Food exports from Northeast Japan could face more scrutiny
Food exported from earthquake and tsunami damaged northeastern Japan could face increased scrutiny due to fears of possible elevated radiation traces from the damaged Fukushima nuclear complex.
The Japanese government announced it would decide whether or not to place limitations on what food is shipped out of the region today.
Agricultural and seafood products that range from cucumbers to shrimp in Japan’s 47 prefectures are being tested, according to a Bloomberg report.
Japan exported 6 billion worth of food last year, according to its Ministry of Agriculture, Forestry and Fisheries. In 2009, over 70 percent of Japan’s food exports went to China, Hong Kong, South Korea, Taiwan and the U.S.
Taiwan’s government reported “unharmful” levels of radioactivity in a shipment of fava beans from Japan, in addition to four other shipments to Hong Kong being found have “acceptable” radiation levels, the Bloomberg report said.
Meanwhile, U.S. Customs and Border Protection said it is being extra vigilant with the scanning of air cargo arriving from Japan.
Thus far, low traces of radiation were reportedly detected on an inbound flight from Tokyo at Dallas/Fort Worth International Airport.
Container-shipping giant Maersk said its vessels are keeping to a 50-mile “safety zone” from the nuclear facility.
Canadian government to recommend increased freight rail regulation
Canada's federal government announced Friday that it was ready to recommend final regulatory legislation of its two major railroads resulting from customer service issues.
Canada launched the Rail Freight Service Review in 2008 after customers complained of poor service with the Canadian Pacific and Canadian National railroads.
The government there said that as part of the review, the results of a rail customer survey showed two thirds of rail shippers said significant financial losses occurred from poor customer service, according to a CBC report.
The CP and CN railroads have both reportedly implemented several customer service improvements since the review was launched.
The Canadian government said it would appoint a facilitator to work with the railroads and shippers to develop a better framework for dispute resolution within six months.
The Canadian National’s chief executive, Claude Mongeau, said he was concerned the federal government was "drifting backward toward more regulation instead of encouraging the current momentum for positive change."
Bob Ballantyne, chairman of the Coalition of Rail Shippers, said: "The panel really listened to what the shipper group was saying, and clearly the government did as well."
Wal-Mart introduces same day store pickup for online orders
Wal-Mart announced it now offers “Pick up Today,” where online orders can be picked up within a few hours at a local store.
The box store giant joins other retail chains like Best Buy, Costco and Target in what is seen as a strategy to boost in-store business.
Wal-Mart said the new program would be available at all of its 3,600 stores by June.
Georgia Ports Authority box volume up 16.3 percent
The Georgia Port Authority’s container-handling operation in Savannah posted an increase of 16.3 for February 2011 at 235,665 TEUs over the same month in 2010.
The GPA said its containerized volume year to date is up 13.6 percent.
The GPA said its auto business was up 78.9 percent, moving 40,734 units.
The southeastern seaport’s executive director, Curtis Foltz, attributed the increased business to “ongoing market recovery and continued inventory replenishment.”
"Exports continue to outpace imports since the depth of the recession in 2009," Foltz said in a statement.
Ship sinks off East China coast; four crew missing, two saved
A cargo vessel sunk off of eastern China’s Fujian Province in the early morning hours of Sunday.
Four of the crew has been reported missing while two people were saved, according to news reports out of the region.
Tuesdsay, March 22, 2011
Top Story
Gas-shipping profit could rise 24 percent from Europe to U.S.
Japan’s destructive earthquake and resulting tsunami forced closure of petrochemical plants there that typically use European naphtha, an oil product that is converted into gasoline, diverting demand for these shipments to markets like the U.S.
As a result, profits from shipping the gas to the U.S. from Europe in this year’s second quarter is projected to rise 24 percent due to the increased demand for these vessels, according to a Bloomberg report.
Rates for the gas-carrying ships are predicted to rise to $14,000 a day on the Europe-U.S. route, up from the current $11,252 per day fee, according to Erik Nikolai Stavseth, an analyst at Arctic Securities ASA in Oslo.
Bad weather likely dropped February’s for-hire truck tonnage
Harsh winter storms might have impacted the for-hire truck tonnage in the U.S. that decreased 2.9 percent in February after it had risen 3.5 percent in January, according to the American Trucking Associations' seasonally adjusted index.
The latest drop placed the ATA’s index at 113.3 (2000=100) for February. For December 2010 and January 2011, the tonnage index was up a total of 6.1 percent, the ATA said.
The ATA’s Chief Economist Bob Costello said the winter storms in February likely played a role in the latest reduction, but he remains optimistic.
"Tonnage is not going to increase every month and in general I'm very pleased with freight volumes early this year," said
"I'm hearing a significant amount of positive news from fleets and that the largest concern continues to be the price of diesel fuel, not freight levels," he said.
