Today's Cargo News Archives
Summary for September 1 - September 5, 2008:
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Monday, September 1, 2008

Happy Labor Day - No News

Tuesday, September 2, 2008

POLB oil drill plan with governor

A bill to allow for more onshore oil drilling at the Port of Long Beach passed 38-1 in the California Senate Saturday, Aug. 30, and 74-0 in the state Assembly on Sunday.

Gov. Arnold Schwarzenegger can sign the bill, veto the bill, or take no action, thus allowing the bill to become law.

The bill could result in $130 million for the city, $150 million for the port and $200 million for the state over 10 years.

“This is an excellent outcome that creates the opportunity for significant, long-term revenue increases for the city and the state,” said Long Beach Mayor Bob Foster.

Assembly Bill 2165 authorizes the California State Lands Commission to negotiate new contracts with the city of Long Beach, the Port of Long Beach and Occidental Petroleum Corp. to search for reserves and open new wells on port land in the Wilmington Oil Field.

Environmentalists, including the Sierra Club, lobbied in opposition to the bill.

The bill does not allow offshore drilling.


Port of Long Beach

Maersk re-opens Iraq shipments, adjusts BAF

Maersk Line Sept. 2 announced that the company is once again accepting commercial cargo to and from Iraq, effective Sept. 1. Maersk Iraq will be operating through its sub-agent Inchcape Shipping Agency.

“This move is in response to the growing demand from our customers and the increased number of projects and volumes in and out of Iraq,” the company said.

Maersk Line also announced the launch of a new bunker adjustment factor to take effect in the Far East–Europe, Intra European and Europe–Middle East and South Asia trades, effective Oct. 1.

The company said the new formulas are designed to provide “a simple, fair and transparent BAF for our customers — allowing us to share the risks and opportunities from the fluctuating bunker prices.”

All of the new BAFs are for both dry and refrigerated containers. Maersk said it will revise the BAF formulas on a monthly basis.

Maersk said its BAF calculator allows customers to calculate their own port-to-port specific BAF and make simulations of upwards and downwards movements in bunker prices.


Maersk Line BAF

Wärtsilä picks CEVA Logistics for parts transport

Wärtsilä and CEVA Logistics Sept. 1 announced that they have signed a cooperation agreement representing a contract value of approximately 32 million euros per year over the next three years.

Wärtsilä is a market leader in diesel and natural gas engines, biopower solutions and complete propulsion systems. CEVA Logistics is a leading supply chain company worldwide. 

CEVA Logistics will take responsibility for shipments of spare parts to Wärtsilä’s various warehousing facilities in Europe and for the spare parts deliveries to Wärtsilä’s international customers.

Centralizing these activities will result in faster and more efficient spare part deliveries, the companies said.

“Consolidating logistics with a specialized partner will improve customer service globally by allowing parts deliveries 24 hours a day, seven days a week,” commented Tage Blomberg, group vice president, Wärtsilä Services.

“The redesign of the spare parts logistics is a program of strategic importance for Wärtsilä, and we are honored to be given the trust to support this important step,” said Onno Meij, managing director, CEVA Logistics Benelux, Nordic Region and France.



CEVA Logistics

Wednesday, September 3, 2008

Matson acquires PACAM

Alexander & Baldwin, Inc. announced yesterday that its Matson Global Distribution Services subsidiary (Matson Global) completed its acquisition of Pacific American Services, LLC., (PACAM) — a regional, asset-light warehousing, packaging and distribution company.

“PACAM’s nearly one million square feet of warehousing and distribution space provides exceptional service coverage for the entire Bay Area and Northern California, complementing our recently acquired Savannah facilities to give Matson Global a truly national footprint,” said A&B Chairman and CEO Allen Doane.

PACAM serves hundreds of local, national and international customers and has extensive industry expertise in handling high value goods in the food and beverage, high tech and consumer packaged goods sectors.

“We found the right partner at the right time to meet the distribution opportunities of our diversified customer base. With Matson Global’s emerging national warehouse inventory, and the depth, quality and reliability of Matson’s ocean shipping and logistics services, we are poised to grow with an expanded slate of new products in new markets,” said Linda Hothem, PACAM CEO and founder.


Alexander & Baldwin, Inc.

AMB Purchases California Land

PRnewswire reported today that AMB Property Corporation, a global developer and owner of industrial real estate, acquired approximately 400 acres of land in the High Desert submarket of Los Angeles, Calif. The land could support over 7 million square feet of industrial development.

The land has a number of attributes, including: easy access to Interstate 15, allowing service to Los Angeles, San Diego, and Las Vegas; and it’s adjacent to the future E-220 "High Desert Corridor" freeway.

"This transaction demonstrates our ability to acquire sizable, strategically located property, especially in regions such as southern California which have a scarcity of land with big box development potential," said Gene Reilly, AMB's president, North America.


AMB Property Corporation

NYK & Nippon Complete Fuel Manual

NYK Line and Nippon Yuka have completed a manual addressing diesel-engine trouble on ships caused by hard-to-combust fuel oil. The manual provides suggestions on how to prevent serious engine problems caused by hard-to-combust fuel oil that can lead to vessel delays and result in great repair costs.

Tests conducted in 2007 on fuel oil samples indicated that 64 of the 200 samples taken consisted of hard-to-combust fuel oil. As no global standard exists about how to deal with hard-to-combust fuel oil, so NYK and Nippon Yuka created their own original standard that they believe can help save millions of dollars in future engine damage.


NYK Line

Thursday, September 4, 2008

Wal-Mart picks Hong Kong for Asia base

Wal-Mart Stores Inc. Sept. 3 announced that Hong Kong will be the site of its new Asia regional headquarters.

