                                                                                But despite concerns about the re-
                                                                                            moval of a grandfather clause, Millian
                                                                                            welcomed the rule.
                                                                                                “The PMTC is very pleased that

C
        anada’s long-awaited electronic        follow their work-rest cycles,” said Ste-    Transport Canada has posted this
        logging device (ELD) rule has          phen Laskowski, CTA president. “As           regulation in Gazette 2 and has moved
        been published, which the Ca-          we learned from the previous era of          this file into the regulations. This file
nadian Trucking Alliance (CTA) says            paper logbooks, the non-compliant            has been in the works for many years,
will catapult Canada ahead of the U.S.         segment of our industry, while a mi-         and it is good to see it finally see the
in terms of safety and compliance.             nority, have a history of finding work-      light of day,” he said. “We are also
    The made-in-Canada regulation re-          arounds of the rules. We must ensure         thrilled to see that Transport Canada
quires third-party device certifica-           that there are no gaps or opportuni-         listened to industry and is making
tion, something the U.S. did not pur-          ties to manipulate the technology and        third-party certification of devices
sue, and a detail the Canadian                 that compliance is the only option.”         mandatory, and not going down the
trucking industry lobbied to have in-              The final rule also accelerates the      same self-certification mandate that
cluded. In the U.S., devices are self-         implementation timeframe, from the           is causing many problems south of the
certified, which has led to the arrival        initially proposed four years, to two.       border. This is a huge step in ensuring
in the market of ELDs that can be              But unlike in the U.S., existing auto-       devices are actually compliant and
modified or tampered with.                     matic on-board recording devices will        will have the desired effect of improv-
    By June 2021, third-party-certified        not be grandfathered.                        ing compliance with hours-of-service
ELDs will have to be used by all truck driv-       That worries Mike Millian, head of       regulations.” The CTA’s Laskowski
ers currently required to maintain a log-      the Private Motor Truck Council of           noted the requirement for third-party
book. The announcement was greeted             Canada (PMTC).                               certification meant the grandfather
with enthusiasm by industry associations.          “The PMTC is in agreement with           clause had to go.
    “The vast majority of our companies        the two-year compliance date at-                 “It became very clear that there
and drivers in our industry fully comply       tached to the posting, however we do         were challenges in the self-certifica-
with hours-of-service rules, but, un-          have concerns with the removal of the        tion world,” he said. “How can we have
doubtedly, the implementation of tam-          grandfather clause that was posted in        grandfathering of non-third-party-
per-proof, third-party ELD devices will        Canada Gazette 1,” said Millian.             certified devices? We were originally
further enhance safety and help ensure             “The removal of the grandfather          asking for 24 months plus grandfa-
all drivers and companies hold them-           clause may actually place fleets who         thering.”
selves to the highest levels of compli-        implemented devices years prior to a             The CTA has hosted several meet-
ance,” said CTA chairman Scott Smith.          mandate, in a worse position that            ings with more than a half dozen de-
    The hours-of-service rules them-           those who did nothing. These fleets          vice suppliers since January 2018.
selves will not be changed; they’ll sim-       will have to work with their supplier            It says it will be embarking on an
ply have to be recorded using an ELD.          and hope that the device they pur-           education campaign to ensure the in-
    “Third-party certification of ELDs         chased can be updated to be third-           dustry is ready for the mandate. It is
is critical for hours-of-service compli-       party-certified, or replaced with new        also working with ELD manufacturers
ance and fatigue management as the             devices. As a certifying body has yet to     and suppliers to ensure they are aware
technology behind ELD devices is key           be determined, they may have to wait         of their requirements to become third-
to ensuring drivers and companies              to find out the status of their device,      party-certified. CS

Photo: iStock                                                                              www.canadianshipper.com   November 2019   15
BRINGING

