BULLETIN 06-08
June, 2008
 

2008 ANNUAL CONFERENCE HIGHLIGHTS
The 2008 NCLTL Annual Conference was one of the best ever. Many NCLTL members worked in concert to make the event a great success. 

We want to welcome the new officers and Board of Governors 
as voted in by the membership at the 2008 business meeting:
President: Eddy Burgos, Husqvarna
Vice President: Martie Schlosser, Virginia Port Authority
Chairman of the Board:
Gary Harwell, Hickory Springs Mfg.
New members term expiring 2011:
Richard Barnes, Kellogg
Eric Brotherton, OMG
Tom Campbell, Elmers Products
Mark Williams, Charlotte Pipe & Foundry
Bill Dunlap, Forbo Adhesives

Motions adopted by the Board and voted in by the membership at the Business Meeting include:
The renewal of $25,000. CD for 18 months at a rate of 3.30%. Note: rate went up and CD was renewed at a rate of 4.40%.
Use Pay-Pal as a means to collect money for dues, meetings, and other League transactions.
2008-2009 Budget.
The Board also voted to authorize necessary procedure to provide the NCLTL Bulletin via email.

Other highlights included the guest speakers at our educational meetings:
Educational forum June 19: Mark Troughton, GA Port Authority
John Gentle, John Gentle & Associates
Educational Session June 20: Debra Phillips, FedEx
Panel Discussion: John Gentle, Moderator
Chuck Odom, Averitt Express
Sebastian Boling, Express-1
Paul Hargett, Mediterranean Shipping

The League is extremely grateful to the following event sponsors:
Mark French, Averitt Express
Martie Schlosser-Virginia Port 
Paul Hargett, Mediterranean Shipping 
Sheila Cox-SC Ports Authority
Fred Piercy, ABF 
Chip Overbey-Old Dominion
Ken Wall, Cargo Logistics 
Hank Albrecht-Wynne Transport
Tom Guthrie, NC Ports Authority 
Terry Kiewiet-LB Transport
Bill Tadlock, JB Hunt
Alan Oakley, Epes Transport
Bob Stone, Roadway Express
Brad Kahler, Fort Transfer
Dennis McCaffrey and Colleen Connor, Express-1
Danny McCallister, Belue Trucking

HAZARDOUS CARGO TO CHINA
The Tianjin and Shanghai Port Bureau has made the decision to stop accepting hazardous cargo into the ports of Xingang, Tianjin, Ningbo, Quingdao, Dalian and Shanghai from June 9 through August 24. This directive is based on the 2008 Olympic Games being held in Beijing, China. 

LONG BEACH ILWU CONTRACT
The refusal by the International Longshore and Warehouse Union in Long Beach to extend the previous contract while negotiations continue on a new contract has prompted waterfront employers to urge the members to act. Employers consider a contract extension to be an essential part of the negotiations. Union spokesman Craig Merrilees said employers are over reacting to this development in the negotiations. Spokesmen for both parties say that there are still a number of issues to be resolved . Merrilees said strengthening of the safety codes is a key union demand while employers are pressing for productivity improvements.

SOME MANUFACTURING RETURNING TO US
According to an article by Bill Mongelluzzo at the Journal of Commerce, rising transportation costs are causing a gradual shift of manufacturing back to the US. Melissa Ruiz, a manager at Ikea, said that the manufacturing of some bulky products such as furniture are beginning to migrate back to the US. Locating manufacturing facility closer to the retail market is good for the environment because it reduces diesel emissions in the supply chain. She said that in the long term she did not see transportation costs going down. David Vehec, Genco, said some of his clients had started to shift operations back to the US because of rapidly-increasing transportation costs. Ikea is looking for ways to reduce transportation costs such as smart routing and shrinking packaging to eliminate wasted space by getting rid of bubble wrap and foam and replacing with re-used shredded cardboard. Vehec said one of the best ways to improve bottom line and eliminate waste is to formulate a good reverse logistics program or the return of merchandise when it has been rejected by the marketplace. Retailers and manufacturers have found that there is a booming secondary market for return products. Some return products are also shredded and sold as scrap to manufacture other products.

