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Identifying proper corporate relocation resources isn't as easy as it seems... but it's not impossible.

You're only a month or two away from your corporate relocation, and it's already making you sweat. I see it all the time, and I hear it in the voices of those who call... the sheer panic at the magnitude of the situation.

What if the move is a disaster? What if our desks end up in the wrong state or country? What if nothing arrives on time? What if customs proves to be too daunting of a task to overcome? Should we ship by air or ocean?

What if... nothing. goes. wrong. at. all?

Here are 4 tips for avoiding the complications of this major endeavor:

Let's start with broad strokes

So, where are you going? Are you packing up HQ and relocating to Australia? His your head office moving to Spain? Or, is it somewhere connected to the US, like Canada or Mexico? The farther we go, the bigger the challenge. And, of course, you probably realize that. If it's within the same province , it's a relatively painless process, but what about when you have to put a plane or ocean freighter in the mix?

I deal with the bigger most complicated moves, like those requiring auto transport, international logistics services, and ocean container shipping, so that's where we'll be spending our time today.

So, what are you taking with you? is it equipment from an office, a floor, or an entire building?

1: Sea or Air

This usually starts with the debate of which is cheaper. But calculating costs isn't just about what it says at the bottom of your shipping invoice. There are all sorts of things to consider.

~ How big & heavy is your load? Air freight is measured by a calculation that includes both size and weight. The bigger and heavier the load, the less it's going to make sense putting it on a plane. Ocean freight carriers tend to charge by containers, thinking less about weight, and more about size. No matter which route you take, dissassemble those desks and chairs, and remove as much air from those containers as possible. 

~ Now, hold on, what about speed? True, your air freight is going to typically cost more than ocean, but if you're losing money to lack of productivity because your office is at sea too long, you could be in trouble by going the "cheaper" route, and end up losing more money than you saved. So, pace out the timing for everything.

~ Timing is everything, after all. They aren't going to hold the plane for your shipment, or the ocean freighter, or much of anything else if you're running a little behind. It's your job to ensure you get there when you're supposed to but also have contingency plans if you don't. Accidents, delays, and other things will happen that will prevent your shipment from arriving on time. Air recovers from delays much better than sea. So, if timing is critical, the extra cost for air might just give you that little extra insurance you need to sleep better at night.

~ Timing is everything! What happens when your shipment arrives on time, or, knock on wood, EARLY? Well, that's good, right? Maybe. Is there anybody on the other end of the shipping cycle to receive it, or is it going to sit in warehousing until the deadline arrives? Storage at the airports tends to be quite a bit cheaper than the docks, so consider that as well.

Sea shipping is no doubt the cheapest method between the two if all we're looking at are the majority of the invoices being issued, but air provides greater flexibility and they're more reliable. If you're nimble and can move around the process, sea is probably the way to go. If you're limited in your ability to deal with set-backs or don't have operations on the other end of your move to receive your shipments, then perhaps air is the more cost effective.

Believe it or not, but shipping a car by air is possible, but definitely more expensive. You won't find any major auto transport companies doing it this way for the bigger orders, but if it's just the owner's RR, air transport will provide the white-glove, timely service likely preferred.

2:LCL SHIPPING

You will likely end up with a load that is less than the size of the container. The question is, do you qualify for LCL shipping, and if so, is it the route you want to take?

Remember, ocean freight charges by the container load, and they don't typically care if it's full or not, so you're paying for it either way. A 20' container (they come in standard 20' and 40' sizes) can hold up to 30 cubic meters, so if you're hovering around the halfway mark or less, LCL shipping might make sense for you.

Of course, don't forget about air in this situation. Putting these loads in the sky could be the better option, especially given some of the headaches that come with LCL shipping.

~ Remember, timing is everything! These shipments will very likely take longer to arrive. There is a process that they must go through, after all, and we want each of your packages to be accounted for. If timeliness is an issue, air may be your better bet. If not, you could save a little by sticking with LCL.

~ Insurance: You may be spending the same dollar amount on insurance for a half load or a full load. It's not a huge burden, but something to be considered in your financial calculation. Half a load does not mean half the insurance costs.

