NCLTL BULLETIN
MARCH 25, 2007
WINTER MEETING REVIEW
The Winter Meeting in Charlotte was a great success and enjoyed by all that attended. The continued focus on transportation education and networking by the League is evident in the programs that were offered. Highlights of the event included excellent presentations from our highly qualified speakers: Mr. Reid Thompson, Solectron Inc.; Mr. Mike McCurry, Freightliner Trucks Corp; and Mr. Howard Lukens, Detroit Diesel. We are indeed grateful for their contribution. Many of the guests also toured the Freightliner Truck Plant in Mt. Holly NC. .
NCLTL 76th ANNUAL CONFERENCE
The NCLTL Annual Conference will be held June 21-23, 2007 at the Sea Trail Plantation, Sunset Beach NC. An excellent transportation educational and program is planned with highly sought after speakers including the highly regarded international transportation attorney Jon Fee, from Washington. The event is an excellent value and it is not too early to make your room reservations by calling 800.624.6601 and be sure to get our special room rates. Registration forms will be mailed soon and will also be available on the NCLTL website. You will note that our registration fees are an incredible value due to the generous financial support from our sponsors.
Sea Trail is an excellent resort with plenty of space for those that entertain guests. The three golf courses are in great shape and we have negotiated special cart and green fees throughout the conference dates. A planning meeting will be held April 14 with the Sea Trail Staff and the League officers. If you have a particular comment or problem that you would like to have us bring to the attention of the Sea Trail Staff please notify the League office. We want to do all we can to accommodate our guests and to make this the best Conference ever.
I-85 TOLLS
As many of you are aware there is a move underway to build a new bridge over the Yadkin River at the Rowan County line on I-85. The NC House Transportation Committee now wants to build the bridge as a toll bridge and is proceeding with House Bill (HB292). NC Trucking Association members are opposed to the tolling of existing bridges and highways, as is the NCLTL. We have an existing informal agreement with the NCTA to support them in transportation issues and matters of mutual concern that grew out of a move several years ago when the state was considering tolling I-95 in eastern NC.
NCTL Chairman Charlie Diehl will be participating in a subcommittee on HB292 and will present our view on this issue at the appropriate times and to the appropriate persons, as he is expected to have the opportunity to speak. The negative effect on our industry would be great if the toll bridge is built: many carriers will not pay the tolls but will “dodge” the bridge and put a great strain on existing roads such as US 601 and other communities. The cost of tolls is always grossly out of line for our commercial drivers and member companies and would drive up our costs. Delays would also be expected and tolls never “go away”.
There are also many persons and officials that do not think the building of a new bridge is necessary and that this state has far more pressing highway needs, such as US 74 in Eastern NC. While the existing bridge is dated, it is nevertheless quite serviceable and is used by thousands of vehicles daily. It is unlawful to toll Interstate Highways but the Bush administration has indicated that they would be in favor of tolls, as it would cut down on federal assistance.
Your individual comments are always welcome on this matter and your company many want to get involved if this proposal gains momentum.
RATE INCREASES
LTL carriers FedEx Freight and FedEx National will implement a 5.59 general rate increase effective April 2, 2007 in the FXF 1000 Rate Base Tariff. The rates will apply on interstate and intrastate traffic and selected shipments between the US and Mexico and Canada. Important: the increase does not affect FedEx Express and FedEx Ground.
SMC3 is taking a 3.5% general increase effective April 2, 2007. Justification is security requirements, driver recruitment and increased insurance costs.
Estes Express is taking a 5.5% general increase effective April 2, 2007.
ABF is taking a 4.95% general increase effective March 26, 2007.
Important Note: Please check with your carriers to see if general increases affect your agreements. Many customers have special negotiated contracts and tariffs that are not subject to increases at this time.
RAIL FUEL SURCHARGE CALCULATION
The STB has issued a ruling prohibiting “misleading” rail fuel surcharge practices. The STB declared that railroads must not compute fuel surcharges with a method that does not correlate with the actual fuel cost for specific shipments. This has eliminated the practice of calculation as a percentage of the base rate charges and disallowed for “double-dipping”, the practice of applying both a fuel surcharge and a rate increase based on a cost index that included fuel as one of the components.
SC AND GEORGIA FORM PORT PARTNERSHIP
SC Governor Mark Sanford and GA Governor Sonny Perdue have announced a joint venture to build a steamship terminal on 1800 acres on the Savannah River in Jasper County, SC. The proposal would create a bi-state port authority, which would buy the land now owned by the GA Department of Transportation. A joint port authority would require approval from both state legislatures as well as Congress, which might take years.
