Cargo Business Newswire Archives
Summary for June 15 - June 19, 2009:
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Monday, June 15, 2009

Top Story

Southwest Air launches first international cargo shipment

Southwest Airlines announced that today marks its first international cargo shipment through an interline cargo agreement with Canada’s WestJet.

Southwest said its cargo customers in Dallas, Denver, Houston, Las Vegas, Los Angeles, and Phoenix can ship to Calgary, Edmonton, Toronto, and Vancouver. 

The air carrier said the initial phase would only allow for the export of cargo from the U.S. to Canada.

Customers in the six U.S. cities can ship cargo via Southwest Airlines, where it will be routed through Las Vegas and transferred to a WestJet flight and ultimately delivered to one of the aforementioned Canadian cities, the airline said.    

South Korea’s trucker strike ends; agreement reached

Unionized cargo truck drivers Monday ended their five-day strike after reaching an agreement with Korea Express on renewing contracts of some of their colleagues.

The Korean Cargo Workers' Union and Korea Express, agreed on renewing contracts with 38 courier service operators around 5:40 a.m. In March, the firm terminated contracts with them after both sides failed to agree on service fee hikes.

The re-signed contracts will be under the same working conditions as before. The firm promised not to treat returning drivers unfairly and the two sides will drop lawsuits and complaints they filed against each other.

The union, which claims about 16,000 members, earlier warned that it would blockade major container warehouses, harbors or highways with their trucks to disrupt transportation and that its members would gather in Seoul for a massive rally over the weekend. But it did not carry out the plan.

-Korea Times

Boeing exec at Paris Show: Growth could resume in 2010

The head of Boeing’s commercial jet division sought Monday to dispel some of the palpable pessimism at this year’s Paris Air Show, arguing that the global economy was showing signs of a recovery and predicting a resumption of growth in airline traffic as early as 2010.

“At this point it appears to us that the economic conditions have bottomed,” said Scott Carson, chief executive of Boeing Commercial Airplanes. “If they have bottomed and a recovery comes next year, I think we have a shot at getting through.”

Boeing has eschewed any slowdown of its assembly lines this year, though it expects to cut production rates for its long-range, wide-body 777 jet by 28 percent in mid-2010. Planned ramp-ups of 767 and 747 production were shelved. Its European rival, Airbus, has reduced output of both its A320 single-aisle plane and its A380 “superjumbo” while abandoning earlier plans to increase production of its wide-body A330.

-NY Times

For the full story: www.nytimes.com

FedEx sees lessened 2009 cargo decline

FedEx vice-president of legal and regulatory affairs Steven H. Taylor said the company currently did not see as big a cargo volume decline as it did earlier in the year.

“Similar to the aviation industry’s forecast, we are anticipating lower volume this year but we hope to see an increase as the year progresses.

“This year, we are not optimistic of recording the kind of volume we experienced a couple of years ago.

“And the volume contraction in our domestic market (in the United States) is much smaller than the contraction in our international market,” he said.

-The Star (Malaysia)

For the full story: thestar.com.my/maritime

Northwest Passage shipping lane ice melt accelerates

The thinning Arctic ice pack is already producing the much-anticipated surge in commercial shipping through the Northwest Passage.

And as the pace of ice loss accelerates, experts say the federal government is not keeping up to ensure Canadians control it.

Three companies are now planning to send commercial vessels deep into the Passage's once ice-choked waters this season - triple the number from 2007. There are now more solely commercial vessels in the Passage than there were ships of all kinds just a few years ago.

-The Canadian Press

For the full story: www.google.com/hostednews


Tuesday, June 16, 2009

Breaking News

FMC files to drop Clean Trucks legal challenge

The Federal Maritime Commission announced today it filed in the U.S. District Court in Washington D.C. today a motion requesting the court to withdraw the FMC's challenge to some aspects of the Los Angeles-Long Beach Clean Trucks program.

In October 2008, the FMC filed a complaint on the Clean Trucks program with the U.S. District Court, which included the issue concerning concession requirements that mandated exclusive use of employee-drivers in the Port of Los Angeles.

