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NCLTL WINTER
MEETING
Please make plans to attend the NCLTL Winter Meeting and Luncheon
March 20 at the University Hilton in Charlotte. Registration
forms will be mailed, on the Website and can be emailed to you
if you so desire. Cost is $35.00 per person and includes lunch.
The meeting will begin at 10:30 followed by a luncheon and guest
speakers. Any specific announcements should be directed to President
Eddy Burgos. We are grateful to the following guest speakers
that will share with us on various topics: John Downs, Strategic
Account Manager, UPS Freight Henrk Friis, VP Sales and Marketing,
APM Terminals Mike Coleman, President, CV International We are
still hopeful to have an appearance by NC State Sen. Hoyle from
Gastonia NC. Please try to attend and bring a guest, perhaps
a non-member that might enjoy our meeting. Questions? Email
the League office or call 704.394.4966.
NCLTL DUES
If you have not paid your current dues, we would really appreciate
your remittance. Our dues are some of the lowest in the industry
and we need and appreciate your support and participation. Times
are tough and we all need to work together for a better day.
Thanks to all our loyal members!
CLEAN TRUCK FEE IMPLEMENTATION VIA LONG BEACH AND LA PORTS
The Ports of Long Beach and Los Angeles have announced Monday,
February 18 as the start of the new port fee. The new fee-the
Clean (Green) Truck Fee (CT or CTF fee) is one of the first
steps in the ports plan to reduce air pollution and fuel emission
caused by overall port operations. The trucks that are being
used to haul containers locally are a large contributing factor
of pollutants, for which this program is targeted. The fee will
be based on containers received or delivered to the port of
Los Angeles and Long Beach. The fee will be billed directly
to the Cargo Owner by the Port. Cargoes subject to this fee
will be those bills of ladings with: For LCL import/export:
Place of receipt/Place of delivery moving via Los Angeles/Long
Beach and/or FCL import/export: Port of Loading/Port of discharge
Los Angeles (including IPI cargo moving via Los Angeles/Long
Beach) CT Fee FCL export/import $35 TEU LCL Export $3.00 w/m
LCL Import $2.00 w/m The CTF fee will be applicable for all
cargo received on/after February 18, 2009. Thanks to Wendy Fairer
(wendy.fairer@us.geodiswilson.com)
for this fine and timely information.
NEW CARGO SECURITY LEGISLATION
As reported by League member Rogers & Brown: On August 3,
2007, as a result of the finding of the 9/11 Commission, new
cargo security legislation was signed into law with the goal
of securing the skies over the US and broad by means of 100%
screening of all cargo moving on passenger aircraft by August,
2010. The first phase of the new measure will be implemented
February 1, 2009 and will require that 50% of all cargo being
transported on passenger flights originating in the US be screened.
Although many carriers and forwarders have elected to assess
“screening” charges to offset the cost of performing the new
task, Rogers & Brown has decided not to assess any additional
fees at this point. Thanks to Kevin, Neal, Air Product Manager,
Rogers & Brown.
SC STATE PORTS PRESIDENT RESIGNS
Mr. Bernard Groseclose Jr., President and Chief Executive of
the SC State Ports Authority has resigned after almost 13 years
of service. Board member John Hassell III will serve in the
job until a permanent replacement is found. Mr. Groseclose is
highly respected by the League and we wish him well in future
endeavors. In other SC Ports news, the SPA honors the memory
of the passing of W. Don Welch, long-time executive director
of the port who passed away at his home in Florida. Mr. Welch,
78, served as executive director of the SPA from 1971 until
1996. Under his direction the port grew and prospered. Our condolences
to his family and friends at the SPA.