The Hong Kong regional base will have strategic responsibilities for managing the company’s current operations in Asia and for business development, according to Wal-Mart Asia President and CEO Vicente Trius.

“Hong Kong is the perfect location from which to operate a regional headquarters for Asia, as it is centrally located and offers ready access to markets across the region. It is a great staging area from which to manage our current portfolio and potential future expansion,” commented Trius.

“The new Wal-Mart office in Hong Kong will oversee the company’s operations in Mainland China, India and Japan, as well as identify new business opportunities for the company throughout Asia.”

Some 3,900 overseas and mainland companies operate regional headquarters or regional offices in Hong Kong, according to the news release.


Wal-Mart Stores Inc.

AMB Property leases in Savannah center

AMB Property Corp. Sept. 3 announced it has leased more than 150,000 sq. ft. of the AMB Morgan Business Center–Building 100 development in Savannah to Dorel Juvenile Group Inc., a manufacturer and distributor of children’s products.

Dorel will use the facility as part of a strategic reconfiguration of the company’s global supply chain, according to the news release.

“AMB entered Savannah earlier this year to capitalize on the increased interest our customer base has shown in the Port of Savannah, the fastest growing seaport in the United States,” commented Hamid R. Moghadam, AMB’s chairman and CEO.

“Additionally, as our lease with Dorel demonstrates, companies are looking to their distribution networks to gain efficiencies in the face of high fuel costs, and a presence in the coastal markets puts distribution activities closer to their customers, thereby reducing travel time and fuel outlays,” added Moghadam.

AMB Morgan Business Center–Building 100 is a 347,000-sq.-ft. facility proximate to the Port of Savannah and the first speculative industrial development in the southeastern United States built to the LEED Silver Standard.

The building is the first in the master-planned AMB Morgan Business Park, which is expected to total more than 3 million sq. ft. of distribution space.


AMB Property

YRC Worldwide names sustainability officer

YRC Worldwide Inc. Sept. 4 announced that Mike Kelley has been named chief sustainability officer, effective immediately.

In this newly created position, Kelley is responsible for the company’s overall sustainability efforts, including working with all the business units of YRC Worldwide to continue to develop, implement and integrate sustainability strategies, goals, measurements and reporting, the company said.

He will also represent the company in sustainability discussions with customers, with the community and with a number of national, international and industry groups to advance issues important to YRC Worldwide.

“Sustainability continues to be increasingly important to the success of YRC Worldwide, our customers and our communities,” said Bill Zollars, chairman, president and CEO of YRC Worldwide.

Kelley will also continue to serve as vice president of external affairs for the company.

YRC Worldwide Inc. is the holding company for a portfolio of brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore.


YRC Worldwide

Friday, September 5, 2008

San Diego Port to appeal judge’s ruling

San Diego Unified Port District will appeal a Superior Court judge’s ruling allowing a measure on the Nov. 4 ballot that would amend the Port District’s master plan and allow hotels, restaurants and a sports venue at the Tenth Avenue Marine Terminal, port authorities said Sept. 4, shortly after the ruling.

The port argued in a pre-election challenge that the law vests with the San Diego Unified Port District the exclusive jurisdiction over San Diego Bay and the tidelands. That exclusivity was vested in the Port District and the Board of Port Commissioners when the district was formed by the state Legislature in 1962.

Superior Court Judge Ronald L. Styn said he was not pre-judging the merits of the port’s case and that the port’s challenges don’t justify withholding the initiative from the ballot. 

“The court finds the ‘wiser course’ is to allow the initiative to appear on the ballot …,” he said.

In a separate action, the judge also denied a request to change the ballot language. That action was filed by Peter Litrenta, a representative of the ship repair industry.


San Diego Unified Port District

NYK, Nippon Oil in joint solar project

In a world first, Nippon Yusen Kabushiki Kaisha (NYK), Japan’s biggest shipping line, and Nippon Oil Corp. have agreed to jointly develop a system to partially utilize solar power to propel ships.

This full-scale installation of a solar power generator will produce as much as 40 kW of power (gross), which is expected to supplement existing power production on large vessels, according to the Aug. 26 news release.

The joint eco-project will start with the new 60,000-ton car carrier planned to be completed on Dec. 19, 2008, and used by Toyota Motor Corp.

Through this project, NYK and Nippon Oil will begin testing the 40-kW solar generation system by installing it onto the car carrier and connecting it to the onboard 440V electrical network.

Due to the harsh shipboard environment, the installation of solar power generators onto ships has been limited.

Thus the testing will analyze the durability of solar photovoltaic modules while in a harsh shipboard environment and under stress from salt water, wind pressure and vibrations.


Nippon Yusen Kabushiki Kaisha (NYK)

Nippon Oil

FedEx Freight, BP Solar finish solar system

FedEx Corp. and BP Solar Sept. 4 announced the completion and activation of a second project together — a solar system for a FedEx Freight distribution center in Fontana, CA,

The 269 kW-rooftop solar array utilizes BP Solar modules. The 1,377 solar modules cover 20,834 sq. ft. on the Fontana facility’s roof and can generate 370,551 kilowatt hours, or approximately 54 percent of facility needs.

The 282 kW system at the first joint system in Whittier, CA, is capable of producing more than 414,000 kWh of electricity each year, providing almost 40 percent of the facility’s annual energy needs and significantly reducing the service center’s dependence on the electric grid.

The two projects are expected to eliminate the release of more than 610 metric tons of greenhouse gas-causing emissions.

“More and more companies are finding that solar helps to reduce their emissions and saves them money over the long run, providing carbon-free electricity to meet their growing needs,” said Mary Shields, vice president of global sales and marketing for BP Solar.


FedEx Freight

BP Solar


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