The FMC said today that its decision to drop its legal challenge was due to what it termed “unrelated court proceedings” by the American Trucking Associations, Inc. (ATA) against the ports in U.S. District Court on April 28, and actions by the Port of Long Beach that “substantially eliminated the differences between the two ports' exemptions from its Clean Truck Fees and incentives to truckers.” The FMC also said “the steep economic downturn has made it unlikely that the circumstances presently exist to produce an unreasonable increase in transportation costs with respect to shipping through the San Pedro Ports.”

FMC Chairman Joseph E. Brennan said: "While today's action remains subject to approval of the U.S. District Court, I am gratified that we have taken this step to clear the path for the ports' Clean Trucks Programs."

“I am pleased that we can move forward with our Clean Truck Program without interference,” said Los Angeles Mayor Antonio Villaraigosa. “We hope and expect the FMC to similarly resolve its pending investigation so that we can all put these matters behind us and continue our work to green the port.”

“We’re pleased with the removal of the FMC’s challenges to our program,” said Port of Los Angeles Executive Director Geraldine Knatz. “Our Clean Truck Program is ahead of schedule with successful turnover of the older fleet. Today, more than 5000 2007-compliant trucks are handling over 50 percent of the container hauls at our port.”

At full implementation in 2012, the Clean Trucks Program is scheduled to remove over 16,000 older diesel trucks from the roads and reduce emissions by 80 percent.

Florida governor signs bill to streamline port security

Legislation aimed at reducing some of the cumbersome security requirements at ports as a way to spur international trade was signed Monday by Gov. Charlie Crist.

The governor, signing the bill at Port Everglades, said the measure wouldn’t mean the ports would be any less secure.

The measure (HB 7141) will reduce the number of security badges by requiring a single federal credentialling system. Workers who work at more than one port will also only need to have one background check. The bill also adds port workers to the panel that reviews seaport security standards.

Crist was joined for the signing by bill sponsors Sen. Dave Aronberg, D-Greenacres and Rep. Sandy Adams, R-Oviedo.

-Jacksonville Observer

For the full story: www.jaxobserver.com

Hanjin to launch Vietnam-U.S. direct service

South Korea’s Hanjin Shipping announced it would launch a service between Vietnam and the U.S. on June 21, departing from Malaysia's Port Kelang.

The SJX (South East & Japan Express) will target the Vietnamese and Southeast Asian markets, the carrier said.

Hanjin Shipping said by adding SJX calling Ho Chi Minh City to its current HES (Haiphong Express Service) offering, it would be able to provide customers a more stable service to the economic centers of Vietnam.

Ho Chi Minh City's new container terminal at Cai-Mep is a deep-water port close to the sea, which can accommodate mega-ships if tidal restrictions are mitigated by timely vessel operation, the company said.

The SJX service will be calling, utilizing six 4,000-TEU ships, at Port Kelang, Singapore, Hong Kong, Shenzhen (Yantian) Osaka, Tokyo, Long Beach, Oakland, Tokyo and Port Kelang, and from July 7, Hong Kong will be replaced by Ho Chi Minh City, Hanjin said.

Since the SJX is calling Japanese ports, the existing CAX (China America Express) will not call the Japanese ports, reducing transit time from Shanghai and Busan to the U.S., Hanjin said.

"Hanjin will continue to rationalize existing services while developing new ones to cope with the market situations and cargo demands," the company said.

The rotation on the SJX (South-East & Japan Express) will be Port Kelang, Singapore, Hong Kong, Shenzhen (Yantian) Osaka, Tokyo, Long Beach, Oakland, Tokyo, Osaka, Hong Kong, Port Kelang. And from July 7, Port Kelang, Singapore, Ho Chi Minh City, Shenzhen (Yantian), Osaka, Tokyo, Long Beach, Oakland, Tokyo, Osaka, Hong Kong and Port Kelang.

On the HES (Haiphong Express Service), the port rotation will be Busan (New Port/Gamman), Shanghai, Haiphong, Shanghai and Busan (New Port/Gamman). The two vessels deployed will be 600-TEUs.

On the CAX (China America Express), the existing old rotation is Shanghai, Busan, Osaka, Tokyo, Long Beach, Oakland and back to Busan. But the new route will be Shanghai, Busan, Long Beach, Oakland and back to Busan. The new route will be Shanghai, Busan, Long Beach, Oakland and back to Busan, Hanjin said.

