BULLETIN 05-08
May, 2008
 

NCLTL ANNUAL CONFERENCE IMPORTANT UPDATE

There is still time to register for the NCLTL Annual Conference June 19-21.  What a great value and great speakers and educational programs!  Thanks to our generous sponsors, all events are sponsored, including some really fun family events, including check-in refreshments, a family buffet breakfast on Saturday June 21 and family fun cookout, putting tournament and putting contest on Saturday afternoon, so bring the family.  We also have a hospitality reception, and for registrants a buffet breakfast, break refreshments, golfer’s box lunch, golf cart refreshments, and golf trophies and cash awards.  And we also have some great door prizes so if you have not registered, please do it soonRemember: make your room reservation first at Sea Trail (800.624.6601).  If you have either lost your forms or need more, please call or email the League office or visit our website at NCLTL.COM.  Don’t miss out on what Sea Trail calls the “best value of any group that we have ever had”. This will be our 19th consecutive meeting at the 2500 acre Sea Trail Resort.

NORTH CAROLINA DIVISION OF AIR QUALITY

The NCDAQ is drafting a new rule to be presented to the Environmental Management Commission’s Air Quality Committee (AQC).  This rule, if it becomes law could seriously impact truckers.  The draft proposal would prohibit the idling vehicles with a gross weight over 10,000 pounds more than 5 consecutive minutes in any 60 minute period.  There are notable exemptions to the proposal including an exemption for vehicles with APU’s (auxiliary power units).  But APU’s are expensive, costing over $5,000.  Other notable exemptions are occupation of a sleeper berth compartment, refrigerated units and emergency and military vehicles.  Truckers waiting to be unloaded, taking a nap in a rest area, etc. could be fined.  We are grateful to NCTA President Charlie Diehl for the information that he feeds to us due to his lobbying efforts with NC government in regard to legislation such as this proposal. He also led the effort to allow more routes for 53-foot trailers in NC.  Please let the League office know your comments. If you are a trucker and not a member of the NCTA, your money would be well spent as an informed member.

SMC3 DEDICATES NEW BUILDING
Longtime League member and supporter SMC3 has dedicated a new facility to be constructed at Commerce Pointe, Peachtree City GA.   The building will be 4 stories and 56,000 square feet, adjacent to SMC3’s Commerce Center building, creating a campus environment between the two facilities.  Commerce Pointe is slated for completion in December 2008 and will be ready for occupancy starting in January 2009.  SMC3 software and services are highly endorsed by the NCLTL, including the very popular CZAR Lite rates.  For more information about SMC3, visit www.smc3.com or call 800.845.8090.

ATA APRIL TRUCK TONNAGE INDEX FALLS 1.1%

ATA for-hire truck tonnage index declined 1.1% in April 2008.  Tonnage in March fell 1.7% instead of the previously reported 3.2% decline.  ATA Chief Economist Bob Costello said “truck tonnage hasn’t grown since January of this year on a month-to-month basis, suggesting the overall economy remains very soft”.  He also added that rising fuel prices are by far a bigger problem for the motor carrier industry than freight volumes.  Trucking serves as a barometer for the US economy because it represents nearly 70% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods.

ESCALATING OIL PRICES

Some eye opening facts from Scanwell Logistics.
OPEC prices per barrel of oil:

