Summary for January 5 - January 9, 2009:
Monday, January 5, 2009Top Story Obama has spot to fill for Commerce postPresident-elect Obama’s cabinet-to-be suddenly became one name short when New Mexico Governor Bill Richardson announced on Sunday that he is withdrawing his name from the nomination process for Secretary of Commerce.
Trade Apparel importers urge Obama to eliminate import dutiesThe Obama administration should eliminate “high tariffs” on textile and apparel imports, said Laura E. Jones, the executive director of the U.S. Association of Importers of Textiles and Apparel (USA-ITA) in a press release today. Jones referred to the expiration of a half-century of quotas on imports of textile and apparel products as a “transformative moment in U.S. trade policy” and has delivered a set of recommendations that includes dropping import duties on clothing and reforming origin rules and special exceptions. “Now that the quotas are extinct, it’s time to eliminate the high tariffs on clothing that hit hardest on America’s poorest families,” she said. The USA-ITA referenced the expiration of 22 quotas that had limited imports of Chinese-made textile and apparel products since 1980, with hundreds more quotas on other textile and apparel imports into the U.S. having ended four years ago. “While there were quotas, one administration after another acquiesced to demands for separate and different – discriminatory – treatment for imports of textile and apparel products, in trade agreements and in unilateral preference programs,” Jones explained. “It’s time to move on. All the exceptions should be discontinued in favor of simple, user-friendly and uniform rules premised on real business practices.” Jones said one important step would be to completely integrate trade policy for apparel There are fewer than 200,000 workers in the U.S. apparel industry today, said Jones, and she said her association believes “that most of them work on products for government procurement projects, or produce specialized niche products.” The USA-ITA also recommended that the Obama administration “refocus its attention to a U.S. industry that is facing tremendous difficulties, the U.S. retail industry, which lost 250,000 jobs in 2008 alone, and clearly faces a tough 2009.” According to Jones, there were approximately 3.2 million workers employed by department stores and clothing and accessories stores in 2007, based on data from the U.S. Department of Labor’s Bureau of Labor Statistics.
Freight Rail shippers are asking Congress to step in with tougher regulation for what they view as escalating, unfair rail freight prices, according to a Wall Street Journal report.
Horizon Lines Inc. has been named as a defendant in a securities class-action lawsuit filed in U.S. District Court in Delaware by stockholders following allegations that the Charlotte-based shipping line fixed prices in its Puerto Rico trade.
Cargo traffic at China’s ports declined for the first time in at least seven years in November, according to the Ministry of Communications.
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Nationwide AIS is to be a two-way maritime digital communication system, which will continually transmit and receive voiceless vessel data, including vessel identity, position, speed, course, destination and other data of critical interest for navigation safety, marine mobility and maritime security.
In addition, data collected by Nationwide AIS will be combined with other government intelligence and surveillance data and shared with authorized government operators, contributing to maritime situational awareness, in part by identifying and locating vessels offshore.
Nationwide AIS coverage is to be for all ships approaching the U.S. coastline and ports, including U.S. territories.
Equipment
Kalmar delivers 4,500th straddle carrier
Cargotec’s Kalmar business unit announced it has delivered its 4,500th straddle carrier to EUROGATE at Bremerhaven, Germany in December 2008.
The machine is Kalmar’s seventh generation ESC440W straddle carrier equipped with a low noise insulation package, a soft landing system and automatic container picking system that minimises noise generated in container handling. The machine features an electrically controlled engine, which lowers exhaust emissions and reduces fuel consumption.
Bremerhaven has witnessed a significant increase of 50 percent in container throughput during the last three years and currently handles 5.6 million TEUs annually.
Pirates
French ship, crew released, while China
patrols Gulf of Aden
Pirates released a French merchant ship and its nine crew members that had been seized off the coast of Nigeria this past weekend, according to the ship's owners on Wednesday. The crew is reported to be in okay after the supply vessel Bourbon Leda was captured by pirates operating out of Cameroon on Sunday.off the Nigerian coast.
In the wake of the latest, major piracy indicent, China has deployed two destroyers to patrol the Gulf of Aden off of Somalia, joining a growing international coalition of anti-piracy patrols that includes the U.S., Russia and India.
The warships will join a multinational naval force patrolling the area, including vessels from the United States, NATO member states, Russia and India.