INDEPENDENT CONTAINER LINE TO BEGIN SERVICE AT PORT OF WILMINGTON
Gov. Bev Perdue’s office has announced that Richmond, VA based
Independent Container Line Ltd, will begin weekly service between
the Port of Wilmington and North Europe and the United Kingdom
on March 26. “This new weekly service to the Port of Wilmington
will enhance the economy of the region and of North Carolina”,
Ms. Perdue said in a news release. “Exporters and importers
know the value of using our services in North Carolina.” Carl
J. Stewart Jr., chairman of the NC State Ports Authority Board
of Directors stated: “the state’s investment in improving the
port is paying off with new business”. Container business provides
about a third of the Port Authority’s operating revenue. In
its first year, the new service is expected to increase container
volumes at the Port of Wilmington by about 20 percent, said
Ports Authority spokesperson, Karen Fox.
4.5% OF BOX FLEET IDLE
Idled ocean container capacity has reached 550,000 TEUs, with
210 vessels out of work as carriers continue to cut or suspend
services in the face of sharply falling demand on key liner
trade routes. The idle capacity, up from 420,000 TEUs in December,
accounts for 4.5% of the existing world container ship fleet
in TEUs, according to AXS-Alphaliner, the Paris-based consultant.
This compares with 3.5% of the world fleet that was idled in
the depths of the 2002 slump. The jobless fleet has grown from
165 vessels of 420,000 TEUs two weeks ago and 135 ships of 300,000
TEUs a month ago. The idled tonnage includes seven ships of
7,500-10,000 TEUS, and 24 vessels of 5,000-7,500 TEUs. Feeder
tonnage is the hardest-hit sector with 68 vessels of 1,000-2,000
TEUs at anchor. Idle vessels include 125 ships whose charters
have expired and are seeking employment. The total weekly capacity
of the three main East-West liner routes have fallen by 11.5%
from 916,000 TEUs to 812,000 TEUs since August 1, AXS-Alphiner
said. The decline accelerated in December when several Far East-Europe
loops were abruptly closed or suspended, removing almost 30,000
TEUs of weekly capacity. Capacity on the Far East-Europe-Mediterranean
trades has declined 16 percent in the past five months, from
418,000 TEUs per week to 351,000 TEUs. Far East-North America
capacity is down 9 percent to 342,000 TEUs from 376,000.
NC GOVERNOR CHOOSES TRANSPORTATION PROFESSIONALS
Gov. Bev Perdue has selected Gene Conti as NC Transportation
Secretary, Keith Crisco as Commerce Secretary and Linda Carlisle
as Cultural Resources Secretary. “I want to professionalize
the Department of Transportation”, said Ms. Perdue. She said
that she intends to take politics out of road-building. She
underscored her campaign pledge to strip the politically appointed
Board of Transportation of its power to make road-building decisions.
She said that “transportation decisions will be based on data
and they will be driven in this administration by professionals.”
Gene Conti is 62 and was the NC Chief Deputy Secretary of Transportation
2001-2003, US Assistant Secretary of Transportation 1998-2001
and Maryland Secretary of Labor 1995-1998. His wife Betsy served
for three years as Perue’s chief of staff in the lieutenant
governor’s office.
DOT CHIEF KEEPS PRIORITY ON FAYETTEVILLE NC
Transportation Secretary Gene Conti supports the Fayetteville
loop for completion in the near future because of the Ft. Bragg
impact. He said that the Department of Defense has considered
providing resources to help do that. He also said “I think I’d
like to be part of restoring public confidence in this department-that’s
critical. I would like to have us viewed as a place where customer
service is important. I would like to see us be very innovative
in the financial arena so we are cutting edge.”
MEMBERSHIP IN UNIONS GROW
Union membership jumped to 12.4 percent of the nation’s work
force last year, amid widespread job losses and credit woes.
The ranks of unionized labor rose by 428,000 workers in 2008,
the biggest annual gain since the government began compiling
such data in 1983, the Bureau of Labor Statistics reported in
the last week of January. It is also the second year in a row
that unions have added to their ranks. Membership increased
by 311,000 in 2007, to account for 12.1 percent of workers.
