Canadian Cargo is introducing a 5 per cent air-navigation services surcharge on shipments from March 31. The surcharge is intended to recover some of the costs of the air-navigation system which has recently been introduced to the air-cargo industry. 'Navigational charges are now assessed on the basis of aircraft operation,' said John Delaney, director of cargo services, meaning Canadian Cargo was being charged extra for the provision of the navigational services. He said the airline was unable to absorb the costs and had to pass them on to customers. The move is in response to the implementation of the second phase of NavCanada's charges for air-navigation services, which added to air-cargo costs. Previously, air-navigation services in Canada were funded by passengers through the collection of the Federal Air Transportation Tax. The March 31 surcharge will be calculated as a percentage of the chargeable weight rate charge, subject to a C$1 minimum. The surcharge will be payable in Canada on all shipments either originating or terminating in Canada.