April 07 $ 60.00
Nov 07  $  85.00
Mar  08 $100.00
May 08  $120.00

THE NEXT CRISIS: RAILROADS

Michael Tarm, Associated Express reports some interesting observations concerning the future of railroads.  The already strained 140,000-mile US rail network faces gridlock by 2035Matthew Rose, CEO of Burlington Northern Santa Fe Corp., has predicted rail gridlock by 2035.  The rail network is already operating under the strain of congestion, with trains forced to stand aside for hours because of one-track rail lines.  The damage to the US economy could climb into the billions of dollars.  Higher shipping costs would raise prices for everything from lumber to grain to automobiles.  The US Chamber of Commerce warns that demand for freight trains is expected to double over the next 25 years.  Delays hamper the existing rail freight network.  A lone train stopped in Chicago can force other trains to stop or slow as far away as Los Angeles or Baltimore.  “It is a ripple effect”, according to Scott Haas, VP of United Parcel Service.  UPS uses 3,000 freight cars every day, more than any other US business.  UPS hasn’t determined the total cost of freight route congestion but said that just five minutes of daily delays for each of its drivers amounts to $100 million in losses a year.  Other modes of transportation can’t make up the slack and a solution will not be cheap.  Expanding capacity would cost $148 billion over 30 years.  Private rail companies would pay most of it, with federal and state tax dollars covering most of the rest.  Proposed solutions include building new overpasses to keep trains moving at track intersections and single-line tracks could be expanded to double or triple tracks.  CSX has announced plans to spend $300 million on upgrades to allow trains with double-stacked freight cars to run form the East Coast to the Midwest.  That would mean raising clearance on bridges and tunnels on lines through the Appalachian Mountains.  CSX would like the federal and state governments to provide $400 million more.  Amtrak shares the rails and get priority.  Amtrack’s long-distance trains were on time just 42 percent of the time last year and would want to benefit from capacity upgrades.

DHL, UPS AGREEMENT

Deutsche Post World Net has announced a plan to restructure its DHL US Express business by working with UPS for airlift capacity and reducing costs in its ground infrastructure.  DHL and UPS have agreed to develop a contract whereby UPS will provide air uplift for DHL Express US domestic and international shipments within North America.  DHL will also align its US Express infrastructure to existing shipment volumes by redesigning its ground line haul network to better match capacity with customer requirements.  The expected cost savings of about $800 million in 2010 and about $1 billion in 2011.  The agreement is expected to produce up to $1 billion in additional annual revenue for UPS. 

ABF ENDORSES ATA SUSTAINABLE FUTURE PROGRAM

ABF Freight System announced May 27 its support for a sustainability program to reduce both fuel consumption and emissions.  The far-reaching program of initiatives introduced by the ATA with a slogan of “Trucks Deliver a Cleaner Tomorrow”.  Bob Davidson, ABF President and CEO stated “because ABF implemented many of the program’s initiatives more than 30 years ago, we can attest to the numerous benefits that accrue from widespread adoption of these measures”.  Since 1976 ABF has voluntarily limited the maximum speed of its trucks to 62 mph.  Each ABF truck annually emits 33.5 fewer tons of carbon dioxide than identical trucks operating at 68 mph, according to Gary Hunt, ABF VP, Equipment and Maintenance.  The ATA has committed to a series of measures that together can reduce fuel consumption by 86 billion gallons and CO2 emissions of all vehicles by 900 million tons in the next 10 years.

NEW WEIGHT AND DIMENSION LIMITS IN MEXICO

From Wendy Fairer, US Geodis Wilson: The new regulation NOM12 (Weight and dimension limits on Mexican Roads) will be enforced as of June 1, 2008 .  The law will affect all cargo moving on Mexican roads.  The weight limitations on Mexican roads are being reduced to a maximum payload of 19 tons.  Truckers will have to comply with additional requirements such as special permission to travel on certain roads.  Truckers will be required to travel specified toll roads.  Strict checkpoints in ports and roads have been implemented.  Fines applied to truckers and owners of the cargo may vary from $1,500 to $8,000.  Cargo will not be released until payment is received. 

CHARLESTON TO GET BOOST FROM SHIPPING SERVICE CALLS

The Port of Charleston should get a boost in business from an upgraded South American service and a relaunched Asian service.  Charleston will receive a return of weekly all-water service from Asia that was suspended in December.  The All Water 5 service, a joint operation of the CKYH alliance carriers of Cosco, K Line, Yang Ming and Hajin will resume with Charleston as the last US port outbound.  Eight vessels with an average capacity of 4,014 TEU will be deployed on the service.  Port coverage includes Kiamen, Ningbo , Shanghai and Pusan .  The expected first call in Charleston is in late June.  Hanjin Shipping, K Line and Yang Ming are joining CSAV Norasia to introduce a new service that will provide additional capacity from the east coast of South America to the US East Coast.  The SNA or South and North American service will deploy five ships with average capacity of 2,500 20-foot equivalent units.  The SNA service replaces the existing NSA service, which was operated by Hanjin, K Line, Yang Ming and Hyundai Merchant Marine with four 1,800 TEU vessels.  The service offers calls in Sao Francisco do Sul, Santos and Salvador , Brazil , Puerto Cabello , Venezuela and Rio de Janeiro .  Charleston is the last US port outbound, offering exporters quick transit times to overseas markets.

