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| 01/23/2008 |
| Going Broke on Capacity |
| No relief in sight from higher fuel costs and tight credit could mean more bankruptcies are on the way in the trucking industry - along with less capacity and higher rates for shippers. |
| 01/16/2008 |
| 2008 Rate Increases Begin |
| UPS Freight Announces Rate Increases |
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| 01/16/2008 |
| CLINTON/ OBAMA SUPPORT OWNER/OPERATOR BAN |
| Efforts by the Ports of Los Angeles and Long Beach to advance their Clean Air Action Plan (CAAP) including the placement of a ban on independent-owner operators of trucks at port facilities have recei In separate letters to the Mayors of Los Angeles, Long Beach and Oakland, the candidates said they support the Clean Trucks Program including the proposed ban on owner operators with a shift toward trucking companies that employ the drivers.
For example, the Clinton letter states, "Currently the trucking companies that operate at the ports put all the financial risk and environmental responsibility on the backs of individual drivers." Furthermore the letter argues that the Clean Trucks Program, "... not only sets tough standards to clean up diesel emissions, and provides generous subsidies for vehicle purchase and retrofit, but also seeks to make the entire program sustainable by shifting responsibility from the individual drivers to the trucking companies and their economically powerful retail clients. In particular, by requiring that drivers be statutory employees, the plan will ensure that the goods movement is held accountable for cutting truck pollution and allowing the ports to meet environmental compliance targets for future growth."
In a similar message Obama states that the, "... trucking companies that operate at the ports have adopted the strategy of holding down costs by classifying their personnel as independent contractors." Obama argues that drivers dependant on the trucking companies for employment, "...and the big box retailers reap the rewards of increased imports while the truckers who transport those good are paid poorly and receive few benefits."
Letters from the two candidates were released last Friday (January 11) to the southern California newspaper, The Press-Telegram. The newspaper reports that according to Long Beach Harbor Board President Mario Cordero, the ports hope to address the employee question by mid-February along with adopting final versions of the Clean Trucks Program.
While it is not clear why the letters were just released (the Clinton letter is dated December 13, 2007 and the Obama letter is November 2), the |
| 01/16/2008 |
| 2008 Rate Increases Begin |
| UPS Freight Announces Rate Increases UPS Freight will apply an average 5.4 percent general rate increase for non-contractual less-than-truckload and truckload shipments in the United States and Canada, effective Feb.4th.
"We are continuing to improve service to our customers and to provide the latest technology," said UPS Freight President Jack Holmes. "On Jan. 1, UPS began offering on-time guarantees at no additional charge to customers on the current base UPS Freight tariff or shipments moving within the continental United States."
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| 10/04/2007 |
| Port Users Cite Anti-competitive Plan |
| Port Industries Call Port Congestion Impacts, Economic Harm and Illegal Actions… “a Quagmire Waiting to Happen” LOS ANGLES –Citing the Ports of Los Angeles and Long Beach’s own independent economic studies over the harmful impacts of the Ports’ “Clean Truck Plan,” two major stakeholder groups today called for the Federal Maritime Commission (FMC) to review “legal, logistical and anti-competitive impacts that will cause immediate economic harm.” A 14-page letter filed with the FMC by The National Industrial Transportation League (NIT League) and the Pacific Merchant Shipping Association (PMSA) underscores the following ramifications should the ports’ new regulatory proposal were to be implemented:
Full story: http://www.pdxmex.com/bulletins/crcb&fa/FMCletterCAAP.doc |
| 09/24/2007 |
| Transpacific Growth Remains Healthy |
| Growth remains healthy, say members of the Transpacific Stabilization Agreement.
Asia-US liftings for the members of the Transpacific Stabilization Agreement (TSA) totaled 480,000 forty-foot-equivalent-units (FEUs) in July, up 8.6% from a year earlier. Cargo volumes were up in the first half (7.1%) reflecting a 6.3% increase in West Coast and 9.9% increase in East Coast destinations. Carriers were forecasting a 7% to 8% growth for the full year.
“While growth has moderated a bit, first half year over year it remains healthy and we continue to hear from our customers that their projections for the balance of 2007 and into early 2008 are for the current growth trend to continue," said Ronald D. Widdows, chairman of TSA.