Boeing exec at Paris Show: Growth could resume in 2010

The head of Boeing’s commercial jet division sought Monday to dispel some of the palpable pessimism at this year’s Paris Air Show, arguing that the global economy was showing signs of a recovery and predicting a resumption of growth in airline traffic as early as 2010.

“At this point it appears to us that the economic conditions have bottomed,” said Scott Carson, chief executive of Boeing Commercial Airplanes. “If they have bottomed and a recovery comes next year, I think we have a shot at getting through.”

Boeing has eschewed any slowdown of its assembly lines this year, though it expects to cut production rates for its long-range, wide-body 777 jet by 28 percent in mid-2010. Planned ramp-ups of 767 and 747 production were shelved. Its European rival, Airbus, has reduced output of both its A320 single-aisle plane and its A380 “superjumbo” while abandoning earlier plans to increase production of its wide-body A330.

-NY Times

For the full story: www.nytimes.com

FedEx sees lessened 2009 cargo decline

FedEx vice-president of legal and regulatory affairs Steven H. Taylor said the company currently did not see as big a cargo volume decline as it did earlier in the year.

“Similar to the aviation industry’s forecast, we are anticipating lower volume this year but we hope to see an increase as the year progresses.

“This year, we are not optimistic of recording the kind of volume we experienced a couple of years ago.

“And the volume contraction in our domestic market (in the United States) is much smaller than the contraction in our international market,” he said.

-The Star (Malaysia)

For the full story: thestar.com.my/maritime

Northwest Passage shipping lane ice melt accelerates

The thinning Arctic ice pack is already producing the much-anticipated surge in commercial shipping through the Northwest Passage.

And as the pace of ice loss accelerates, experts say the federal government is not keeping up to ensure Canadians control it.

Three companies are now planning to send commercial vessels deep into the Passage's once ice-choked waters this season - triple the number from 2007. There are now more solely commercial vessels in the Passage than there were ships of all kinds just a few years ago.

-The Canadian Press

For the full story: www.google.com/hostednews

 

Wednesday, June 17, 2009

Top Story

House Democrats wrangle over $450 bil transportation spending bill

House Democrats are crafting a transportation spending bill that would cost roughly $450 billion over six years, but no consensus has emerged on how to fund it, according to people familiar with the matter.

The bill for the first time would establish standards -- like reducing oil consumption and spurring economic growth -- that would influence which highway and transit projects get federal funding. It would also consolidate to six or fewer the number of Transportation Department programs used to channel money to states, giving local officials more flexibility to combat their transportation challenges.

The legislation is being drafted by House Transportation and Infrastructure Committee Chairman James Oberstar (D., Minn.), who plans to release a blueprint of his bill later this week. He declined to comment.

-WSJ

For the full story: online.wsj.com/article

K & N chief sees sustainable logistics recovery in 2010

Swiss logistics group Kuehne & Nagel has seen the pace of decline slow, but does not expect a sustainable recovery before 2010, its chief executive was quoted as saying on Wednesday.

"The decline in the volumes is not as dramatic as it was a few months ago, but we are not seeing a definite recovery," Reinhard Lange told Swiss newspaper Handelszeitung.

-Reuters

For the full story: www.reuters.com/article

Port of Oakland approves ban on dirty diesel trucks

A new ban on trucks that burn dirty diesel fuel is expected to help clean the air around the Port of Oakland.

The Port Commission approved the plan Tuesday to restrict truck models older than 1994, as well as models from 1994 to 2006 not equipped with soot filters, at the Port of Oakland.

-San Jose Mercury News

For the full story: www.mercurynews.com

Guangdong's April EU imports leap 33.4 percent over March

According to Guangzhou Customs statistics, South China’s Guangdong province reported a 33.4 percent increase from March to April to $1.8 billion in the value of imports from the European Union. Year-on-year losses were down to 4.7 percent from 36 percent in January. From January to April, Guangdong and EU bilateral trade value was $20.4 billion. Imports from the EU represented 61.9 percent of Guangdong's total import value.

Germany, England, Netherlands, France and Italy were the five largest trading partners of Guangdong. In April, the value of imports from Germany, France, Italy and England grew, respectively, 30.5 percent, 70 percent, 31.4 percent and 30 percent, Guangzhou Customs reported.