NO CHANGE IN TRANS-ATLANTIC FUEL CHARGE
Carriers of the Trans-Atlantic Conference Agreement have announced that the group’s bunker adjustment factor will remain unchanged through May 15. Fuel charges to/from and via Atlantic/Gulf Coast ports remain at $395 per 20-ft. container; $790 per 40 and 45-foot container and $40 for all other freight. For Pacific coast ports, charges are $593 per 20-foot container, $1,186 for 40 and 45-foot boxes and $59 for other freight. The group’s currency adjustment factor will remain unchanged at 8 percent through May 15. Member carriers are Atlantic Container Line, Maersk Line, MSC, NYK Line and OOCL.
MARITIME ANTI-POLLUTION LEGISLATION
The US House has passed by a vote of 359048 the Maritime Pollution Prevention Act, which is designed to reduce air pollution from ships. The bill orders the EPA and Coast Guard to establish regulations for emissions, and quality standards fort marine fuel used in US waters.
SC PORT PARTNERS WITH SAVI NETWORKS TO PROVIDE CARGO SECURITY AND TRACKING INFORMATION
The SCSPA and Savi Networks have announced an agreement to extend the SaviTrak information service to three container terminals at the Port of Charleston to enhance security and efficiency of in-transit cargo shipments. SaviTrak will link SC’s Wando Welch, N. Charleston and Columbus Street terminals with a global network of trade lanes at partner terminals in Asia, North and South America and Europe. Savi networks has partnerships with major port and terminal operators to build infrastructure at more than 80 terminals worldwide. The SaviTrak information service is built upon open technologies that process real-time data feeds from RFID devices such as electronic seals that are based on ISO-18000-7 standards.
NEW N EUROPE SERVICE FOR CHARLESTON
A new weekly shipping service has begun from the Charleston Port in the Northern Europe trade lane. Zim Integrated Shipping Services LTD and Evergreen subsidiary Italia Marittima SpA announced that they were adding Charleston and Rotterdam, Netherlands to the North Europe Express service. Other European ports in the service include Antwerp, Hamburg and Liverpool.
NC STATE PORTS CERTIFIED BY HOMELAND SECURITY
NC State Ports Authority partners and customers who participate in the Homeland Security Departments C-TPAT now have a closed loop of security certification. The Authority’s Ports in Morehead City and Wilmington and the Charlotte Inland Terminal have all received C-TPAT certification. The certification is a major step in the Ports’ ongoing security upgrades, said Doug Campen, the Ports Authority’s director of safety and security.
US TRADE DEFICIT DIPS IN JANUARY
The US trade deficit for goods and services dropped 3.8 percent to $59.1 billion in January, compared with 61.5 billion in December, according to the US Census Bureau and the US Bureau of Economic Analysis. Exports in January rose to $126.7 billion from $125.3 billion, imports declined to $185.7 billion from $186.7 billion. Sectors that declined included automotive vehicles, parts and engines. In January the US posted its largest deficit with China, $21.3 billion; Canada $6.9 billion.
LOWES RECEIVES AWARD
Lowes’ Companies has received an award for the fifth year in a row, from the US EPA and Department of Energy for its efforts in promoting energy-efficient products. Lowes’ received the Excellence in Energy Star Promotion award for its “how-to” clinics in which consumers were educated on Energy Star products and how to improve energy efficiency in their homes. The company was recognized in Washington on March 21.
WILLIAM AUGELLO MEMORIAL GATHERING
The Transportation & Logistics Council and Transportation Loss Prevention & Security Associations 33rd annual conference in Lake Buena Vista FL will include a memorial gathering followed by an informal gathering to reflect on the life of William J. Augello who passed away in November. The memorial will be held on the evening of April 15th preceding the conference which runs April 16-18, 2007. To register phone 800.310.2814 or visit
www.transportlawtexts.com.
UPS HAS STOPPED ORDER OF JUMBO JET
UPS has cancelled its order of 10 A380 Airbus jumbo jet freighters. UPS decided to cancel its order when it learned that Airbus was diverting employees from the freighter program to work on its passenger plane program. The first A380 is scheduled to be delivered to Singapore Airlines in October 2007.
DID YOU KNOW?
Most of the $15 million NC Department of Transportation Contingency Fund goes to powerful state lawmakers’ districts without regard to traffic, safety or population. State road funds were used for projects such as a museum in Princeville and a visitor center in Tabor City.
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