ANNUAL CONFERENCE

The 2008 NCLTL Annual Conference will be held June 19-21 at the Sea Trail Plantation Convention Center at Sunset Beach NC.  President Valerie Lemond is pleased to announce the following guests as speakers at this year’s conference:

Sebastian Boling, Express-1
Chuck Odom, Averitt Express
Paul Hargett, Mediterranean Shipping
Mark Troughton, Georgia Ports Authority
Debra Phillips, FedEx
John Gentle, RelaTranShips-Renowned Guest Speaker

We are fortunate to have these fine professionals who are participating in our commitment to continuing Transportation Education and networking.  If you have not made room reservations at Sea Trail you may do that at any time by calling 800.624.6601.  Conference Registration forms will be mailed out soon along with the golf registration forms and display table reservation forms.  If you have comments or questions please contact the League office at 800.626.9924.  If you are interested in supporting the League as an event sponsor, we still have several spots open and we would warmly welcome your contribution.  

PROPOSED INDUSTRIAL PORT FACILITY TO GENERATE NEW NC JOBS

The NC Ports has announced that a 975,000 square foot warehouse /dc in Leland Industrial Park is being proposed by BPG Properties LTD which will be located 10 miles form the Port of Wilmington.  The project will be named the NC Port Industrial Facility and will be available to support the Port of Wilmington and its growing container volume.  New equipment has also been installed at the Port.  The 75-acre site is bordered by a rail line and is convenient to I-40 and US Highway 74, connecting to I-95 within an hours drive.  For more information please contact Dan DiLella, Jr., Vice President at 215.575.2352.  

AG GROUP CLAIMS PORT FEES COULD CRIPPLE EXPORTS

Port-imposed container fees could cripple US agricultural exports, which already face stiff price competition in global markets, according to an organization that represents exporters of farm products.  The immediate concern of the Agriculture Transportation Coalition is a proposal by the Port of Oakland to impose container fees to fund infrastructure development and environmental initiatives.  Oakland is developing the details of its program and could finalize a plan this summer.  “Agriculture can’t absorb per-container fees”, said Peter Friedmann, a Washington, D.C., attorney who serves as general counsel to the coalition.  In Southern California, the container fees will be charged on top of existing fees for the Alameda Corridor rail route and PierPass extended gates program.  Friedmann said the cumulative impact of such fees could eventually total $400 per container.  Agricultural exporters are opposed to a proliferation of fees at ports across the country.  Friedmann also said that national legislation proposed by Rep. Ken Calvert, R-CA would ensure that low-margin products, such as agricultural exports, would not be priced out of the global marketplace.

TRUCKERS BALK AT TWIC RULES

Some truckers that haul dangerous articles say some shippers are requiring that they get the new Federal Transportation Worker Identification Credential, a substantial expansion of the Id card that many say they cannot meet.  The dispute between truckers and hazardous materials shippers comes at the meeting point between two federal security rules that are very similar but are entirely separate.  Some shippers are demanding that drivers have TWIC cards to meet the requirements for security background checks under the recent Chemical Facility Safety Anti-Terrorism Standards.  Some drivers may not be able to obtain a TWIC card as some the number of locations processing TWIC applications are limited.  Richard Moskowitz, an ATA vice president is asking that hazmat shippers accept drivers with a commercial driver’s license that includes a hazardous materials endorsement.  He also has an opinion from the Department of Homeland Security that the security threat assessment performed on drivers that got their hazmat endorsements after May 31, 2005, is identical to that under the TWIC program “and will satisfy the CFATS requirements for personnel security”.  

FMC URGED TO BAR LA CLEAN-TRUCKS PLAN

The ATA Intermodal Division has urged the FMC to prevent what it has termed an illegal trucking concession mechanism from being enforced at the ports of Los Angeles and Long Beach.  The proposed concession is the mechanism through which the ports intend to manage their clean-trucks program to ensure that only low-polluting 2007-model trucks or their equivalent be allowed access to marine terminals.  Under the clean-trucks plan adopted by the Long Beach Harbor Commission, and a proposed plan that the Los Angeles Harbor Commission is expected to adopt later this month older, high-polluting vehicles will be progressively banned from the harbor.  After five years, the entire fleet of about 16,800 trucks will be composed of model-year trucks or their equivalent that meet strict air quality standards. In order to gain access to marine terminals, licensed motor carriers would have to sign a contract, or concession, with the cities.  The concession contains a number of restrictions and requirements involving maintenance of the vehicles, the availability of health insurance for drivers, and a requirement for approval from the cities before selling a trucking company, among others.  But wait.  Los Angeles is expected to adopt an even more restrictive clean-trucks program that limits concessions to licensed motor carriers that hire drivers as direct employees, a provision requested by the Teamsters union and environmental groups.  Will it ever stop?  Can we ever get “green” enough?  