Ports America awarded for safety by PMA
Terminal operator Ports America was took top honors for safety at the Pacific Maritime Association’s 62nd Annual Safety Awards banquets recently held on the U.S. West Coast.
Ports America awards for workplace safety in 2010 included the first place Coast Award; first place Local Area Award Group A Stevedore for its Los Angeles-Long Beach operations, and the Coast Zero Incident Rate Award for its San Diego operation.
Ports America said in a statement that it has set a record in its Group A Stevedore category with 11 first-place Coast Awards in the past 13 years and a 13 of the past 16 years.
Dollar General to open 10th distribution center in Alabama at $60 mil pricetag
Retailer Dollar General announced it would open its tenth distribution center in Bessemer, Alabama.
The $60 million facility is located on a 106-acre site and will eventually employ 650 people, the company said.
The facility is scheduled to be completed in February of 2012 and service 500 stores in the region, Dollar General said.
Dollar General’s other distribution centers are located in Kentucky, Oklahoma, Virginia, Mississippi, Missouri, Florida, Ohio, South Carolina and Indiana.
Bulk carrier runs aground off South Africa; spills 1,500 tons of fuel
A Maltese-flagged bulk carrier ran aground on Nightingale island, approximately 1 550 nautical miles off of the coast of South Africa, and has reportedly spilled 1,500 tons of heavy fuel after is started breaking up over the weekend.
Environmental groups from Cape Town have organized clean-up crews to travel to the island where there is more than half of the world’s population of North Rock Hopper penguins, according to South Africa’s IOL News.
A Cape Town-based salvage tug operated by Smit has set sail today Nightingale Island to try and remove fuel from the wrecked cargo ship. There were no reported injuries to the ship’s crew of 22.
Heavy equipment manufacturer Caterpillar Inc. announced it is "examining a range of strategic options for its third party logistics business," which could include putting its wholly owned subsidiary, Caterpillar Logistics Services, Inc. up for sale.
Caterpillar said in a statement Cat Logistics "is a unique and attractive asset that has excellent growth potential."
"Over the last 24 years, the company has leveraged its traditional competitive advantage in the Caterpillar parts distribution business to create a global leader in third party logistics, with dedicated employees, unique and attractive assets and excellent growth potential," said Caterpillar's group president Stu Levenick.
Caterpillar said another option could be structuring it as an independent business within Cat Logistics.
Currently, Cat Logistics says it has over 50 customers worldwide, putting it in competition with larger 3PLs, such as CEVA and DHL.
Caterpillar said its manufacturing logistics and transportation operations and Caterpillar brand parts distribution are not part of the third party business and not included in its review of Cat Logistics.
The company said those operations would continue as core businesses within Cat Logistics.
Caterpillar said its has "retained B of A Merrill Lynch and Robert W. Baird & Co. to assist the company as it reviews alternatives," with a final decision over the future of its third party logistics business to be completed by the end of this year.
DP World's 2010 profit beats estimates
The global port operations arm of the Dubai government, DP World Ltd., posted a 13 percent increase in full-year profit at $374.8 million, up from 332.9 million the year before.
Analysts had estimated profit of $324.5 million.
Chairman Sultan Ahmed Bin Sulayem called 2010 "a peak year for the global container terminal industry."
The world's fourth largest terminal operator said it has seen 12 percent growth for the first two months of 2011.
Charleston's container port up 7 percent in February
The Port of Charleston, South Carolina posted a 7 percent gain in its container-handling business over the same period a year ago.
The port said it handled 108,994 TEUs, which is up 12.4 percent for its fiscal year that started in July 2010, over the previous fiscal year's time frame.
The port authority said in a statement that the increase in container volume "follows a major streamlining in January of the SCSPA's container business segment, where all container business was consolidated in two terminals in Charleston while gate operations and processes were harmonized at those terminals."
Breakbulk tonnage in Charleston and Georgetown was up over 44 percent for the first eight months of the fiscal year, with 657,528 tons handled at the two ports in fiscal year 2011 versus 455,449 tons handled last year, the port said.
The port said it completed a $21.7-million last month that reconfigured its Columbus Street Terminal to be Charleston's primary breakbulk, roll-on/roll-off and project cargo-handling facility.
The terminal there now handles BMW's export vehicle business that last year totaled more than $4 billion in cars shipped through the Port of Charleston, the port said.
"Our team has re-established South Carolina's commercial position and we are headed in the right direction," said Jim Newsome, president and CEO of the SCSPA.
Japan's automakers' production is "difficult to evaluate"
The massive 9.0 magnitude earthquake, devastating tsunami in Japan that to date has killed over 9,700 people, has impacted the production supply chains of its major automakers that are still recovering and trying to figure out the road back to some normalcy.