“Specific importers and retailers may be seeing some softness in their sales, but at the same time, others are experiencing robust growth,” he continued. “It is clearly too early to conclude to what extent recent volatility in the US financial markets will affect the transpacific market. Based on current views, we do not see a situation developing that curtails growth to a material degree.”
TSA is forecasting 5.2% capacity growth in 2008 for its members and 6.3% for the trade overall. TSA lines anticipate demand pressures in 2008 will be most acute in the East Coast-all-water market as shippers plan for contingencies during the upcoming West Coast longshore contract negotiations. In addition, some shippers may also move ship dates ahead and create a spike in volumes before the expiration of the current longshore contract.
Full article: http://www.logisticstoday.com/displayStory.asp?nID=8981
Written by: LT Staff (Logistics Today)
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| 09/20/2007 |
| First U.S. Truck Rolls Past Mexico Border Zone |
| The first U.S. truck to drive deep into Mexico rolled into that country on Friday, and a Mexican trucking group said it had concerns about the cross-border program, the Associated Press reported.
The Department of Transportation said a truck owned by El Paso, Texas, company Stagecoach Cartage entered Mexico at the Nogales, Ariz., border crossing Friday, to deliver a load of plastic resin to Obregon, Mexico, about 270 miles from the border, AP reported.
The Senate last week voted to prevent Mexican trucks from gaining wider access to U.S. highways, just as DOT’s cross-border pilot program took effect.
Last week a truck owned by Mexican carrier Transportes Olympic crossed the border at Laredo, Texas, and arrived in North Carolina under the free trade pilot program.
Meanwhile, a group representing private Mexican trucking carriers said it had competitive concerns about the program, AP reported.
Tirso Martinez, the group’s president, said Mexico’s Transportation Department has not resolved traffic bottleneck issues for Mexican trucks trying to cross the border and lacks the personnel to enforce a provision prohibiting U.S. truckers from carrying domestic Mexican cargo, AP said.
Under the program, both countries’ governments committed to allowing trucks from about 100 companies from the other country to travel anywhere inside their borders, from a previously allowed border zone.
By Transport Topics
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| 09/10/2007 |
| California Container Tax Defeated |
| California State Senator Alan Lowenthal (D-Long Beach) won’t get his tax on ocean containers moving through the ports of Los Angeles, Long Beach and Oakland.
The National Industrial Transportation League (NITL) reported that when the container tax bill passed a vote in the California Assembly Appropriations Committee, it received instant opposition from Los Angeles Mayor Antionio Villaraigosa. Governor Arnold Schwarzenegger then threatened a veto, effectively killing this version of the bill.
At the heart of the bill (SB 974) was a $60-per-container (forty-foot-equivalent unit) tax on all inbound and outbound containers moving through the ports of Los Angeles, Long Beach, and Oakland. The funds would be spent on congestion relief and environmental mitigation.
The California Chamber of Commerce (CalChamber) opposed the bill saying it would put California's largest ports at a disadvantage. No other port facilities in the state or the nation are subject to this tax, says CalChamber. The Chamber labeled the bill a job killer. It said, in part, that while the actual economic impact of the bill was unknown, it points to nearly 319,000 jobs supported by the Port of Long Beach and $16.3 billion in wages. The port of Los Angeles creates 259,100 jobs regionally, CalChamber continued, which translates into $8.6 billion in regional wages and salaries.
Excerpt from Logistics Today article
Written by: LT Staff
9/7/2007
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| 08/03/2007 |
| PORT STRIKE AVERTED |
| Agreement reached with clerical workers averts strike. Although the clerks, represented by a unit of the International Longshore and Warehouse Union (ILWU) number only about 750 at the ports, there was indication that the 15,000 longshore workers would have honored their picket line, effectively shutting down the ports that handle between 40 and 45% of all goods that reach the United States by ocean.
The new agreement reached is for three years. It includes a 14% boost in pay and benefits for the clerks and includes provisions to permit shippers the flexibility to reduce staff through attrition. The larger ILWU longshore contract comes up for renewal in 2008.
Source: Logistics Today
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| 07/24/2007 |
| Court of Appeals Rules On Hours of Service |
| In a decision handed down on July 24, The United States Court of Appeals for the District of Columbia struck down a portion of the truck drivers’ Hours of Service (HOS) rules. In its ruling, the Court said that the Federal Motor Carrier Safety Administration (FMCSA) had failed to provide sufficient justification for the portion of the new rules allowing drivers to be behind the wheel for 11 hours, as well as the provision covering the 34-hour restart requirement.
