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Summary for August 23 - August 27, 2010:
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Monday, August 23, 2010

Top Story

OOCL readies customers for EU advance manifest reg

Hong Kong-based Orient Overseas Container Line informed its customers of the upcoming European Union (EU) requirements for inbound cargo on vessels destined for ports there, which are scheduled to commence December 31, 2010.

The new regulation requires all ocean carriers to submit an Entry Summary Declaration (ENS) for all import and Foreign Cargo Remaining on Board (FROB) to EU Customs at a vessel's first EU port of call at least 24 hours prior to loading of vessels bound for that port, and no later than two hours prior to arrival at the first EU port call.

To comply with the regulation OOCL said it would request customers to provide complete and accurate shipping instructions before the shipping instruction closing time, which would be the same as other advance manifest-requiring countries such as U.S., Canada or Mexico.

The advance manifest information will be published on OOCL’s websites as well as being included in the carrier’s “Booking Acknowledgements/Confirmations,” the company said in a statement.

The mandatory data elements for an Entry Summary Declaration, which must be in the shipping instructions include:

  • Full name and address (including postal code) of shipper and consignee

  • Full name and address (including postal code) of notify party where goods are carried under a negotiable “to order” B/L

  • Container number

  • Acceptable goods description in line with the EU Guidelines on acceptable and unacceptable terms for the descriptions of goods for exit and entry summary declarations” (not necessary if the 4 digits HS code is provided)

  • Preferably the first four digits of the HS code for each goods item.

  • Number and type of packages

  • Cargo gross weight

  • UN dangerous goods code where applicable

  • Seal number

  • Method of payment for transport charges in case of prepaid (for example “cash payment,” “cheque payment,” “electronic credit transfer,” etc.)

OOCL said it would send the Entry Summary Declaration for Customs at the “first office of the entry (first EU port of call), which will subsequently carry out a security risk assessment. In the situation where a so-called “Risk Type A = do not load:” is identified, subsequent ports and port of loading will be informed, the carrier said.

For more information:


Expeditors’ chief bullish on China

The Shanghai Composite Index touched a three-month high today—a reminder of China's incredible growth, despite concerns about stock market and housing bubbles.

One company taking advantage of China's explosive economy is Expeditors International of Washington. 

The air and ocean freight giant, touches both the Chinese and US economies. It started in China as a joint venture in the early '90s and it's chief executive remains bullish.

"Most people don't know how to deal with China, you don't go in and start talking about business right away, you build rapport," Pete Rose, chairman and CEO of Expeditors told CNBC's “The Strategy Session” on Thursday.

There are two phenomena going on in China: "outsourcing to themselves—going north and west looking for cheaper labor" and "they have an illegal immigration from Cambodia and Vietnam," Rose said.

Currently Expeditors owns 100 percent of its 53 offices in China and is expected to add 17 more.

As far as the US economy goes, "last year was pretty much an unmitigated disaster [for Expeditors], the worst I've ever seen." Rose said.
But, Rose quickly added, “this year we are already ahead of our 2008 levels which was our best year ever."


For the story source:

India’s coal exports could drop up to 38 percent

Iron ore shipments from India, the world’s third-largest exporter, may fall as much as 38 percent this fiscal year because of higher taxes and freight charges, and a ban imposed by the state of Karnataka.

Overseas sales may decline to as low as 66 million metric tons in the year ending March 31 from about 106 million tons a year ago, Federation of Indian Mineral Industries President Siddharth Rungta said today in a phone interview. Rungta had estimated a 25 percent drop in April.

India, which increased freight charges and taxes on ore exports to boost local supplies and curb costs, may consider a nationwide ban on ore exports “if needed,” Steel Minister Virbhadra Singh said on May 19. Purchases by China, the largest buyer of the steelmaking ingredient, rose for the first time in four months in July, indicating steelmakers are restocking after depleting inventories.


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Logistics tops agenda at ASEAN summit

Challenges and ways of speeding up the integration of the logistics industry among the Asean nations topped the agenda of a seminar in the central city of Da Nang Sunday, Vietnam News Agency (VNA) reported.

