Cargo Business Newswire Archives
Summary for May 25 - May 29, 2009:
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Tuesday, May 26, 2009

Top Story

Coca-Cola Bottling to expand Russia distribution for Campbell soups

Coca-Cola Hellenic Bottling announced it has entered into an agreement with Campbell Soup for the distribution of Campbell soup and broth products in Russia.

Under the terms of the agreement, Coca-Cola Hellenic said it would be responsible for sales, distribution; in-store marketing and trade receivables management while Campbell is to be responsible for consumer and market research, brand management, marketing, product development and production.

Financial terms for the distribution deal have not been disclosed.

Coca-Cola Hellenic currently distributes Campbell’s Domashnaya Klassika products in the Moscow region, and in August 2009, there are plans to expand distribution to over 100 cities and 12 regions of Russia, with nationwide distribution to follow.
Doros Constantinou, managing director of Coca-Cola Hellenic, said: ΄΄Partnering with the world’s largest producer and marketer of soup products offers exciting opportunities in Russia. Our distribution of premium soup and broth products represents yet another example of our ability to explore innovative opportunities for future growth." 

Russia is reportedly the second largest soup market in the world after China, and more than double that of the United States.

UPS Freight improves transit times; direct routing out of Kansas

UPS Freight, the heavy freight division of UPS, announced it has reduced transit times and is offering more direct routing to and from northeast Kansas to more than 70 cities from California to Virginia.

The freight company said it has reduced transit times on some 16,000 lanes over the past two years.

The expedited transit times will mean next-day service from Manhattan, Salina and Marysville to Kansas City, St. Louis, Wichita, Tulsa and Des Moines, UPS said.

As a result of the direct routing, UPS said Houston, Nashville and New Orleans all fall into an expanded two-day window for the three northeast Kansas locales.

In addition, freight earmarked for the area from as far away as Los Angeles and San Diego in the west and Norfolk and Richmond in the east will arrive within three business days.

Emission reductions bill aimed at Oakland heats up

A dispute about reducing diesel emissions from trucks, ships and trains at the Port of Oakland to protect public health is boiling over into the California Legislature.

Assemblyman Jerry Hill, D-San Mateo, has introduced a bill aimed at pressuring the city-owned port to speed up its efforts to curb diesel emissions, which elevate the cancer risk in parts of western Alameda and Contra Costa counties — especially in West Oakland.

-Contra Costa Times

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Chinese vice premier urges postal firms to improve rural services

Chinese Vice Premier Zhang Dejiang Tuesday urged the country's postal firms to promote their logistics services in rural areas to better serve farmers' needs.

Zhang made the comment at a two-day conference held here to promote the experiences of Shandong Province's postal firms in providing logistics services for farmers.

Postal firms in east China's Shandong began to offer such logistics services as delivering farm produce in 2003, and has so far developed chain-store and door-to-door delivery services for farmers.

Zhang called on the country's postal firms to follow Shandong's example so as to accelerate rural services.


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German discount grocer to build distribution center in Georgia

ALDI Inc., which has 20 discount grocery stores in metro Atlanta, plans to build a 780,800-square-foot distribution center in Georgia.

-Charlotte Business Journal

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Direct rail links to U.S. airports for travelers expanding

Riding the rails between downtown and the airport is becoming a reality for more U.S. travelers.

Direct rail connections to Seattle-Tacoma and Dallas Love Field are expected to open later this year. Other large airports with an approved rail project that will be completed in the next few years: Salt Lake City, Phoenix Sky Harbor, Miami, Dallas/Fort Worth and Oakland.

Several other airports, including Denver, Washington Dulles and Los Angeles, have similar plans, but their projects are years from completion.

-USA Today

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Pot hidden in patio furniture seized at U.S.-Mexico border

On Thursday, a California resident attempted to smuggle 94 pounds of marijuana into the United States in an unusual way: inside cement patio furniture, according to a news release from the U.S. Customs and Border Protection.
CBP officers at the San Luis Port of Entry discovered the marijuana in the furniture after the driver, a 30-year-old man, behaved inconsistently.

-Yuma Sun

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Somali pirate says pirating days are numbered

Driving a luxury 4x4 car and smoking imported cigarettes with an expensive satellite phone at his side, Mohamed Said fears his flashy lifestyle as a Somali pirate could be about to come to an end.

