Regulatory/Transport

Friday, May 17, 2013

   The Federal Maritime Commission (FMC) this week voted a proposed reformation of the rules governing ocean transportation intermediaries (OTIs), both domestic and foreign.    Under the proposed rule, licensed OTIs, which include non-vessel-operating common carriers (NVOs) and freight forwarders, would have to renew their licenses every two years. Currently, OTIs have no requirement to renew once they have been granted a license. They only need a qualifying individual (QI) for the l...

Thursday, May 16, 2013

   Governments in Belize, Central America and the Dominican Republic should create an environment that embraces an integrated, intermodal sea-land network, according to a recent report by the Inter-American Development Bank (IDB).    A stronger supply-chain network would help push global trade forward and would also encourage trade exchanges between the countries in the region.    The two authors of the study, Amar Ramudhin and Don Ratliff, posit that a number of initiative...

Thursday, May 16, 2013

   The Kahala Posts Group (KPG), an alliance of 10 postal administrations around the world, has signed a deal with the global trade management solutions provider Amber Road aimed at increasing their competitiveness in the international delivery market.    KPG member organizations include the Australian Postal Corp., China Post Group, Correos y Telégrafos SAE, Groupe La Poste, Hongkong Post, Japan Post Co., Ltd., Korea Post, Royal Mail Group, Ltd, Singapore Post Limited and the U.S. Po...

Thursday, May 16, 2013

   With the impending deadline for the Federal Motor Carrier Service Administration’s new hours-of-service regulations less than two months away, the outcome of the American Trucking Association’s legal challenge against the rule is still not clear.    The ATA argued against the HOS change before a three-judge panel in Washington, D.C., on March 15, but unless a ruling comes down before July 1, carriers will nonetheless have to comply with the new law before knowing if it will be str...

Thursday, May 16, 2013

   The Coast Guard has completed an environmental assessment of a plan by the Port Authority of New York and New Jersey to increase the clearance or "air draft" beneath the Bayonne Bridge from 151 feet to 215 feet and found no significant impact, meaning a permit can be issued so work can begin on the project.    Raising the roadway will allow larger container vessels to traverse the Kill Van Kull to reach terminals in Newark and Elizabeth, N.J. More big ships are expected to ca...

Thursday, May 16, 2013

   The U.S. Senate on Thursday passed a Water Resources Development Act reauthorization bill by a vote of 83 to 14 that sets the stage for Congress to appropriate money for the U.S. Army Corps of Engineers to spend on maintenance of harbors and inland waterways, and for deepening and other water-related projects.    Congress has not passed a WRDA law since 2007, which has put a freeze on new projects that industry groups insist are necessary to maintain efficient commerce and trade.&...

Thursday, May 16, 2013

   The U.S. Federal Maritime Commission has received 13 ocean transportation intermediary license applications and changes for review.    The FMC received non-vessel-operating common carrier license applications from Feiliks Global Logistics Corp., Jamaica, N.Y. (Ami K. Wey, president); Hye Mi Express U.S.A., Torrance, Calif. (Kil Soo "Ben" Hur, president); and Sea Marine Transport, Huixquilucan, Mexico (Moises L. Sarabia, president).    The agency also received an NVO...

Wednesday, May 15, 2013

   After a year-long review of substance-impaired driving in the trucking industry, the National Transportation Safety Board has issued recommendations for reducing the legal alcohol driving limit; ramping up the use of interlock devices; and beefing up penalties for non-compliance.    According to a NTSB report, the new legal blood-alcohol limit for drivers should drop from .08 to .05.    While the American Trucking Associations commended the progress on these measure...

Wednesday, May 15, 2013

   The Montreal Port Authority said the Canadian Coast Guard has authorized the passage of vessels up to 44 meters wide in the Quebec-Montreal section of the St. Lawrence navigation channel, which will allow post-Panamax vessels carrying 6,000 TEUs to reach Montreal.    Previously, the maximum width of ships allowed to travel in the channel without restrictions was 32.1 meters.    The change follows a study commissioned by the port authority and conducted jointly with the C...

Tuesday, May 14, 2013

   The Port of Long Beach is recirculating a draft environmental impact statement for a proposed grain export facility at Pier T on Terminal Island.    The public is being encouraged to comment on the EIR in writing or at a public hearing scheduled for June 5.    The grain transload facility proposed by Total Terminals International would receive railcars with 53-foot domestic containers full of grain and dried distillers grain with solubles, a byproduct of ethanol pro...