While opening the event in the run-up to the 42nd Asean Economic Ministers' Meetings (AEM), Vietnamese Deputy Minister of Industry and Trade Nguyen Cam Tu said the Association of Southeast Asian Nations (Asean) considers liberalization of logistics one of its top priorities and is currently developing a specific roadmap for this field.

The objective of the roadmap is to accelerate liberalization and facilitation of logistics sub-sectors until 2013 and turn the Asean into a logistics center in the Asian-Pacific region in the long-term.

Tu said the integration of the logistics industry will help accelerate linkages between production sectors in each country, as well as among the Asean member nations, thereby turning the bloc into a united market and a common production space as set in the overall plan on the Asean Economic Community.

Experts shared the view that, during the logistics integration process, several regional countries, including Vietnam, are facing challenges, especially differences in regulations over transport, customs clearance for commodities, administrative procedures and technical standards.

The shortage of managerial personnel in the logistics industry in a number of regional countries is considered the biggest challenge, according to Japan External Trade Organisation's (JETRO) representatives.

-Bernama (Malaysia)

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Search is on for stowaways at Ft. Lauderdale port

Border patrol and law enforcement officers are hunting for a group of stowaways who arrived Monday morning on a container ship from Honduras at Port Everglades in Fort Lauderdale.

Officials set up a perimeter around the ship, the Elb Carrier, owned by Crowley Marine Services.

Agents from U.S. Customs and Border Protection along with Broward sheriff's deputies and the Coast Guard personnel are involved in the search, Port Everglades spokeswoman Ellen Kennedy said.

About 5 a.m., a harbor pilot, who was guiding the ship into the port, noticed people on the ship who were not wearing the orange jumpsuits usually worn by the crew. When the men saw that the pilot had noticed them, they ran, Kennedy said.

Workers were not allowed to unload containers until 8 a.m.

Officials have not said how many stowaways they suspect are on the ship or if any escaped before they arrived.

-Miami Herald

For the story source:


Tuesday, August 24, 2010

Top Story

COSCO Pacific's first half profit surges 82 percent

Cosco Pacific Ltd., Asia's third- largest container-terminal operator, said first-half profit rose 82 percent on recovering world trade and the sale of a stake in a logistics venture.

Net income rose to $189.9 million, or 7.96 cents a share, from $104.5 million, or 4.66 cents, a year earlier, the terminal operator said today. The company made an $84.7 million gain from selling its stake in Cosco Logistics Co. to its parent.

Cosco Pacific's container traffic rose 19 percent in the period as a revival in consumer spending prompted retailers to restock Asian-made goods. Global container port volumes may rise 12 percent this year, with growth led by China, according to Alphaliner, a shipping-data provider.


For the full story:

Taiwanese carriers to divest from Yangtze River Express

China Airlines (CAL) , Yang Ming Marine Transport Corp. and Wan Hai Lines said Tuesday they had decided to divest themselves of their stakes in Yangtze River Express Airlines, a China-based cargo carrier.

CAL, Taiwan's largest international carrier, will sell the 25 percent stake it owns in Yangtze River Express for 312.5 million Chinese yuan (US$46 million) back to Hainan Air Group, while Yang Ming Marine will dump its 12 percent stake, worth 150 million yuan, and Wan Hai will dispose of a 6 percent stake for 75 million yuan, also to Hainan Air.

The three companies bought Yangtze River Express stakes in 2005 with CAL becoming the largest foreign shareholder.

-Focus Taiwan News Channel

For the full story:

CMA CGM launches Asia, Mex, West Coast LatAm joint service

French shipping group CMA CGM announced the launch of its news ACSA 2 direct service between Asia, Mexico and the West Coast of South America.

The service is a partnership between CMA CGM, CSCL, Hanjin Shipping and Hyundai Merchant Marine.

