Industry Update. Volume 8 Issue 6

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Volume 8 Issue 6 photo credit: The Oregonian Industry Update Inside this Issue: 1.TSA to Require 100% Cargo Screening 2. New KWEUSA Website 3. Spotlight on KWE! 4.

Canadian GRI Updates Starting December 3, 2012, The Department of Homeland Security s Transportation Security Administration (TSA) will require passenger air carriers to conduct 100 percent cargo

1 Volume 8 Issue 6 photo credit: The Oregonian Industry Update Inside this Issue: 1.TSA to Require 100% Cargo Screening 2. New KWEUSA Website 3. Spotlight on KWE! 4. Canada & Japan Strengthen Relations 5. Canada & U.S. Restructure Security 6. IATA s Time & Temperature Label 7. China, Japan & S. Korea FTA Talks 8. Updated BAF/IFC 9. Canadian GRI Updates Starting December 3, 2012, The Department of Homeland Security s Transportation Security Administration (TSA) will require passenger air carriers to conduct 100 percent cargo screening on international inbound flights to the U.S.A. This effort was mandated as part of the congressional Implementing Recommendations of the 9/11 Commission Act signed by former President George W. Bush in August According to TSA, this new measure requires all air cargo to be screened at the piece level prior to transport on a passenger aircraft for flights bound to the United States. Included in this initiative is TSA s Certified Cargo Screening Program, which enables indirect Air Carriers (IAC), shippers, and Independent Cargo Screening Facilities (ICSF) to screen cargo for flights originating in the United States. According to TSA, most shippers involved in CCSP have readily incorporated physical search into their shipping processes at a minimal cost without needing to invest in screening equipment. A portion of this method has already been implemented for the passenger aircraft side for domestic aircrafts since August TSA officials announced, The screening requirement builds additional risk-based, intelligence-driven procedures into the prescreening process to determine screening protocols on a per-shipment basis. This process requires enhanced screening for shipments designated as high risk, while lower risk shipments will undergo other physical screening protocol.

ACAS is currently in the pilot project phase but will eventually allow CBP and TSA to obtain advance security filing cargo information as a means to target inbound consignments which are perceived to

2 Page 2 photo credit: Horn Packaging In order to achieve the above mentioned mandate, U.S. Customs and Border Protection (CBP) and the TSA will jointly collaborate to enhance air cargo supply chain security to target air cargo shipments inbound to the U.S. through Air Cargo Advances Screening (ACAS). ACAS is currently in the pilot project phase but will eventually allow CBP and TSA to obtain advance security filing cargo information as a means to target inbound consignments which are perceived to be high risk, requiring additional appropriate regulatory screening. Though specific details regarding information filing have not been established, a number of countries possessing airports offering direct flights to the U.S. with pre-existing air cargo security programs have already signed mutual agreements with CBP/TSA. Kintetsu World Express (KWE) will, as always, comply with TSA cargo security mandates, as it maintains strict compliance disciplines with all regulatory agencies and their respective requirements. Maintaining a high level of service and support to our clients is paramount. KWE will be an active participant during the ACAS process from its initial stages through implementation to ensure proper security protocols for our valuable customers. We are pleased to launch a new restructured KWE USA website! The updated website is user-friendly, easy to navigate and contains all relevant and pertinent industry news. View our Global Network Learn About KWE Services Track Your Shipment on CSS Request a Quote Complete a Customer Satisfaction Survey Obtain Shipping Document Forms View Industry Update Newsletters

Page 3 KWE is pleased to announce that KWE Benelux acquired the EU*AEO standards certification.

The AEO-F ensures that KWE Benelux receives preferential treatment in customs clearance procedures as well as security and safety controls.

(KWE) posted profits for its 2011 fiscal year. KWE s net group profit rose 21.1 percent from the previous year, equating to an $119.

The predicted economic outlook for KWE was uncertain for various reasons, including the Japanese earthquake, heavy floods in Thailand, debt crisis in Europe and the recession.

in the record net profit. For the third consecutive year, KWE France was presented with the Lufthansa Cargo Award for 2011.

3 Page 3 KWE is pleased to announce that KWE Benelux acquired the EU*AEO standards certification. KWE Benelux is the fifth company within the KWE Europe group to receive this certification. KWE Germany, France, Ireland and UK have already attained the accreditation. The AEO-F ensures that KWE Benelux receives preferential treatment in customs clearance procedures as well as security and safety controls. This will expedite customs clearance procedures for the company s sales offices in Amsterdam, Rotterdam and Brussels. photo credit: KWE Benelux Kintetsu World Express, Inc. (KWE) posted profits for its 2011 fiscal year. KWE s net group profit rose 21.1 percent from the previous year, equating to an $ million increase profit, the largest amount ever recorded. KWE is one of Japan s largest international freight forwarders and a global leader in the industry. The predicted economic outlook for KWE was uncertain for various reasons, including the Japanese earthquake, heavy floods in Thailand, debt crisis in Europe and the recession. KWE states, Although mainstay air cargo operations were sluggish, it vigorously pushed ahead with cost-cutting efforts, such as abolishing or merging some business offices, resulting in the record net profit. For the third consecutive year, KWE France was presented with the Lufthansa Cargo Award for Inbound Logistics is a monthly newsletter distributed for business logistics managers. The magazine publishes an annual list of Top 10 third-party logistics for their July issue by asking their readers cast a vote for a logistics company that has demonstrated excellence in service. KWE is asking our readers and valuable customers to cast their vote for us by filling in a short questionnaire by clicking here or the image below! Thank you! photo credit: Inbound Logistics

Page 4 Parliamentary Secretary to the Minister of Agriculture, Pierre Lemieux, visited Japan to support trade relations between Canada and Japan while promoting mutual benefits of an Economic

That s why our government continues to make international trade a priority, said Parliamentary Secretary Lemieux.