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THE DIFFERENCE
OUTLOOK 2020

        RAIL
        The good and the bad of
        rail improvements

         BY CARROLL MCCORMICK

C
        N is spending record amounts on        for its Huron Central Railway line be-       Breach of service
        capital projects and maintenance.      tween Sudbury and Sault Ste. Marie.          This year, using the new “own mo-
        Two short lines in Western Cana-       Last year it managed to wring some           tion” provision in the Transportation
da got their very first taste of federal       money out of the Ontario government          Modernization Act (Bill C-49), the
grants for upgrades. But Huron Central         to keep the line running till roughly        Canadian Transportation Agency
Railway is again pounding the streets in       the end of 2019, but now it’s déjà vu all    (CTA) determined that CN breached
search of long-term stable funding.            over again, as baseball great Yogi Ber-      its level of service obligations in the
    CN is outdoing itself this year with its   ra is said to have exclaimed.                Vancouver area last winter to wood
$3.9 billion capital expenditure (CAPEX)           “Unfortunately, despite continuous       pulp shippers by “unilaterally re-
plan. Its ambitions range from increasing      efforts on HCRY’s part to work with          stricting the transportation of the
capacity in Nova Scotia, maintenance           both levels of government to secure          shippers’ traffic.”
work on bridges, culverts, signal systems      funding to support the railway’s long-           The ruling is significant. “The new
and track in New Brunswick, to rebuilding      term business plan, the only help pro-       provision in C-49 gave the CTA new
a rail bridge over the Steen River in Alber-   vided so far was the $980,000 emergen-       power to make investigations under
ta. In Manitoba and Saskatchewan, for          cy fund given by the government of           its own initiative, and the very first
example, CN is adding train sidings and        Ontario last fall. This funding allowed      time it was used was in the service
double tracks. CN is adding a new train        HCRY to make some emergency repairs          problem in the Vancouver area last
passing siding in Port Edward and in-          to keep operations going throughout          winter: the embargo and rationing of
creasing capacity at the Port of Vancou-       2019, while we worked with govern-           access, especially for forest products,”
ver. Rail replacements and hundreds of         ments to find a longer-term solution.        says Robert Ballantyne, president of
thousands of new railroad ties are part of     We are hopeful that we will be able to       the Freight Management Association
the maintenance plan.                          lock in serious funding commitments          of Canada.
    In what borders on the remarkable,         as the Federal campaign unfolds,” says           “If the agency sees a broad prob-
considering the historic, overall indif-       Claudine Bois, executive assistant and       lem, the own motion investigation
ference that federal governments have          communication advisor, Genesee &             does not require that a shipper file a
shown short lines, this year Great             Wyoming Canada Inc.                          complaint. The shipper community
Sandhills Railway in Saskatchewan                  And while it has not yet reached         feels that it may distance them from
and Forty Mile Rail in Alberta re-             the construction stage, the Alaska to        potential retaliation, because a for-
ceived a total of $16.6 million in             Alberta Railway Development Corpo-           mal complaint by a shipper is not
matching funds from the federal gov-           ration (A2A) continues to make prog-         necessary under this new process,”
ernment for track work.                        ress toward its goal to build a 2,400 ki-    Ballantyne adds.
    “Before this we’ve never received a        lometre railroad connecting the Alaska           CN is appealing the ruling. What
dime of federal funding for our mem-           Railroad, and its four-port ocean ac-        the Federal Court of Appeal decides,
ber short lines. Transport Canada now          cess in southcentral Alaska, with Al-        possibly only next year, will have im-
has a staff that has the funding of            berta, via the Yukon and Northwest           plications for this new provision, Bal-
short line railways as one of their re-        Territories. “We are in the process of       lantyne explains. “One thing that is a
sponsibilities. They have come to Sas-         narrowing down a 10-kilometre plan-          bit worrisome is that if the Federal
katchewan, toured our short lines,             ning corridor to a couple hundred feet,      Court of Appeal decides in favour of
come to our meetings. None of that has         with aerial surveys and ground [work],       CN, it may be difficult for the Agency
happened before,” says Allison Field,          later in 2019 and 2020,” says Mead           to use this provision again. FMA
director of communications and gov-            Treadwell, A2A’s COO. “We are heading        wants to get across that the jurispru-
ernment relations, Western Canadian            to a more detailed project description,      dence that comes out of this appeal
Short Line Railway Association.                based on those surveys, to share with        [should] not put roadblocks in front of
    Unfortunately, such largess was            First Nations, other landowners and          this provision, to make it more diffi-
not extended to Genesee & Wyoming              regulators.”                                 cult to use it in the future.” CS
Photo: iStock
                                                                                           www.canadianshipper.com   November 2019   17
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OUTLOOK 2020

                                                                                             border FedEx and UPS have announced
                                                                                             similar plans to kick off at the end of the
                                                                                             2019 peak shipping season.
                                                                                                 While this shift should boost utiliza-
                                                                                             tion and bring greater flexibility for op-
                                                                                             erators, it also brings further cost pres-
     COURIER                                                                                 sure. “Extending an operation to seven
                                                                                             days a week adds costs, particularly staff-
     The Amazon effect                                                                       ing. We must ensure that the added costs
     continues to disrupt                                                                    allow us to remain cost-competitive,” re-
                                                                                             marks Porporino.
     BY IAN PUTZGER
                                                                                                 Regardless of the rate of acceleration
                                                                                             of deliveries, e-commerce is set to keep
                                                                                             growing. Steiner says that the outlook for
                                                                                             B2B as well as B2C growth in Canada for
                                                                                             2020 is positive, although the momen-
                                                                                             tum should be weaker than in 2019.