~ Additional travel required: We'll need to set up a vehicle to pick up the short load. SInce there are two recipients, bringing it to the site is probably out of the picture.

3: Packing with Customs in Mind

International cargo carries a series of complex challenges. We're always dealing with complex trade agreements, international regulations, and, of course, doing our best to ensure the cargo is secure. Getting in touch with your embassy may help answer some of the questions about the furniture and other office supplies being moved across borders and/or overseas.

Manufacturing plants have to think about the chemicals, equipment, and pollutants that they're bringing in. Yes, you got the deals worked out with your buyer or business partners... even with the local government agencies - but what about customs? They could slow you down for days and cost you siginficant revenue in the process.

5:Corporate Relocation Companies

Maybe you need a friend in the shipping business. What you're dealing with is an enormous task, and perhaps the best cost savings will come from having experienced and well networked individuals helping you navigate the process.

Freight forwarders will know how to choose between air & sea options based on your individual situation. They'll know how to get you through customs, and find the best storage options once your items start arriving on the other side.

Don't even get me started if you're dealing with multiple destinations. Freight forwarders and international logistics services will be your saving grace.

I understand why you're so stressed out about the move. Finding distribution services that work cohesively isn't easy for folks who don't face these types of situations every day.

Hopefully you gained some more insight to the process with this article.

If you need more information, let's set up a call :1-877-458-6852!!

First of all, international auto shipping is VERY common.

So, you don't need to worry about finding dependable help to get you through this particular specialized shipping need, but there are many ways to dice this apple, so let me walk you through a few scenarios to ensure you're ending up with the best rates available.

You have TWO options:

Roll on roll off service ("roro") is basically having the automobile loaded onto the vessel without being placed in a shipping container.  The vehicle is driven onto (rolled on) the vessel at the time of loading and driven off (rolled off) the vessel at the time of unloading.

With containerized service, the vehicle is loaded inside a sea container which is then loaded onto the vessel by crane.

1: Different styles mean different fees

Ancillerary charges for CONTAINERIZED shipping: You can expect to pay less in ancillary charges for roll on roll off service than they would for containerized service. They include, but are not limited to: auto loading, blocking, and bracing, drayage, port fees, trans-loading fees, and warehouse fees.

Auto loading, blocking, and bracing:  Automobiles have to be loaded inside the ocean container in such a way so as the cars will not move around inside the containers during transport and risk getting damaged.  This requires expert warehousing services applied by professional packers and loaders who have proven histories of reliable auto loading that eliminate or greatly reduce the risk of damage during land and marine transport.

Remember, the container is going to be transported to the port by truck, lifted up many feet into the air by crane at the port as it is shuffled around and then finally loaded onto the ocean vessel. The ocean voyage isn't always smooth sailing with sea water splashing around all over the place and the boat rocking dizzily on the rough waves.  To prevent and eliminate any risks of damage, vehicles need to be lashed and strapped, and solidly secured, blocked, and braced to the container so that they will not move.

Drayage: The container, once loaded with the vehicles, has to be transported to the port so that it can be loaded onto the boat.  This requires the services of a trucking company that has the capability to carry ocean containers on truck chassis to and from the port.  In the case of a roro shipment, the shipper could merely drive his vehicle to the port where the car will then be driven onto the boat, or “rolled on” -to the boat.

Port fees:  Oakland has them.  Los Angeles has them.  And they represent two of the biggest ports on the West coast.

Trans-loading and warehouse fees:  Not as commonly applied as the above stated ancillary charges, they are still fees that can be charged given certain circumstances.     

2: Size does matter

Roll on roll off services are priced by volume and gross weight, so a prospective customer will need to be able to provide as much detail about their vehicle as possible, particularly the year, make, model, curb weight, and dimensions (length x width x height).

Most common vehicles fit inside of sea containers, whether they be 20 foot or 40 foot containers.  Given that the inside length capacity of a 20 foot container is nineteen and a half feet, two small economy vehicles can fit inside. 