Tuesday, May 14, 2013

   The U.S. Surface Transportation Board has adopted a new arbitration program for disputes between shippers and railroads with clear liability limits.    Effective June 12, the rule change establishes when the parties would be ordered to participate in mediation.    Initially, Class I and II railroads were to be automatically enrolled in the arbitration program unless they specifically opted out of the program by application to the board. Class III rail...

Tuesday, May 14, 2013

Matsuda    David T. Matsuda, head of the Maritime Administration, plans to leave the agency at the end of the month.    In a memorandum sent to industry leaders to thank them for their assistance during his tenure, Matsuda said he "recently made the difficult decision to move on from my position at the Maritime Administration later this month."    He added: "Taking the helm as acting administrator will be Deputy Administrator Chip Jaenichen. He and the rest of our team are ...

Monday, May 13, 2013

   Transportation Worker Identification Credentials, or TWIC cards, were described as a “joke” during hearings before the U.S. House of Representative’s Oversight and Government Reform Subcommittee last week.    The hearings came as the Government Accountability Office issued a report that said  11 years after initiation of the program the Department of Homeland Security “has not demonstrated how, if at all, TWIC will improve maritime security.”    G...

Monday, May 13, 2013

   The U.S. Department of Transportation made it official Friday that the Federal Aviation Administration will not furlough air traffic controllers or close 149 low-activity control towers at small airports to meet new budget requirements following recent congressional action.    The Reducing Flight Delays Act allowed the FAA flexibility to move money from its Airport Improvement Program to the personnel account to cover $637 million in planned cuts that would have required cont...

Thursday, May 09, 2013

   Two former employees of a Marine Corps logistics base in Albany, Ga., have pleaded guilty to taking bribes totaling nearly $750,000 over a three-year period to provide local carriers with business from the base, according to the U.S. Justice Department.    The two men — Mitchell D. Potts and Jeffrey S. Philpot — face maximum prison sentences of 15 years and fines. They have already paid back the bribes and restitution to the Defense Department.    During the scheme, ...

Thursday, May 09, 2013

   The U.S. Federal Maritime Commission has received six ocean transportation intermediary license applications and changes for review.    The FMC received non-vessel-operating common carrier license applications from Jolaco International Procurement, Katy, Texas (Frederick D. Coker, president); and Mohammad Abdullatif Bagegni, Pelham, N.H. (Mohammad Bagegni, sole proprietor).    The agency also received a NVO/ocean freight forwarder license application from Defined Lo...

Wednesday, May 08, 2013

   Canada said it's adopting strict environmental standards to reduce air emissions from ships navigating in Canadian waters , and these changes further align the country's air emission standards with those of the United States.    "The changes we are announcing today will help make our oceans and lakes cleaner by reducing ship emissions," said Denis Lebel, Canada's minister of transport, infrastructure and communities. "Since vessels from Canada and the United States routinely t...

Wednesday, May 08, 2013

   Maersk Line, Limited (MLL) said it has begun upgrading its U.S.-flag fleet by replacing eight existing ships with eight newer and larger containerships at a cost of about $500 million.    MLL, the U.S.-flag arm of A.P. Moller-Maersk, said the new ships, which are being re-registered under the U.S. flag, will allow it to improve the quality of service between the U.S. East Coast and Middle East and Mediterranean Sea that it offers to the U.S. military, government and commercial...

Tuesday, May 07, 2013

   Dockworkers in Hong Kong have decided to end a 40-day strike after securing a promise of a 9.8 percent wage increase and improved working conditions.    The Union of Hong Kong Dockers (UHKD) said it had received on Monday a written confirmation jointly signed by the four contractors at Hongkong International Terminal - Everbest, Comcheung, Lem Wing and Pui Kee - via the Hong Kong Labor Department that confirms the 9.8 percent increase in the basic wage for all their employees ...

Monday, May 06, 2013

   During a White House news conference last week, President Obama said Congress' temporary fix of the government-wide sequester cuts to end flight delays is symptomatic of the nation's deferral of infrastructure maintenance writ large that is undermining long-term economic growth.    Obama signed legislation giving the Federal Aviation Administration the flexibility to move money from the Airport Improvement Program, which provides airport authorities with grants for infrastruct...