The ACSA 2 service will deploy 10 vessels with a capacity of 2350 to 2550 TEUs on the following rotation: Shekou, Ningbo, Shanghai, Pusan, Manzanillo (Mexico), Buenaventura, Guayaquil, Callao, Iquique, Valparaiso, San Vicente, Manzanillo (Mexico), Pusan and return to Shekou, the carrier said.

The ACSA 2 service will start its eastbound rotation at Shekou on September 13th, 2010, the shipping line said in a statement.

“This new service comes in addition to the group’s existing ACSA service, providing our customers with fast transit times and a unique port coverage thanks to the addition of 3 new calls in Guayaquil, Iquique and Valparaiso,” said Jean-Yves Duval, vice president Caribbean and Latin America Lines, CMA CGM Group.

Three Gorges Dam shipping halted from flooding

Authorities have halted shipping through China's massive Three Gorges Dam on the upper reaches of the Yangtze river because the dam will experience another flood peak Tuesday.

Water levels at the world's largest hydroelectric project have been at high levels for weeks from record rains, which have also lashed other parts of the country, triggering landslides and flooding, and causing deaths and billions in damage.

The State Flood Control and Drought Relief Headquarters said that late Monday the water level in the dam was about 500 feet (152 meters), 24 feet (7 meters) above the flood alarm level but still below a peak of about 518 feet (158 meters) reached earlier this summer. The reservoir's maximum capacity is 574 feet (175 meters).

The statement posted on the organization's website said shipping services through the dam were suspended twice in July because of heavy water flows into the dam, a $23 billion project that was built to end centuries of floods along the Yangtze River basin.

This has been the worst year in a decade for floods and landslides in China, with widespread evacuations and washed out villages.


For the full story:

Nine-day traffic jam continues on Beijing-Tibet expressway

Thousands of vehicles were bogged down Monday in a more than 100-kilometre (62-mile) traffic jam leading to Beijing that has lasted nine days and highlights China's growing road congestion woes.

The Beijing-Tibet expressway slowed to a crawl on August 14 due to a spike in traffic by cargo-bearing heavy trucks heading to the capital, and compounded by road maintenance work that began five days later, the Global Times said.

The state-run newspaper said the jam between Beijing and Jining city had given birth to a mini-economy with local merchants capitalizing on the stranded drivers' predicament by selling them water and food at inflated prices.

That stretch of highway linking Beijing with the northern province of Hebei and the Inner Mongolia region has become increasingly prone to massive jams as the capital of more than 20 million people sucks in huge shipments of goods.


For the full story:


Wednesday, August 25, 2010

Top Story

New inland port opens in North Dakota

By Fred McCague, CBN contributing editor for Canada

The Port of North Dakota opened its new intermodal yard in Minot, North Dakota on August 23, unloading 90 empty OOCL 20-foot and 40-foot containers from BNSF double stack cars.

Operated by North Dakota Port Services (NDPS), the new facility currently has a 4,200 foot track and a 3,000 foot track on a 140 acre site.

Two  LeTourneau  and one Taylor top picks handle the containers, and NDPS has 26 new container chassis.

Spokesman for NDPS, Tim Woods, said long term plans call for the addition of a 9,000 foot track that will extend right into BNSF’s nearby Gavin yard.

The first of the empties were dispatched from the yard for to load grain products that are booked on an OOCL ship loading Seattle in early September.

Woods said the region produces peas, beans and lentils, flax, canola, sunflower seeds and other specialty grains. The market area includes parts of South Dakota and extends north into Canada.

While the first containers arrived empty, Woods said the demands of the oil industry could soon lead to a balanced trade.

Attending the opening ceremony were North Dakota governor John Hoeven and Congressman Earl Pomeroy. Also in attendance were John Miller, BNSF vice president Agricultural Trade, Ed Zaninelli, OOCL vice president Transpacific Westbound Trade.

The Minot Daily News reports a Chinese trade delegation in the area escorted by the USA Dry Pea & Lentil Council to inspect this year’s crop, also attended the opening ceremony.

Report: Dubai World could sell port business amid close to $40 bil worth of debt

Dubai World is prepared to sell prized assets including previously ringfenced ports firm DP World in a bid to raise as much as $19.4 billion to repay creditors, a document obtained by Reuters showed.