This is where the advantage of containerized shipments of automobiles manifests itself.  Since containers are priced per unit of the container rather than the volume of the cargo inside, the savings are quite enormous when shipping multiple small vehicles which would otherwise by priced by the total volume in cubic meters of each and all vehicles if shipping by roro.

In the case of fully assembled heavy machinery, such as construction vehicles, a conventional, fully-enclosed container is usually not large enough to accommodate the oversized dimensions of such cargo. Flat rack containers and roro services are often your best option.

3: Destination matters too

Roll on roll off service is less common than containerized service, and there are much fewer available trade routes for them, so from a feasibility and practicality stance, containerized may be the way to go. 

For example, if you want to ship an automobile to Africa, you may desire to use the roro service to save money on extra surcharges that would be applied to containerized service.  However, these services to Africa are very few and far in between, because there simply isn't a big demand for it, so logistics may prove to be less than desirable in this particular trade route.

Containerized shipments of vehicles, though sometimes more expensive than roll on roll off shipments because of the extra fees involved, are much more common and it is much easier to find suitable trade routes.

CONCLUSION:

Whether roro or containerized, finding the best shipping rates when transporting your automobile(s) overseas does take some guidance, but will pay off in the end.

Interested in getting a free rate quote on your specialized international shipping needs? Call us now @ 1-877-458-6852

FREIGHT FORWARDING... I thought that was just for commercial purposes, not moving abroad!

Road Home

To be honest, not many international freight forwarders handle household goods & car shipping overseas, and most moving abroad end up using actual moving services. Seems like an intuitive decision, doesn't it?

Well, it wouldn't be the most illogical assumption I've heard, but unfortunately for those wanting to ship their household goods overseas, a move like that could be a rather costly one.

Why would moving services be more expensive?

First, most movers are not really wired for international moves. This means that they don't have a lot of experience with customs or many of the other issues that only come with transferring belongings over borders and oceans. It also means that they don't have the overseas freight network to provide the best rates, deal with port fees, foreign clearance, and delivery & unpacking with inside delivery to meet high standards of services.

- Which means they need somebody else to do the heavy lifting for them. And really what that translates to is having an extra cook in the kitchen (the moving company), which still wants to get paid.

Why freight forwarders are the better way to go

Many have already found a far less expensive method to ship their household goods & vehicles overseas! Not every forwarder offers it, but some will give you exactly what you envisioned when you set out on this quest, providing things like packing, warehousing, loading, shipping overseas clearance & delivery.

Moving things like personal effects and household goods are different from repeat commercial accounts. It must be overwhelming to even consider something that is normally known for commercial and industrial applications, but it must also give you heart palpitations to deal with anybody for such an important move. It's not like you can drive your car from California to Australia, like you might do if you were only moving to a different state.

But because this is such a big move, you're dealing with quantities that may actually compare to something you'd see in a commercial shipment, and the reality is that your moving service is going to be using the exact services I'm describing to you, but with a mark-up and lack of understanding of how the process should go.

Because of this, I imagine you're pretty stressed. It's not like you're going to be doing this a lot, so to go out and learn the ins and outs of this industry is likely a long shot.

This is why you require a friendly hand from inception to explicitly provide clear answers to your many questions & always making sure that each shipping step, customs, packing, loading, booking with the carrier all fall within a time line that the you must follow. It often starts with a detailed quotation that will show all of the services priced and itemized.

At GO TRANSPORT CANADA we combine both worlds as we are both Freight Forwarders & Movers!

For safety & cost-effectiveness, choose our team to handle your international move!

The export process can feel like a foreign world to companies who are new to exporting or those with limited experience in international trade. Therefore, many companies choose to outsource international transportation and supply chain needs to a freight forwarder to increase efficiency and maintain compliance with government laws and regulations. While the manufacturer concentrates on producing high quality goods, the freight forwarder focuses on providing economical and time-sensitive solutions for the shipper. Freight forwarders manage the export process, looking for opportunities to streamline operations. Below are ten reasons to consider outsourcing international transportation and customs compliance needs to a freight forwarder.   