PORT OF NY/NJ SETS 2007 CARGO RECORD

Record 2007 Cargo volumes at the Port of New York and New Jersey have been announced by port executives and NJ Governor Jon Corzine.  The number of loaded TEUs handled by the port last year rose 7.6% over the previous year, exceeding $166 billion for the first time, up 11%.  The number of loaded and empty TEUs handled in the port was 5,299,105- an all time record.  The Governor and Port Authority have detailed steps for expansion, including the addition of 119 acres on the eastern end of the Port Jersey peninsula for the potential redevelopment of new cargo container space.  A NJ current project to deepen the Port Jersey Channel to 50 feet is scheduled for completion in 2012 and will allow service for the world’s largest ships.   

IRAQI OIL

Iraqi crude oil exports reached 56.1 million barrels in February with increased revenues of $5.037 billion.  The port of Basra sent an average of 1.54 million barrels abroad a day and Kirkuk exported nearly 390,000 barrels per day.  Iraq’s oil exports rose 9.2% last year.  Total oil exports in 2007 reached nearly 600 million barrels, an average of 1.6 million per day.  The majority of the oil was exported from Basra.  No data on how much of this oil, if any went to the US.  

INVISTA UNITS SOLD TO PERFORMANCE

Performance Fibers of Richmond has announced that it has completed its acquisition of Invista’s North American tire cord and polyester industrial filament business, including 4 plants in the US and Mexico.  The purchase includes manufacturing facilities in Salisbury NC, Shelby NC, and Winnsboro SC as well as Queretaro Mexico.  Performance now has 12 plants located in North America with an estimated $1 billion in sales and about 4,000 employees.   

SLOWDOWN AT BRAZILIAN PORT

A slowdown operation is underway at the Santos Port in Brazil .  Only 30% of the customs officers are on duty.  Perishable commodities, medicine and essential cargos are being given priority on cargo release process.  Terminal storage space is becoming tight and major impact is expected if the strike goes on.  Customs officers want a 42% increase on their wages while the government is offering 17%.   

IMPORT VOLUME IN US TO REMAIN WEAK

According to Bill Mongelluzzo, Journal of Commerce, the container import volume moving through the US ports will remain weak into the early summer because of decreased spending by consumers.  The retail industry is expecting only modest growth this year, said Jonathan Gold, VP for supply chain and customs policy at the National Retail Federation, stated in the March Port Tracker.  Import volume at the top US Gateways declined 3.5% in January compared to December and 4.3% compared to January, 2007.  The Port Tracker estimates that container volume in February declined 9.6% from the same month the previous year.  That would make February the seventh straight month that container volume declined on a year-to-year basis.  Volume in March is expected to be flat.  Retailers in this weak market are managing their inventory to match demand, Gold said.  There are no economic signs to indicate consumer demand will increase significantly this summer.   

CHINA INFLATION

China’s inflation worsened in February 2008 to 8.7%, an 11-year high.  While part of this figure might represent the snowstorm, which caused major transportation disruptions, it highlights the urgency of the need to keep prices under control by the authorities.  It has been almost 12 months that consumer price grew at a faster pace than producer prices, reflecting the pressures of rising demand in the country.  It does not help that even the producer prices are not seeing any easing in the near term, further putting strains on consumer prices.  Food prices continue to surge, growing at 23.3% yearly.  Vegetable prices were up 46%, while meat prices were up 45.3%.  The rural population has been taking a larger portion of the brunt than their urban counterparts for the past 2 years.  Chinese Premier Wen Jiabao has set a CPI target of 4.8% for 2008.  China is also experiencing a growing reliance on imports, and for the first time since the past 2 years import growth has overtaken exports growth, and the growth in trade surplus has seen significant easing.   

