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BULLETIN
10-07
OCTOBER 30, 2007
FALL MEETING COMMENTS
The first ever NCLTL meeting outside NC was held October 11-12 at the South
Carolina State Ports Authority, Charleston SC. All comments received have been
very favorable. The meeting was kicked off with a bus tour of Wando Welch
followed by a delicious low-country Beaufort Boil. We had great weather and a
tugboat tour of the Charleston Harbor was enjoyed by all as well as the southern
Barbeque luncheon on Friday. Special thanks are in order to our guest speakers:
Pam Zaresk, area Port Director (the CBP Today), CBP, Charleston; Jim Hardman,
legal counsel, ICE Coalition, Little Canada MN (New NC Workers Compensation
Legislation); TSA Update, Sabrina Plowden, TSA Charleston, Clifton Parker,
President G&P Trucking (latest economy update issued by the ATA); and Dave
Borchik, Sr. Director Maersk, (future comments on international commerce and
financial loss due to rail and road infrastructure). We also want to thank our
co-sponsors at the SC State Ports Authority: Mike Westerfield, Suzan
Carroll-Ramsey and Tommy Alexander (SCSPA retired) and all the other SCSPA
people that did such a great job. The beautiful art photo of the Water Front
Park by artist-photographer Cliff Berinsky was won by Eric Brotherton, OMG.
Board Chairman Mark Andrews has announced that the Board has unanimously elected
Sheila Cox to the NCLTL Board. Sheila is now enjoying her new position with the
SC State Ports Authority.
NCLTL WINTER MEETING IN GREENSBORO, 2008
President Valerie Lemond has announced that the NCLTL winter meeting will be
held in March, 2008 at the beautiful Four Seasons Convention Center, Greensboro
NC. A special tour is being planned including expanded networking and viewing of
display booths, along with great speakers and some delicious food. We wish to
thank Bill Vaughn, Lorillard Tobacco for his excellent assistance. Time and
details forthcoming soon. If your company would like to sponsor or co-sponsor
the event, please contact the League office.
SPECIAL REPORT OF THE NMFTA/NCC MEETING
An important meeting was held September 29-October 2, 2007 by the NMFTA in
Arlington Va. NCLTL Valerie Lemond attended the meeting and has prepared an
informative report, which highlights the results of the meeting. The NCC will
dissolve effective December 6, 2007 and will be replaced with the Commodity
Classification Standards Board (CCSB). This is in compliance with the
elimination of antitrust immunity. Users of the NMFC can continue to apply
provisions of the classification in their pricing tariffs and contracts. A copy
of Valerie’s report is including with this bulletin. We wish to thank her for
this report and for her support of the League in this important and critical
issue.
YOUR TAX DOLLARS AT WORK
The NC Department of Transportation hired a consulting firm for $3.56 million to
evaluate the department and make recommendations but they did not ask for a
written report. However after pressure by the N&O they changed their mind
and did ask for written report and the report is to be available to the public.
NC SENATE BILL: 1456 TRUCKS IN EXCESS OF 48 FEET
Recently it was brought to our attention that the NC Highway Patrol had started
writing tickets for length violations. Senate bill 1456 addressed this issue and
gave the DOT greater ability to allow more routes where 53-foot trailers would
be legal. However a NC Senator objected and the bill lost some of its favorable
length language. A hot spot for the violations has been Hwy 117 in Eastern NC.
If your company has received over length ticket violations please contact the
League office. Charlie Diehl, President of the NC Trucking Association is
helping to lead the fight to get changes in SB 1456 to allow for more routes for
53 footers. We continue to partner and support the NC Trucking Association in
matters of mutual interest and appreciate their fine work in support of NC
Truckers and Shippers.
NEW UPS CONTRACT
UPS shares rose on Wall Street as the result of the new union contract between
UPS and the Teamsters. The new five-year contract will move workers into a
single employer pension fund. The Teamsters represent 238,000 of the UPS’
427,000 employees. In other UPS news, the company announced a 3.7% increase in
third quarter profits for 2007. UPS expects to deliver more than 22 million
packages on its peak-shipping day of December 19. UPS earned $1.08 billion or
$1.02 a share for the three months ended September 30, up from $1.04 billion or
96 cents per share from the same period for 2006.
NEW BONDING RULE FOR OTIs
The Federal Maritime Commission has issued final rules governing the financial
wherewithal of applicants for ocean transportation intermediary licenses.