MINNESOTA BIODIESEL MANDATE
Minnesota has enacted legislation to increase its current mandate from 2% of every gallon of diesel sold to 20%. The increase is phased in over time t o5% on May 1, 2009; 10% on May 1, 2012 and 20% on May 1, 2015. The law exempts locomotives, vehicles used exclusively on an aircraft landing field, off road logging equipment and certain mining equipment but these exemptions are scheduled to expire in 2012. The Minnesota law requires biodiesel to meet the ASTM D6751 standard for pure biodiesel and requires the fuel to be obtained only from producers and distributors that are certified by under the National Biodiesel Board’s BQ-9000 accreditation program.

TWIC ENROLLMENT CONTINUES AT US PORTS 
Enrollment for the Transportation Workers Identification Credential begins at the following ports: Vancouver WA June 30; Alpena MI July 2; Burlington VT July 2; Pennsbury Manor PA July 2; Perth Amboy NJ July 2; Evansville Ind. July 9; and Lafayette LA July 10. Drivers must have a TWIC to enter the ports of Bangor Maine, Boston Mass, Bourne Mass, Burlington VT, Portlane Me, Portsmouth NH, and Providence RI after October 15. Coast Guard will phase in enforcement of the TWIC card at other ports between October 15, 2008 and April 15, 2009.

RISING FUEL COSTS AND FUEL SURCHARGE
Excerpts from the Rogers & Brown Tradetalk. A major carrier Schneider national has announced that they have turned their tractors down to 60 miles per hour. This will reduce their fleet’s consumption of diesel fuel by more than 3.75 million gallons per year and reduce truck CO2 emissions by 83.25 million pounds per year. This is the equivalent of taking 7,259 cars off the nation’s highways. The 60 mph speed limit meets what the American Trucking Association is calling on carriers to do.

NEW POLICY FOR ISA MEMBERS
Textile Importers that are members of the Importer Self Assessment Program will receive a more lenient detention policy that allows for origin verification to be conducted on a post entry basis. This should allow the freight to continue to move, as opposed to the freight being detained until production records can be obtained. For more information contact Floyd Sirico, Entry Manager at 843.958.2291.

CBP INCREASES INTELLECTUAL PROPER RIGHTS SEIZURES FOR FISCAL 2007
The domestic value of Customs and Border Protection’s Intellectual Property Rights seizures totaled $196,754,377 for fiscal year 2007. Included in the FY 2007 seizures, CBP seizes over $27 million in IPR-infringing products that could have posed import safety risks to consumers. China was the top source for IPR seizures of infringing products in FY 2007, accounting for 80% of the total domestic value seized. Footwear was the top commodity seized, accounting for 40% of the total domestic value. 

EXPORT TRAINING PROGRAMS
Bureau of Industry and Security has recently posted online training modules for their website relating to US exports. The training sessions, the time to complete and transcripts are all included. The topics include:
Export Control Basics
Classifying your Item and Determining if you need a license
General prohibitions including prohibited end-users and end-uses and activities
Deemed Exports-Introduction to BIS deemed export policies
The link to the BIS website and training is: http://www.bis.doc.gov
Thanks to R&B for these timely articles.

ATA’S WORK ADDS UP TO BIG SAVINGS
Some of the industry savings credited to the ATA:
$1.9 billion annual savings resulting from ATA averted changes to the federal Hours of Service Rule; $227 per truck per year.
$50 to $60 million annual savings because ATA convinced state regulators not to collect both UCRA and Single State registration fees.
$1,500 per facility savings because TA persuaded DHS to exempt hazmat carriers from costly oversight requirements.
$350 thousand industry savings resulting from ATA convincing DHS to discount TWIC applications for commercial drivers who hold HAZMAT endorsement.
$800 million annual savings because ATA killed a truck-only toll proposal on I-81 in Virginia; $120 per truck per trip.
$230 million refunds returned to carriers because ATA Litigation Center successfully challenged unfair laws in nearly two dozen states; for example. $27 million in Idaho, $28.25 million in New Jersey, plus billion saved.
$1.0 billion annual savings in administrative costs thanks to IFTA; benefits resulting form IRP are incalculable.