The strong increase in raw material and machinery equipment imports stimulated by the expectation in China economy's recovery was reportedly the reason for the strong growth. Premier Wen Jiabao signed a number of economic cooperation agreements with European Union during his visit to Europe earlier this year, which encouraged China buyers to order $10 billion from European suppliers.

In addition, Guangdong's aircraft order in April accounted for 14.8 percent in the total value of import from Europe.

Wuhan to invest $3.4 billion in port

Central China's Wuhan city government has applied to the state government to speed up port construction on its $3.4 billion port facilities projects, according to a Xinhua report.

By 2013, Wuhan, a city of 7.3 million in the central region of the Yangtze River, will start construction of 42 projects, raising its capacity to one million TEUs.

Navis lands DP World terminal

Zebra Enterprise Solutions, a division of Zebra Technologies, announced Jebel Ali Terminal 1 in Dubai implemented Navis’ SPARCS Analytics and SPARCS Monitor.

Operated by marine terminal operator DP World, Jebel Ali Terminal 1 in the United Arab Emirates (UAE) is one of the largest terminals in the world handling approximately 10 million TEUs annually, according to Navis.

Terminal 1 is one of four terminals that have implemented SPARCS Analytics and SPARCS Monitor, the IT company said.

The other terminals include DP World Jebel Ali Terminal 2, Empresa Nacional de Puertos del Peru S.A. and DP World Caucedo in South America.

U.K.’s Freightliner Group selects Tideworks Technology

Tideworks Technology announced at the Terminal Operations Conference and Exhibition for Europe (TOC 2009), it has been selected by United Kingdom-based Freightliner Group Limited to deploy its intermodal planning and automation solutions at various trial sites.

Freightliner is the largest rail operator in the U.K., operating 15 rail terminals and employing 1,800 people, according to Tideworks.

Tideworks said it would also adapt its systems to accommodate local business practices, government regulations and stowage requirements in the U.K.

Tideworks said its solutions would be integrated with Freightliner Group’s existing accounting and back office systems.

 

Thursday, June 18, 2009

Top Story

Maersk Line announces new chassis business model

Maersk Line announced it is going to change its traditional chassis fleet business model in the U.S. by offering them for use to draymen, ocean carriers, marine terminals and railroads.

“By offering superior flexibility to its users this model will provide greater efficiencies than possible today,” the company said.

“This model allows the industry to fundamentally change its carbon footprint. When implemented nationally, the carbon dioxide reductions are estimated to be over 4,000 tons,” the company said.

Maersk Equipment Services Corporation (MESC) is the maintenance and repair management group that provides chassis to Maersk Line. MESC will now provide leasing and pool management services through a new division, Direct ChassisLink. Maersk has a fleet of 90,000 chassis in the U.S.

“Truckers will be able to utilize the same chassis for multiple moves at different terminals, and for different Lines, driving out inefficiencies and providing the supply chain benefits that only the user controlling the chassis can deliver. When fully implemented, it will improve port air quality and reduce port area congestion.” said Maersk Inc. Vice President Andy Chinigo.

“The present chassis model has outlived its time. We can influence the carbon footprint that our industry creates through this approach,” Chinigo said.

Maersk referenced the Environmental Protection Agency’s (EPA) SmartWay Transport Partnership’s recommendations for the use of common chassis to reduce the environmental impact of drayage.

“According to SmartWay, common chassis pools can help trucking companies save fuel and reduce greenhouse gas emissions by minimizing unnecessary truck movements and idling associated with switching chassis. Drayage trucks using pooled chassis could save up to 0.8 gallons per trip, reducing nitrogen oxide and particulate matter emissions,” said Lee Kindberg, Maersk’s environmental director.

The US EPA DrayFLEET model estimates that if all drayage nationally switched to this model, the carbon footprint of drayage would be reduced by 50,000 to 70,000 tons per year, or the equivalent of saving over 5 million gallons of gasoline, Kindberg added.

According to Bill Williams, Maersk Line’s vice president of health, safety and environment, trucks won’t have to wait in slow-moving lines at marine terminals to pick up chassis, resulting in fewer emissions.

