Month: July 2018

You spoke, we listened! Starting this month, we will list the new and terminated members as part of our Solutions blog. Additionally, our active members list updated weekly online will now include inactive members.

If you are selling produce in North America, we encourage you to visit our website on a regular basis to verify your trading partner is an active member in good standing.  In fact, we would recommend taking it a step further and calling our office to find out more.

Welcoming new members *

Canada

2 RAMIREZ IMPORTS LTD, Coquitlam, BC, Canada
2109350 ALBERTA LTD., Edmonton, AB, Canada
BARRIERE RIVER FARMS, Barriere, BC, Canada
BASICX CANADA INC., Etobicoke, ON, Canada
CANAMEX-CARBRA TRANSPORTATION SERVICES INC., Mississauga, ON, Canada
LES SERRES BIOLOGICO INC. (Faisait également affaire sous Sa, Ste-Sophie, QC, Canada
LES SERRES SAGAMI INC., Ste-Sophie, QC, Canada
MARINA EXPORT & IMPORT INC., Markham, ON, Canada
MASTR VEGGIES INC., Leamington, ON, Canada
ME GUSTA IMPORTS INC., London, ON, Canada
RIGHT PRICE PRODUCE LTD., Leduc, AB, Canada
ROCK SALT CANADA INC., Toronto, ON, Canada
ROKAN DISTRIBUTION LTD., Markham, ON, Canada
RT INTERNATIONAL (A d/b/a of 7804334 Canada Inc.), Hamilton, ON, Canada
T. E. PRODUCE IMPORT AND EXPORT LTD., Langley, BC, Canada
VORTEX PRODUCE / VX PRODUCE (A d/b/a of Fernando Ortiz), Toronto, ON, Canada

United States

CSS FARMS, LLC., Pasco, WA, United States
DON HEYL COMPANY, LLC., Sioux Falls, SD, United States
FRUITS TRESS INC., Hidalgo, TX, United States
SALIX FRUITS LLC, Tallahasse, FL, United States
TEX-MEX SALES, LLC., Weslaco, TX, United States

No longer active members*

SAVORY FOODS INC., North York, ON, Canada

*June 1st, 2018 to June 30th, 2018

On June 22, DRC participated in the CPMA SFCR Webinar Series.

The Safe Food for Canadians Regulations will come into effect on January 15, 2019 and while the regulations primarily address important food safety and traceability matters, there is a significant trade and commerce element of particular interest to the produce industry. Canadians who buy, sell or negotiate the sale or purchase of fresh fruits and vegetables inter-provincially, and internationally will be required to be a member in good standing of the Fruit and Vegetable Dispute Resolution Corporation, unless excepted from the regulations. The SFCR repeals the option of a choice between a CFIA Produce Licence and a DRC membership.

The presentation includes details on the requirements and the exceptions as well as information on the DRC initiative to Modernize the Canadian Grade Compendium for Fresh Fruit or Vegetables.

To access the recording click here:

https://www.youtube.com/watch?v=xCNQcZACSoM&feature=youtu.be

 

Imagine the following scenario: “You have been buying one load a week from shipper “X” for the past couple of months. Payment terms with the shipper are 10 days. The last load you received is in deteriorated condition. After claiming damages and salvaging the product your losses are beyond the invoiced price. You decide to deduct your losses from a previous shipment that arrived without issues. The shipper is not happy with that situation and demands payment in full for the uncontested load. What should you do?

It is not an uncommon practice in our industry that a buyer who has received product in deteriorated condition holds payment on previous or future invoices if there is reason to believe the loss is going to be above and beyond the invoiced price. It is a convenient method of settling claims for buyers and sellers. However, the parties are not always in agreement with settling the claim in that manner.

Technically speaking, when a situation like this arises, unless you have an agreement with the shipper or the transportation company, offsets are not allowed. Each transaction is its own contract and each contract must be addressed separately, especially when there is a dispute.

If your losses are beyond the invoice price and the other party refuses to pay, you can initiate a claim through DRC provided that the other party (shipper, transportation company, etc.) is a DRC member.

In this article Jennifer Morris, President of Two Roads Logistics writes about the Electronic Logging Devices requirement that came in effect on December 18, 2017.

What is an ELD?

Electronic Logging Devices (ELDs) synchronize with a vehicle engine to automatically record drive-time, for easier and more accurate Hours of Service recording/reporting. It also helps to streamline sharing and tracking of Hours of Services.

What is the ELD US Mandate?

In 2012, US Congress enacted MAP-21 Bill.  This Bill, which outlines the criteria for highway funding, included a provision requiring FMCSA (Federal Motor Carrier Safety Administration) to develop a rule mandating the use of electronic logging devices (ELDs).  In its simplest form, an ELD is used to electronically record a driver’s Record of Duty Status (RODS), which replaces the paper logbook where some drivers currently report their compliance with Hour of Service requirements. In effect Dec 18, 2017.

What does this look like in Canada?

Transport Canada is committed to balancing the best interests of Canadians and aligning with vehicle regulations in the United States.  By continuing to coordinate the Canadian and US logging device regulations, Canadian companies will be able to use the same logging devices in both countries and this will further support economic growth, trade and shipping between the countries.  Possible implementation has been suggested for late 2019.

Who does/will the rule apply to?

The ELD rule applies to most drivers who are currently required to maintain records of duty (per. part395,49CFR 395.8(a)).  It applies to commercial buses and trucks including Canadian and Mexican drivers in the USA. When Canada implements their mandate, it will be similar to the US standards.

Why is this being done?

The benefits are threefold: (i) ELD creates a safer work environment for drivers; (ii) it provides for more efficient communication between drivers and carrier staff; and, (iii) it facilitates information sharing with the Department of Transportation (US).

Will this affect capacity?

It is likely there will be a learning curve with adapting to the mandate.  This could cause some drivers to move less loads per week/month. This will put stress on capacity.

Will transit times change?

Hours of Service rules have not changed and are not going to change; however, ELDs will track all on-duty statuses.  Including; yard moves, safety checks, traffic issues and wait-times. Transit times will be longer than the currently perceived transit times.

Will rates change?

There is an investment in software and equipment as well as training and additional admin costs.  Also, with drivers closely managing their times at shippers and receivers, wait-time will have costs and consequences.

Author: Jennifer Morris, President, Two Roads Logistics

Stay tuned, in part 2 we will review the Agricultural exemption which addresses the hours of service at shipping point.