Overall, union membership remains well below the peak of 35
percent during labor’s heydey of the 1950s. Membership was about
20 percent in 1983, the first year the bureau began compiling
numbers. Unions have moved aggressively to bolster organizing
efforts in recent years, a move that apparently offset the loss
of 2.6 million jobs from payrolls in 2008. The Teamsters union,
one of the nation’s largest unions, had its most successful
organizing year in decades, with more than 43,000 workers joining.
Public sector unions accounted for most of the increase last
year. The union membership rate for government workers rose
to 36.8% from 35.9% in 2007. In the private sector, membership
remained steady as union ranks inched up to 7.6 percent from
7.5 percent in 2007. Unions are hopeful that they could experience
more of resurgence if Congress passes legislation this year
making it easier for workers to organize unions. The Employee
Free Choice Act would give workers the option of forming a union
by simply signing a card or petition instead of holding secret
ballot elections. Stewart Acuff, special assistant to the AFL-CIO
president John Sweeney, said that 428,000 new members last year
is just a small portion of what unions could recruit if the
card check bill passes. He cited union surveys showing nearly
60 million people would join a union “if there was no fear and
intimidation.”
TRADE DEFICIT PLUNGED IN NOVEMBER AS IMPORT DECLINE OUTPACED
EXPORT DROP
The November deficit was the lowest since January 2004.
The decline in merchandise exports to $97.5 billion, down from
$111.6 billion in October, is more than $20 billion below the
record $118.2 billion total in June. November exports were the
lowest of any month since July 2007, reflecting both weakening
foreign economies and the recent strengthening of the dollar.
Merchandise imports totaled $147.2 billion, the lowest since
January 2006. The November figures confirm the end of the manufactured
goods export boom that had been the brightest spot in the US
economy, according to Frank Vargo, VP for the international
economic affairs of the National Association of Manufacturers.
Vargo said the manufactured goods trade balance with US partners
in free-trade agreements continued to be in surplus, bringing
the total for the first 11 months of the year to $15.5 billion.
The surplus with the FTA partners emphasizes the needs for more
FTAs, he said. Manufactured imports fell across the board, he
said, with autos tumbling 25 percent, and consumer goods down
nine percent. The key reason for the lower deficit was the drop
in oil imports and prices, which averaged $66.723 a barrel in
November, down by $25.30 from October. With oil prices falling
below $40 a barrel in December, the deficit should fall even
further. Imports from China also declined, narrowing the gap
with that country to $23.1 billion. The deficit with China for
the first 11 months of the year was $246.5 billion, with imports
of $312.7 billion and exports of $66.3 billion.
NAM FORMS CUSTOMS AND BORDER COALITION
The National Association of Manufacturers announced the creation
of a new customs and border coalition charged with making sure
that business concerns are addressed when government agencies
are developing security rules and procedures that govern exports
and imports. “The NAM is launching the CBC because we see a
critical need for a unified business voice on border concerns”,
said John Engler, president and chief executive of NAM. “We
can have secure borders without shutting down commerce.” Engler
cited as an immediate issue of concern the controversial 10+2
security filing rule proposed by Customs, which require importers
to submit 10 types of information and ocean carriers two new
types prior to loading a container for shipping. “As it was
originally written, the 10+2 rule would have cost US manufacturers
as much as $20 billion annually, created huge delays and missed
shipments in the global supply chain, risked shutting down US
production lines and actually worsened security by increasing
the amount of time containers sat around available for tampering
at foreign ports,” Engler said. He said that while NAM has managed
to “get some of the worst things out of the rule,” there are
still some serious problems that must be worked out before the
final rule becomes effective June 1.
TOLL ROAD DECISION DELAYED
A decision on the path of a new toll road for Gaston County
will have to wait according to Beau Memory, communications manager
for the NC Turnpike Authority, at least until the first quarter
of this year. When complete, the toll road will cover a 21.5
to 23.7 mile stretch connecting I-85 west of Gastonia to I-485/NC
160 near Charlotte Douglas International Airport. The initial
cost estimate was about $910 million. However, Turnpike Authority
leaders say the project could total $1.25 billion. The road
is scheduled to be open for traffic by 2014.
