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BULLETIN
0807
AUGUST 21, 2007
NCLTL FALL MEETING UPDATE
The NCLTL
Fall meeting will be held October 11-12 in partnership with
the Port of Charleston SC.
Registration forms will be mailed within the next 2
weeks. The
agenda is almost complete and will feature a bus tour of
Wando Terminal on Thursday October 11, a welcoming dinner at
Wando and a great meeting and luncheon Friday October 12 at
the Passenger Terminal capped off with a tugboat tour of the
Charleston
harbor Friday afternoon.
We also have some excellent speakers including Bernard
Groseclose, President and CEO of the Port, Pam
Zaresk, Area Port Director, CBP and Clifton
Parker, President, G&P Trucking.
So make plans to attend the first ever NCLTL meeting
in
South Carolina
. IMPORTANT:
We have secured a room block with the Hampton Inn,
Mt.
Pleasant
. Rooms can be
scarce in October so it is important for those that want
to stay in
Charleston
to reserve a room as soon as is convenient.
Please call 843.856.3900 and ask for the rates for
the North Carolina League of Transportation.
Our special rate is $114 per night and is good for
Oct. 11, 12 and 13. Upon
check-in golfers may receive a special rate to play at a
nearby course. The
Inn
is about 4/12 miles from Wando and is adjacent to the
Mt.
Pleasant
Town
Center
. It is also 7
miles from downtown and 3 miles from the nearest beach.
NCLTL TO SUPPORT THE ATA
The NCLTL
is submitting letters in support of the American Trucking
Association in its bid to seek a stay from the US Court of
Appeals of D.C. in its bid to keep the current rules in
place concerning the Hours of Service Rules.
The specific rules we are supporting are the 11-hour
daily driving limit and the 34-hour restart.
The Court ruled on
July 24, 2007
that the FMSCA must provide better explanations of its
justifications for adopting the 11-hour drive time and
34-hour restart. The
court ruled that current driver rules would remain in effect
for 52 days, after which the prior rules would become
effective. This
ruling has tremendous impact on land transportation and if
it becomes effective could become a huge expense for our
members that operate trucks.
The ruling would also slow delivery times and could
drive up consumer costs.
ATA President and CEO Bill Graves said
that “ATA believers the existing rules have proven to be a
significant improvement over the old rules in terms of
reducing driver fatigue and related incidents”.
BUSH NOMINATES ANDERSON AND
KRESS
President
Bush has nominated A. Paul
Anderson as chairman of the FMC.
If confirmed,
Anderson
would serve his second term on the five-member panel,
through 2012. He
was appointed to the commission in April 2003.
He will replace Steven R. Blust as
chairman. President
Bush also nominated Carl B. Kress as a
commissioner to replace Blust.
Kress is currently regional director for the
Middle East
,
North Africa
and
South Asia
at the US Trade and Development Agency.
AHERN IS NEW CUSTOMS DEPUTY
COMMISSIONER
Jayson
Ahern assumed the duties of deputy commissioner of
US Customs and Border Protection.
He took the No. 2 position in Customs upon the
retirement of former deputy commissioner Deborah Spero,
who retired after 37 years of service.
Ahern is former assistant commissioner of the Office
of Field Operations.
SHIPPERS IN COMMAND-SHIPPER
ALLIANCES
The current
soft market is working favorably for shippers.
The excess capacity is causing some problems with
networks that pool freight with participating shippers.
Shippers are now getting spot rates and charges that
are much more attractive.
However Sr.
VP of Genco, Tom Aumann said that despite
housing slowdown and high fuel prices, truckers should see
demand increase after retailer and manufacturer inventories
are refilled, in addition to the effects of a weak dollar
which should continue to drive exports.
He also stated that on any given day 18% of all
trucks run empty in a trucking market estimated at $635
billion, this cost could reach $114 billion.
ELIMINATION OF
CLASSIFICATION TO SAVE MONEY?
Some
transportation experts and consultants continue to speculate
that elimination of the current classification system might
save shippers 10% in shipping costs.