Applicants will have 120 days to show proof of financial responsibility, most
commonly a surety bond, from the time the commission approves their licenses,
previously 2 years. Ocean freight forwarders musts have $50,000 in coverage.
NVOCCs must have $75,000 bonds.
DUBAI TO INVEST $600 MILLION IN ORANGEBURG?
Things are really buzzing in Orangeburg SC. Jafza International, subsidiary of
Dubai World, a holding company has announced that Orangeburg SC is in the
running for a $600-$700 million logistics, manufacturing and distribution
center! If Orangeburg gets the center, it could be the recipient of 8,000 to
10,000 jobs, transforming the small town into a very important trade center.
Other additional investments could reach $1.2 billion. But several key issues
must be addressed such as a cloverleaf at SC Highway 301 and I-95 interchange in
Orangeburg County that would cost in the $40-$60 million range, as well as the
purchase of the land where the center would be developed. Orangeburg is about 75
miles from the Charleston Port and near the key interchange of I-26 and I-95.
Jafza was formed in 2000 and has created free trade and special economic zones
in Dubai as well as Morocco, the Republic of Djibouti and Malaysia. Jafza
officials have been quoted as saying that they are also in the process of
developing more than 30 similar projects around the world.
TWIC ENROLLMENT BEGINS IN DELAWARE PORT
The TSA began enrolling workers in the Port of Wilmington Delaware in the
Transportation Worker Identification Credential, which will eventually be
required for unescorted access to secure areas of all US ports. Currently the
TWIC is an ID badge but automatic devices to read the cards will eventually be
used. The TSA expects to enroll 5,000 workers for TWIC at Wilmington and
eventually more than 1 million at ports nationwide. After enrollment at
Wilmington will come Corpus Christi in early November, Baton Rouge in
mid-November, Beaumont TX; Honolulu; Oakland and Tacoma. In late November
Chicago, Houston, Port Arthur and Providence and Savannah. Passage in 2006 by
Congress of the Safe Ports Act obligated the TSA to begin TWIC enrollment at the
nation’s 10 highest risk ports by July, at 40 other ports by January 1 and all
ports by September 2008. Wondering out loud: why would Beaumont Texas be
considered a high-risk port?
DUBAI TO BUILD MEGA WATERWAY
Dubai will spend $11 billion on a 47-mile waterway that will encircle the city
and expand waterfront property for development. The waterway will be longer than
the Panama Canal and will be 500 feet wide. The Dubai waterway is the largest
construction project by the Dubai government to date.
WILL LIGHT RAIL ADD GREENHOUSE GASES?
Randal O’toole, a national transit critic and senior fellow with the Cato
Institute has stated that light rail does not cut down on greenhouse gases. He
said that the light rail systems add feeder bus routes and the high energy cost
and low ridership create more greenhouse gases. O’toole was critical of the
Charlotte Light Rail Line scheduled to open November 26. He said that the best
way to reduce greenhouse gases is to concentrate bus service on heavily used
routes, build more roads and promote the use of fuel-efficient cars.
NC EMISSIONS SPECIALISTS
North Carolina’s 61 emission specialists are responsible for the audit of
4,000 service stations and dealerships four times a year to make sure their
inspection equipment catches exhaust-belching vehicles. However the workload
averages only 1 audit per day that takes about 45 minutes to conduct. So what do
they do with the rest of their time? Make telephone calls, take breaks and maybe
watch Oprah? Isn’t this classic example of the waste of taxpayer dollars?
UNANNOUNCED INSPECTIONS ON EC FREIGHT FORWARDERS
Many freight forwarders including Switzerland’s Kuehne & Nagel
International, AG and Panalpina Weittransport Holding AG were raided October 11
as part of a joint US-European probe into alleged price-fixing. The EC said it
carried out unannounced inspections at the offices of several international
freight forwarding companies, without naming them. The investigation was
centered on whether the freight forwarders fixed prices for fuel and other
surcharges. The investigation was the result of a tip by an unnamed informer
according to Patrik Ducrey, deputy director of Switzerland’s competition
authority.
HORIZON ADDS 1,200 45-FOOT CONTAINERS
Horizon Lines has announced that its liner-shipping subsidiary, Horizon Lines
LLC will take delivery of 1,200 new shipping containers as part of an ongoing
equipment investment program this year. Horizon has ordered 2,200 new dry
containers since the beginning of 2007, including the 45 dry containers and 600
new high cube boxes. They have also added more than 1,000 new high cube
refrigerated containers including 40-foot reefers and 45-foot reefers specific
use in the Puerto Rico trade. They have also added more than 235 flat-racks in
the Pacific services. Horizon has taken delivery of and deployed five new
Hunter-Class container vessels this year, each with a capacity of 2,824 TEUs and
a service speed above 23 knots. No word on the cost of this huge investment.
