Summary for February 11 - February 15, 2008:
Monday, February 11, 2008UTi trims workforce by 7%UTi WORLDWIDE Inc. Feb 8 said it will reduce its workforce by 7% as part of a cost-cutting effort to improve profitability. The Long Beach–based freight-forwarding company also lowered its fiscal 2008 forecast due to slower than expected sales. The company also said it has reorganized its leadership team around its core service lines of freight forwarding and contract logistics and distribution. UTi said its cost-reduction measures will include “exiting the company’s retail distribution business in Africa.” The company also plans to cancel various long-term initiatives, scale back airfreight charters, exit loss-making contracts, including the previously announced contract logistics operation in the Americas, and realign corporate and regional functions. As a result of these measures, UTi expects to reduce annualized operating expenses by approximately $105mn-$110mn. Net revenues are expected to decrease by approximately $75mn-$80mn, the company said. The net impact is expected to be “an increase in operating profit of approximately $30mn-$40mn,” the company said. Web site: UTi Worldwide Inc. http://www.go2uti.com/Record results for 2007 Port of PortlandTHE PORT of Portland Feb 6 released 2007 figures in which the port saw double-digit growth in most categories for the year. Total tonnage for the year was 14.4mn tonnes — a 20.4% increase from 2006 and nearly 2mn tonnes above the next highest in the port’s 117-year history. September and October successively broke records for the highest total tonnage handled in a single month. Container traffic increased 21.3% to 260,128 TEUs in 2007. It was a record year for import containers, which are now nearly even with export volumes, the port said. The port welcomed upgraded Yang Ming vessels, which began calling Portland in May. Auto volumes were down slightly at 449,307 following the record of 463,557 set in 2006. Volumes of Honda/Acura automobiles were up 29%, and late in the year the port began receiving Nissans and Infinitis for the first time in many years. Break bulk cargo of 1.1mn tonnes was higher than in any year since 1991, led largely by steel slab moving through Terminal 6, the port said. Web site: Port of Portland Kalmar forms Mexican sales companyKALMAR Industries Feb 8 reported it has established a new sales company in Mexico, which reflects “the growing importance of Mexican ports and the development of the country’s intermodal market.” Kalmar, a leading supplier of cargo-handling equipment to ports, terminals, and intermodal facilities, said the new sales and service center will enable Kalmar to provide better support to its dealer network as well as aid in the development of key markets for its industrial and container-handling products. Gaston Chipy, previously a Kalmar sales director in South America, will be the managing director of the Guadalajara-based sales company. Kalmar said resources at the location will grow as Mexico’s port and heavy industry business develop. Kalmar said it selected Guadalajara — Mexico’s second-largest city —as the location for its first operational center in Mexico both for its vibrant economy and its central position to main ports on the east and west coasts. Web site: Kalmar Industries http://www.kalmarind.com<<<•>>>
Tuesday, February 12, 2008
Teamsters OK five-year YRC contractYRC Worldwide Feb 11 said in a statement that the International Brotherhood of Teamsters has ratified a new five-year labor contract that covers approximately 50,000 dockworkers, drivers, and certain other union employees of Yellow Transportation, Roadway, USF Holland, and New Penn. The new National Master Freight Agreement replaces the current agreement when it expires on Mar 31, 2008. “We are pleased the contract was ratified well ahead of the renewal date,” said Bill Zollars, chairman, president, and CEO of YRC Worldwide. A substantial majority of the employees of the affected YRC carriers voted in favor of the ratification, the company said. The union informed the company that there were two local supplemental agreements that did not receive a majority vote. Both the company and the union are committed to addressing these local issues, which is part of the normal process, YRC said. “Our drivers, dockworkers, and other union members are the best in the business. This contract is our blueprint for superior customer service and company performance over the next five years,” said YRC North American President Mike Smid. Web site: YRC Worldwide