How can forwarders help shippers improve their export process? 

1. Flexibility, Versatility, Accountability
2. Knowledge of Industry Trends and Market Information
3. Continuous Training
4. Competitive Rates
5. Integrated Supply Chain Technology Tools
6. Customs Approved Documentation Storage 
7. Mitigation of Supply Chain Risks 
8. C-TPAT Benefits 
9. Assistance with Export Documentation or Export Licenses   
10. Streamline Exporting Processes 

Freight forwarders concentrate on moving shipments from point A to point B with compliance and efficiency, mitigating confusion and delays. Forwarders assist with documentation, Schedule B classifications, Shipper's Letter of Instruction (SLI) and Automated Export System (AES) filings. Forwarders also advise shippers of estimated transportation costs, port charges, insurance rates and terminal handling fees. Additionally, forwarders work with international agents to facilitate the customs clearance once the cargo arrives in the destination country. 

Allow GO TRANSPORT CANADA to help guide you through the export world. Contact us today to learn more about our global logistics and supply chain services or click below to submit a quote request. 

Shanghai customs is tightening restrictions on the size of shipments for returning Chinese citizens.

A returning citizen is entitled to a HHG shipment if they have lived outside China for at least 1 year for professional reasons, however Shanghai customs is interpreting this rule to mean that the stay must have been uninterrupted.

The shipper cannot have come back to China for even acouple of days on business or for holiday. If they have, they currently only allow 2 cbm shipments. In practice Shanghai has always been more restrictive than other Chinese cities and only granted automatic entry to shipments of a maximum of 6 cbm, whereas other cities would allow a full 20’ container or even larger shipments. Whilst in some cases it is still possible to obtain entry to Shanghai for a 20’container at discretion of officers and upon submission of many documents, this is currently the most restrictive Shanghai customs has been for returning Chinese citizens.

Pour l'expedition de vos colis en France par voie maritime ou par avion, contactez-nous au 514-312-3884 et il nous fera plaisir de vous assister. Nous pourrons vous fournir toutes les informations necessaires a l'entree de vos effets personnels en France, ainsi que les formalites douanieres. Nous pouvons envoyer vos effets aux Terminaux suivants : Le Havre, Paris, Marseille, Lyon et Bordeaux ou bien faire la livraison jusqu'a votre porte en France.

Effective from Oct 1st, 2014, Shanghai customs in China required that all the electrical/electronic items in the shipment of household effects coming to port of entry Shanghai shall be declared in details with brand, model number, serial number and the value. The list of electronic/electrical items in the shipment with the requested information is requested to be submitted. The new or luxury brand electronic/electrical items might be assessed of higher value and the import duty might be higher than the used or normal brand ones.

Contact us for a quote and save!! 1-877-458-6852

International Moving:

Moving overseas? Making the smart decision and taking advantage of Go Transport's full-service residential moving services will make moving a lot easier and less stressful - for both you and your family. In fact, we can take care of everything for you. From carefully packing your delicate china to crating your flat screen TV to shipping your vehicle, you won't have to lift a finger or a single carton during your move, unless you want to.

Your first step is to contact us to arrange a free estimate consultation with a Go Transport Consultant. Your Consultant will then meet with you at your home to explain all of the services we offer and do a visual survey of the items that need to be moved. Your Consultant will then answer any questions you may have about the moving process, discuss shipment protection options and provide you with a professional cost estimate. 

Call us today 877-458-6852

Have you ever hired a professional mover? Have you ever let a professional mover pack your boxes?

For some people the answer is, “Yes, wouldn’t do it any other way!”

And for others? More to the tune of, “Are you crazy? I’d never let someone else pack my stuff!”

Well if you’re in the second camp, this one’s for you. Here are seven excellent reasons to consider taking the plunge and hiring a pro to get your valuables from point A to point B.

1. Movers have mad skills. Let’s set the record straight. Movers are not a bunch of blundering giants. People who pack boxes professionally gain experience handling a variety of items, from weird to wonderful: they’ve got techniques for just about every situation, which the average person just wouldn’t know.

