BULLETIN 0707
JULY 31, 2007
NCLTL FALL MEETING, THE LEAGUE GOES GLOBAL
As a result of many comments from League members, we are indeed pleased to announce that the NCLTL fall meeting will be held October 11-12, 2007 in Charleston, SC. The meeting will be in partnership with the SC State Ports Authority and will feature great speakers and events. This will be the first-ever NCLTL meeting outside NC that we are aware of. Registration forms will be sent out within the next two weeks. A Board of Governors meeting will precede the general meeting tentatively set for 8:00 AM. If you have any comments please let us know. We are grateful for the cooperation and assistance of the SC State Ports Authority.
HOUR OF SERVICE RULES STRICKEN BY COURT OF APPEALS
The D.C. Circuit Court of Appeals has granted Public Citizen’s petition opposing the FMCSA 2005 hours of service rules on July 24. The court vacated the daily driving limit that had increased from 10 to 11 hours and the off-duty period of 34 hours to restart the weekly on-duty limits. The court stated that the FMCSA failed to give interested parties an opportunity to comment on the methodology of the crash-risk model that the agency used to justify an increase in the maximum number of daily and weekly hours that truck drivers may drive and work and that it failed to provide an explanation for critical elements of that methodology. Current rules will remain in effect for 52 days, until the court order becomes effective. The FMCSA and other parties of interest have 45 days to petition for reconsideration. In the meantime, the ATA is seeking a stay of the decision, which would allow the current rules to remain in effect while the FMCSA reconsiders the current rules. If a stay is not granted the decision by the court will become effective and it will reset the HOS rules to 10 hours maximum driving time each day. This would affect almost everyone involved in domestic transportation, including truckers, shippers and law enforcement agencies. The decision is available at
http://pacer.cadc.uscourts.gov/docs/common/opinions/200707/061035a.pdf
ATA WANTS TO TRACK DRIVERS’ DRUG RECORDS
The American Trucking Association wants Congress to create a database that companies can use to determine whether drivers have tested positive for drug or alcohol use. The ATA maintains that this information may cut the rate of positive drug tests, which have been at 2%-2.5% for the past decade. With 3.4 million truckers in the US that means tests indicate drug use by 68,000 to 85,000 drivers. The US government has required drivers of commercial trucks to be tested for drug and alcohol use since 1995.
100% SCAN OF CARGO CONTAINERS LEAVING FOREIGN PORTS
Congressional Democrats have agreed to include a House provision calling for mandatory scanning of 100% of cargo containers before they leave foreign ports in a final version of Homeland Security recommendations of September 11. The provisions allow for a five-year window for scanning technology to be deployed overseas and giving the Homeland Security authority to make exceptions. If passed by Congress, the legislation would supercede DHS testing on the feasibility of conducting integrated radiation and images scans of all containers at foreign ports.
TRUCK ONLY LANES
Truck-Only lanes are back in the news or rather still in the news. Patrick Quinn, Co-Chairman of US Xpress presented a truck-only network proposal earlier this year. Truck-only lanes were first considered in Texas on a highway proposed from San Antonio to Dallas. So far nothing has happened due to lack of funding. John Hill, head of the Federal Motor Carrier Safety Administration, has given strong support to separating trucks from other vehicles, saying such a system would decrease fatalities. Rick Capka, head of the FHWA said that a new system would require new taxes or tolls. Capka also said that truckers would expect to see some return on such a new investment due to increased costs for fleets. He said that the FHWA might look favorably on raising truck sizes and weights for vehicles operating on an exclusive network.
FEDEX LTL CUTS FUEL SURCHARGES
In a surprise move, LTL FedEx divisions, FedEx Freight and FedEx National LTL has cut its standard LTL fuel surcharge by 25% effective immediately. Fuel surcharges are updated weekly, based on fuel prices published by the Department of Energy. FedEx Freight CEO Doug Duncan stated that “FedEx Freight and FedEx National LTL are taking a leadership position in the industry by making changes to benefit our customers and the market as a whole”. We do not have hard data as to what the “standard LTL fuel surcharge” percentage is. We have not received any information as to whether other LTL carriers will follow suit. The League petitioned the Surface Transportation Board several years ago to set nationwide maximum fuel surcharges based on regional fuel indexes each week supplied by the Department of Energy. We were turned down and referred to the Department of Energy. The STB does have this authority, as the fuel surcharge is still an emergency measure.