The heart of the legal challenge was that the FMCSA had changed the old rules increasing driving time from 10 to 11 hours in a 14-hour day while requiring that drivers be given a mandatory 10-hour rest period. The 34-hour restart requires that drivers take 34 consecutive hours off each week.
The American Trucking Associations (ATA) announced that it will seek a stay from the Court which would keep the current rules governing truck drivers’ work and rest periods in place until the FMCSA can furnish the Court with explanations for the contested portions of the rules. The rest of the rules will remain in place, and FMCSA and other parties will have 45 days to petition for reconsideration.
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| 07/20/2007 |
| PATHFINDER LOGISTICS ACQUIRES OLYMPIC FREIGHT |
| On July 20, 2007, Pathfinder Logistics International, LLC, a subsidiary of Pathfinder Logistics, Inc. announced it has acquired substantially all of the assets of Olympic Freight, Inc. of Windsor, CA. The company will operate under the trade name Olympic Freight and is registered with the FMC as a NVOCC and ocean freight forwarder.
Pathfinder Logistics, Inc. has been a leading provider of third-party logistics services since 1988. The firm offers an array of transportation management and supply chain solutions. Olympic Freight is an ocean freight forwarder and NVOCC.
“The acquisition of Olympic Freight represents our company’s commitment to providing our customers with a full range of transportation options and solutions” stated Jeff Wannamaker, Pathfinder Logistics’ president. “Olympic Freight has provided its customers with an exceptional level of service over the years and the company’s customer-centric focus is very much in line with Pathfinder’s own philosophy toward servicing customers. Olympic has an extensive network of well qualified overseas agents and carrier contracts to support the needs of its customers, and we believe this expansion of service capabilities at Pathfinder will serve the needs of our existing customers well. I am extremely please that the dedicated staff at Olympic, including Dan Sevillia, Olympic’s founder and president, will be staying with our company to help not only ensure a successful transition, but to help implement our strategy for growth over the next several years. As our customers’ supply chains continue to extend around the world the demand for seamless service, integrated IT solutions and real-time information become more critical, as does the active management of suppliers and transportation service providers. Pathfinder’s commitment in these areas, and expertise in providing these services, is geared toward helping our customers more profitably compete in a global market.”
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| 07/13/2007 |
| PATHFINDER RECEIVES OTI LICENSE |
| Pathfinder Logistics International, LLC, a division of Pathfinder Logistics, Inc. receives its OTI license from the Federal Maritime Commission. Pathfinder Logistics International, LLC is a wholly-owned subsidiary of Pathfinder Logistics, Inc. The new company will operate under the trade name of Olympic Freight and is licensed as a non-vessel operating common carrier (NVOCC) and ocean freight forwarder. |
| 07/09/2007 |
| FMC Issues Approval of OTI Application |
| Pathfinder Logistics International, LLC receives approval letter from the Federal Maritime Commission for OTI license. The approval is conditional on Pathfinder Logistics International, LLC. submitting appropriate documentation of financial responsibility after which the FMC will issue a license. Pathfinder anticipates beginning international operations within the next 30 days. |
| 06/04/2007 |
| Pathfinder Logistics, Inc Forms Wholly-owned Sub |
| Pathfinder Logistics, Inc. announced the formation of a wholly-owned subsidiary, Pathfinder Logistics International, LLC. Established in 1988, Pathfinder Logistics, Inc. provides transportation and supply chain management solutions to customers throughout North America with the goal of reducing costs and improving supply chain reliability. Pathfinder’s customer-centric focus on solutions has propelled the company in many directions, and with its customer base increasingly relying on overseas suppliers, Pathfinder has chosen to move in the direction of supporting those international activities.
Pathfinder has filed application with the Federal Maritime Commission to act as an Ocean Transportation Intermediary, specifically as a NVOCC and Ocean Freight Forwarder. The company’s application is currently under review by the FMC.
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| 05/30/2007 |
| Global Carrier Reliability 46% On-time |
| Global carrier reliability is only 46% on-time according to “Container Shipper Insight,” a survey by Drewry Shipping Consultants.
