The post-9/11 diligence of the U.S. Customs Service continues to cause cross-border delays, affecting the desirability of Canadian-made products or supplies, according to Stephen Laskowski of the Canadian Trucking Alliance.
Speaking to attendees of a session sponsored by CARI (the Canadian Association of Recycling Industries) at the Canadian Waste & Recycling Expo in Toronto in early December, Laskowski noted that a system known as FAST is being created by the two governments to alleviate the situation.
Truckers and shippers who meet the criteria for FAST approval will soon be able to use designated lanes at border crossing, ideally saving the hour or more wait that can meet truckers at U.S. Customs stations.
According to Laskowski, truckers and trucking companies have been quick to register for the FAST program, but the participation from manufacturers or other shippers has been disappointing.
There are signs that the border delays are souring some cross-border trading relationships. One study tracking border trade showed that in one 2002 time period, while the U.S. economy’s overall manufacturers shipping index was down just 3.6 percent, shipments from Canada fell 10.8 percent. “Remember, Americans don’t have to source from Canada—it’s not a God-given right,” Laskowski told his primarily Canadian audience. “We have to make sure the border works; it’s not working right now.”
The past twelve months has also seen a weakening of the U.S. dollar, which has worked against Canadian transporters who are usually paid in that currency. “This has sent a tremendous shock through trucking fleets,” the trucking alliance representative remarked. Income from operations for truckers in one time period was down 16 percent, according to Laskowski, with the currency value shift being the largest factor.
A problem Canadian recyclers have in common with U.S. scrap recyclers is obtaining affordable property and casualty insurance. According to Tom Burns of Toronto’s Cowan Insurance, the number of fires and pollution or contamination incidents are the leading causes for this circumstance.
Despite the high costs of insurance, Burns urged scrap recyclers to insure their properties for the full replacement costs of buildings and equipment. He noted that recyclers tend to grow in spurts, and often add buildings and equipment with careful timing, working with contractors on slow schedules if it is more affordable.
But after a fire or other emergency, when buildings need to be replaced immediately, they will find contractor and building materials costs that are entirely different, Burns warned. Similarly, recyclers should consider additional business interruption insurance to make up for the disappearance of revenue during such times.
An additional dilemma for some recyclers who need to rebuild is the involvement of municipal officials who may wish to block the recycler from re-entering the business. “There is a chance the municipality you are in doesn’t want you back in business,” noted Burns.
Key questions recyclers need to ask themselves when putting insurance in place, said Burns, are the importance of the current location; how long it will take of it is possible to resume business somewhere else during the rebuilding stage; and whether contract scrap handling arrangements will be lost because of the business interruption.