Toyota said it would resume production of three of its popular hybrids - Prius and two Lexus models - in Japan by March 28 after a two-week plant shut down for those vehicles since the natural disaster on March 11, according to a Bloomberg report.
Toyota said it might have already lost production of 14,000 vehicles due to short supplies of various parts.
Honda will reportedly extend closures at two of its factories in Japan through April 3, according to a spokesman.
Honda's research and development center in earthquake-devastated Tochigi might not be back online for several months, the carmaker said.
Nissan Motor Co.'s Chief Executive Officer Carlos Ghosn said approximately 40 auto-parts suppliers are still not back up to speed.
"This is serious and it's still difficult to evaluate," Ghosn said. "You have the earthquake, you have the tsunami, rolling blackouts, and fuel shortages hitting at the same time, and they aren't only hitting the car manufacturers, but also the suppliers and the dealers."
BNSF train strikes, kills three employees in shuttle van
According to several news reports out of the Pacific Northwest, a Burlington Northern Santa Fe freight train collided with a van that had been shuttling three BNSF employees, killing three with a fourth person seriously injured.
The crash occurred Wednesday afternoon at a rail crossing in Longview, Wash. when the van was departing a BNSF railyard destined for Vancouver, Wash.
According to a local newspaper, the Columbian, there is no automatic crossing barrier where the accident occurred to keep vehicles off the tracks.
The BNSF train of grain freight from Minnesota was reportedly not derailed.
Friday, March 25, 2011
Top Story
CEU prepares for possible “Emissions Trading System” on shipping
The European Union is reportedly preparing can step into the International Maritime Organization’s waters and impose a so-called “Emissions Trading System” if global talks don’t produce some results on shipping pollution.
The ETS was launched in 2005 as a major cap and trade program that enforces pollution limits to thousands of utilities and manufacturing facilities, where those emitting less emissions to sell surplus permits. One permit allows for one metric ton of CO2 to be discharged. Aluminum, aviation and chemical companies are next for the program.
The head of the EU’s EMT program, Yvon Slingenberg, was quoted in a Bloomberg report, saying: “Whereas a global agreement in the context of IMO is still the preferable option, and we continue working for that, we have started really seriously preparing for tackling the sector.”
Slingenberg also said an alternative to the EMT could be “charges or levies.”
“It could be for bringing them into the emissions trading system; it could be also other options such as charges or levies.”
Major Hong Kong retail supplier plans to grow profit by 50 percent
The Hong Kong trading company Li & Fung, a supplier of clothing, toys and furniture to retailers in the U.S Europe and Japan, announced it plans to expand its sourcing network over the next three years and grow operating profits by 50 percent to $1.5 billion by 2013.
The firm’s announcement comes on the heels of 2010 earnings that were 27 percent under forecasted profits of $1 billion, as per its previous three-year plan.
Li & Fung’s strategy has become more focused on Asia, and specifically, China, when it invested $900 million in the distribution and logistics firm IDS in order to spread its network throughout China and the rest of Asia.
“Now, with the acquisition of Integrated Distribution Services Group Limited, we are able to offer the most comprehensive supply chain solutions to our customers. It has also expanded our geographical coverage for future growth, while at the same time strengthening our distribution network to capitalize on growing opportunities in emerging markets,” said William Fung, group managing director, in a statement.
Ground breaks on big, speculative industrial real estate development in Southern Cal
A major Southern California-based industrial real estate developer has broken ground on a speculative 616,542 square-foot complex in Redlands, the first such property jump-started since 2009 in the Inland Empire, according to the Watson Land Company.
The real estate developer that reportedly owns 15 million square feet of industrial space in the region has yet to land a tenant for its latest development, according to the L.A. Times.
The company’s vice president of marketing and leasing, Ryan Watson, was quoted in the story as saying absorption rate for big industrial complexes has led to a “constrained market for properties above 500,000 square feet.”
Beef producers in the U.S. will be able to ship a broader range of products to Chile, as announced this week by Agriculture Secretary Tom Vilsack and U.S. Trade Representative Ron Kirk.
After months of bi-lateral trade meetings and the recent visit to Chile by President Obama, finally paid off.
The U.S. exported around $6.2 million worth of beef to Chile in 2010 and close $4.1 billion worldwide – up 32 percent over the previous year.
“The commitment of Chile and the United States to work together to promote science-based trade rules while providing our consumers with safe and wholesome foods is a win-win for both countries," said Kirk.
BNSF tragedy: Fourth employee in critical condition
As reported here yesterday, three BNSF employees were killed and a fourth seriously injured, when a freight train hauling grain from Minnesota to Seattle struck a BNSF shuttle van at a railyard in the Longview, Wash. area.