Thursday, January 8, 2009
Top Story
NYK strategic restructure:
focus on overland, airfreight, logistics
The president of Nippon Yusen Kabushiki Kaisha (NYK), the major Japanese transportation group, announced NYK would launch a heavier focus on non-marine modes of transport in the next three to four years.
NYK’s Emergency Structural Reform Project is strategically aimed at coping with global economic conditions, said Koji Miyahara, president of NYK, in his New Year’s address.
"We intend to maintain stable management by fostering overland transport, air transport and logistics, which promise to become major spheres rather than relying on marine transport," he said.
The project’s subtitle is: "To overcome the harsh winter and successfully reach the Sea of Yosoro (Sea of Steady-Going)."
NYK’s Structural Reform Project is planned for two years and will be under the leadership of NYK’s president-elect, Yasumi Kudo, who succeeds Mr. Miuahara on April 1 of this year.
The reform project is in line with NYK’s New Horizon 2010 plan that focuses on growth, stability and the environment, Mr. Miyahara said.
"Our NYK Group has all along pursued a policy of attaching prime importance to medium- and long-term profits grounded in mutual trust with important customers, accruing those profits primarily from long-term contracts rather than from short-term profits from fleet operation in the spot market," he said.
Liner
Maersk restructure to cut head office staff 12 percent
The AP Moller-Maersk headquarters in Copenhagen will cut staff 12 percent from 830 to 730 in a reorganization of top management, the company announced on Wednesday.
The reorganization move will divide operations into distinct corporate and service units.
The corporate center will focus on accounting, finance, IT, corporate relations and human resources. The service functions will support the corporate center and all business units in areas like Information Technology, procurement, oil trading, technical operations and recruitment.
"Having to reduce the number of employees is regrettable," said group CEO Nils Andersen. "But as the pressure on our business increases, group functions have to be more effective to strengthen competitiveness."
Anderson said the corporate split will “reduce complexity and save costs” by decentralizing business units, placing “more operational responsibility where it should be.” The corporate restructure includes the reduction, by 100, of the corporate headquarters staff, leaving 250 staffing the corporate center and 480 for service functions, he said.
The new corporate arrangement is expected to be finalized within the month, the company said.
APL is Phoenix-bound
American President Lines (APL) announced Wednesday that it is moving its national headquarters from Oakland to Phoenix in the second half of 2009.
The shipping and logistics unit of Singapore-based Neptune Orient Lines (NOL) said it is negotiating with landlords in the Phoenix area will announce the location of its new office space later this month.
Currently, APL employs between 300 and 400 staff in its Oakland office building, where it has been since a move from San Francisco in 1990. In recent years, the company has been downsizing its office space.
NOL announced last November plans to lay off 1,000 employees and make the move out of Oakland as part of a company-wide effort to cut costs due to the mounting global economic downturn.
The APL terminal at the Port of Oakland will remain, where it currently employs 50 to 60 workers. The Port of Oakland invested $68 million in the APL terminal last year.
Höegh adds Savannah for Middle East service
Höegh Autoliners, Inc. announced the addition of the Port of Savannah to its U.S. Middle East Service. The service will call on the Port of Savannah’s Ocean Terminal twice a month moving various new equipment, light vehicles and used high and heavy cargo.
The U.S. port rotation varies among Baltimore, Bridgeport, CT, Jacksonville, Savannah, and Wilmington, DE. In the Middle East direct port calls are Abu Dhabi, Aqaba, Bahrain, Beirut, Dammam, Doha, Jebel Ali, Jeddah, Kuwait, Muscat, Iraq and Tripoli, depending on cargo requirements, the company said.
The current economic conditions, as well as additional tonnage through its continued new building program, presented Höegh Autoliners with an opportunity to look at new ports of call, both in the United States and overseas. Just last month Höegh Autoliners’ announced that the same Middle East service would begin calling Bridgeport, CT to load for Lebanon and Libya once every three weeks, beginning in mid-January 2009.
Logistics
Sinotrans moves to number two in China logistics
The merger between Sinotrans and the China Changjiang National Shipping (CSC) Group has been approved by the China State Council, according to a report in Xinhua.
The merger between the two state-owned enterprises (SOE) will create the second largest logistics company in China after COSCO Group.