UPS TO FOCUS ON OVERSEAS

UPS Inc. plans to focus more on growth opportunities overseas because of the uncertain US economy, according to executives of the world’s largest shipping carrier.  CEO Scott Davis said the Atlanta-based company still considers its domestic market to be important to its future.  He noted that economic forecasts for this year are uncertain at best.  Mr. Davis said the company can’t rely on US package volume growth alone.  International growth will become more important in the future, he said.   

WORLD’S FASTEST CIVIL JET

General Dynamics will build the Gulfstream G650, the world’s fastest civil jet as it seeks a greater share of sales in Europe , Asia and Latin America .  The new G650 jet will have a maximum speed of Mach. 0925 which is a sizzling 704-mph.  Charlotte NC based Goodrich Corp., will make the landing gear, cockpit observer seats and engine controls.  The plane can fly from Los Angeles to New York in less than four hours, or New York to London in less than six hours.  No information on selling price as yet.  

NETJETS SKIP NC

North Carolina lost out on a bid to build a facility for NetJets at RDU.  Instead, the private airline plans to build a new campus in Columbus , Ohio , investing $200 million and creating 810 jobs.  NetJets began in New Jersey in 1986.  It lets people and companies buy interests in aircraft, giving them private jet service without the cost of full ownership.  The company is backed by billionaire investor Warren Buffet. 

TRANS-PACIFIC FUEL SURCHARGES

The up and down fuel surcharges on trans-Pacific trade is going to continue for at least another two months, according to William Armbruster of Shipping Digest.  As of April 1, both the Transpacific Stabilization Agreement and the Westbound Transpacific Stabilization Agreement are reducing their bunker surcharge on 40-foot containers to $860, down from the $905 that had been in effect since March 1.  But then the rate will increase to $995 per 40-foot box on May 1.  The rate for 20-foot containers, which was $724 in March, will drop to $688 in April, but will increase to $796 on May 1.  While the WTSA charges the same rate for 40 and 45-foot boxes, the TSA distinguishes between boxes of different sizes.  The eastbound group’s rate for 45-foot containers and 40-foot high cube containers will drop from $1,146 and $1,018 in March to $1,089 and $968 on April 1.  But in May it will increase to $1,260 and $1,120.  The TSA’s rate for cargo prices on a metric ton or cubic meter basis will drop from $20 in March to $19 on April 1 but then increase to $22 on May 1.  Both groups will raise their inland fuel surcharges in April and again in May.  The current rate for rail and intermodal rail-truck shipments will increase from $280 per box on April 1 and then to $353 on May 1.  The rate for local and regional truck moves will increase from $81 in March to $84 on April 1 and then to $102 on May 1.  The TSA has 15 member carriers; 10 of them also belong to the WTSA.  

AIRLINE HIRES TEMPS TO FILL PLANE

British air carrier Flybe is paying 172 passengers to fly back and forth across England and the Irish Sea to help it meet a target for passenger numbers at the Norwich airport.  Flybe is trying to deliver at least 15,000 passengers on the Dublin-Norwich route in the 12 months ending in April so that it could collect a $550,000 rebate from the airport.  The passengers paid the temps a small fee and included a free bar and in-flight entertainment.  Nice part-time work.  

VOLVO GREEN TRUCK

Volvo unveiled a biogas and biodiesel truck at the Washington International Renewable Energy Conference in Washington .  Volvo exhibited carbon-dioxide-neutral heavy-duty trucks that operate on renewable fuels at the conference.  Leif Johansson is the chief executive officer of Volvo AB.  

LOWE’S DONATES $1 MILLION TO CLASSROOMS

Lowe’s Charitable and Education Foundation will spend $1 million to buy computers, SMART boards and other interactive classroom technology for public schools near its headquarters in Mooresville and Wilkesboro.   The foundation has awarded $250,000 to 16 schools in Charlotte-Mecklenburg, district and foundation officials announced.  Iredell-Statesville, Mooresville and Wilkes County public schools are getting similar grants.  Charlotte Mecklenburg Superintendent Peter Gorman said the Lowe’s grant will help students “be ready to work in an environment that is not only full of technology, but changing technology.”