The strike by container truck drivers in the Port of Vancouver, BC continues to derail operations at the port, and has created a ripple effect, which has compromised the Canadian transport infrastructure. Now entering its fourth week, recent reports indicate that railways are declining to load marine containers in other parts of Canada that are destined for the Vancouver market, due to the potential impact on their operations. In addition, goods originating from the European Union are not being loaded on steamship lines, if they are destined for Vancouver.

Furthermore, according to a July 15, 2005 Trade Information Notice from US Customs & Border Protection (CBP), the Port of Vancouver may start refusing truck-bound cargo arriving on container ships as early as the weekend of July 16^th. Terminals are doing this in order to ensure that there is sufficient room on the dock to process cargo destined for rail, which represents 67% of import containers entering the Port of Vancouver.

Shippers who currently utilize the Port of Vancouver are reviewing alternative routes for their cargo to expedite shipments. It should be noted that all diverted cargo is subject to normal CBP processes, including targeting and enforcement exams (VACIS), at the actual port of discharge.

Included below are CBP guidelines for diverted freight, originally destined for the Port of Vancouver.

For vessels that meet all of the following conditions, the carriers will be allowed to discharge containers where the port of unlading is Vancouver, B.C. on the bill of lading, and CBP Port Directors will not issue penalties for Trade Act timeliness violations:

• The carrier has transmitted cargo information to CBP via Sea AMS reflecting the U.S. port of unlading (diversion port) where the shipments will be discharged.
• CBP Officers have the opportunity to screen the cargo and none of the shipments are determined to be of such high risk that discharge would not be authorized. For cargo that would have been subject to a "DO NOT LOAD" order had the information been transmitted 24 hours prior to lading in the foreign port, CBP may deny permission for the carrier to unlade the cargo. Under no circumstances will unscreened cargo be discharged in the U.S.

• The estimated date of arrival in Vancouver, B.C. is July 18, 2005, or later.

• The vessel has departed from the last foreign port of the voyage prior to Canada and is en route to Vancouver, B.C.
• The Port Director has approved the carrier's request for the diversion. Requests for diversion within the Area Port of Seattle should be submitted via an updated CF 3171 to the Vessel Entrance and Clearance Officer (VECS).

All other elements of the Trade Act will be enforced. All other laws and regulations enforced by CBP will be applicable to these shipments.

For additional information, please contact our logistics specialists at one of the following Deringer locations:

Telephone: 360-332-6600

Telephone: 206-433-8557

Telephone: 310-970-0307