Friday, May 03, 2013

   Thirty-four national trade associations representing port authorities, water carriers, retailers and other shippers, the construction industry and unions, along with dozens of state-level business groups, signed a letter this week urging members of the U.S. Senate to support quick passage of the Water Resources Development Act.    The Senate Environmental and Public Works Committee unanimously approved the bill in late March and forwarded it for Senate consideration. It spells...

Thursday, May 02, 2013

Allegretti    The American Maritime Partnership (AMP), a trade organization for the U.S. shipping industry, said Thomas Allegretti has been elected as its new chairman.    Allegretti is president and chief executive officer of the American Waterways Operators, a trade group for the tug and barge industry.    He succeeds James Henry, chairman and president of the Transportation Institute, who will serve as AMP’s vice chairman.    “It is an honor to serve ...

Thursday, May 02, 2013

   The U.S. Federal Maritime Commission has received 18 ocean transportation intermediary license applications and changes for review.    The FMC received non-vessel-operating common carrier license applications from Bruzzone Shipping, Freeport, N.Y. (victor J. Bruzzone, president); E.T.H. Cargo Services, Carolina, Puerto Rico (Wolfgang Herzig, president); Redline USA, Miami (Carlos Zilli, president); Route 809 Freight Forward, Miami (Eduardo Pichardo, manager member);...

Wednesday, May 01, 2013

   The National Customs Brokers and Forwarders Association of America has come out against a U.S. Customs proposal to improve due process procedures for suspending a broker's entry-filer code, saying that going after the code is a back-door way of trying to take away a broker's license and is unconstitutional.    Customs and Border Protection has been frustrated for years with the amount of time it takes to deactivate filer codes for problematic brokers.  In a Notice of Pro...

Wednesday, May 01, 2013

   The National Customs Brokers and Forwarders Association of America said it strongly supports extending exemptions pertaining to non-vessel-operating common carrier negotiated rate arrangements (NRAs) to foreign-based, unlicensed NVOs as well as U.S.-licensed companies.    The association said the continued existence of NVO rate tariff publication no longer serves a useful purpose because shippers don't use them and they are able to conduct business with NVOs through the ...

Wednesday, May 01, 2013

   Tim Lovain was named vice chairman and chairman-elect for the Coalition for America’s Gateways and Trade Corridors (CAGTC).    Lovain has been involved in the coalition for 12 years, serving on its board and helping its efforts with Congress and federal agencies. The board consists of 16 members representing the geographic and organizational diversity of CAGTC and works toward advancing the nation’s freight network.    CAGTC was established in 2001 to raise public an...

Tuesday, April 30, 2013

   President Obama has named Charlotte Mayor Anthony Foxx to succeed Ray LaHood as secretary of transportation.    Foxx must now be confirmed by the Senate before taking his post.    LaHood, who has served as transportation secretary since 2009, announced in late January that he would resign his post as soon as a successor was confirmed. In a letter to DOT employees at the time, LaHood noted his successes over the previous four years. The contentious pilot fatigue rulin...

Tuesday, April 30, 2013

   National Air Cargo confirmed on its Website that a cargo aircraft it operates on behalf of the U.S. military was involved in an accident departing Bagram air base outside Kabul, Afghanistan, on Monday, resulting in the death of all seven crew members.     The company offers charter services for cargo shippers, including the U.S. military.    National Air Cargo said the plane was bound to Dubai when it crashed on takeoff. The plane was carrying vehicles and...

Tuesday, April 30, 2013

   U.S. producers ramped up biodiesel generation in February, finishing the month at 68 million gallons, a slight increase from January's total of 66 million gallons, according to the U.S. Energy Information Administration.    Nearly 75 percent of the February production, which came from 110 plants that can generate up to 2.1 billion gallons per year, originated in the Midwest. Soybean oil was the most common feedstock, followed by corn oil, yellow grease and canola oil.   &...

Tuesday, April 30, 2013

   Two members of Congress from Southern California are urging the City of Los Angeles and BNSF Railway to take further steps to mitigate the environmental effects of a planned intermodal container transfer facility to protect the health of Long Beach residents who live close by.    The Southern California International Gateway is planned for construction on property owned by the Port of Los Angeles a few miles from the marine terminals. It is designed to shorten the drive for trucker...

