CT TransTopics Newsletter First Half 2010CT Logistics TransTopics
Your Transportation Newsletter
First Half 2010
TRUCK REVIEW
Mexican Cross Border Wrangling Continues
The Owner-Operator Independent Drivers Association (OOIDA) has asked the Obama Administration to not open the Mexican cross border movement of Mexican trucks into the U.S. The border had been closed but was due to reopen on March 11th. The Mexico government had raised U.S. goods tariffs in retaliation because of the closing which had cost U.S. shippers approximately $2.5 billion because of raised tariffs; presently the border crossing remains closed.
Sleep Apnea Continues to Hurt Drivers
The Federal Carrier Safety Association (FMCSA) has noted in a recent meeting with ATA that it expects to issue new standards for doctors who perform physical exams on commercial drivers. Presently the agency estimates about 28 % of the drivers have a condition of sleep apnea, which is a danger to automobile and trucks on the road.
Banning Texting by Commercial Drivers
The states of Vermont, Wisconsin and Michigan have joined a group of 26 states that have banned texting for all drivers, i.e. both commercial and private drivers.
Interesting Side Item – Trucks out of Trees
In the May 17th issue of Transport Topics, an item noted “Purdue Students to build Trucks from Trees”. A select group of engineering students at Purdue University will travel to the nation of Cameroon in Africa. There they will set up a manufacturing plant near a forest. The students claim that the body and frame of the truck can be of African mahogany. It will be the size of a small pickup and can haul up to 1200 pounds of freight on cross country roads.
Association Says Safety Instead of Prices
The President of British Columbia Trucking Association notes that shippers when hiring a trucking company to haul their freight should consider the safety record of the carrier and then consider the price to haul the freight. He claims his government is very lax in monitoring the carrier safety record so it has to be up to the shipper. Safety can relate to loss of freight in a carrier accident because driver or equipment did not meet safety standards.
RAIL REVIEW
Intermodal Reports First Quarter Gains
The combined major rails have reported gains in intermodal traffic for 2010 vs. the same period in 2009. The increase is estimated to be about 13% over the period last year. The report was issued by the AAR.
DOT Pleas Could Help Rails Expand
The Journal of Commerce reports that the CFO for DOT noted in a report of April 26th, that he has pleas for a one stop financial aid ship to help rails in their pleas to improve intermodal and other rail services.
Rail Experts Predict Growth Comeback
Several major carriers have seen a comeback in freight shipments. They have brought back furloughed workers and sending stored rail cars into the repair shops to move the expected increase in volumes of freight.
Rail is in Senate Bill 2889
It is expected that Senate Bill 2889 being discussed at the present time will give the Surface Transportation Board (STB) the force it needs to correct the present situation of captive rail customers by making the rails allow parties to challenge existing and proposed adjustments by captive rail shippers.
Major Distribution Center Continues to Gain
Logistics Park Chicago developed outside Elwood, IL originally opened in 2002 has expanded as the UP Railroad enlarges, i.e. ramps to handle domestic and international rail cargo.
MISCELLANEOUS REVIEW
DHL CEO Sees Economic Recovery
The CEO of DHL reported in a late April issue of Journal of Commerce that he tends to see a global economic recovery although some areas remain fragile and tentative. (CT Note) His statement was issued before the debt crisis in Greece and the Euro drop in value.
Trans-Pacific Rates for Containers Go UP
The Journal of Commerce reports in the May 10th issue that the spot rates for a 40 foot container from Hong Kong to Los Angeles, CA had jumped approximately 10% in cost or over 2000 to move a container of freight from Hong Kong to Los Angeles.
Recession Prompts Cargo Thefts
The last couple of years have seen a slump in the economy here in the U.S. consequently it has brought on cargo thefts. These have been noticed in warehouse break-ins, along with trucks parked at truck stops or warehouse parking lots.
Canada and China Move Aggressively on U.S. Imports
The Federal Maritime Commission (FMC) has reported that a new container port in Prince Rupert, British Columbia has opened up competitive bidding on U.S. bound imports. This, plus Chinese requirements for U.S. ocean carriers to provide rate freight information to a quasi government in Shanghai which may pass this information to U.S. competitors can hurt the U.S. ocean shipping group.
STB holds reviews for Declaratory Order
It appears that Horizon Lines, an ocean carrier, had filed in the U.S. District Court in Central California to collect unpaid freight charges on movements of freight from Hawaii and U.S. ports. The carrier wants to hold the officers and directors personally liable for shipping charges incurred by the corporations. The STB has yet to rule on this challenge brought up by the carrier.
CT COMMENTS
Well, we hope the economy continues to improve for all of our clients in 2010 and beyond. 2009 was a very difficult year for all of us. It is because of our loyal client that allows CT to keep focused and driven to continue to improve what we do and how we do it. Our entire staff including your Teams hope that you’re satisfied with our services; that your needs are being met, and if you have any suggestions to improve our overall process, please let us know. We look forward to serving your account this year and beyond.
Remember we’re added new software, systems and processing capabilities to perform line item detail audits on all small package and summary billing carriers for both domestic and international shipments.
Thank you for the business, we appreciate it.