Brent Primus, an attorney with the
respected Freight Transportation Consultants seems to think
so. It appears
to me that this can only happen if a shipper has the
expertise and resources to evaluate all his lanes and nature
of his traffic in regard to cost and safe transportation, as
well as service. For instance by agreeing to lower limit to
liability on certain commodities (such as chemicals, coal
tar dye, clothing etc.), a savings can be realized.
Some shipments that are going LTL common carrier
might be cheaper via small package ground service.
To predict an across the board savings of 10% on LTL
freight would be merely speculative and probably not doable.
Alternative shipping methods are not new to LTL
freight. They
have been around for many, many years and usually are
designed for a specific shipper or shippers that ship a
certain commodity. It
just might be that should the NMFC become extinct,
transportation consultants would become highly in demand.
The shipper members and payors of freight in the
NCLTL almost without exception have excellent agreements and
contracts with their core carriers and get their companies
the best costing that can be had.
We respect our carrier members and appreciate the
great service that they provide NCLTL shippers.
PARKING SOLUTION FOR BIG
RIGS
FMCSA has
been awarded a $396,000 contract to Foster-Miller develop an
automated “SmartPark” system to make it easier for
long-haul truck drivers to determine where overnight truck
parking is available on major highways so they can pull off
the road and rest. This
has become a very big problem for drivers and trucking
companies that obey the Hours of Service rules.
Parking has become a premium and many businesses will
not allow trucks to park forcing them to park anywhere they
can such as on the side of the highway.
Foster-Miller has been given permission to use the
Charlton service area on the Massachusetts Turnpike for
Phase I of the program.
The system would use video cameras mounted at the
entrance and exit ramps to count vehicles entering and
leaving the facility. Image
processing software in the cameras would distinguish between
trucks, tractors and other vehicles based upon length.
When the software detects a vehicle entering or
exiting the facility, it will signal an offsite data system
via a wireless Internet connection.
Eventually, the system will broadcast parking availability
to truckers.
APM CARGO TERMINAL GETS
FIRST CUSTOMER
From
Virginia
Intermodal News: The first customer of APM, the terminal arm
of AP Moller-Maersk Group has its first customer. It marked
a major milestone for the 230-acre terminal, which
eventually will be able to handle the same number of
truck-size cargo containers that all three of the Virginia
Port Authority’s marine terminals moved last year.
Although several ships will dock at the new terminal
over the next month, it isn’t until Sept. 12 that the
first “substantial” ship is scheduled according to
Maersk spokeswoman, Mary Ann Kotlarich. A
formal opening ceremony is planned for Sept. 7 at the
terminal.
TOLLS APPROVED FOR I-73 IN
SOUTH CAROLINA
The US DOT
has now authorized the state of SC to build a portion of the
proposed I-73 as a toll road, so we can expect to see more
similar action. Tolls
are proposed to play for SC’s portion of the construction
of I-73, which are estimated to be $2 billion.
I-73 will run from SC to Michigan, with the SC share
of road to be about 80 miles.
We can anticipate NC asking for the same
authorization and will have the option of tolling its share
of the new highway. Other
states are Virginia, W. Virginia, Ohio and Michigan.
FEDERAL PERMISSION REQUESTED
TO TOLL I-95
SC
Transportation officials have asked the federal government
for permission to charge tolls on I-95.
SC is joining Florida, Georgia, North Carolina and
Virginia in asking the Federal Highway Administration to
charge people who drive on I-95, said Michael Covington,
state Department of Transportation director of
administration. The
money collected in tolls would be spent to maintain and
improve I-95. Even
with federal permission, the five states would have to agree
to tolls and SC lawmakers would have to give permission.
Current law in NC forbids the tolling of any existing
roads and bridges, but a quick vote in the state legislature
and prompt signing could change that.
The NCLTL is firmly in opposition to the tolling of
any existing highways and bridges.
NC GENERAL ASSEMBLY GOES
HOME WITH NO FUNDING FOR SHORTFALL
NC
Lawmakers went home after a session that began in January
without finding a way to cover the estimated shortfall in NC
transportation spending needs, projected to be a whopping
$65 billion over the next two decades.