2. Moving abroad? Self-packed boxes spell trouble in customs. You never know: maybe everything will go smoothly on the border. But maybe it won’t. And you really don’t want a hassle of that scale: customs officials encourage hiring experts to pack for you.

3. Your moving insurance probably doesn’t cover self-packed boxes. When you hire a professional, your moving insurance company can assume a certain standard of safety for your valuables. When you do it yourself privately, all bets are off. It’s not personal… it’s liability.

4. It’s too easy to overpack when you’re tired and stressed. Really, who wants to run to the store to pick up a few more boxes after a long day of packing? When you’re packing your own stuff yourself, you end up cutting corners. Pros have the opposite incentive: they’re there to impress.

5. Two words: organizational efficiency. Think the movers are going to mix it up? Truth is, you’ll probably enjoy better organization when movers pack for you than when you do it yourself – even if you’re a neat freak. They’ll even inventory it for you, so you can find it all easily later!

6. Pros have more experience moving fragile items. Most of us are quite adept at handling our own fragile items around the house, but moving? It’s a whole different animal. From mirrors to crystal to oddly-shaped figurines, movers know all the tricks. Hey, it’s their job, after all.

7. Just because they’re packing doesn’t mean you can’t be involved. If you’re hesitant to entrust your stuff to other people’s hands, it’s okay. Most movers are happy to let you supervise. This option allows you to put your mind at rest without adding liability to your move.

When preparing for a move, do yourself a favor. Hire the pros to pack it for you. And don’t forget to get moving insurance while you’re at it: learn more here.

This entry was posted in Blog and tagged moving best practices, moving insurance, should you pack your own boxes when you move on September 10, 2014 by Gadi Binness.

We to wish to advise of potential delays to shipments to and from the United Arab Emirates, throughout the Muslim Holy Month of Ramadan and following three-day of Eid.

With Ramadan having commenced worldwide from June 29, all public and private sector institution in UAE – including Customs, port authorities, airlines and shipping lines are operating at reduced hours.

Normal operating hours during Ramadan generally comprise six hours on week days from Sunday to Thursday.

Dear Clients,

New Customs regulations were recently put in place in Cameroon.

Under these new rules, the importation of wine, oil and any foodstuff is strictly forbidden.

In addition, importing televisions containing cathode ray tubes is strictly prohibited. Only flat screens are premitted to enter the country.

Extra port storage, demurrage charges and taxes will be incurred if these rules are not followed.

Posted by Tsvetan Petrov on February 16, 2013

Other than destinations countries that border with the US, such as Canada and Mexico, international moving is done via containers. Standard containers are 20’ or 40’ long. When it comes to larger sized shipments, the process is fairly simple – a container is brought to the customer’s house; the container is loaded, sealed and taken to the port. This type of shipment is called FCL – Full container load.

Small shipments that do not fill a complete container are called LCL – Less than a full container load. Such shipments are often loaded onto sealed wooden vaults and then loaded onto a consolidation container.

There are many variations and various prices for this process. Such variations include services in which the container is only brought to the house and the customer loads it himself, driving smaller shipments to the mover’s warehouse to reduce pickup costs and full service which includes packing and loading.

International movers will be able to offer you with the appropriate service, based on your budget and your needs. Documentation As mentioned above, each country has its own regulations, as far as documentation is concerned. Your status will also make a difference and in most cases there will be different regulations for those immigrating or seeking employment and returning citizens.

It is recommended to check with the local consulate about the most updated regulations to make sure that you cover everything correctly. All international moves will require a descriptive inventory. This is an inventory which contains additional details, such as the content of each box and an estimated value for various items. As most incoming shipments are checked based on this descriptive inventory and are not physically inspected, it is very important to be as accurate and meticulous as possible.

NASHVILLE, Ind. -- Conditions for shippers fell in July, according to FTR Associates’ Shippers Conditions Index (SCI), to a reading of -4.5. The SCI sums up all market influences that affect shippers; a reading above zero suggests a favourable shipping environment, while a reading below zero is unfavourable.