PORT OF LONG BEACH AWARDS GRANTS

Two Port of Long Beach container-cargo terminals will receive $5 million in grants from the Port to convert diesel-powered cargo cranes to electricity for substantial air pollution improvements.  The Board of Harbor Commissioners approved two grants of $2.5 million each to help fund the electrification of 28 diesel-powered rubber-tired gantry cranes and reduce air pollution by about 120 tons a year.  The grant program was established to help terminal operators reduce emissions from the diesel-powered machines by converting them to electricity. 

GE SECURITY TO SUBMIT COMMERCEGUARD CONTAINER SECURITY SOLUTION

GE Security, a subsidiary of General Electric, has announced plans to submit its CommerceGuard container security solution for participation in the next phase of US Customs and Border Protection testing and evaluation of conveyance security devices.  CommerceGuard is a leading solution for global supply chain security, currently helping to protect intermodal shipping containers while they are in-transit by adding intrusion detection to other security measures already in place in the supply chain.  Test and evaluation is an important step forward on the path to better protecting seaports and the entire global supply chain with the critical security layer CSDs can currently offer. The CommerceGuard container security device is mounted inside a container as it is being stuffed for shipment in order to monitor for, and report on, potential en route tampering.  While in transit, the devices communicate securely with fixed and handheld readers.  The readers forward encrypted security and tracking information wirelessly to the global CommerceGuard information Network where it is accessible by authorized shippers and officials such as customs officers.  Automated tamper alerts are routed to appropriate authorities when warranted.  GE Security has announced plans to submit its CommerceGuard container security solution for participation in the next phase of US Customs and Border Protection testing and evaluation of conveyance security devices.  CommerceGuard is a leading solution for global supply chain security, currently helping to protect intermodal shipping containers while they are in-transit by adding intrusion detection to other security measures already in place in the supply chain. 

PMA, ILWU REPORT ON NEGOTIATIONS

The International Longshore and Warehouse Union and the Pacific Maritime Association May 22 has reported the following:  “With more than one month remaining before the current waterfront labor pact expires, negotiations continue between the Pacific Maritime Association and the International Longshore Warehouse Union.  Each side has exchanged and modified proposals as part of the discussions aimed at reaching a fair and reasonable agreement by July 1, 2008 , when the current six-year contract is set to expire.”  The current contact covers 26,000 ILWU-represented longshore workers at 29 West Coast Ports in California , Oregon and Washington .  The PM represents cargo carriers, terminal operators and stevedores operating on the West Coast.

NC TOLL ROADS TO “BILL YOU LATER”

North Carolina will be one of the first states to go cash-free when it starts building toll roads.  The NC Turnpike Authority is considering a new way to take drivers money on the state’s first toll road, the planned 18-mile Triangle Expressway between Research Triangle Park and western Wake County .  By not having toll booths, officials claim that they will save $60 million in land and construction costs alone.  Regular drivers will have electronic transponders on their dashboards and also accounts with the Turnpike Authority.  Overhead sensors will ID their cars for billing later.  For the rest of the drivers, special cameras will collect license numbers and use the information to bill tolls from the vehicle owners. 

NEW LIFE FOR GLOBAL TRANSPARK

Spirit AeroSystems has promised to bring 1,031 jobs and $570.5 million in investment to the Global TransPark in Kinston NC .  The state of NC lured the company with more than $180 million in incentives to try to revive the park.  Spirit makes aircraft components for manufacturers including Boeing, Airbus and Gulfstream.  The Global TransPark was built 17 years ago to transform the Eastern NC economy, but has netted only 12 tenants and has required tax money to keep it in operation, to date having spent $87 million.  Spirit will pay an average yearly salary of $48,000 and expects to open its operation at the Global TransPark in 2010.