N
        otwithstanding the continuing         means businesses are wanting more vis-             One impulse for additional growth
        growth it produced, 2019 has          ibility, speed and direct-to-home or di-       should come from the USMCA agreement
        been a disruptive year in the         rect-to-site delivery. Supporting health-      replacing NAFTA (once it has been rati-
courier and express segment, as the           care customers, for example, with more         fied), as this should raise the de minimis
wobbles of FedEx illustrate. Not sur-         direct-to-home delivery options and tai-       threshold for goods imported into Cana-
prisingly, Amazon has been a major in-        lored support during peak periods will         da from $20 to $40 a d day, and express
stigator of disruption again with sever-      be increasingly important,” he remarks.        shipments valued under $150 can be im-
al steps this year.                               eShipper is looking to boost its ware-     ported duty-free, although they will still
    The most recent move was the order        house footprint beyond its current facili-     be subject to sales tax, Steiner points out.
for 100,000 electric delivery vans an-        ties in Toronto and Vancouver to Mon-              “Ratifying the USMCA and other
nouncement in September. Imtiaz Ker-          treal and Calgary in order to allow            trade agreements will provide customers
mali, vice-president sales and market-        next-day service at a reasonable cost lev-     and businesses with more certainty and
ing at eShipper views this as massive         el, says Mo Datoo, director of strategy        confidence to invest in Canada and
push into the final mile arena. “That’s a     and partnerships.                              North America. This certainty is impor-
key concern for anybody in the indus-             The balancing act between service          tant and helps solidify long-term busi-
try,” he comments.                            levels and cost containment is going to        ness planning,” comments Spanjaard.
    Earlier this year Amazon raised the       be one of the key battles for the industry.        Increasingly firms are looking fur-
bar with the announcement that it would       Dominic Porporino, president of UPS            ther afield, both for inbound and out-
slash the transit window for free delivery    Canada, describes efficiency and lever-        bound traffic, remarks Kermali. “The
of goods ordered by Prime customers to        aging scale to reduce procurement and          international market is becoming very
next day. Most pundits expect this to be-     operating costs as one of the major chal-      popular with young entrepreneurs.
come the new norm for e-commerce de-          lenges for operators in 2020.                  They don’t look just at Canada and/or
liveries, which is bound to result in casu-       Automation is a vital element in this.     the U.S.,” he says.
alties in the market.                         UPS is in the process of automating fa-            Faced with a slowdown in regular air-
    “The biggest challenge for the courier    cilities in Montreal and Caledon.              freight, airlines will be happy to take on
and express industry in Canada will be            Employee safety is another issue,          more e-commerce (despite less than stel-
keeping up with anticipated demand and        particularly for delivery drivers, notes       lar margins). There are no signs of capacity
meeting faster delivery times,” comments      Spanjaard.                                     bottlenecks at this point, but in the do-
Paul Steiner, vice-president of strategic         “We’re rolling out an industry leading     mestic arena concerns have come up after
analysis at logistics spend consulting firm   health and safety management system            Amazon and Cargojet signed a strategic
Spend Management Experts.                     for our people, with advanced training,        agreement under which the former can
    Chris Spanjaard, senior vice-presi-       to make sure our people stay safe at every     acquire up to 14.9 per cent of variable vot-
dent and COO of Purolator, points out         delivery point,” he says.                      ing shares in Canada’s largest cargo airline.
that parts of the B2B segment are moving          Purolator, which announced a $1 bil-       Observers and customers are worried that
in the same direction.                        lion growth and investment plan in June,       Amazon could hog most of the lift on Car-
    “In these industries, B2B needs are       is blazing a trail in Canada with the im-      gojet, leaving others scrambling to move
closely mirroring B2C needs, which            plementation of seven-days-a-week ser-         their traffic. The airline has dismissed
                                              vice in four major markets. South of the       such fears, but worries are lingering. CS
Photo: iStock
                                                                                            www.canadianshipper.com   November 2019    19
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                                                                                                  © 2019 Penske. All Rights Reserved.
OUTLOOK 2020