Compared to the first two months of 2006, the latest quarter measured by Drewry Shipping Consultants indicates an 11% drop in on-time arrivals. Liner schedule reliability was at a record low on the 20 trade routes Drewry tracks.
During the quarter, 23% of vessels arrived one calendar day late. Another 29% arrived two or more days late. A small proportion (1%) arrived two days ahead of schedule, which for purposes of the survey is also considered not to be on time.
The survey tracked 2,144 container ship and multipurpose liner vessel arrivals operated by more than 60 carriers worldwide.
Transpacific arrivals were above average at 56% on time.
By carrier, Samudera and Matson scored better than 90% on time arrivals.
“Unless something is done, shippers will have to build more buffer time in their supply chains to deal with the damaging risk of variability in liner schedules,” said Philip Damas, lead researcher on the Drewry Container Shipper Insight. Port congestion, particularly at the Port of Rotterdam, was a major contributor. Delays on one part have an impact on subsequent port calls.
Drewry contents that one potential solution would be to highlight the stronger performers and encourage shippers to agree to different freight rate levels depending on their schedule reliability.
Article from Logistics Today 05/25/07
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| 04/12/2007 |
| Industry News |
| Mexican Truckers Lack Interest in DOT Crossborder Pilot Program A firestorm among legislators and some members of the trucking industry ignited in February when the Bush Administration announced that it would conduct a crossborder pilot program that will allow some Mexican trucks to operate within the U.S.
According to the pilot program, a select number of Mexican trucking companies would be allowed to make deliveries beyond the 20-25 mile commerical zones that are currently in place along the Southwest border. According to the Bush Administration, the pilot program is a part of the 1994 North American Free Trade Agreement and will save time and money as the Mexican trucking companies would no longer have to wait for U.S. trucks to pick-up their cargo and deliver it to other locations in the U.S. and Canada.
However, opponents to the pilot program cite concerns such as the verification of driver's records, drug and alchol testing, hours of service, cabotage, inspections, insurance and language barriers as issues that could spell disaster on U.S. highways. In other instances, some opponents are questioning if the U.S. Department of Transportation is seeking only the best Mexican trucking companies to participate in the pilot study, which will purposefully skew the results in favor of the program.
While turmoil is brewing in the U.S. regarding the pilot program, Mexican trucking companies are showing little interest in participating in the program. To date, only one long-haul company, Transportes Olympic of Monterrey, has signed up for participation in the pilot study. Furthermore, industry insiders question if the U.S. DOT will even come close to securing 100 companies that will operate about 1,000 trucks to participate in the study.
What is the cause for the low level of response from the Mexican trucking industry? Border bottleneck.
Continued... |
| 04/12/2007 |
| Industry News |
| Continued... Mexican Truckers Lack Interest in DOT Crossborder Pilot Program Each day, thousands of Mexican trucks wait for an average of six to seven hours at U.S. border crossings. At the border crossings, the trucks are subjected to rigorous inspections, which are not expected to decrease for those trucks involved in the new pilot study. The end result will be that Mexican trucking companies will be idiling the best of their fleets at the border for hours on end.
Jose Refugio, Director of Mexico's cargo transport association, Canacar, told Traffic World, "Without more agile border crossings, the new pilot program will remain just a set of good intentions. More needs to be done to achieve a genuine opening of the border."
TIA Logistics Weekly 4-10-07 |
| 03/23/2007 |
| LTL Carriers Hike Rates |
| Several of the major LTL carriers have announced their rate increase for 2007. Notably, UPS Freight (formerly Overnite Transportation and Motor Cargo) with a 5.9% increase, FedEx Freight and FedEx National LTL (formerly Watkins) with a 5.59% increase, Old Dominion Truck Lines with 5.1% and Yellow Transportation with 4.95%. Most of these increases will be effective the beginning of April. |
| 03/22/2007 |
| Updated Economic Impact Study |
Study Finds $256 Billion of Containerized Trade and Over 3.3 Million Jobs Nationwide Connected to the Ports of Los Angeles and Long Beach. LOS ANGELES--(BUSINESS WIRE)--A comprehensive trade impact study released today by the Alameda Corridor Transportation Authority (ACTA) and the San Pedro Bay ports of Los Angeles and Long Beach reinforces the agencies' critical role in international trade and the economic benefits Southern California's Pacific trade gateway provides to the entire nation. In particular, this detailed study reveals the economic benefits that exported and imported goods moving through the nation's two largest container ports and the Alameda Corridor have for every region across the country.