Sinotrans will change its name to Sinotrans CSC Group and will be the parent company after the merger.
Port of Seattle announces meetings for
truckers on air emissions
The Port of Seattle today announced a series of three meetings slated for the second half of January for independent truckers serving the port’s cargo terminals.
The port’s meeting announcement stated the meetings would give the independent trucking community “important information about efforts to reduce air emissions and provide an opportunity to ask questions and offer comments to port staff.”
The port said topics will include: outlook on Seattle's cargo industry and update on operations; the Northwest Ports Clean Air Strategy; and the port's Small Business Initiative and its potential opportunities to help independent owner/operators with resources and information.
The meeting dates are: January 14, 22 and 26, from 5:30-7:00PM at South Seattle Community College’s Georgetown campus.
Alaska Air influences USPS direct
village
hub change
The United States Postal Service (USPS) is expected to make an alteration to its 2009 Bypass Mail Program, which transports mail by air directly to rural customers, according to a report in the Alaska Journal of Commerce.
The change is a direct influence of the Alaska Air Boeing 737-400 combi aircraft that can be loaded with bypass mail that is destined for unpaved airports in rural Alaska.
The U.S. Postal System (USPS) revealed plans in 2008 to create intra-Alaska hubs across the state, with four initial hubs in the plan: the villages of Hooper Bay, Shishmaref, Savoonga and Kiana.
Ten additional sites are being considered with the plan in Anaktuvuk Pass, Holy Cross, Point Hope, Sandpoint, Togiak, Eagle, Pilot Point, Red Devil, Tanana and Wainwright.
USPS estimates it will shave approximately $7.8 million off of its $150 million annual transportation costs if mail is flown direct to the first four villages alone, the report said.
The Alaska mail route change is not popular with some in the air industry. "The mail flown to the new intra-Alaska hubs would reduce mail volumes flown into Bethel, Nome and Kotzebue because it would be flown direct to the villages, causing unforeseen economic and labor hardships on existing passenger and freight carriers," said Wilfred Ryan, president of the Alaska Air Carriers Association in the article.
The air transport industry in Alaska operates with marginal profits and changes to the bypass mail system would impact the financial operations of many companies there, he said.
Technology
Transite Technology releases ship-base software
Transite Technology, a provider of logistics and shipping cost-management software services, announced the release of the latest version of what it terms its Continental rate base.
“Continental is the only neutral rate base that is a true shipper rate base for pricing and bidding freight,” said Geoff Comrie, CEO of Transite. “Its rates have never been influenced by carriers. No other company can bring this level of neutrality to the bidding and pricing of freight,” he said.
The company said its Continental solution “is strategically positioned to compete against two products widely used today -- CzarLite, and MARS 500.
"Another major difference is what you get for the money," said Comrie. "Continental has obvious big advantages in rates and technology; it’s less expensive and has friendlier licensing terms. For example, at a single standard price that’s lower than our competitors, Continental delivers five and six digit zip code and postal code accuracy with no extra cost for rates for Canada. Plus, the rating program is more advanced with capabilities used by shippers and carriers such as batch rating and analysis," he said
The company said in its efforts to attract shippers, brokers, and logistics companies, Transite is offering a “two for one” promotion: Until April 1, 2009 all customers who purchase Continental 2009 can get the Continental 2010 version at no charge.
Friday, January 9, 2009
Top Story
State of Florida to review $1billion
Port of Miami Tunnel project
A major $1 billion tunnel project that would run the Port of Miami’s cargo and cruise traffic under Biscayne Bay direct to interstates, might be showing signs of life again with Florida’s Department of Transportation, according to a report in the Miami Herald.
The project was dead in mid-December when State Transportation Secretary Stephanie Kopelousos announced as much when the private French-Australian group that would have been responsible for designing, building and operating the tunnel over 35 years was hit hard by the global financial crisis, the report said.
Miami-Dade lawmakers subsequently applied a full-court press with the DOT and the result was Secretary Kopelousos, along with Governor Charlie Crist, announced they would take another look at the project.
The tunnel team has asked the state to replace the original consortium of Babcock & Brown with the private equity fund, Meridiam, which is headed by the second-largest bank in France and a global engineering fund.
The tunnel project’s inception was in the early 1980s when a task force first included it as one possible solution to separating port traffic from non-port traffic on the Miami waterfront, according to the Port of Miami.