According to the Columbian newspaper out of Vancouver, Wash., Dwight Leonard Hauck, 52, of Auburn, Wash. is in critical condition at Oregon Health & Science University Hospital in Portland.
No official cause of the accident has been determined, however it has been reported that the crossing where the van was found 50 feet from the rail intersection at the bottom of an embankment, reportedly has crossing signs and stop signs but no lighted signals.
The other three BNSF employees killed were: engineer Tom Kenny, 58, a Seattle resident who had been with the BNSF for 22 years; Christopher Loehr, 28, a conductor trainee based in Seattle; and the driver of the van, Steven Sebastian, 60, of Castle Rock, Wash.
The train carrying 106 carloads of grain was reportedly not impacted by the accident.
Friday, March 25, 2011
Top Story
EU prepares for possible “Emissions Trading System” on shipping
The European Union is reportedly preparing can step into the International Maritime Organization’s waters and impose a so-called “Emissions Trading System” if global talks don’t produce some results on shipping pollution.
The ETS was launched in 2005 as a major cap and trade program that enforces pollution limits to thousands of utilities and manufacturing facilities, where those emitting less emissions to sell surplus permits. One permit allows for one metric ton of CO2 to be discharged. Aluminum, aviation and chemical companies are next for the program.
The head of the EU’s EMT program, Yvon Slingenberg, was quoted in a Bloomberg report, saying: “Whereas a global agreement in the context of IMO is still the preferable option, and we continue working for that, we have started really seriously preparing for tackling the sector.”
Slingenberg also said an alternative to the EMT could be “charges or levies.”
“It could be for bringing them into the emissions trading system; it could be also other options such as charges or levies.”
Major Hong Kong retail supplier plans to grow profit by 50 percent
The Hong Kong trading company Li & Fung, a supplier of clothing, toys and furniture to retailers in the U.S Europe and Japan, announced it plans to expand its sourcing network over the next three years and grow operating profits by 50 percent to $1.5 billion by 2013.
The firm’s announcement comes on the heels of 2010 earnings that were 27 percent under forecasted profits of $1 billion, as per its previous three-year plan.
Li & Fung’s strategy has become more focused on Asia, and specifically, China, when it invested $900 million in the distribution and logistics firm IDS in order to spread its network throughout China and the rest of Asia.
“Now, with the acquisition of Integrated Distribution Services Group Limited, we are able to offer the most comprehensive supply chain solutions to our customers. It has also expanded our geographical coverage for future growth, while at the same time strengthening our distribution network to capitalize on growing opportunities in emerging markets,” said William Fung, group managing director, in a statement.
Ground breaks on big, speculative industrial real estate development in Southern Cal
A major Southern California-based industrial real estate developer has broken ground on a speculative 616,542 square-foot complex in Redlands, the first such property jump-started since 2009 in the Inland Empire, according to the Watson Land Company.
The real estate developer that reportedly owns 15 million square feet of industrial space in the region has yet to land a tenant for its latest development, according to the L.A. Times.
The company’s vice president of marketing and leasing, Ryan Watson, was quoted in the story as saying absorption rate for big industrial complexes has led to a “constrained market for properties above 500,000 square feet.”
Beef producers in the U.S. will be able to ship a broader range of products to Chile, as announced this week by Agriculture Secretary Tom Vilsack and U.S. Trade Representative Ron Kirk.
After months of bi-lateral trade meetings and the recent visit to Chile by President Obama, finally paid off.
The U.S. exported around $6.2 million worth of beef to Chile in 2010 and close $4.1 billion worldwide – up 32 percent over the previous year.
“The commitment of Chile and the United States to work together to promote science-based trade rules while providing our consumers with safe and wholesome foods is a win-win for both countries," said Kirk.
BNSF tragedy: Fourth employee in critical condition
As reported here yesterday, three BNSF employees were killed and a fourth seriously injured, when a freight train hauling grain from Minnesota to Seattle struck a BNSF shuttle van at a railyard in the Longview, Wash. area.
According to the Columbian newspaper out of Vancouver, Wash., Dwight Leonard Hauck, 52, of Auburn, Wash. is in critical condition at Oregon Health & Science University Hospital in Portland.
No official cause of the accident has been determined, however it has been reported that the crossing where the van was found 50 feet from the rail intersection at the bottom of an embankment, reportedly has crossing signs and stop signs but no lighted signals.
The other three BNSF employees killed were: engineer Tom Kenny, 58, a Seattle resident who had been with the BNSF for 22 years; Christopher Loehr, 28, a conductor trainee based in Seattle; and the driver of the van, Steven Sebastian, 60, of Castle Rock, Wash.
The train carrying 106 carloads of grain was reportedly not impacted by the accident.