  AIR
  Slowdown means shifting
  sourcing patterns

  BY IAN PUTZGER

A
        fter two years of rampant growth
        the air cargo sector shifted down
        a gear or two in 2019.
   Buoyed by e-commerce, Cargojet                For DHL the slowdown in general                Airports are ramping up for future
has still enjoyed rising volume and rev-      cargo has reinforced the focus of stal-       growth. In response to a surge in sea-
enue, but the other sectors have soft-        warts like the healthcare and aero-           food traffic to China Halifax Interna-
ened. Interline traffic from Asia over        space sectors. “We continued to do            tional Airport has started work on a
Vancouver was down 20 per cent year-          what we do best,” says Vince. “Our mar-       new cargo complex that includes an ex-
on-year in September.                         ket share has grown.”                         tended cargo ramp and three buildings
   Gary Vince, head of air freight Cana-         Edmonton International Airport is          of about 50,000 square feet each. The
da at DHL Global Forwarding, notes            also jockeying for a role in pharmaceu-       first of these, which is slated for comple-
that anticipated challenges finding ca-       tical flows. The emergence of a rapidly       tion in early 2021, should have more
pacity have not materialized.                 expanding cluster of pharmaceutical           than 10,000 square feet of cooler space,
   Shippers have changed their ap-            firms in the area has prompted a push         says Glen Boone, director of cargo and
proach in order to keep costs down, ob-       for CEIV certification. According to          real estate development.
serves Chris Matthews, COO and presi-         Alex Lowe, the airport’s cargo develop-           Edmonton opened a cargo facility
dent of Rodair International. “We’ve          ment manager, this should be complet-         with a large cooler last year to support
seen an increase in ocean traffic and a       ed before the end of the year.                perishables traffic, particularly fresh
decrease in air cargo. And we see a lot          Edmonton has also benefited from           meat. At the moment Aurora Sky is build-
more consolidations,” he adds.                the legalization of recreational use of       ing a second facility with a footprint of
   Uncertainty over global economic           cannabis, which has created a new             400,000 square feet at the airport. This
development and barriers to trade has         shooting star for air cargo, according to     will be the cannabis producer’s interna-
affected demand, as companies have            Matthews. However, the bulk of canna-         tional distribution center, says Lowe.
adopted a wait-and-see stance. At the         bis production at the 800,000 square-             Air Canada Cargo is due to open a
same time, some are moving to shift           foot facility of Aurora Sky at the airport    new cargo facility at Edmonton. Else-
sourcing patterns. Imports from China         is medical grade shipped to interna-          where the carrier is looking to boost ca-
have slowed, while traffic from South-        tional destinations. There is strong de-      pacity without increasing its footprint.
east Asian countries like Vietnam has         mand in markets like Europe, Australia            “We’re putting $50 million into our
increased, says Matthews.                     and the U.S., Lowe says.                      Toronto hub now. This includes putting
   Some forwarders are leveraging net-           For many players e-commerce has            in a new material handling system and
works to respond to shifting trade flows      been the main engine for growth. “E-          adding about 30 per cent more ETV ca-
and emerging lanes. “Our networks             commerce has changed our business             pacity,” says Strauss.
have been a big help to us. We get a lot of   model,” remarks Jamie Porteous, exec-             “We’re also spending significantly at
business back and forth and also sales        utive vice-president of Cargojet.             Vancouver and Chicago,” he adds.
leads,” says Sandra Faraj, vice-president        E-commerce also offers promising               Air Canada Cargo is one year into a
of AGO Transportation.                        openings for Canadian airports, says Stan     three-year review of how it operates.
   At Rodair Matthew is looking for-          Wraight, president and CEO of Strategic       “We win in operations, not in the air.
ward to the company’s marriage with           Aviation Solutions International, the only    Everybody flies at the same speed,”
Rhenus Logistics, which will open up          major Canadian-based and owned air-           says Strauss.
new network opportunities and client          port consultancy. Besides the Canadian            His outfit has been among the first
introduction.                                 market, an airport can target e-commerce      batch of companies involved in ‘SCALE
   An improvement in the market is            flows to the U.S., he argues.                 AI’, a supercluster supported by the fed-
not expected for some time. “I don’t             “There are only five U.S. airports         eral government. Initial trials have
think it’s going to get better before the     designated to clear U.S. mail inbound.        been successful
second quarter of next year,” com-            They are all congested. This is a tre-            “We’ll start to roll out AI. This gives
ments Tim Strauss, vice-president car-        mendous opportunity for a Canadian            us six to eight per cent more capacity in
go at Air Canada.                             airport,” he comments                         high demand lanes,” says Strauss. CS

Photo: iStock                                                                              www.canadianshipper.com   November 2019   21
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    IT’S ABOUT TIME.
OUTLOOK 2020