A traffic and demand study in 2003 reported that approximately 24,000 vehicles per day visited the port, with 29 percent being trucks and buses. By 2033, the report projected 70,000 vehicles per day at the port. Currently, the port says roughly 4,000 18-wheelers transit in and out of the port causing congestion in Miami’s central business district.
The proposed twin tubes of the tunnel would go under the bay and link the port’s Watson and Dodge islands.
The state’s share of the tunnel funds is reported to be $452 million for construction and $850 million for long-term operations and maintenance, and Secretary Kopelousos told Miami-Dade lawmakers those funds will not be diverted to other projects, according to the Herald report.
Recent studies were cited showing the Port of Miami is responsible for $17 billion in business, making it the second biggest economic generator, with Miami International Airport taking the top spot.
While the project might be somewhat revived, Secretary Kopelousos was not overly optimistic in the Herald report.
''There's a lot of passion for this project. We understand that,'' Kopelousos said. "The reality of it is: In the current financial market, we don't believe we're going to be able to bring this thing to fruition.''
Freight
2008 retail container traffic lowest in four years
Retail cargo volume at the major U.S. ports fell for the 17th straight month, and lowest level in four years, according to the monthly Port Tracker report released yesterday by National Retail Federation and IHS Global Insight.
Volume for the year was estimated at 15.3 million TEUs, compared with 16.5 million TEUs in 2007, the report said, showing a decline of 7.1 percent and the lowest total since 2004, when 14 million TEUs moved through the ports.
“2008 was a slow year for the ports for the simple reason that it was a slow year for retail sales,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “We don’t expect a significant increase in traffic at the ports until retail sales return to normal levels, and even then retailers will be careful not to over-stock.”
U.S. ports surveyed by Port Tracker handled 1.23 million TEUs in November, which was down 10.3 percent from the 2008 peak of 1.37 million TEUs set in October and down 11.8 percent from November 2007. December was estimated at 1.2 million TEUs, down 6.4 percent from December 2007. The last month to see a year-over-year increase was July 2007, when the 1.44 million TEUs moved through the ports was up 3.4 percent from July 2006, according to the report.
Port Tracker forecasts January at 1.16 million TEUs, down 6.3 percent from January 2008, with February forecast at 1.1 million TEUs, down 11.1 percent from 2008. March is expected to be up 1.1 percent from a year earlier at 1.17 million TEUs, but April is expected to decline 2.6 percent from 2008 at 1.23 million TEUs. May is forecast at 1.25 million TEUs, down 4 percent from last year.
Freight
UPS adds 16 countries to express service
UPS began offering domestic express pickup and delivery services inside 16 additional countries this week across Europe, Africa, the Middle East and Latin America.
The nations involved in the expansion are Algeria, Argentina, Chile, Cyprus, Czech Republic, Hungary, Kazakhstan, Kenya, Malta, Pakistan, Romania, Saudi Arabia, Serbia, South Africa, Ukraine and UAE.
Shippers in these countries now will be able to consolidate all of their package delivery services with one carrier, effectively eliminating multiple shipping processes while potentially saving money, UPS said in a statement.
"This expansion represents an investment for the future through markets where we're seeing growing demand," said Dan Brutto, president of UPS International. "While we've provided international service to these countries for years, we see an opportunity now to expand our customer base and grow our business. We're excited that we can extend our network to meet the growing needs of these customers."
Freight
Teamsters ratify job plan with YRC Worldwide
Teamsters working for Yellow, Roadway, Holland and New Penn (YRCW), have approved a job protection and retirement security plan for what is reported to be tens of thousands of its members.
The plan calls for a reduction in gross wages, mileage rates of 10 percent and suspension of cost-of-living adjustment and is good through March 31, 2013. There was no change to health, welfare or pension contributions.
"While we never want to see wage reductions, this vote shows that our members understand that we are facing the worst economy since the 1930s and that the company needs some help to get through this difficult period," said Tyson Johnson, Director of the Teamsters National Freight Division. "We are hopeful that this agreement will protect the livelihoods of our members and their families by protecting the jobs and health, welfare and pension benefits of our freight members."