They also failed to set aside the seed money to start
work on the state’s first toll road.
There is talk about getting lawmakers to return to
Raleigh to seek a solution.
Many lawmakers are demanding that the state stop
transferring $172 million from the highway trust fund to its
general fund, which is spent on general services, including
schools, health care and prisons.
The state also had an unexpected revenue collection
of $1.5 billion. A
commission subcommittee recommended raising the existing 3
percent sales tax paid on automobile sales, and giving local
governments the option to tax land transfers to help ay for
road construction, however the full commission declined to
back specific tax changes.
The lawmakers also capped the gasoline tax for
another two years costing the state an estimated $140
million in revenues. In
a report last year, transportation officials said that the
state needs $122 billion over the next 25 years to fix roads
and meet the needs of population growth but there would be
just $57 billion available leaving a deficit of $65 billion.
Options are still the same: raise taxes that pay for
infrastructure, such as gas tax or cut money from other
programs. Other
states are facing similar problems.
Virginia lawmakers approved a transportation package
intended to collect $1billion a year through regional taxes,
reckless-driving fees and other measures.
Charlotte Democrat and NC State Rep. Becky
Carney, chair of the House Transportation Committee
stated “we need a major study and overhaul of the way we
are funding the roads in our state”.
Right on Becky and the General Assembly could start
by stopping the misuse of the highway trust fund.
NC TROOPERS CHECKING BACK
ROADS FOR OVERWEIGHT TRUCKS
State
troopers have started patrolling back roads to catch
truckers avoiding weight scales on major highways such as
I-85. They are
concentrating on trucks hauling gravel, timber and other
commodities. The
state has made a greater effort to enforce truck weight
limits over the past two years, issuing 20,000 citations for
175 million excess pounds in 2006 and 12,000 citations for
105 million excess pounds in the first half of 2007.
FREIGHT INDEX DECLINES
Freight
transportation business declined in June according to the
Department of Transportation’s Bureau of Transportation
Statistics. The
index which measures month to month changes in output of
trucking, rail, inland waterways, pipelines and airfreight
fell 0.7 percent from May to June.
The June index of 108.9 was down 3.4 percent from
June, 2006, the largest June to June decline in 17 years.
The index peaked at 113.1 in November 2005.
NEW CUSTOMS REGULATION IN
MEXICO
The Mexican
Customs Authorities have announced the implementation of a
24 Hour Rule Advance Manifest for all import cargo to Mexico
beginning September 1, 2007.
Sea carriers, freight forwarders, and NVOCC’s must
provide all information related to the cargo that is being
transported to Mexican ports 24 hours in advance of the
estimated time of arrival of the ship at the loading port.
This measure has the same purpose as the US and
Canadian Advanced Manifest since Mexico is part of the North
American Security and Prosperity Agreement.
For more details and information please go to the
Rogers and Brown Website www.rogers-brown.com.
GUTIERREZ IMPRESSED WITH
EXPORTS AT CHARLESTON PORT
US Commerce
Secretary Carlos Gutierrez and US Sen. Jim
DeMint touted the importance of exports to South
Carolina as they toured the Port of Charleston, one of the
busiest container ports along the Southeast and Gulf States.
South Carolina exports totaled $13.6 billion in 2006
and went to over 150 countries.
Gutierrez said that while countries the US has free
trade agreements with make up only 7.5% of the world GDP,
they purchase more than 42% of US exports.
NWA SUEZ SERVICE BEGINS IN
CHARLESTON
The first
vessel in a new Suez service has docked at the Port of
Charleston’s Wando Welch terminal.
The 903 foot long President Adams is one of eight
vessels in the New World Alliance weekly service between the
US East Coast and South Asia.
The Suez Express increases NWA’s Charleston
business by 50%, and brings the consortium’s total vessel
count to more than 150 ships annually.
UPS TURNS 100
UPS started
out in 1907 in the basement of the home of two Seattle
teenagers who made deliveries on foot and bicycle. It
is now the world’s largest shipping carrier with a $47
billion business with a fleet of trucks, an airline and
operations in 200 countries.