Tuesday, April 30, 2013

   A federal appeals court will soon rule on whether an antitrust case against four railroads that allegedly engaged in price-fixing can be tried in the courts as a class action suit.    Dakota Granite Co., Zinifex Taylor Chemicals and 11 other shippers brought a suit against BNSF, CSX Transportation, Norfolk Southern and Union Pacific in 2007. The plaintiffs alleged the carriers illegally imposed surcharges from 2003 to 2008. In that case, the judge allowed for a class-action su...

Monday, April 29, 2013

   Two South Florida ports, Miami and Port Everglades, are prime examples of the dysfunctional approach in the United States for improving the waterborne transportation system.    Projects undergo a series of congressional approvals and feasibility studies that easily can take longer than a decade to complete before dredging even starts.    Cargo interests worry the Army Corps of Engineers' slow bureaucracy and the paucity of congressional appropriations for increasing ...

Monday, April 29, 2013

   The U.S. Federal Aviation Administration suspended all employee furloughs and said air traffic control facilities returned to regular staffing levels by Sunday evening after Congress passed legislation Friday giving the agency flexibility to meet a mandatory budget cut in the face of public frustration with airport delays and flight cancellations.    Immediately upon providing relief for the airline industry, Democrats and Republicans took turns accusing each other for causin...

Monday, April 29, 2013

   Officials with the International Civil Aviation Organization are currently negotiating a new lease for their headquarters in Montreal, but another suitor has emerged.     Qatar has proposed that ICAO make Doha the permanent seat of the organization, starting in 2016.    Qatar’s offer, according to ICAO’s rules, must be considered by the organization’s 191 member states at the next assembly, which will take place on Sept. 24. Moving the organization to Qatar will req...

Friday, April 26, 2013

   The U.S. House of Representatives on Friday passed legislation to address the Federal Aviation Administration's budget bind that had forced it to furlough air traffic controllers, slowing down passengers and cargo traveling by air.    The measure, which follows similar action taken by the Senate Thursday evening, would give the FAA leeway to move money from a grant program for airport improvements to cover personnel costs and leave air traffic controllers in their jo...

Friday, April 26, 2013

   The U.S. Senate Thursday night unanimously passed a bill that would allow the Federal Aviation Administration flexibility to move funds between accounts and end furloughs of air traffic controllers that have caused flight delays since being implemented Sunday under a budget-cutting mandate.    The Obama administration has said its hands are tied by the sequester process that requires the FAA to pare $637 million from its budget by the end of the fiscal year on Sept. 30, part ...

Friday, April 26, 2013

   Industry leaders concurred during testimony on Capitol Hill Wednesday that the freight transportation industry is doing a lot to make fleets greener, but said Congress could help reduce air pollution by making it easier to adopt clean energy systems and get infrastructure projects completed that reduce congestion.     Fred Smith, the founder, chairman and chief executive officer of FedEx Corp., suggested a reduction in corporate tax rates would help companies ad...

Friday, April 26, 2013

   The U.S. Federal Motor Carrier Safety Administration has ordered Royal Transport, Nationwide, Freight and Midwest  — all trucking companies based in Olathe, Kan. — to cease operations.    The agency claims the four carriers served as chameleons for a company that had previously been shut down.    The four carriers had been operating under common operating and control — using the same drivers and vehicles — so they could skirt compliance rules, according to a FMCSA s...

Thursday, April 25, 2013

   The debate over reform of U.S. food-aid programs heated up yesterday with a leading organization of U.S.-flag shipowners saying a proposal by the  Obama administration to allow more purchasing of food abroad and eliminating requirements that it be carried on U.S. merchant ships would “dismantle an effective tool of American diplomacy.”    James L. Henry, chairman of USA Maritime, said in a statement “so-called food aid reformers point to U.S. ocean carriers as the primary exam...

Thursday, April 25, 2013

   The U.S. Federal Aviation Administration's rolling furlough of 15,000 air traffic controllers is into its fifth day and continues to slow air traffic in the United States.    Department of Transportation officials insist the workforce reductions will not compromise safety because controllers are spacing planes further apart so they can manage traffic with fewer on-duty personnel.    The trade association representing passenger carriers, as well as cargo airline...