OIL RECORDS
For the fourth time in seven days, crude oil futures broke a record selling at $143.57 per barrel at the close of trading on the New York Mercantile Exchange. In after hours trading, it went even higher starting the day Thursday in London at $145.09 per barrel. The average retail price for diesel started the week down just 3 tents of a cent at $4.645 per gallon, but gasoline was up 1.6 cents to a record of $4.095 per gallon in anticipation of the July 4 weekend.

STATES USER-PAY MODELS 
Oregon is piloting a road user fee, taxing motorists not for the amount of fuel they use but for the number of miles driven. The Iowa Public Policy Center is road-testing a study of road user charges in five states, including North Carolina. Florida is building a lot of toll roads. Indiana leased a toll road to a private firm for $3.8 billion. Texas and California are using HOT lanes. Motor fuel taxes alone will not pay for the roads we need, so get ready for some expensive user fees. This according to Brad Wilson, a lawyer and CEO of Blue Cross and Blue Shield of North Carolina.

NC INTERNATIONAL TERMINAL PROJECT MOVING FORWARD
The NC Ports Authority and CenterPoint Properties of Oak Brook IL., have made a key step toward the proposed development of the NC International Terminal in Brunswick County. An agreement covers issues to be addressed in the first step of the process and signals that CenterPoint is the leading candidate to become the private development partner for the container terminal. The International Terminal will enable North Carolina to capitalize on rapidly growing demands of international trade which is projected to double between 2005 and 2020. When completed it is estimated that the terminal will directly and indirectly support more than 475,000 jobs and result in $1.2 billion in state and local tax revenue.

SC PORTS TO EARMARK $80 MILLION TO DEVELOP NEW CAPACITY
The Board of The SC State Ports Authority has approved a $160 million budget projecting more than $100 million in capital spending and an increase in container traffic for the new fiscal year. In May the SCSPA handled 157,553 TEUs in Charleston, up 7% from the same month last year and up 14% from the previous month. More than $80 million will go directly to projects adding new capacity to the SCSPAs port facilities, primarily in Charleston. Progress and spending is also anticipated on the development of a new joint port facility on the Savannah River in Jasper County. The 2009 fiscal year is expecting operating revenues to increase 1.63% to $160.4 million and pier containers are projected to increase just slightly from the current year. The number of employees is expected to increase by 9 to 593. The Board also approved $100.3 million in capital spending for capacity enhancements and terminal improvements.

VIT SIGNS $500 MILLION DEAL WITH SHIP CONSORTIUM
The Virginia Port Authority has announced that effective July 1, that its operating company, Virginia International Terminals has signed its largest customer to a 10-year contract valued at more than $500 million. The customer is a shipping consortium composed of five carriers called CKYHU: Coco, K Line, Yang Ming, Hanjin and United Arab Shipping Co. “This cements our relationship with 100 percent of our customers for the next decade”, said Jerry Bridges, the VPAs executive director. 

FORWARDER CHANGES NAME
Target Logistics Services changed its name Jun to Mainfreight, reflecting the title of its new global parent. Calif. Based Mainfreight is one of the largest transportation companies in New Zealand with offices throughout Asia and the South Pacific. 

CGL OPENS NC STATION
Concert Group Logistics, Downers Grove IL. 3PL opened a new station in Greensboro. Mike and Steve Medley run the CGL Greensboro Operation. They joined the CGL family after 11 years with Lynden International and 40 years in the freight business in Greensboro. With the addition of the Greensboro Station, CGL now has a network of 25 stations in the US. Mike is a long-time member and supporter of the NCLTL.

DAVID HENTZ RETIRES
Former NCLTL President and Board Chairman David Hentz has retired from Clariant after 39 years of service. He is a strong supporter of the League.

OCEAN CARRIER ACCOUNT MANAGER POSITION
A leading ocean carrier has an opening for a Charlotte area executive. Candidate must have 4 years of successful direct ocean carrier sales and excellent B.C.O. references. Some overnight travel required over a wide territory. ontact Mr. Crane between 10AM and 2PM at 757.447.2110. 

 
 

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