Freight
NCBFAA files comments with FMC
on TSA amendment request
The National Customs Brokers & Forwarders Association of America, Inc., (NCBFAA) yesterday submitted comments to the Federal Maritime Commission (FMC) opposing requested anti-trust immunity by the Transpacific Stabilization Agreement (TSA).
Prepared and filed by NCBFAA General Counsel Edward Greenberg, the NCBFAA comments were in response to the TSA’s request to amend its agreement with the FMC to grant it immunity from antitrust laws when it collectively discusses capacity rationalization issues.
In its comments, the NCBFAA posits that approval of the TSA request would lead to less service and higher rates.
“The NCBFAA believes that the proposal on its face raises concern that it could result in an unreasonable reduction in transportation service or an unreasonable increase in transportation costs,” according to the NCBFAA, “and that no approval should be considered by the [FMC] unless or until the carriers are able to demonstrate that neither of these fears are justified.”
“The NCBFAA has long opposed the continuation of anti-trust immunity for steamship lines as inappropriate and unnecessary,” the Counsel Greenberg wrote. “And, the NCBFAA is particularly concerned that the expanded immunity now sought by TSA could substantially and adversely affect the ocean shipping marketplace.”
Ports/Infrastructure
Floods impact rail connections
in Western Washington
Floods throughout the Western Washington region cut off many rail connections yesterday, with greater impact at the Port of Tacoma than the Port of Seattle, according to a report in the Puget Sound Business Journal.
The one open intermodal rail connection reported yesterday was Stevens Pass, operated by the BNSF, and crosses east over the
Cascade Mountains.
The Port of Tacoma relies more on southerly rail routes and tracks owned by the BNSF were flooded and closed on Thursday, railway company spokesman Gus Melonas, told the PSBJ.
Port of Tacoma spokeswoman Tara Mattina said five inbound and five outbound trains from the port had been halted by the flooding, and that the port was working with the BNSF to move some of its cargo through the Stevens Pass tunnel.
The Union Pacific utilizes BNSF tracks to the south and was also shut down, a UP spokeswoman told the Journal.
Green
Cushman & Wakefield partners with EPA on green real estate inititative
Cushman & Wakefield, the largest privately-held commercial real estate company in the world, has signed a memorandum of understanding with the U.S. Environmental Protection Agency to reduce environmental impact on over 3.200 commercial properties it manages throughout the U.S. The MOU includes goals of reducing energy consumption at Cushman & Wakefield propeties by 30 percent by 2012, tracking water usage and promoting conservation, joining the EPA's WasteWise reduction program called WasteWise, and joining the agency's GreenScapes program, which emphasizes reuse of industrial materials and sustainable landscaping practices.
The company also pledged to work with its clients to achieve these goals to make energy efficiency a top priority in operating its corporate sites, such as seeking green building when feasible.
Cushman & Wakefield said it will deliver progress reports to the EPA every six months.
Education
Cal Maritime announces
2009 continuing ed courses
The California Maritime Academy has announced the 2009 lineup of continuing education via its Extended Learning Department. Courses aimed at professionals involved in the maritime industry include:
- Company, Facility and Vessel Security Officer Training.
- STCW – Basic Safety Training including firefighting, first aid/CPR and water survival training.
- First Responder – For public safety and other personnel who may respond to emergencies or significant events at maritime facilities within their jurisdiction such as vessels, ports and terminals.
- Radar Renewal and Exam – for personnel needing refresher certification.
- Bridge Resource Management
- Dangerous Liquids Management for Tanker Personnel.
Many of the courses are offered on the school’s Vallejo campus. Others may be provided off-site or via the Internet, enabling participants to take part at times and locations convenient to their own schedules, the school reported.
For more information go to: www.maritime-education.com
Technology
ShipServ reports record year
ShipServ, a maritime e-marketplace solution, announced today that 2008 was its most active year ever with record numbers of buyers and sellers of ship supplies.
The number of transactions on its trading platform, ShipServ TradeNet, grew by 69 percent with a gross merchandise value of $1 billion, the company said.
The number of ships signed up on the network increased by 50 percent and the number of suppliers also increased by 50 percent, ShipServ said.
In 2008, the company reported 31 new ship owners, managers and yards joined TradeNet, including A.P. Moller-Maersk, Bibby Ship Management, Companhia de Navegacao Norsul, Crowley, Far East Ship Management, Malaysia International Shipping Corporation Berhad and MSC Ship Services.