He and his colleagues have hijacked nearly 30 vessels this year, meaning 2009 is on course to be even worse than last year, when pirates from the Horn of Africa nation seized 42 ships.

But the crime wave has prompted a hurried deployment in the region by foreign navies, thwarting several attacks -- and now the weather is turning too, making the seas rougher and the pirates' prey harder to hunt.


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Coast Guard and Navy team to test underwater port security

An experiment conducted by Navy, Coast Guard and local and state authorities in Corpus Christi, Texas, this past week is allowing the agencies to test their tactics, equipment, procedures and response to an underwater explosive threat in a U.S. port or harbor.

Participants intend to use their experiences in developing a preliminary concept of operations for other type events.

Wednesday, May 27, 2009

Top Story

Hanjin opens triple-berth container terminal in Busan

South Korea's Hanjin Shipping announced the opening of its Busan New Port Phase 2-1 Terminal, which includes three berths running a full kilometer-and 18 meters along side, and able to handle up to three 12,000-TEU ships simultaneously.

According to Hanjin, the terminal features the "world's first automated horizontal yard crane system, which made it possible to operate 200 vessels carrying 200,000 TEUs for the last three months since the first voyage of Hanjin Los Angeles on February 6," the company said in a statement.

Hanjin Shipping's Phase 2-1 Terminal handles 18 weekly services including 14 run by the CKYH shipping alliance that includes Coscon, "K" Line, Yang Ming and Hanjin as well as four feeder services by STX Pan Ocean, KMTC and Heung-A Shipping.

According to Hanjin New Port Company, the goal is to attract 1.6 million TEUs by 2010 and two million TEUs by 2011.

Report: A third of Port of Tacoma staff sign “no-confidence vote” petition against director

In the wake of last week’s layoff notifications at the Port of Tacoma, dozens of port employees signed a petition declaring a “no confidence vote” in the port’s Executive Director Tim Farrell. The petition included at least 78 signatures – about a third of the port’s current staff.

The petition began circulating May 19, the day after 47 port employees received letters notifying them that their jobs had been eliminated.

The port’s cargo volume has dropped off dramatically in the past two years, and Farrell has said that the port needs to retool the size of its staff to match its shrinking business.

-Tacoma News Tribune

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APL to raise Asia-Europe rates in June

Neptune Orient Lines (NOL) announced its container-shipping division, APL, would raise freight rates for the Asia-Europe trade routes starting next month.

APL said it would raise Europe to Asia eastbound by $100 per-TEU for scrap commodities such as paper. The westbound Asia to Europe trade lane will climb to $300 per-TEU for all cargo to the Mediterranean and Northern Europe.

Puget Sound pilots denied rate increase

Responding to pressure from Puget Sound ports and ship owners, the Washington Board of Pilotage Commissioners has denied a request for a 6 percent rate increase from Puget Sound pilots.

This is the first time in the past five years that a rate increase request has been denied the pilots, who guide large vessels into ports throughout Puget Sound.

-Puget Sound Business Journal

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New Zealand port says its ready for bigger box ships

Ports of Auckland Ltd is on "stand-by" to handle the next generation of large container ships likely to come to New Zealand.

The port said today it has resource consents for berth deepening and wharf works at its Fergusson container terminal for larger ships.

The next generation of container ships to service New Zealand is expected to be able to carry between 5000 and 7000 TEU, or twenty foot equivalent containers, up from 4100 TEU now.

-Stuff (New Zealand)

Matson CLX service makes first call at Xiamen

Matson's CLX service made its inaugural call at the Port of Xiamen, highlighted by a ceremony hosted by the carrier and Xiamen Port Holdings marking the arrival of the MV Manulani.

The CLX service includes Hawaii and Guam in the west and Xiamen, Ningbo and Shanghai in the east.

Matson said its ships would call at Xiamen to enable it to extend its service model to the local shippers as well as its industry-leading punctuality, which the carrier claims to be "hour-definite."

Thursday, May 28, 2009

Top Story

EPA, Justice Dept. file civil complaint against U.S. engine importers out of China

The U.S. Environmental Protection Agency and Justice Department announced it has filed a civil complaint against PowerTrain Inc., Wood Sales Co. Inc., and Tool Mart Inc., all based in Golden, Miss., alleging that they imported and sold more than 78,000 Chinese-made engines that do not meet federal air pollution standards.