PARKDALE MILLS MAKE MAJOR INVENTMENT

Parkdale Mills CEO Andy Warlick has announced the purchase of 48 Rieter spinning machines at a cost of $30 million by the Gastonia NC based yarn spinner.  The machines are 500 positions long, the longest rotor-spinning machine in the world.  The machine handles up to four robots, including AEROpiecing for yarn-like piecing.  This is one of the largest orders ever placed by a sales yarn spinner.  Parkdale, one of the world’s largest yarn producers, has been involved in the evaluation process with Rieter for four years.  About 80 employees work 12-hour shifts at the 200,000 square-foot plant #26, which Parkdale acquired 10 years ago.  The new equipment gives the facility about 2 ½ times the production than before.  100 percent cotton yarn is made for export to the Dominican Republic and Honduras .  “This is a great facility with a great work force in a great community”,  Warlick said.

TALLER WAREHOUSES THE NEX BIG THING

Two buildings under construction in Charlotte ’s Sykes Industrial Park West will have 40-foot clear ceiling heights so distributors can stack goods higher and tighter.  Taller warehouses are a trend in the industry as companies try to save land and construction costs.  The buildings will lease for $6.00 per square foot and $20.69 storage per pallet.  Charlotte has become the nation’s 14-th largest distribution center with more than $32.7 billion in annual wholesale sales.  The two buildings cost $17.5 million to develop.  Charlotte ’s interstate highway connections, hub airport access and proximity to major seaports make it a natural for taller and more sophisticated distribution facilities. 

LIQUOR STOLEN

A tractor-trailer was stolen from behind a Bojangles in Clayton NC with a cargo of liquor valued at a half-million dollars.  Police in Clayton are not sure if the thieves knew what they were taking.  

JERRY ORR

Charlotte-Douglas Aviation Director Jerry Orr was featured in an article in the Charlotte Observer.  The article was written by Stanford Brookshire, Jr., retired founder, president and CEO of Acentron Technologies and former Airport Advisory Committee Chairman.   Jerry has been with the Charlotte-Douglas International Airport more than 30 years.  He has been a friend and speaker for the League on more than one ocassion.  Under his direction the airport has become one of the nation’s premier airports, providing worldwide connections for more than 33 million passengers and a thriving cargo terminal.  The airport is recognized as one of the nation’s top economic development facilities, with over $10 billion in economic impact.  Many persons do not know that the airport is profitable and is run as a business.  The airport does not rely on local taxes.  Charlotte is the 16th busiest US airport and one of the fastest growing among the world’s 30 busiest airports.  The Airport will continue to grow and the opening of the new intermodal facility will make it a great place to do business, thanks to Jerry and the staff at Charlotte-Douglas.

NEW COMPANY NAME

Mike Medley , Station Owner, Concert Group Logistics, Greensboro NC
800.824.3309 mmedley@cglship.com

Buddy Holson, Horizon Logistics, 4064 Colony Rd. , Charlotte NC  28211
704.778.7309 bholson@hrzlog.com

UPDATED MEMBER INFORMATION NEW LOCATION

Doug Muse, President, D&W Transportation, 124 W Catawba Ave. , Mt Holly NC  28120
704.820.9919 dwdoug@bellsouth.net

IMPORTANT MEETING

The Port of Virginia will hold the Fourth Annual Motor Carrier Management & Safety Conference Thursday August 7, 2008 .  The meeting will be held at the Holiday Inn Virginia Beach Executive Center , 5655 Greenwich Rd. , Virginia Beach VA.   The meeting will start at 8:00 AM and adjourn at 4:00 PM .  Lunch will be provided by the Virginia Port Authority.  An excellent and diversified agenda is set.  Cost is only $25.  You must pre-register.  Contact Kathy Raymond at 757.498.2562 or email http://www.drivesafehr.org/motocarriersafety.shtml or register on line at http://drifesafehr.org/motorcarriersafety.shtml

SEA TRAIL RECEIVES AWARD

The Sea Trail Golf Resort & Convention Center has been named a winner of the 2008 Pinnacle Award by Successful Meetings magazine as announced by Chris Robertson, Marketing Manager at Sea Trail.  We congratulate the excellent Sea Trail Staff on this award.  Our contacts at Sea Trail are John Humphries and Donna Rabon.  These two professionals have worked extremely hard and have been very cooperative with the League.  What a wonderful resort and a great staff!

 
 

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