FTR officials said the decrease marks the start of an “expected steady decline as shippers and carriers feel the impact of increased regulatory drag heading into 2013.”

FTR characterizes the current period “as an inflection point where costs and rates will begin moving up if the US economy continues to sustain a relatively healthy freight market as new regulations take hold.” Officials added that the forecasted tightening of capacity and associated increased shipping costs will continue to negatively impact the Shippers Conditions Index unless the economy slows more than expected. 

“FTR’s base outlook calls for shipping conditions to deteriorate as freight volume grows slowly and government regulations are implemented, adversely affecting driver productivity,” said Larry Gross, senior consultant for FTR. “This assumes that the Euro crisis remains contained and that the federal government does not drive the economy off the ‘fiscal cliff’ at year-end. If either scenario occurs, we would consider a recession likely, causing freight demand to drop and eliminating any pote

OTTAWA, Ont. -- Canadian rail freight traffic rose 6.8% in June from June 2011 to 27.2 million tonnes, according to a report from Statistics Canada. The gain was the result of increases in both domestic and international cargo loadings.

Over the same period, the industry's core domestic transportation systems, composed of non-intermodal traffic and intermodal traffic, increased 4.9% to 23.8 million tonnes.

Non-intermodal cargo loadings rose 4.2% to 21.2 million tonnes. The gain was the result of increased traffic in approximately half of the commodity classifications carried by the railways. The commodity groups with the largest increases in tonnage were coal, fuel oils and crude petroleum, and iron ores and concentrates.

In contrast, several commodity groups registered decreases. Loadings of wheat decreased the most, followed by sand, gravel and crushed stone, and colza seeds (canola).

Intermodal freight loadings rose 10.5% to 2.6 million tonnes. The increase occurred solely on the strength of containerized cargo shipments, as trailers loaded onto flat cars declined, StatsCan reports.

At an international level, total rail traffic received from the US advanced 22.2% to 3.4 million tonnes. The increase was driven by both non-intermodal and intermodal traffic.

MONTREAL, Que. -- CN is acquiring more than 2,200 new freight cars in 2012, as well as 1,300 new containers in a move to support traffic growth and improve customer service, the company has announced.

"CN is acquiring new freight cars and containers for a range of markets, including forest products, metals, minerals, coal, iron ore, steel, consumer goods, finished vehicles, and grain,” said Jean-Jacques Ruest, executive vice-president and chief marketing officer for CN. “These fleet additions will help us grow in line with our customers' demands and ensure CN has the right mix of modern, productive assets."

CN's largest rolling stock addition in 2012 is the acquisition of 600 premium 60-ft., double-door boxcars for forest products, and metals traffic. These higher payload cars are designed to help improve customer loading efficiency, the company said.

CN's other main 2012 fleet additions are: 

• 1,300 containers for grocery and consumer goods;

• 558 high-capacity modern covered hoppers for grain exports;

• 317 multi-level cars for finished vehicles deliveries to major cities;

• 300 gondolas for coal exports;

• 232 new ore cars for pelletized iron ore produced in Minnesota to supply steel mills in the US; and

• 200 multi-purpose boxcars for the North American freight car pool.

"CN's rolling stock acquisition strategy is responding to evolving market conditions and is intended to ensure reliable, predictable supply chains for our customers," Ruest said.

New NEXUS lane now open at Abbotsford-Huntingdon border crossing

Abbotsford, British Columbia, July 25, 2012 — The Canada Border Services Agency (CBSA) today announced that NEXUS members can now enjoy crossing simply and smoothly into Canada at a new NEXUS lane at the Abbotsford-Huntingdon, British Columbia and Sumas, Washington border crossing. The lane is open from 8 a.m. until 8 p.m., seven days a week for entry into Canada.

NEXUS members must show their membership cards upon arrival at the border until electronic card readers are installed later in the year. The CBSA decided to open the lane before it is fully functional given the enormous popularity of the NEXUS program, particularly in British Columbia. This opening allows NEXUS members the benefit of entering both Canada and the U.S. at this crossing.  