The lawsuit filed in U.S. District Court in Washington, D.C., is, according to the official statement, “part of an ongoing effort to ensure that imported non-road engines and equipment comply with the Clean Air Act’s emissions standards.”

The filing marks the first federal court action enforcing the Clean Air Act’s emissions standards for portable generators, water pumps, and other “non-handheld equipment.”

The complaint alleges that the non-road engines imported and sold by PowerTrain, Wood Sales and Tool Mart from September 2002 through at least May 2007 were not certified to meet applicable emission standards, the
EPA said.

The Clean Air Act prohibits any non-road engine from being imported and sold in the U.S. unless covered by a “certificate of conformity” indicating that the engine meets applicable emission standards, the EPA said.

The complaint also alleges that the companies failed to provide buyers with the full emission-system warranty required by the Clean Air Act for all of the non-road engines that were sold, to install proper emission-compliance labels on many of the engines and to fully respond to EPA’s administrative information requests issued under the Clean Air Act, the EPA said.

The complaint, filed by the Department of Justice on behalf of EPA, seeks civil penalties up to the maximum amount authorized by law, as well as actions by the companies to remedy the violations and to mitigate any excess pollutant emissions caused by the violations.

The EPA said it estimates the engines have contributed to excess emissions of more than 150 tons of hydrocarbons and nitrogen oxides, and more than 5,000 tons of carbon monoxide.

In 1995, EPA established regulations to reduce emissions of hydrocarbons from small gasoline-powered non-road engines. To obtain a certificate of conformity for non-road engines from EPA, a manufacturer must submit an application that describes the non-road engine and its emission control system, and that demonstrates that the non-road engines will meet applicable federal emissions standards. After obtaining a certificate of conformity, applicants must also comply with specific labeling, warranty and other requirements to ensure that the non-road engines will meet emissions standards in use.

More information vehicle and engine imports:

Penske Logistics expands its SmartWay commitment with EPA

Penske Logistics announced it has expanded its commitment to the U.S. Environmental Protection Agency's SmartWay Transport Partnership.

Penske Logistics said it is now also certified for its transportation management approaches as a logistics provider and has earned the EPA program's highest rating of 1.25, representing outstanding environmental performance.

"As a lead logistics provider and manager of other third-party carriers on behalf of our customers, the majority of the carriers we use are in the SmartWay program," said Vince Hartnett, president, Penske Logistics. "Our preference is to use SmartWay carriers as our first choice when possible and to encourage all the carriers doing business with us to join the program."

Penske Logistics said it would help work towards SmartWay's goal to reduce 33 to 66 million metric tons of carbon dioxide and up to 200,000 tons of nitrogen oxide per year by 2012 by improving the environmental performance of freight operations. Carbon dioxide is the most common greenhouse gas, and nitrogen oxide is an air pollutant that contributes to smog.

Launched in February 2004, the SmartWay Transport Partnership aims to achieve fuel savings of up to 150 million barrels of fuel per year. The partnership’s aim has been to bring together major shippers, trucking companies, railroads and logistics companies to pursue emissions reductions and other environmental improvements. The partnership currently has nearly 1,900 participants.

For information about the SmartWay Transport Partnership visit

Foreign Trade Zone seminar at JAXPORT

Importers and exporters interested in saving money by operating out of a foreign trade zone can learn more at a seminar June 16.

The seminar, hosted by the Jacksonville Port Authority, will explain the benefits of operating within the more than 1,000 acres in Jacksonville’s foreign trade zone. Traffic through Jacksonville’s foreign trade zone No. 64 is increasing, and so is interest as more exporters and importers realize the following advantages of doing business within the zone.

-Jacksonville Business Journal

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IES signs John S. James Co. for 10+2 software

Logistics industry software provider IES Ltd. announced Savannah-based John S. James Company is using IES’s Importer Security Filing (ISF) 10+2 solution.

According to Len James, director of finance and accounting for John S. James: “We recently implemented the ISF 10+2 Solution. The quality of the IES products as compared to other software vendors was immediately evident during the implementation process. The ease of the transition into ISF compliance really put into perspective the level of expertise that IES has achieved as a logistics and transportation software company.”

John S. James employs over 150 customs and forwarding specialists.