Two lines leave TraPac terminalUS Lines and ANL Container Lines Feb 8 announced plans to relocate from the TraPac terminal at the Port of Los Angeles to the SSA terminal at the Port of Long Beach by Apr 1. Both companies were recently acquired by CMA CGM Group, which runs operations out of the SSA terminal at the Port of Long Beach. “From an operation standpoint it makes more sense to consolidate those services,” said Arley Baker, senior director of communications and legislative affairs for the Port of Los Angeles. “But it’s always disappointing when TraPac or any of our customers lose business, and we understand that it’s aggravating for them,” Baker said. The move comes after three Asian shipping lines left the Port of Los Angeles for the Port of Long Beach last year, partially due to delays in expanding the cramped TraPac terminal. The Environmental Impact Report for the TraPac terminal expansion — which promises to reduce long-term pollution even with more cargo throughput — was approved by the port in December, but environmental groups have appealed that decision to the city council. Web sites: US Lines ANL Container Lines
Stockton celebrates 75 yearsThe Port of Stockton is currently celebrating its 75th anniversary with a five-week event, “Diamond of the Delta,” at the Haggin Museum in Stockton, CA. The port hosted its first ocean-going ship, the SS Daisy Gray, on Feb 2, 1933. The Port of Stockton was California’s first inland seaport. In 1929, Congress approved federal funding for deepening the San Joaquin River to create the Stockton Deepwater Ship Channel, thus bringing “maritime commerce and quality jobs to the citizens of Stockton and the greater San Joaquin Valley,” the port’s announcement said. In 2008, the port said, it will be highlighting “its rich history and the role it now plays as a vital part of the economic foundation of the city of Stockton and the Central Valley as the remarkable rebirth of California’s Heartland Port continues.” Also on exhibit at the museum will be “Deepwater Steel,” a series of maritime photographs of the Port of Stockton by local photographer Steve Pereria. The “Diamond of the Delta” exhibit at the museum runs through Mar 9. Web site: Port of Stockton <<•>>> Wednesday, February 13, 2008 U.S. trade deficit declined in 2007; but not with ChinaThe U.S. Commerce Department reported today that the U.S. trade deficit dropped to $711.6 billion last year, which represented a decline of 6.2 percent, according to an Associated Press report. However, the trade deficit with China continued to rise, jumping by 10.2 percent to $256.3 billion. The deficit with China represented the largest gap ever recorded with a single country. Chinese imports continued their climb despite a year full of serious quality control issues with products. By December, the trade deficit had fallen by 6.9 percent to $58.8 billion, a bigger-than-projected improvement to close out the year. In related news, the AP reports the Labor Department reported that the number of newly laid off workers filing claims for unemployment benefits fell by 9,000 to 348,000 last week. That was larger than the 6,000 decline that analysts had been expecting. NYK affiliate develops fuel-saving deviceFuel savings is on the minds of many in the transportation industry. The NYK Group has announced its affiliate – Tokyo-based Monohakobi Technology Institute (MTI), along with Hiroshima-based Tsuneishi Holdings Corporation - have jointly developed a new fuel-saving device, called “MT-FAST,” which can be fitted to a vessel's hull. MT-FAST is described as a “pre-swirl stator type device” that is attached to a ship's hull just forward of the propeller, and improves the flow of water around the propeller in order to improve its function. The device has reportedly demonstrated that the appendage can realize a fuel-savings of around 4 percent. In addition to new vessels, the device can reportedly be fitted to existing ones. The NYK Group says it plans to fit the first MT-FAST to a wood-chip carrier that will begin operations in June. After that, the Japanese logistics company said it will fit the fuel-saving hull appendage to other NYK and NYK Group bulk carriers. NYK says it has applied for a patent and will continue analyzing the fuel-saving effects. The new appendage was named by combining the first initials of its developers, MTI and Tsuneishi, as well as the first letters of the words that describe the device's features: falcate, attachable, and stator. NYK reports that trademark registration has also been applied for. Tornado Hits FreeportWhat has been described as a “freakish weather system” by the Bahama Journal, has hit Grand Bahama, and with it, the Freeport Container Port, earlier today. The ensuing tornado damage includes terminals, warehouses, power lines, and fencing, the Journal said. No human casualties have been reported. In a statement, the Freeport Container Port reported its Warehouse #12, which houses the administration staff for the Facility Department and Mechanic Shop, suffered major roof damage. Freeport officials have classified the building as unsafe. The statement said at the terminal which Discovery Cruises uses, the severe weather brought down power