Thursday, April 25, 2013

   The Port Authority of New York and New Jersey has awarded a $743.3 million contract to a joint venture of Skanska Koch and Kiewit Infrastructure Co. as part of a $1.29 billion program to increase the navigational clearance of the Bayonne Bridge.    The project will raise clearance below the bridge, or "air draft," from 151 feet to 215 feet, so larger ships can call at container terminals in Newark and Elizabeth, N.J., and on Staten Island, N.Y.    The contract ...

Thursday, April 25, 2013

   The U.S. Department of Transportation on Monday notified the public of the fifth round of funding availability for the popular TIGER grant program , which is aimed at multi-modal transportation projects that have a high benefit-cost ratio and don't normally get funded through traditional highway aid to states.    There is $474 million available for the next round, with applications due by June 3. Decisions are expected by late summer or early fall, according to DOT officials....

Thursday, April 25, 2013

   Cathay Pacific Airways, Thai Airways International and MASKargo have been fined a combined $9.6 million by the High Court of New Zealand for engaging in cargo price fixing activities.    The three carriers pleaded guilty to various violations occurring from February 2000 to February 2006.    Cathay paid the largest fine, $4.3 million, for setting fuel and security surcharges on flights from India to New Zealand, among other routes. Thai, which paid $2.7 million, illegally...

Thursday, April 25, 2013

   The U.S. Coast Guard said Thursday morning that the Port of Mobile was open following an explosion Wednesday evening aboard a gasoline barge owned by Kirby Inland Marine.    The agency said it received the initial notification at 8:40 p.m. that there was a barge explosion between the George Wallace Tunnel and Bankhead Tunnel in Mobile Bay. A total of seven explosions were reported, and the fire has been put out.    Three people were transported to USA Medical Center ...

Thursday, April 25, 2013

   The U.S. Federal Maritime Commission has received seven ocean transportation intermediary license applications and changes for review.    The FMC received a non-vessel-operating common carrier license application from Safeway Shipping and Clearing Services, Houston (Ibraheem O. Iyiola, vice president).     The agency also received NVO/ocean freight forwarder license applications from Aduanair Cargo & Courier Corp., Doral, Fla. (Anamar Del Castillo, vice pre...

Wednesday, April 24, 2013

   Airlines, shippers and passengers are feeling the effects of the furloughs imposed Sunday on air traffic controllers by the U.S. Federal Aviation Administration as part of a budget mechanism to save $637 million by the end of the fiscal year.    The sequestration process hit all discretionary spending across the government because Republicans in Congress and the White House could not agree on alternative cuts or revenue enhancements to reduce the deficit. The Department of Transpo...

Wednesday, April 24, 2013

   FedEx Express has signed a seven-year, $10.5 billion contract to provide airport-to-airport domestic transport of mail for the U.S. Postal Service.    USPS officials conducted a competitive search before awarding the contract to FedEx, which has been its express partner for the past 12 years. During the process, officials evaluated the pricing and technical capabilities, among other things, of the candidate firms. According to USPS, the new agreement will provide capacity flexibil...

Wednesday, April 24, 2013

   Pacer International/Ocean World Lines has appointed Al Benki to senior vice president of international logistics in the United States and Europe.    He formerly served as the company’s senior vice president of international logistics for Asia and Europe.    Taking Benki’s place in Asia is Danny Yang, who will serve as managing director for Asia.    Benson Chua has become Pacer International/OWL’s managing director in China, while Andrew Luk continues to manage t...

Tuesday, April 23, 2013

   Asia-Pacific e-commerce growth could be limited by the region’s logistics capabilities, according to a new report by Transport Intelligence.    The report, Asia Pacific e-commerce Logistics 2013 , points out that the region is the world’s fastest growing e-commerce market and has the potential to become the largest market for e-commerce sales in the next few years, with 33 percent expansion in the e-commerce logistics market in 2012.    “This is a region that has long be...

Tuesday, April 23, 2013

   Swiss WorldCargo’s top cargo executive, Oliver Evans, has been elected to serve as chairman of The International Air Cargo Association, replacing Michael Steen, chief commercial officer of Atlas Air Worldwide.    Enno Osinga, the cargo head at Amsterdam Airport Schiphol, will join Evans as his vice chairman. The appointments come with a two-year term.    The two were elected during TIACA's annual general meeting, held prior to the agency's executive summit in Dallas...