YRC MAKES KEY MANAGEMENT CHANGES
YRC Worldwide has announced the following key management changes. Mike Smid has
been named president of North American Transportation and will be responsible
for the asset-based operating companies of YRC Worldwide. He will continue to
report to Chairman and President Bill Zollars. Jim Staley, president of YRC
Regional Transportation announced his retirement effective December 31, 2007
after 37 years service. Keith Lovetro has been named president of YRC Regional
Transportation effective immediately and will report to Mike Smid. Jim Ritchie,
president of YRC Logistics, and the YRC Worldwide senior management team will
report to Bill Zollars. YRC also announced earning of $0.70 per share for the
third quarter of 2007. “The weak domestic shipping market continues to
significantly impact the operation performance of all our companies”, stated
Bill Zollars, chairman, president and CEO of YRC Worldwide.
KITTY HAWK BANKRUPT
Kitty Hawk, a Dallas-Fort Worth based air cargo carrier announced on October 29
that it is suspending all major business operations and that its 500 employees
have been terminated. The company had been trying to restructure under Chapter
11 but said that it “will immediately cease all scheduled network air and
ground operations”, owing to declining demand and rising fuel costs. The
company had specialized in expedited delivery and time-sensitive heavyweight
cargo in the US and handled close to 90% of the freight shipped in and out of
Fort Wayne Indiana International Airport. Kitty Hawk said that it would continue
to operate its air cargo charter operations. The company also expects to be
delisted from the American Stock Exchange. The carrier reported net loses of
$19.9 million in the first half of 2007 and more than $34 million losses since
January 1, 2006.
TEXTILE GROUPS BLAST NPDA BILL
Two US Textile Associations and a manufacturing trade group expressed
disappointment at the introduction of the New Partnership for Development Act
(NPDA) by Congressman Jim McDonald (D-WV). The National Textile Organizations
and the National Textile Association, the American Manufacturing Trade Action
Coalition and the UNITE HERE union each issued press statements lambasting the
legislation, which would give duty-free access to the US market to imports of
all products from virtually all least developed countries and African Growth and
Opportunity Act countries. However the American Apparel and Footwear Association
welcomed the introduction of the legislation stating that it provides and
creates other incentives for market-based and sustainable economic growth.
According to the NCTO specific concerns center on a section of the bill that
grants nearly $1 billion in US tariff exemption to surging imports from
Bangladesh and Cambodia at the expense of struggling textile and apparel
producers in Africa, Central America and in the US. China is also a major
beneficiary as it supplies almost all the yarns and fabrics used in Bangladesh
and Cambodia. According to the NCTO employees in the US textile industry would
be hard hit because the industry exports $12 billion in yarns and fabrics to
these countries. Job losses in the US textile and apparel sector have totaled
163,000 of 23% since quotas on “Bangladesh, Cambodia and other major suppliers
were removed in 2005.
FREIGHTLINER COMING TO SC
Recent reports have strongly indicated that Freightliner might be bringing some
300 plus jobs to the Ft. Mill SC area for an administrative facility.
Freightliner has a strong presence in the Carolinas and employees about 3,500 in
its Cleveland plant. The company also has parts distribution centers in Georgia
and Tennessee. The move would involve only a fraction of the white collar jobs
in Portland and would be designed to improve customer service.
SONOCO ACQUIRES 6 PACKAGING PLANTS
Sonoco Products Co. has acquired six US Packaging plants from Caraustar
Industries to gain about $50 million in annual sales. According to Sonoco,
Hartsville SC sources, the purchase should “modestly”to earnings in the
first year. The factories employ 260 people and make recycled paperboard
containers and plastic cores, thread carriers and other packaging products.
SEEKING CAREER CHANGES
A seasoned veteran transportation executive is seeking a career change in the
Charlotte-Piedmont area. He has been responsible for complete transportation
logistics for 30 plus years. For more information please contact the League
office.
A dedicated professional is seeking a career change in the Gastonia/Piedmont
area. She has a diverse 12 year career and has been responsible for a
substantial Transportation Department, along with shipping and receiving
experience and other hands on responsibilities. Please contact the League office
for more info. |