The document, presented on July 22 to creditors at Dubai's lavish Atlantis Hotel, also revealed that the state-owned conglomerate's debt stood at $39.9 billion, higher than the widely expected mid-$20 billion range.

Dubai World, battling to win creditor support for a restructuring by October 1 in order to start cleaning up its balance sheet, warned a sale of assets right now would generate a maximum of $10.4 billion, according to the document, which was obtained on Wednesday.

The midpoint of the range that Dubai World expects to raise from selling assets is $17.6 billion, the document showed.

Among the prized assets also slated for sale are stakes in luxury retailer Barney's, the Atlantis Hotel and casino operator MGM Resorts International, within the plan to raise up to $7.6 billion in five years.

The conglomerate also identified Jebel Ali Free Zone and Dubai Maritime City (DMC) and Dry Docks World among "strategic assets" that may yield up to $11.8 billion within eight years.

A deal has already been agreed with core lenders representing 60 percent of the loans, but Dubai World needs two-thirds acceptance to be able to take the deal to the tribunal in the event of a rebellion.


For the full story:

Con-way Inc. president resigns

The president of Con-way Inc.'s freight business has resigned to pursue other interests, the trucking company said Tuesday.

Con-way CEO Douglas W. Stotlar will replace John G. Labrie as president of Con-way Freight on an interim basis, the company said. Stotlar expects to hold the job for the next six to 12 months.

Shares fell 32 cents to $26.84 in morning trading, after hitting a fresh 52-week low of $26.31 early in the session.


For the story source:

Port of Seattle CEO declines pay raise despite strong evaluation

Port of Seattle CEO Tay Yoshitani received a strong performance evaluation from the Port Commission on Tuesday, but said he wouldn't accept a 4 percent raise to his $334,000 salary.

The commission gave Yoshitani an "outstanding" rating on his 2009 performance evaluation — a step that in normal financial times would have entitled him to a raise.

Yoshitani's evaluation credited his "extraordinary leadership" with steering the Port through the recession in strong financial condition.

He cut expenses last year by more than 11 percent, maintained the Port's strong credit ratings, recruited three new container shipping lines, obtained financing for an airport rental car facility, and recovered all but $9 million of the Port's $101 million investment in the Eastside Rail Corridor, the report said.

Even without a raise, Yoshitani, who was hired in 2007, earns far more than Gov. Chris Gregoire, Seattle Mayor Mike McGinn and King County Executive Dow Constantine, all of whom are paid under $200,000.

-Seattle Times

EPA expected to announce 3-mile rule off Calif. coast today

A federal proposal prohibiting cruise and cargo ships from dumping sewage within 3 miles of California's shoreline would close a major loophole in state law and take aim at a long-ignored source of marine and beach pollution.

Officials with the U.S. Environmental Protection Agency say the measure, expected to be announced today, will prevent 20 million gallons of sewage from swirling in the state's coastal waters each year while bolstering authorities' ability to impose stiff penalties on offenders.

Nevertheless, the industry is concerned that the new federal order could hamper operation of older ships with less sewage-storage capacity. Such ships may be forced to head out to sea early when they hit their maximum capacity, said John Berge, vice president of the Pacific Merchant Shipping Association in San Francisco.

"In those cases, I don't think they would bother coming in to port," Berge said.

-SF Chronicle

For the full story:


Thursday, August 26, 2010

Top Story

For-hire truck tonnage crept back up in July

For-hire truck tonnage was up 1.5 percent in July on the heels of June’s adjusted slip of 1.6 percent, according to the American Trucking Associations.

July's tonnage was up 7.4 percent over July 2009, marking the eighth consecutive year-over-year gain.

Tonnage is up 6.7 percent in 2010 over the same period in 2009.

However, the ATA’s chief economist, Bob Costello, presented a subdued outlook on the industry.

“The economy is slowing and truck freight tonnage has essentially gone sideways since April 2010,” he said.