4 Page 4 Parliamentary Secretary to the Minister of Agriculture, Pierre Lemieux, visited Japan to support trade relations between Canada and Japan while promoting mutual benefits of an Economic Partnership Agreement (EPA). Canada s agriculture producers and processors depend on the Japanese market. That s why our government continues to make international trade a priority, said Parliamentary Secretary Lemieux. Consumers in both Tokyo and Toronto will have more choices for high-quality food as our two countries strengthen our trade relationships (MSNBC). photo credit: thestar Japan ranks third for world s largest economy and Canada is the second-largest agriculture market in the world. To Canadian farmers and food processors, Japan s market is worth an estimated $4 billion. Canada s Prime Minster Stephen Harper and Japan s Prime Minister Yoshihiko Noda met in March of this year to discuss future EPAs. photo credit: Cohen.Canada s Flickr The United States and Canada recognize each other s screening protocols but once an agreement is passed, cargo entering the U.S. or Canada won t have to be rescreened once it s uploaded on a passenger aircraft in the other country (Air Cargo World). A press release statement by Canadian authorities state they believe this initiative will reduce delays and lower costs associated with the security screening. Nearly half of all airfreight flown in Canada is transported on a passenger craft. Canada s Minister of Transport, Infrastructure and Communities Denis Lebel and Deputy Chief of Mission at the U.S. Embassy James Nealon both believe this new program will strongly impact North American trade. Mutual recognition of each other s air cargo security will cut costs for both American and Canadian businesses and consumers as well as improving efficiency. This proposed agreement piggy backed off of the agreement between the U.S. and EU early May where there was a mutual agreement to recognize each other s known shippers. Once it goes into effect July 1, companies will experience quicker Customs clearance without compromising security standards.

Page 5 Beginning July 1, the International Air Transport Association (IATA) will necessitate a mandatory Time and Temperature Sensitive label for transportation of healthcare cargo shipments

The Time and Temperature Sensitive label must be purchased through IATA and attached to all shipments in Celsius format.

5 Page 5 Beginning July 1, the International Air Transport Association (IATA) will necessitate a mandatory Time and Temperature Sensitive label for transportation of healthcare cargo shipments requiring temperature control service (under the Cargo Services Conference Resolution Manual Resolution 607, Section 1). The Time and Temperature Sensitive label must be purchased through IATA and attached to all shipments in Celsius format. The temperature indicated on the label must match the approved temperature transportation range. It is the responsibility of the shipper, or the shipper s agent, to provide appropriate labeling for booked time and temperature sensitive healthcare shipments. According to IATA, the benefits of the new labeling procedures include: better identification of temperature sensitive healthcare cargo shipments and external temperature range required during transportation, faster supply chain transit handling, greater reliability and accuracy to improve operational processes and decreases the risk of mishandling of the product. The leaders of the three countries- Chinese Premier Wen Jiabao, Japanese Prime Minister Yoshihiki Noda and South Korean President Lee Myung-bak- have formally agreed to launch trilateral free trade agreement (FTA) negotiations by the end of this year. China, Japan and South Korea, which are Asia s largest, second-largest and fourth-largest economies respectively, account for about 20 percent of the world s economy and 18.5 percent of global exports. Trade between all three nations is valued at over US$690 billion. photo credit: EastAsia Forum According to an official report by the Xinhua News Agency, the collaboration could raise China s GDP by 2.9 percent, South Korea s by 3.1 percent and Japan s by 0.5 percent. The possible trilateral pact agreement was reached following seven years of research and two years of governmental studies between all three countries (China Post).

6 Page 6 WESTBOUND (from USA to Asian destinations) July 1, 2012 through September 30, dry dry 20 reefer other reefer BAF West Coast BAF East Coast IFC Pure truck IFC Truck/Rail EASTBOUND (from Asian origins to USA) July 1, 2012 through September 30, 2012 per 20 per 40 per 40HQ per 45 BAF West Coast BAF East Coast IFC-Truck IFC-RIPI IFC-IPI TRANSPACIFIC OCEAN (from Asian origins to Canada) July 1, 2012 through September 30, 2012 per 20 per 40 per 40HC per 45 Via West Coast Via East Coast July Holiday Schedule 14 Penang Governor s Birthday KWE Penang (Malaysia) Closed

Inside this Issue: Volume 8 Issue 7

Inside this Issue: Volume 8 Issue 7 Inside this Issue: 1.TSA to Require 100% Cargo Screening 2. China, Japan & South Korea FTA 3. Southwest Airline s Expansion 4. Chicago Airport to Open New Hub 5. Spotlight on KWE! 6. Canada & Japan Strengthen