Tuesday, April 23, 2013

   Shipowners and seafarers' unions have joined forces to express concern at flag states’ failure to submit maritime casualty reports as required under international conventions.    The International Chamber of Shipping (ICS), which represents 80 percent of the world merchant fleet, and the International Transport Workers’ Federation (ITF), which represents seafarers’ unions worldwide, have made a joint submission to the International Maritime Organization commenting on the apparent f...

Tuesday, April 23, 2013

   The U.S. State Department recently issued a presidential permit to the state of Michigan to build a new bridge connecting Detroit and Windsor, Ontario.    The State Department approves new international border crossings after reviewing whether they are in the national interest.     Local and national officials in Canada and the United States for many years have been developing plans for a second bridge to relieve congestion on the privately-held Ambassador Bridg...

Tuesday, April 23, 2013

   Geoff Turner, president and chief executive officer of Choptank Transport, was elected chairman of the Transportation Intermediaries Association.    “TIA will continue to be the premier organization providing superior leadership in Washington, quality educational programs and a long list of services to support our members both small and large. I look forward to working with all of our members," Turner said in a statement.    Globe Express Services has appointed Regina Cro...

Monday, April 22, 2013

   The U.S. Federal Aviation Administration has officially approved design modifications for the Boeing 787's lithium battery system after giving the go-ahead for Boeing's certification plan in early March.    The final directive for a return to service for Boeing's 787 Dreamliner planes will be published in the Federal Register next week. The agency will also give aircraft operators instructions for implementing the new battery system.    In addition to other modifications...

Monday, April 22, 2013

   Shippers should expect delays receiving air cargo moving through major airports in Atlanta, Chicago, Los Angeles and New York after the U.S. Department of Transportation and its Federal Aviation Administration on Sunday began to furlough air traffic controllers as promised to make good on forced budget cuts that hit the entire government in March.        Critics said the Obama administration is using the reductions in air traffic control hours to...

Friday, April 19, 2013

   The International Air Cargo Association and the International Civil Aviation Organization, a U.N. standard-setting body for international regulation of the aviation industry, on Thursday cemented their burgeoning relationship by agreeing to regularly consult on security and other issues to advance the air cargo industry.    Officials for the two organizations signed a Declaration of Intent in Dallas during TIACA's annual Executive Summit, which was attended by about 180 people...

Friday, April 19, 2013

   The U.S. Transportation Department has set aside $8.9 million to repair roads and bridges on federal and tribal land in Arkansas, Minnesota and New Jersey that have been damaged by natural disasters.    The money comes from the Federal Highway Administration’s Emergency Relief for Federally Owned Roads program. The Army Corps of Engineers will be given $4.9 million to repair flood-damaged roads near Little Rock, Ark. The Bureau of Indian Affairs will get $2 million to build a...

Thursday, April 18, 2013

   Members of the U.S. Maritime Alliance (USMX), which recently negotiated a new six-year master contract with the International Longshoremen’s Association on behalf of the U.S. East and Gulf Coast dockworker employers, ratified the new contract Wednesday afternoon.    The approval came eight days after ILA members voted to ratify the contract, which covers 14,500 port works on the East and Gulf coasts.    The contract was approved by representatives from 43 container carri...

Thursday, April 18, 2013

   The U.S. Federal Maritime Commission has received five ocean transportation intermediary license applications and changes for review.     The FMC received a non-vessel-operating common carrier license application from Blade Express, Hawthorn, Calif. (Kathleen Martin, secretary).     The agency also received a NVO/ocean freight forwarder license application from M2K Consulting, Burbank, Calif. (Abet Mehrabian, secretary); and an oce...

Wednesday, April 17, 2013

   Concern about whether the Transportation Security Administration will be able to efficiently handle the renewal of large numbers of Transportation Worker Identification Credentials (TWIC) expiring this year was raised Tuesday by Rep. Janice Hahn, D-Calif., at a hearing of the U.S. House Transportation and Infrastructure Committee's Coast Guard and maritime transport subcommittee.    “I don’t know if I am misinformed, but I was told that we actually have no plan moving forward ...