The San Pedro Bay ports handle more than 40% of the nation's total import traffic and 24% of its total exports. From the machinery, raw materials, cotton and other goods being shipped overseas to the clothing, toys, and other products coming into the country, thousands of exporters and importers across the country rely on these ports as their primary gateway for trade. Since 1994, when this trade impact study was first conducted, the growth in the national impact of trade for goods being transported the San Pedro Bay ports increased 246%, from $74 billion to $256 billion.
Full article:
Updated Economic Impact Study |
| 03/22/2007 |
| Leading Economic Indicators Drop 0.5% in February |
| An index of leading economic indicators fell last month by the most in more than a year, the New York-based Conference Board reported Thursday. Updated on 3/22/2007 - 10:15:00 AM EST
Leading Economic Indicators Drop 0.5% in February
An index of leading economic indicators fell last month by the most in more than a year, the New York-based Conference Board reported Thursday.
The February LEI index fell 0.5%, the group said in its monthly report.
The decline was slightly more than the 0.4% predicted by economists, Bloomberg reported.
An increase in jobless claims, weaker consumer sentiment and a decline in building permits helped drag the index lower, Bloomberg said.
The LEI is closely watched by trucking companies because it forecasts business activity for the next three to six months.
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| 03/21/2007 |
| Federal Reserve Holds Benchmark Interest Rate |
| For a sixth straight time, the Federal Reserve on Wednesday voted to keep the benchmark U.S. interest rate at 5.25%. The vote to hold the federal funds rate unchanged was unanimous.
The Fed last held the rate steady at its Jan. 30-31 meeting and has not raised the bechmark rate that banks charge each other since June, which was the 17th straight meeting at which it boosted the rate by a quarter-point.
“Recent readings on core inflation have been somewhat elevated,” the Fed said in a statement. “Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters.”
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| 03/13/2007 |
| Industry News: |
Bush Administration to Allow Mexican Truckers Throughout U.S. Within 60 Days. The Bush Administration announced that Mexican trucking companies will be allowed to haul freight throughout the U.S. within 60 days.
According to the administration, guest workers from Mexico will help ease the burden of the driver shortage that many U.S. trucking companies face. In addition, the administration says that allowing drivers from Mexico beyond their current 20-mile restriction into the U.S. is consistent with the 1993 North American Free Trade Agreement (NAFTA). The agreement had promised Mexican trucking companies total access to U.S. highways by the year 2000.
Some trucking industry leaders have expressed concern about allowing Mexican trucking companies access to U.S. highways. They cite substandard trucks and low-paid drivers as their cause for concern and indicate that these factors may jeopardize motorist safety and cost thousands of jobs for U.S. truckers.
To that extent, the U.S. Department of Transportation has indicated that all Mexican trucking companies entering into the U.S. will be heavily monitored. According to the department, every truck will be inspected prior to entry, all Mexican trucking companies will be required to verify insurance coverage by companies who are licensed in the U.S, and all drivers from Mexico will be interviewed to ensure that they can speak and read English. The drivers will have their licenses and driving records reviewed as well.
A hearing led by the Appropriations Subcommittee will be held March 8, 2007, to determine if the Bush Administration's plan for Mexican trucker guest workers meets safety requirements.
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| 03/06/2007 |
| Short-Term Energy Outlook: |
World oil markets tightened in recent weeks in response to production cuts by members of the Organization of Petroleum Exporting Countries(OPEC) and the return of cold winter weather in North America. World oil markets tightened in recent weeks in response to production cuts by members of the Organization of Petroleum Exporting Countries (OPEC) and the return of cold winter weather in North America. February’s cold weather and higher demand for heating fuels reduced petroleum inventories (both crude and product) more than expected and raised spot prices for crude oil and natural gas, which had fallen in January.
Average monthly motor gasoline prices are expected to increase by nearly 40 cents per gallon from February ($2.28 per gallon) through June, peaking at $2.67 per gallon. Rising crude oil prices and seasonal demand are the principal drivers for this expected increase. The projected average of about $2.60 per gallon for the upcoming driving season (April-September) would be about 20 cents per gallon less than last year’s driving season average.
Full Article
Short-Term Energy Outlook
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