"This new NEXUS lane means a smoother crossing for pre-approved, low-risk travellers in British Columbia just in time for the long weekend in August," said the Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway. "It's another example of how Canada is working to improve the flow of legitimate travel and trade across our shared border."

The addition of the new NEXUS lane is part of a number of enhancements that Canada and the United States are making to the NEXUS program as part of the Canada/U.S. Action Plan on Perimeter Security and Economic Competitiveness. These Action Plan achievements include:

• starting enrolment blitzes to assist with increasing application volumes;
• streamlining the membership renewal process;
• launching an outreach and awareness plan to increase membership; and
• lifting the three-year residency requirement in Canada for Canadian and American citizens to apply to NEXUS.

Currently there are over 700,000 NEXUS members who expedite their travel across the Canada-U.S. border at designated air, land and marine locations.

-30-

For more information on NEXUS, go to www.nexus.gc.ca.

For more information on the Action Plan on Perimeter Security and Economic Competitiveness, please visit the Web site www.borderactionplan.gc.ca.

Follow the Canada Border Services Agency (@CanBorder) and Public Safety Canada (@Safety_Canada) on Twitter.

For further information:

Media Relations
Canada Border Services Agency
613-957-6500

Public Safety Canada
613-991-0657

Every January in Britain, the rail companies put up some of their fares.  And every January in Britain this leads to outrage.

Which is odd, because most other businesses are constantly changing their prices but we don’t get anything like the fuss when they happen to put some of those prices up.

The reason, of course, is government.  In Britain the government regulates a certain number of fares, usually on the busy London commuter routes.  Or, to put it another way, in Britain the government uses violence and the threat of violence to regulate fares.  It is in January that the government allows rail companies to increase their fares in line with inflation plus or minus a small percentage.

Not only is this practice wrong but it also distorts the market leading to overcrowding (see A generic piece on overcrowding).  It also deprives rail companies of the sort of price signals they need to run their businesses successfully.  Because they don’t know how much people are genuinely prepared to pay for a seat, against how much they are prepared to pay to stand, companies don’t know what sort of mix of seating and standing they should be providing.  Nor do they know how many trains they should run and whether increasing the number of trains would justify the cost of, for instance, new signalling. 

Worse still, while allowing rail companies to charge something nearer the market rate is a step in the right direction so long as regulation and the threat of regulation exists, companies are unable to plan for the future.

So, you would allow train companies to charge whatever they like? 
Yes.

But wouldn’t they charge the earth?  And when they do wouldn’t that mean that lots of people could no longer afford to get to work and end up unemployed? 
What we have here is a conflict between the short term and the long term.  The advantages of market prices will for the most part only be seen in the long-term while the disadvantages (higher prices) will be seen almost instantly. 

One of the sad things is that we don’t know how severe the short term pain is likely to be.  It might indeed lead to the doomsday scenario but equally other things might happen.  For instance, in many cases employers may find that they don’t need all their employees to show up on the dot at 9 o’clock in the morning.  So, it may be possible for many of them to travel off-peak.  Equally, many rail companies may take the view that the profit-maximizing price isn’t that much higher than it is at the moment or that a better way to gain goodwill would be to approach it at only a slow pace, say 20% a year or so.

What sort of long-term gain do you see? 
It is difficult to gaze into the future.  That’s one of the weaknesses being in favour of freedom.  You can’t predict with any certainty what will happen.  For instance, it may be the case that something comes along which replaces railways for good.

I could speculate on rail companies running longer trains or double-deck trains or having different classes of carriage: guaranteed seat, standing-room only etc or introducing seats that are locked out of use at peak hours, but I really have no idea what would happen.  All I can be sure about is that it is likely to be a lot better than the situation that we have at the moment.

Notes for the next version

“Outrage”.  We need a better explanation as to why.  I think a lot of it is to do with fear: “I’ve got my job, bought my house and if the fares go up too much one of them is going to have to go.  Hey, I could even end up destitute.” Hmm, actually that’s the fear of fare freedom.  The outrage at a rise is different.