lines, communication lines, cable lines, utility poles, trees, and fencing. Discovery Cruises does not sail on Wednesdays, so the area was unoccupied. Container Port officials said there was no damage to Terminal #1, Warehouse #5, or any of the Security buildings, other than minor water leaks. All buildings were barricaded and red caution tape was put up for crowd control as Grand Bahama residents flocked to the area to get a closer view of the damage, the Journal report said. Facility electricians turned off the power to those buildings because of the amount of live electrical wires, said the Container Port statement, adding that the Facility Department will temporarily relocate to Warehouse #11 until further notice. The Terminal #2 facility, where police based, reportedly suffered extensive damage with the roof caving in over the police structure, and severe damage to the remaining roof. One-third of the roof was reportedly destroyed and completely torn away from the building, and there is minimum visible structural damage at the east side of the building. The cargo section of Terminal #2 was also, reportedly damaged. Officials have said all cleanup efforts would be suspended until Thursday, due to ongoing weather conditions. Grand Bahama reportedly experienced weather activity associated with an approaching frontal system that brought strong thunderstorms, producing a few tornadoes that occurred around the southwestern shoreline, harbor, and marina area on Grand Bahama. Gradual clearing throughout the day is being reported. <<•>>>
Thursday, February 14, 2008
U.S. trade deficit declined in 2007; but not with ChinaThe U.S. Commerce Department reported today that the U.S. trade deficit dropped to $711.6 billion last year, which represented a decline of 6.2 percent, according to an Associated Press report. However, the trade deficit with China continued to rise, jumping by 10.2 percent to $256.3 billion. The deficit with China represented the largest gap ever recorded with a single country. Chinese imports continued their climb despite a year full of serious quality control issues with products. By December, the trade deficit had fallen by 6.9 percent to $58.8 billion, a bigger-than-projected improvement to close out the year. In related news, the AP reports the Labor Department reported that the number of newly laid off workers filing claims for unemployment benefits fell by 9,000 to 348,000 last week. That was larger than the 6,000 decline that analysts had been expecting. NYK affiliate develops fuel-saving deviceFuel savings is on the minds of many in the transportation industry. The NYK Group has announced its affiliate – Tokyo-based Monohakobi Technology Institute (MTI), along with Hiroshima-based Tsuneishi Holdings Corporation - have jointly developed a new fuel-saving device, called “MT-FAST,” which can be fitted to a vessel's hull. MT-FAST is described as a “pre-swirl stator type device” that is attached to a ship's hull just forward of the propeller, and improves the flow of water around the propeller in order to improve its function. The device has reportedly demonstrated that the appendage can realize a fuel-savings of around 4 percent. In addition to new vessels, the device can reportedly be fitted to existing ones. The NYK Group says it plans to fit the first MT-FAST to a wood-chip carrier that will begin operations in June. After that, the Japanese logistics company said it will fit the fuel-saving hull appendage to other NYK and NYK Group bulk carriers. NYK says it has applied for a patent and will continue analyzing the fuel-saving effects. The new appendage was named by combining the first initials of its developers, MTI and Tsuneishi, as well as the first letters of the words that describe the device's features: falcate, attachable, and stator. NYK reports that trademark registration has also been applied for. Tornado Hits FreeportWhat has been described as a “freakish weather system” by the Bahama Journal, has hit Grand Bahama, and with it, the Freeport Container Port, earlier today. The ensuing tornado damage includes terminals, warehouses, power lines, and fencing, the Journal said. No human casualties have been reported. In a statement, the Freeport Container Port reported its Warehouse #12, which houses the administration staff for the Facility Department and Mechanic Shop, suffered major roof damage. Freeport officials have classified the building as unsafe. The statement said at the terminal which Discovery Cruises uses, the severe weather brought down power lines, communication lines, cable lines, utility poles, trees, and fencing. Discovery Cruises does not sail on Wednesdays, so the area was unoccupied. Container Port officials said there was no damage to Terminal #1, Warehouse #5, or any of the Security buildings, other than minor water leaks. All buildings were barricaded and red caution tape was put up for crowd