FEDERAL GAS TAX
The National Surface Transportation Infrastructure Financing
Commission plans on recommending a 10-cent increase in gasoline
taxes, plus indexing for both, until a switch is made to a vehicle
miles traveled fee. “Those increases would yield roughly an
additional $20 billion a year”+, said Bryan Grote, a member
of the financing commission and principal at Mercator Advisors.
“In terms of augmenting what goes into the highway trust fund,
it’s fairly significant.” The financing commission is one of
two bipartisan congressional commissions established by the
last highway bill to look at the nation’s infrastructure and
funding needs. The first commission last January recommended
pumping up the federal fuel tax by 25 to 40 cents a gallon over
five years. That was before fuel prices fell, the economy nosedived
and Democrats captured the White House. Business groups ranging
from the US Chamber of Commerce to the American Trucking Association
have been calling for an increase in the federal fuel tax, which
was last raised in 1993. And with the sharp decrease in fuel
prices, many believe the idea will gain traction in Congress.
In the long term, the 15-member financing commission believes
the gas tax should be replaced with a vehicle mileage traveled
or VMT tax. Last year, the National Surface Transportation Revenue
Policy and Study Commission recommended dropping the fuel tax
in favor of a VMT by 2025 or sooner. The financing commission
believes the Congress needs to act quickly, starting this year
with the next six-year highway bill. New technology may be needed
to assess and collect a VMT tax. VMT systems generally use a
GPS and onboard computers to measure the miles a vehicle travels
and then charge fees adjusted for vehicle weight, time of day
and other factors. Opinion: truckers would no doubt be charged
many times more than private passenger vehicles with such a
system in place.
NCLTL MEMBER WINNERS OF AWARDS FROM LOWES CARRIER CONFERENCE
Congratulations to the following winners! G&P Trucking-Gold
Carrier Award Southeastern Freight Lines-Platinum Service Award
Conway Freight-Silver Service Award Saia Motor Freight-Bronze
Service Award FedEx Ground-Best in Class Service FedEx Freight-Gold
Service Award Estes Express-Bronze Service Award National Freight-Platinum
Service Award JB Hunt-Intermodal Carrier of the Year Swift Transportation-Truckload
Carrier of the Year Epes Transport-Gold Service Award UPS Truckload-Silver
Service Award US Express-Silver Service Award Heartland Express-Sliver
Service Award Werner Enterprises-Gold Service Award DM Bowman-Gold
Service Award Milan Express-Gold Service Award
DELTA CREDIT CARD AGREEMENT
Delta Air Lines has signed a credit-card agreement that boosts
cash by $1.05 billion and said it cut $100 million from the
cost of meshing operations with newly acquired Northwest Airlines.
According to President Ed Bastian, Delta will be “solidly profitable”
in 2009, even with an industry wide decline of as much as 12
percent due to the recession.
NEW MEMBERS
Ellie Moore, President & CEO, Pros Corp., Chagrin Falls,
OH
Michael Payne, Sales, Pros Corp., Chagrin Falls, OH
GET TRUCKS OFF MOST ROADS
A letter to the editors from a reader of the Charlotte Observer
suggests the following: “A typical fully loaded semi truck that
weighs 80,000 pounds causes the wear of 10,000 autos. This NC
Legislature could save the state millions on road maintenance
by designating specific roads for heavy trucks as truck routes,
and banning heavy trucks from the rest of the state’s roads
except for local delivery. All that is required is common sense,
and no interference from lobbyists or special interest groups.”
SMC3 SEMINAR
SMC3 will hold a two-day seminar on Fundamentals of LTL
Transportation March 11-12, 2009 at the Adolphus, Dallas Texas.
For more information see SMC3@SMC3.com
NO GENERAL INCREASE FOR AVERITT
Averitt Express has announced that it will not take a general
rate increase for 2009 due primarily to the state of the economy.
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