We need something on the history of this.  Before 1940 there was almost no fare regulation at all.  Things seemed to work fine.  Certainly, there was nothing like the outrage we get these days.  OK, there were some problems immediately after the First World War with delays and overcrowding.  I’ve heard the explanation that this was to do with the introduction of an eight-hour day but I would like to get to the bottom of this.

“Not only is this practice wrong...” Weak.  What I want to get across is that the government is using violence and violence is wrong.  I want to point out the inherent niceness of freedom.

Price signals.  Too technical.  I think we need to imagine a situation where price signals would have an impact and avoid using the term entirely.

Could do with a piccie as well.

Actually, I’m not even sure this is the right article.  “A generic piece of fares” might be more appropriate.

The Worldwide Project Consortium has welcomed Sphinx Egypt Ltd. Co to its specialist global logistics network.

WWPC General Manager, Kevin Stephens, based in Queensland, Australia, said today (December 11, 2006) Sphinx Egypt, with offices in Cairo and Alexandria, had more than 20 year’s experience delivering outstanding service along the important transport artery between Egypt and Europe.

“Sphinx Egypt has an expert team that ensures the Worldwide Project Consortium is well positioned to maximise opportunities in one of the most dynamic emerging markets in the world,” Mr Stephens said.

“The Worldwide Project Consortium has an enviable track record of success that can help meet the logistics needs of a diverse range of clients, particularly those working on large oil and gas projects in the Middle East region.”

Mr Stephens said Sphinx Egypt Ltd. Co. was headed by Dr. Naim Amen and had substantial experience in custom clearance and freight forwarding, particularly large-scale projects throughout Egypt including heavy lifts and oversize cargo.

WWPC members will be gathering in Cape Town, South Africa, from March 29-30, 2007 to attend the annual Partnering for the Future Conference. More than 100 participants are expected to attend.

Major sponsors at the conference included Rickmers-Linie GmbH, Germany; Volga-Dnepr (UK) Limited; Air Partner plc, U.K.; Macs Maritime, South Africa; Beluga Chartering GmbH, Germany; and Sun Communications PR and Media, Australia.

 Source Press Release

Third-Party Assurances Help Customers Meet Sarbanes-Oxley and Other Regulatory Requirements

For the third consecutive year Railinc successfully completed a Statement on Auditing Standards (SAS) 70 Type II examination. More stringent than a Type I examination, the Type II exam includes detailed testing of Railinc internal controls to demonstrate that they are suitably designed and operating effectively.

"We are dedicated to supporting our customers' compliance requirements," says E. Allen West, Railinc president and CEO.

"The SAS 70 audit validates that Railinc meets the highest standards for securing and protecting data exchanges with Railinc customers. It gives them assurance that their data is being processed accurately and completely."

Under Section 404 of the Sarbanes-Oxley Act, companies are required to receive an opinion from their external auditors regarding their systems of control, including those extending to service providers such as Railinc. The SAS 70 Type II examination allows users to rely on Railinc's controls, reducing auditing expenses for its customers, as well as assuring compliance.
 
The process examined the integrity and security of Railinc's systems, including an exhaustive assessment of internal controls in operations over a six-month period. Railinc's systems, procedures and controls--critical to processing information and millions of confidential financial transactions--were thoroughly evaluated. Specifically, the following four systems were examined: the Railroad Clearinghouse (RCH); the Interline Settlement System (ISS); the Rate EDI Network (REN); and the Liability Continuity System (LCS). Additionally, physical and logical security measures; network access and monitoring; systems development; change management; and customer service were also evaluated.

About Railinc

Railinc  is the largest, single source of real-time, accurate interline rail data in the North American transportation industry. Railinc is the supplier of time-tested products and services like Umler/EMIS, TRAIN II, Interline Settlement, Railcar Accounting, Steelroads, RailSight, and EDI connection services. These systems and services support railroads, shippers, equipment owners, and suppliers along every link of their supply chains. Class I, short lines, regional railroads, and transportation professionals alike, use Railinc's tools and information to manage and analyze their rail traffic.