BABY BOOMERS HELPING TO FILL DRIVER SHORTAGE
In 2005 the trucking industry had a shortage of over 20,000 drivers and is increasing annually. Many over 50 workers are enjoying new driving careers. Mark Brown, an instructor at the Central Transportation and Safety School in Drumright OK says that older drivers are safer and more dependable. At Schneider the number of drivers 50 and over has increased by 46 percent since 2005 and make up one third of the driving staff of 15,000. Favorable results have also been reported by Watkins and Shepard Trucking in Helena MT.
ANTITRUST IMMUNITY DECISION
There have been no further developments since last reported on the anti-trust immunity decision by the STB. The last action was the filing of appeals of the May 7 decision of the STB to the US Court of Appeals for the D.C. Circuit filed by the NCC, NMFTA, SMC3, the Middle West Motor Freight Bureau, and the Rocky Mountain Tariff Bureau, seeking to overturn the STB’s decision in its entirety.
NEW YORK CITY CONGESTION TOLLS
New York City Mayor Michael Bloomberg has succeeded in a plan to impose congestion fees on trucks and cars operating in the center of Manhattan. The mayor has proposed to levy tolls of $21 for trucks and $8 for cars entering a zone below 86th street in Manhattan. The state legislature will have until March 31, 2008 to consider recommendations of a 17 member commission. The plan would have to be signed into law by the governor. The agreement would allow the city to qualify as a federal pilot program and receive as much as $500 million in federal funds to improve mass transit.
YADKIN RIVER BRIDGES
With the news of the terrible bridge tragedy in Minneapolis, there is renewed interest in the safety of the bridges spanning the Yadkin River on I-85 north of Salisbury. According to an article in the Charlotte Observer, the federal government has deemed the span “structurally deficient”, however NC DOT engineer Pat Ivey said the bridge is safe. The article further states that the bridge is two-lanes. The bridge handles more than 380,000 vehicles a week. There is no money available to widen the bridge and the 8 miles of interstate to 8 lanes. While there is talk in Raleigh of building a toll for the new bridge and road, the League is opposed to the tolling of any existing bridges and highways. NC Transportation Secretary Lyndo Tippett will report to the state Board of Transportation next month on the state’s substandard bridges.
PANAMA CANAL EXPANSION
The Panama legislature has approved a budget for the Panama Canal Authority that includes the large scale expansion project to scale up the canal’s capacity. The project will create a new lane of traffic along the Canal with construction of a new set of locks, which will double capacity and allow more traffic and larger ships. On Tuesday, July 17, the Panama Canal Authority awarded the first expansion construction project contract that would begin the dry excavation of the Pacific locks access channel. President Jimmy Carter has been quoted as saying that the return of control of the Panama Canal to Panama was one of his greatest accomplishments.
INTERNATIONAL COMMENTS FROM R&B TRADETALK
The Presidential negotiating authority expired July 1. Our new congress is not as friendly toward international trade. The next several years will likely see more anti-dumping, countervailing duty, currency legislation, intellectual property enforcement, “sweatshop labor” concerns, and other perceived unfair trade practices being brought to the forefront. Recent problems with Chinese tainted food products have raised the profile of goods imported from China. South American, Korean and other trade agreements are in danger of stagnating if our legislators are not properly educated on the value of trade with our friends and sometimes foes. Depending on the outcome of elections in 2008, things could get considerably worse before they improve. China recently announced a series of measures designed to appease US Congressional leaders and regulators. By adjusting tax rebates on more than 2800 products, Beijing is eliminating rebates on 553 products that are deemed to be “resource and energy-intensive and highly polluting. In addition it is reducing rebates on 2,268 products that “easily cause trade frictions” including toys, apparel, furniture, paper and plastics. The rebates on those products were lowered July 1st to five and eleven percent. In another move, Beijing is temporarily lowering import duties on a number of goods such as components for television sets, refrigerators and other products will be lowered to between two and 6 percent. Duties on home appliances, kitchenware, and construction material will be reduced to between six and 27 percent. China announced that it will impose five to 10 percent tariffs on steel products and 142 low-end resource products. China has been known to post similar notices but never implementing them. The Bureau of Industry and Security has finalized Export Administration Regulations to revise and clarify US licensing requirements and licensing policy on exports and re-exports of items to the People’s Republic of China. The final rule establishes a control, based on knowledge of a “military end-use” on exports and re-exports to the PRC of certain items on the Commerce Control List that otherwise do not require a license to the PRC. For more information go to the R&B Website
www.rogers-brown.com
in the News Center section. New Letter of Credit Rules went into effect July 12, which should simplify rules for exporters and as such exporters will be less likely to face risks or delays related to minor discrepancies in the documents. The new rules, known as UCP 600, have significant implications for exporters, importers, freight forwarders, bankers and attorneys because they will make it easier for parties to use a letter of credit. Generally speaking, these new rules make it easier for all parties to deal with and interpret. The Uniform Customs and Practices for Documentary Credits, 2007 Revision, UCP 600 may be purchased from ICC Books USA, 1212 Avenue of the Americas, 18th floor New York NY 10036. Tel. 212.703.5066 or email
icebooks@uscib.org. Online purchases can be made at
www.icebooksusa.com.