“In short, with well- managed and well-maintained chassis pools, everyone wins,” said Williams.

The first phase of the new chassis program is scheduled to begin in this year’s third quarter at the Port of New York and New Jersey, where Maersk said it would offer a fleet of over 5,000 chassis to industry users.

Less Good Hope for the Cape route with rising fuel costs

Due to rising fuel costs, ocean carriers are starting to abandon the cost-saving strategy of re-routing primarily empty eastbound ships from Europe to Asia via the Cape of Good Hope to get out of paying Suez Canal fees, according to shipping consultancy AXS Alphaliner.

Bunker price movement calculations from September 2008 to June 2009 show Cape of Good Hope cost-cutting strategy only works when fuel prices are below $350 a ton and surplus tonnage is available, according to research report.

Fuel prices have risen since May and now top $390-$410 per ton based on a 9,500-TEU vessel, the report said.

Maersk's AE-6 service through the Suez route using 9,500 to 10,000-TEU ships was started back up again in late May, and its AE-7 service using 14,000-TEU vessels returns in June retaining its Tangier to Shenzhen (Yantian) via the Suez, the report said.

CMA CGM/CSCL is scheduled to return to the Suez and bring its sailing rotation back to eight weeks from nine on its FAL-2 service deploying nine 9,500-TEU ships, the report said.

MSC’s Lion service returned through the Suez Canal in May.

Evergreen's merger with CSCL on its CEM service will not include re-routing around the Cape, the Alphaliner report said.

The Grand Alliance is the only group to retain its EU-3 service deployed by 9,000-TEU ships around the Cape, but it is likely this will change due to higher fuel prices, Alphaliner said.

Some U.S. port cities look towards Cuba

Some U.S. port cities are putting plans in place to increase travel and trade with Cuba — just in case relations with the communist island begin to thaw.

U.S. lawmakers are still far from lifting the 47-year-old trade embargo on Cuba, but the election of Barack Obama, along with a Democratically controlled U.S. Congress, has some city leaders banking on improved relations.

In New Orleans, city officials met recently with trade and Cuba experts to discuss how to rekindle relationships in Cuba and bolster trade with the island if relations improve. Leaders also plan to take part in a trip to Cuba with Tulane University this fall.

-USA Today

For the full story: www.usatoday.com/news

“Green Shoot” from higher U.S. steel production?

The steel industry certainly contributed to the economy’s collapse in the fall and winter months. As the crisis unfolded, steel production fell precipitously. But now output is gradually rising, which should be good news, and is … but not entirely.

The green shoot is there. In the last seven weeks, the nation’s steel mills have picked up the pace, churning out 1.14 million tons last week, up more than 15 percent since the end of April, when it was producing 984,000 tons, according to the American Iron and Steel Institute.

-NY Times

For the full story: economix.blogs.nytimes.com

Mexican Navy finds two tons of cocaine in frozen sharks in shipping containers

Navy inspectors at the southeastern port of Progreso, in Yucatan state, on Tuesday detected an anomaly in two shipping containers during a routine X-ray, according to a navy news release.

The inspectors zeroed in on a shipment of sharks. Upon slitting one of the frozen fish open, they found black bags containing rectangular packets filled with cocaine.

In all, authorities recovered 870 packages of cocaine, weighing 894 kilograms (about 1,967 pounds), the navy reported Wednesday.

-CNN

For the full story: edition.cnn.com

Friday, June 19, 2009

Top Story

Report: Logistics costs dropped in 2008 for first time in five years

Five straight years of logistics costs rising over 50 percent ended with those costs falling to 9.4 percent of U.S. Gross Domestic Product (GDP), down from 10.1 percent in 2007, according to the annual “State of Logistics Report” released by the Council of Supply Chain Management Professionals (CSCMP).

Total U.S. logistics costs dropped to $1.3 trillion last year, a decrease of $49 billion from 2007, the report said. Interest rates plunged 50 percent lower in 2008 over the prior year, the report said.

Since 1988, the CSCMP says its logistics report has tracked and measured all costs associated with moving goods through the U.S. supply chain. The report benchmarks metrics in U.S. logistics such as transportation and inventory-carrying costs, freight volumes, and revenues.