IES said it is celebrating its 20th anniversary this year with offices in the U.S. and Hong Kong.

U.S. Shipping receives safety, environmental commendation from American Maritime Officers

U.S. Shipping Partners L.P. announced today that it has received a commendation by the American Maritime Officers for its safety and environmental record.

Collectively, 10 vessels in the U.S. Shipping Partners fleet have gone a total of 44.5 years without a lost-time accident (LTA), the company said.

The integrated tub barge, ITB New York has reached the safety milestone of 10 years without an LTA, U.S. Shipping said. The ITB Philadelphia has achieved 14 years of operation without an environmental incident, and several other vessels in the fleet have similarly operated for extended periods, according to the shipping firm.

An LTA is defined as an accident resulting in a crew member sustaining an injury requiring him or her to miss at least one shift, and the number of LTAs occurring onboard a ship serve as a maritime industry standard for measuring safety performance.

In 2008, U.S. Shipping received the 2008 William M. Benkert Silver Award for environmental excellence. In 2007, U.S. Shipping said it was again recognized with the Chamber of Shipping of America's Environmental Achievement Award.

U.S. Shipping said it has also been recognized with the Green Flag Award from the Port of Long Beach.

Friday, May 29, 2009

MOL America to relocate HQ from California to Illinois

MOL (America) Inc. announced it would relocated its North America headquarters, including trade management staff, from Concord, Calif. to Lombard, Illinois.

Noboru Kitazawa, president of MOL (America) Inc, said: ”The consolidation will allow for a greater synergy among the interactions between trade management and the product management team, which is already located in Lombard. This will improve our ability to optimize vessel and intermodal networks to enhance revenue and cost management, as well as broaden our employees’ career opportunities.”

MOL said the staff relocation to Lombard is scheduled for early August 2009.

Maersk Broker: Containership charter market likely to improve this year

Container vessel chartering rates have probably hit bottom and the container ship chartering market is likely to pick up at the end of 2009, said the head of Maersk Broker, one of the world's largest shipbrokers.

The global freight market has been hit hard by slowing trade due to the economic downturn, and container shippers have reported sharp decreases in freight volumes and rates.

"In our opinion the container vessel chartering rates have generally reached the bottom. They could remain there for a while, but it won't get much worse than now," Maersk Broker Chief Executive Officer Jorn Nielsen told Reuters this week.


For the full story:

Baltic Dry Freight Index hits eight-month high

The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, rose to an eight-month high on Friday driven by Chinese demand for goods.

The index, which gauges the cost of shipping resources including iron ore, cement, grain, coal and fertiliser, rose 5.94 percent or 196 points to 3,494 points on Friday, hitting its highest level since September 29, 2008.


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INTERPOL Secretary: Global piracy problem requires law
enforcement, too

The INTERPOL Secretary General Ronald K. Noble has today said that maritime piracy should be considered an international organized crime problem requiring a law enforcement investigative approach, rather than a solely military response.

Addressing the G8 Justice and Interior Ministers’ meeting in Rome (28 - 30 May), the head of INTERPOL said that law enforcement could provide the critical link between military interventions which led to arrests, and the prosecution of maritime pirates as well as investigation of their modus operandi. Which he said was a vital link currently missing.

-Afrol News

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Renault, Nissan to boost collaboration, including logistics

Carlos Ghosn, the head of Renault SA and Nissan Motor Co., said Friday that he wants the alliance between the two car makers to intensify, yielding additional savings of €1.5 billion ($2.09 billion) to help the companies cope with the downturn in the global auto market.

The companies will look at ways of boosting cooperation in purchasing, sourcing, common platforms and parts, powertrains, support functions, logistics, advanced technologies and zero-emissions operations.


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Air market has reportedly bottomed out

Citing improvements in airline passenger and freight growth, equity research firm Macquarie Research upgraded the commercial aerospace sector on Friday to overweight from market weight.

Last week, the International Air Transport Association said global passenger demand fell 3.1% in April compared to 11.1% drop in March. Even after accounting for the shift in the Easter holiday to April from March, demand deterioration appeared to improve.

Among air-freight carriers, a lead economic indicator, the decline in demand appears to have bottomed out. After collapsing 22.6% in December and 23.3% in January, the deterioration in monthly freight volumes slowed to 21.4% in March and 21.7% in April, IATA said.


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