COSCO’s EVP calls upon other carrier chiefs to be “level-headed”

China Cosco Holdings Co., Asia’s largest shipping company by market value, said lines needs to stay “level-headed” to prevent a capacity glut from overwhelming a rebound in cargo demand.

“We call upon chief executive officers to remain level- headed to help ensure stable growth,” Executive Vice President Sun Jiakang told reporters today in Hong Kong. “The global economy is recovering, but it’s a process that can take years.”

China Cosco and China Shipping Container Lines Co. both said today they won’t order any new vessels this year as shipyards works through box-ship backlogs with a combined capacity equal to about a quarter of the existing fleet.

China Shipping may lease container vessels or buy second- hand ones through the first half of next year, he said. The China Shipping (Group) Co. unit and China Cosco, which also operates dry-bulk ships, both yesterday reported first-half profits, ending 18 months of losses.

Transpacific container rates have risen as much as 37 percent from June to $2,600 for a 40-foot equivalent box, said China Shipping Container Managing Director Huang Xiaowen. Asia- Europe rates are little changed from June at $1,750 for a 20- foot unit, he said.


For the full story:

Report: NY-NJ port able to contribute $1 bil towards Bayonne Bridge

The Port Authority is ready to provide $1 billion toward either rehabilitating or replacing the Bayonne Bridge, sources familiar with the negotiations said Wednesday.

The agreement comes as a result of a deal struck between members of the Port Authority’s Board of Commissioners, who are picked by the governors of New York and New Jersey.

New York’s board representatives agreed to the deal after New Jersey’s representatives endorsed a plan that would allow developer Larry Silverstein to build office towers at the World Trade Center site, with the help of more than $1 billion in public financing and subsidies, the sources said.

That deal is expected to be ratified by the Port Authority board at its Thursday meeting.

For the full story:

Report: Pharmaceutical cargo thefts in Mexico doubled in Q2

In the second quarter of 2010 there were six pharmaceutical cargo thefts in Mexico, compared to three in the first three months of the year, according to logistics security firm FreightWatch. While the number of pharmaceutical cargo thefts makes up a small percentage of overall cargo heists, the numbers indicate an upward trend, reports

FreightWatch CEO Barry Conlon said that thieves are now targeting pharmaceutical cargo shipments, which is a relatively new practice.

"Drug gangs continue to target high-value truckloads to compensate for drug income losses occasioned by law enforcement efforts of Mexican government," the company said.

For the full story:

Polish cargo plane lands on belly at Estonian airport

A Polish cargo plane made an emergency landing on its belly at Tallinn airport after a landing gear problem, Estonian officials said Thursday.

Sirje Piirsoo of the Estonian rescue service said none of the four crew members aboard the twin-engine Antonov AN-26 turboprop plane was hurt in the incident late Wednesday.

Piirsoo said the DHL-chartered plane en route to Helsinki had just taken off when the crew was alerted to the problem with the landing gear, which apparently retracted before the plane was fully airborne, and they aborted the takeoff.

The cargo plane is owned by Polish transport firm Exin Co., which in March suffered a similar incident in Estonia when its plane made an emergency landing on a frozen lake outside Tallinn. Some 1.5 tons of fuel were spilled as a result.

Authorities said initial investigation showed human error to be the likely cause for Wednesday's incident.

-Canadian Press/AP

For the full story:


Friday, August 27, 2010

Top Story

Judge rules for L.A. port in clean truck battle

A federal judge ruled Thursday that the Port of Los Angeles can regulate trucks that haul goods in and out of its property to reduce air pollution around the country's busiest port complex.

U.S. District Court Judge Christina Snyder ruled that the port's Clean Trucks Program can require big rigs entering the port to comply with strict diesel emissions standards and eliminate owner-operator drivers.

The American Trucking Associations sued in 2008, arguing that the ports cannot require companies to hire drivers as direct employees because it would stop independent owner-operators from working the harbor.

The trucking industry group said it supported the port's clean air goals, but the employee mandate would violate a federal law that prohibits states and local entities from regulating interstate trucking prices, routes and services.