control as Grand Bahama residents flocked to the area to get a closer view of the damage, the Journal report said. Facility electricians turned off the power to those buildings because of the amount of live electrical wires, said the Container Port statement, adding that the Facility Department will temporarily relocate to Warehouse #11 until further notice. The Terminal #2 facility, where police based, reportedly suffered extensive damage with the roof caving in over the police structure, and severe damage to the remaining roof. One-third of the roof was reportedly destroyed and completely torn away from the building, and there is minimum visible structural damage at the east side of the building. The cargo section of Terminal #2 was also, reportedly damaged. Officials have said all cleanup efforts would be suspended until Thursday, due to ongoing weather conditions. Grand Bahama reportedly experienced weather activity associated with an approaching frontal system that brought strong thunderstorms, producing a few tornadoes that occurred around the southwestern shoreline, harbor, and marina area on Grand Bahama. Gradual clearing throughout the day is being reported. <<<•>>> Friday, February 15, 2008 New plan for Tacoma Blair WaterwayAT A SPECIAL Port of Tacoma Commission meeting Feb 14, Port Commissioners authorized signing a Memorandum of Intent with the Puyallup Tribe, Marine View Ventures, the economic development arm of the Puyallup Tribe, and SSA Marine. The memorandum focuses on cooperation and coordination among the parties for the new $350mn terminal development on the Blair-Hylebos Peninsula. The agreement allows the port to complete the widening of the Blair Waterway, so it can accommodate some of the world’s largest ships. Key provisions of the memorandum also include an agreement between the port and SSA Marine for the use of a 1,200-ft berth and about 20 acres of backup land area. The port and the Tribe also will exchange land to improve the overall layout of the current footprint of the future Tribe/SSA Marine terminal and future port terminal developments. The goal is to finalize the overall agreement by the end of March 2008, so that it can be presented to the various parties for review and consideration for approval in April 2008. Web sites: Puyallup Tribe http://www.puyallup-tribe.com/ SSA Marine http://www.ssamarine.com11 California ports share $40mnTHE FIRST state homeland security funding available from California’s Proposition 1B, passed by California voters in November 2006 to improve air quality and goods movement and enhance the safety and security of the state’s transportation system, was announced Feb 14 by Gov. Arnold Schwarzenegger. The Port of Los Angeles received the single largest chunk — $10mn — of the $40mn in total security funding announced. Port of Long Beach officials welcomed an $8.36mn grant. The two port complexes combined account for more than 40% of the nation’s containerized cargo traffic. Los Angeles Mayor Antonio Villaraigosa said their funds will be used to “tighten vehicle inspection operations, expand training for port police officers, buy improved equipment, and implement a resource-tracking system to aid first responders in the event of an emergency.” Projects funded at the Port of Long Beach will include security systems integrated into the port’s new Joint Command and Control Center, formation of a disaster recovery center, installation of a public-address system to alert port workers and visitors in an emergency, and development of a radio-frequency identification system to better track truck movements in the port complex. Nine other ports will share in the funding. Web sites: Port of Los Angeles http://www.portoflosangeles.org Port of Long Beach CEVA adds €6mn to Brazil DCCEVA Logistics will invest €6mn in the first half of this year for an addition to double the size of its main distribution center in Jundiaí, in the state of Sao Paulo, Brazil, the company announced Feb 12. The new space will have 25,000 sq m for storing electronics, consumer goods, and office supplies. At the distribution center, CEVA carries out reception, storage, shipping, and transport management activities for customers such as Nivea, ABN Amro, and Philips. Currently, the site has a 10,000 pallet position capacity; following the addition that number will grow 110%. Among the special services the company offers at the site are inventory management systems and other programs designed for the general storage regime. The distribution center will meet the requirements for TAPA certification, which was created for the technology industry with the aim of promoting security throughout the supply chain. In 2007, inventory for one of the customers using the center had an accuracy rate of 99.86%, thanks to the management model used by the company, said CEVA. Web site: CEVA Logistics http://www.cevalogistics.com |