LIMITATION OF LIABILITY
The importance of knowing the limitation of liability of carriers for a shipper is absolutely a must. If a carrier has a limitation of liability on its bill of lading and/or tariff, it is enforceable and the carrier will only be liable for its limitation of liability as stated in its rules or in its bill of lading in the event of a loss or damage. This office recently was disappointed to learn of a shipper that lost a huge claim due to a limitation of liability in the carrier’s rules tariff that the shipper was unaware of. Most carriers rules tariffs contain this provision so it is better to be covered than experience a huge loss. Another shipper lost a significant claim due to the fact that Section 7 of the Bill of Lading was not signed. Many times these claims are the result of an employee who fills out a blank bill of lading without knowing tariff provisions, but once it is signed, it becomes a legal instrument subject to carrier’s rules when applicable. It also can occur on return goods. Usually this happens with a carrier that does not have a specific tariff agreement or contract with the shipper, also resulting in increased shipping charges.
S. CALIFORNIA PORTS TO TAX PUBLIC FOR $7.8 BILLION
Officials at the ports of Long Beach and Los Angeles want taxpayers and consumers to pay for $7.8 billion in port-defined infrastructure development, according to internal port documents. Under the port funding scheme detailed in the documents, taxpayer funds from federal, state and local sources would pay for $3.7 billion of the total. The remaining $4.1 billion would be passed along to importers, exporters and the railroads through port-imposed fees. The two ports moved nearly 16 million TEUs last year and that number could double within a decade. The port-area infrastructure continues to deteriorate as costs for repairs and development have escalated. It is estimated that the cost of replacing the aging Gerald Desmond Bridge to the Long Beach Port is $800 million. Other projects in the documents include a $1.8 billion port trucking re-regulation plan, numerous on-dock rail projects, expanding a short port-area freeway used almost exclusively to deliver containers to a near-dock railyard, rebuilding freeway connectors serving the Los Angeles port, highway-rail grade separations in Los Angeles, Orange, Riverside and San Bernardino counties.
SAVANNAH SETS NEW ANNUAL RECORDS
The Port of Savannah set new annual records for containers handled and total tonnage, issued July 30 by the Georgia Ports Authority. In fiscal 2007 the Port handled 2.338 million TEUs, representing a 14.5% increased over last year. The Port of Brunswick experienced a record of 1.245 million tons, a 10% increase over the previous year. According to GPA Executive Director Doug Marchand, “Georgia continues to attract container volume faster than any other state in the nation”.
BILL FOBERT RETIRES
Bill Fobert, long time member of the League and a 16-year employee with Epes has retired from full time responsibilities with Epes but will remain as a consultant. Epes is a very strong supporter of the League.
TOMMY ALEXANDER RETIRES
Tommy Alexander is retiring from the SC States Ports Authority with 25 years service. Tommy has been an outstanding supporter of the League and has sponsored many events. He has also served on the Board of Governors. Tommy will be present at the NCLTL Fall meeting.
GORDON MACKENZIE TO RETIRE
Gordon Mackenzie, President of UPS Freight is retiring August 1 after over 40 years in the transportation industry, including the past 12 at UPS/Overnite. Gordon has been a great supporter of the League and was an honored guest speaker at this past June Conference. We wish Gordon and his family the very best. Replacing Gordon will be Jack Holmes, Senior VP of Operations.
VIRGINIA CONFERENCE ON WORLD TRADE ANNOUNCED
The Virginia Conference on World Trade will be held October 17-18, 2007 in Williamsburg VA. An excellent program is planned including a golf tournament at the legendary Golden Horseshoe Golf Club in Williamsburg. To view the agenda and register online, visit the website at
www.vacwt.org
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