 MARINE
 Global seafarer shortage
 felt in Canada

  BY LEO RYAN

I
  f any proof were needed that Canada           engaging in gymnastic maneuvers to                     Indeed, the industry offers pretty at-
  is impacted by the serious manpower           keep their vessels in operation. Not be-           tractive good-paying jobs. Typical
  shortage confronting the global ship-         cause they lack contracts but because of           deckhands in Canada start off at
ping industry, it was supplied in strik-        the shortage. The lack of superior officers        $60,000 to $80,000, depending on the
ing fashion shortly after Quebec City’s         (captains, first mates, chief engineers,           vessel. For second mates, it can reach
Groupe Desgagnés last June held an              etc.) is really preoccupying.”                     $120,000. And much higher still for first
inauguration ceremony for two lead-                 Moreover, senior executives of Great           mates and masters.
ing-edge polar class duel fuel petro-           Lakes carriers in Canada have become in-               In an interview, Phillip Nelson, presi-
leum-chemical tankers built in Turkey.          creasingly vocal in complaining that some          dent of the Vancouver-based Council of
They represented the completion of an           of their captains are being “poached” by           Marine Carriers (CMC), said “CMC mem-
investment plan of $200 million                 pilot corporations offering higher salaries.       ber companies are acutely aware of the
launched in 2015.                                   Globally speaking, the latest manpow-          shortage of qualified mariners to fill va-
    But one of the two state-of-the-art ves-    er report by BIMCO and the International           cancies of Master and Mate positions as
sels, the Rossi A. Desgagnés could not rap-     Chamber of Shipping (ICS) put the cur-             senior personnel moves on to retirement
idly begin trading, as hoped, simply be-        rent shortfall at about 16,500 officers and        or choose other career routes.”
cause the shipping line was unable to find      warned there will be a need for an addi-               He explained that tug companies are
an available captain with the required cer-     tional 147,500 officers by 2025 to service         not yet experiencing too much difficulty in
tificate approved by Transport Canada.          the world merchant fleet. Another study            obtaining people to fill entry level posi-
Such certificates are a pre-requisite for of-   by the Ocean Policy Research Foundation            tions, but the situation will change in the
ficers seeking to work for Canadian-flag        anticipates a shortage of 364,000 seafarers        future as it becomes more and more diffi-
operators. Foreign nationals must also          by 2050. There are over 50,000 merchant            cult to attract mariners prepared to be
prove permanent residence in Canada.            ships trading internationally that are             away from home several weeks at a time.
And the process can drag on for long peri-      served by an estimated 1,647.000 seafarers         Alluding apparently to such sectors as
ods to obtain recognition of certificates       of which 774,000 are officers.                     trucking, Nelson remarked that other in-
accorded by training colleges in foreign            Whereas the global supply of officers is       dustries are also realizing that recruitment
countries, including France and England.        forecast to increase steadily, this is predict-    is becoming an issue. To encourage new
    So for several weeks, a ship that cost      ed to be outpaced by rising demand. Some           entrants, the CMC is looking at establish-
$50 million to build sat idle on the Que-       categories are in especially short supply,         ing a marine apprenticeship which would
bec harbourfront. No cash coming in             including engineer officers at manage-             provide free funding for the required
from customers for the owner shoulder-          ment level and officers for such specialized       schooling and seagoing assignments.
ing not only the financing costs, mainte-       ships as chemical and LNG carriers. The                In a related development, the Seafar-
nance costs and port charges, but also          report suggests that in the past five years        ers’ International Union (SIU) of Canada
potential costs for maintaining crew on         the industry has made progress in increas-         initiated a “Be A Seafarer” recruitment
stand-by. An industry source estimated          ing recruitment and training levels. But it        campaign in 2018 aimed at promoting
the operational losses up to $20,000 a day.     warns that unless training levels are boost-       seafaring careers for younger generations
    Commenting on this specific occur-          ed significantly, the growth in demand for         of Canadians amidst a manpower short-
rence at the time, Martin Fournier, gen-        seafarers could generate a major shortage          age and aging membership. “The SIU of-
eral manager of the St. Lawrence Shipop-        in the supply of seafarers.                        fered free education to select applicants
erators, said the manpower shortage is              ICS secretary general Peter Hinchliffe         of our programs and a guaranteed job
affecting the whole maritime industry.          is not alone among marine industry offi-           upon completion of the proper marine
“In recent years,” he told Montreal’s La        cials and stakeholders in calling for              course,” indicated Patrice Caron, SIU ex-
Presse newspaper, “shipowners have been         greater efforts to promote careers at sea.         ecutive vice president. CS

Photo: iStock                                                                                     www.canadianshipper.com   November 2019   23
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