The port's attorneys argued that federal law allows regulations that directly influence safety and security at the port.

In 2008, Snyder declined to block the new requirements because of a loophole in federal law that allows states to impose safety requirements on trucks. The 9th U.S. Circuit Court of Appeals ordered a temporary injunction and remanded the case to District Court.

While Snyder ruled that some parts of the program were pre-empted by the federal government and not all the rules had to do with safety, she found the port should be able to take steps to regulate air pollution to stay competitive in the marketplace.

She wrote that the port is a "market participant," which allows it to take action to maintain its commercial operations, "as any private landlord or facilities operator would."

Air pollution has "interfered with Port growth and has jeopardized the Port's continued viability as a commercial enterprise," she wrote.

Snyder also ruled that the employee mandate will make sure drivers can afford to maintain environmentally friendly trucks and protect the port's investment in subsidized vehicles.


For the full story:


The Jacksonville Port Authority Board of Directors revealed Thursday that CEO Rick Ferrin has tendered his resignation.

Ferrin has been at the helm of the Port Authority for 13 years, helping the organization transition from part of the Jacksonville Aviation Authority to its own independent authority. As the port continues to evolve, its board began to review its operations and determine how it could better meet the challenges of a changing industry.

“This is a strategic move by the board to bring in the next era of leadership,” said David Kulik, board chair of the Port Authority. “You have to move at the speed of business and we need to improve the speed at which we do business.”

The board began its search for a replacement for Ferrin Thursday, according to Kulik, and named Chief Operating Officer Chris Kauffmann as interim executive director, with Roy Schleicher and Michael Poole, respectively, appointed to carry out the duties in Kauffmann’s absence.

-Financial News & Daily Record (Jacksonville)

For the full story:

Port of Baltimore poised for Marine Highway initiative funding

The Port of Baltimore is being considered for millions of dollars in grants for a program designed to encourage moving more freight by sea.

The Maryland Port Administration is partnering with the ports of New Bedford, Mass., and Canaveral, Fla., on the East Coast Marine Highway Initiative. The group is one of six projects that has moved forward for further study. Eight projects have been approved for grants.

The MPA’s intiative proposes developing a marine highway service using a fleet of new and existing vessels transporting containers along the Interstate 95 corridor. The plan suggests adding other ports to the system in the future.

The U.S. Transportation Department is awarding the grants through the U.S. Maritime Administration. The agency received 35 applications for the grants.

To date, the maritime administration has awarded $58 million in grants to start or expand marine highway services.

-Baltimore Business Journal

For the full story: Port of Baltimore proposes marine highway to move more freight by sea - Baltimore Business Journal

Kansas Logistics Park to receive DOC funds

The city of Newton is getting federal help on its new logistics park.

The city says it’s received a $2.4 million grant from the U.S. Department of Commerce for street improvements at the Kansas Logistics Park. The money will cover about half the cost of paving and intersection improvements on five streets at the park.

The city and Harvey County partnered last year with short-line and class 1 railroads to develop the Kansas Logistics Park with a focus on becoming a manufacturing and staging area for wind energy components.

Spartanburg, S.C.-based Tindall Corp. will be the park’s first tenant. The company plans to construct a $66 million facility that will manufacture concrete bases for wind turbines. Construction is expected to start early next year. The company will employ more than 400 by the end of its third year.

-Wichita Business Journal

For the story source:

Boeing delays Dreamliner delivery again

Boeing announced late Thursday yet one more delay for its new 787 Dreamliner, which now won't be delivered before mid-February.

The new delay is due largely to the failure of a Rolls-Royce Trent 1000 test engine, which broke apart internally while being run on a ground-test stand at the engine maker's plant in Derby, England, earlier this month.

Since that failure was first reported on the website of Flight International trade magazine last week, both Boeing and Rolls-Royce have declined to comment on the report's assertions that the failure resulted in parts of the engine innards penetrating the casing around the engine — a dangerous occurrence referred to as an "uncontained failure."

-Seattle Times

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