| 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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