Last month UPS reported a 4.1 percent rise in
second-quarter earnings with company shares up more than 14
percent over last year.
UPS has 427,700 employees with 238,000 of those
employees members of the Teamsters Union.
The Average UPS driver has been with the company 16
years and is paid an average of $75,000 per year, while its
average pilot salary is $200,000 per year.
CON-WAY CONSOLIDATES
OPERATIONS
Con-Way
Freight has consolidated its operations, combining three
regional operating companies into one centralized operation
headquartered in Ann Arbor MI.
The company had operated under three units: Con-way
Freight-Central, Con-way Freight-Southern and Con-way
Freight-Western since its inception 24 years ago.
“This transformation will improve Con-way
Freight’s performance,” said John Labrie,
President. The
parent company also announced a new executive team: David
Miller, CEO; Michael Yunger, VP
Finance; J. Edwin Conaway, EVP Sales; Sean
Devine VP Engineering; Manoj Chopra,
VP Pricing; and Scott Engers VP Employee
Relations.
HORIZON LINES SPLITS
OPERATIONS
As of Sept.
1 the company will split its transportation and logistics
operations into two wholly owned subsidiaries, Horizon Lines
LLC and Horizon Logistics LLC.
John Keener will serve as president of
Horizon Lines, the nation’s leading Jones Act container
shipping company. Brian
Taylor will serve as president of Horizon
Logistics, a new wholly-owned subsidiary of Horizon Lines.
These announcements came from Charles Raymond,
Chairman, President and CEO of Horizon Lines Inc.
NEW DIRECTOR OF OPERATIONS
AT All-STATE EXPRESS
All State
President Spencer Squires has announced the
appointment of William Gansman as the Director
of Operations. Mr.
Gansman was formerly with TNT/Ceva Logistics.
PROJECT
OPPORTUNITY
AVAILABLE
Great
opportunity for short-term (one year or maybe longer) for a
qualified person to combine a city and county fleet
maintenance operation into a single fleet maintenance
structure. Candidate
must have project management service, fleet operations
experience, merger and acquisition transition, and
communication skills. For
more information please contact the League office, Bill H.
Teague.
SEEKING CAREER OPPORTUNITY
Highly
qualified person seeking position in
transportation/logistics.
Impressive resume with diversified transportation and
logistics experience. To
contact this person please notify the league office, Bill H.
Teague.
Experienced
person new to area with 12 years experience in
transportation/logistics seeking staff or management
position. Has
retail logistics experience.
For more information please contact Bill H. Teague.
2007 SCHOLARSHIP RECIPIENT
OFFERS THANKS
Tanesha
Marshall, 2007 NCLTL Scholarship Recipient has
written a letter of thanks in appreciation of the
scholarship award. She
is on the dean’s list at NC A&T State University and
served in her freshman year as an intern for the Greensboro
Transit Authority. This
summer she served an internship with the Battelle
Corporation in Washington DC.
Congratulations and best wishes to this deserving
student.
WE NEED A VOLUNTEER FOR
PUBLICITY AND WEBSITE
President Valerie
Lemond is seeking a person that wants to serve as
the Chair of The Publicity and Website committee for the
League. This
position is important to the League and will obviously take
some time. We
want to get more about our League out on the Website and
also in publications. Please
contact Valerie or Bill Teague if you want to volunteer for
this important position.
Any dues paid member is eligible.
MR GEORGE REAVES
We lost one
of the most influential and well-known NCLTL members this
past July, George Reaves.
George joined Collins & Aikman in 1955 and had a
long and eventful career, retiring in 1993 as Vice President
of Traffic and Transportation.
He was a former President and Chairman of the League
and was also responsible for getting us in with Sea Trail
Plantation. He
is survived by his wife Frances, a sister and 2 sons as well
as 4 daughters and 13 grandchildren.
DON’T
FORGET TO MAKE PLANS TO ATTEND THE FIRST-EVER SOUTH CAROLINA
MEETING OF THE NCLTL THIS OCTOBER 11-12 AT THE CHARLESTON SC
PORT
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