In 2008, the report said inventory-carrying costs dropped 13 percent, and were the driving force behind the year's decline in logistics costs. The decrease in carrying costs was due to both a 2.2 percent drop in inventories and an 11.2 percent decrease in the inventory-carrying rate. Warehousing costs, however, rose 9.5 percent with warehouse managers reporting that inventory turns were down substantially from earlier years as stock spends more time in warehouses, the report said.

Transportation costs were only up 2 percent over 2007 levels, which were not enough to offset the steep decline in inventory-carrying costs, according to the report. Trucking, which accounts for 78 percent of transportation, increased 1.3 percent compared to 4.4 percent for rail, air, and ocean modes. Truckload industry capacity dropped at unprecedented rates, with freight volumes declining faster than capacity, offering little incentive to keep fleets.

The report was released at the National Press Club in Washington, DC. A panel of senior supply chain executives from BNSF Railway, Dell, Kraft Foods, Limited Logistics Services, Saddle Creek Corporation, Sustainable Supply Chain Consulting, and YRC discussed the implications of the report's findings on their companies and on the industry, as well as the changes they will be implementing because of them, the CSCMP said.

Ford to move Asia HQ to China

Ford Motor Co. confirmed yesterday that it would move its headquarters for the Asia, Pacific and Africa regional headquarters to China from Thailand, xinhuanet.com reported.

Ford didn't disclose which city has been selected, although published reports suggest Shanghai will likely become home to Ford's new Asia-Pacific headquarters.

The move is said to be part of the company's continued integration of its once-disparate global operations, a key element of Chief Executive Alan Mulally's "One Ford" strategy. While the move will improve management efficiency, it also places Ford in the world's biggest auto market. China has been surpassing the U.S. in car sales this year.

-The Auto Channel

For the full story: theautochannel.com

Port of New Orleans sets leaner 2010 budget

Expecting the aftermath of a global recession to last well into next year, the Port of New Orleans is trying to keep a lid on expenses until the economy recovers.

Port profits fell short of projections for fiscal year 2009, largely due to fewer cargo shipments. Anticipating commerce to stay down during the months ahead, the port has a leaner budget for fiscal year 2010, which begins July 1.

The Dock Board, the seven-member panel that governs port activity, approved a $35.8 million budget at its monthly meeting on Thursday. The money would come primarily from cargo operations, projected to earn $27 million during 2010 compared with $30.2 million last fiscal year.

-Times-Picayune

For the full story: nola.com

Employees of container lines indicted on fraud in Taiwan

Staff of several of the world’s largest shipping lines have been indicted by prosecutors in Taiwan for allegedly inflating cargo figures fraudulently to claim government incentives.

The 46 people indicted include officials from Evergreen Marine, which operates the world’s fourth biggest container ship fleet; local rivals Wan Hai and Yangming Marine; APL, a unit of Singapore’s Neptune Orient Lines; the local logistics unit of Japan’s Nippon Yusen; and Shieh Ming-hui, director-general of the Kaohsiung harbour bureau.

Kaohsiung prosecutors accused Mr Shieh and some of his staff on Thursday of allegedly helping the five shipping lines to claim a total of T$330m ($10m, €7m, £6m) in government rewards over two years.

-Financial Times

For the full story: www.ft.com

ProLogis closes on $347 mil in loans to pay down debt

ProLogis, a global provider of distribution facilities, announced it has closed on three secured loans totaling $347 million with two life insurance companies in order to pay down debt.

Two of the loans, totaling $245 million, are ten-year, interest-only, secured corporate financings with 50 properties in 13 markets as security, ProLogis said.

The remaining $102 million loan is a five-year, interest-only, secured corporate financing with 14 properties in eight markets as security, the company said.

The proceeds will be used initially to repay line of credit borrowings and address the refinancing of the $285 million of remaining corporate maturities for 2009 and a portion of 2010 corporate maturities, the company said.

"Since the beginning of the year, we have repurchased approximately $691 million notional amount of corporate notes at a 29 percent discount, effectively de-leveraging by $200 million," said William E. Sullivan, chief financial officer. "The closing of these loans helps us in addressing our corporate refinancing requirements for the remainder of this year and into 2010,” he said.

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