News from Cornerstone Systems

Import cargo at the nation's major retail container ports is now expected to total 12.7 million TEU's for 2009 which would be a drop of 16.8% from last year's 15.2 million TEU's, and the lowest since the 14 million TEU's imported in 2004, according to the the Port Tracker/National Retail Federation/IHS Global Insight. 4th quarter forecasts list October at 1.17 million TEU's, November at 1.09 million TEU's, and December at 1.06 million TEU's.

The ATA (American Trucking Association) and the Port of Long Beach announced a settlement on October 19. The settlement is expected to end litigation with the Port of Long Beach, however litigation with the Port of Los Angeles will continue. Both the Port and ATA emphasized that the new registration apparatus, which includes an agreement by carriers to provide the port necessary operating information, will allow the port to oversee and enforce motor carrier's compliance with federal, state, and port safety, security, and environmental regulations. In particular, motor carriers registering to operate at the port must agree to enter all truck and driver information into the port's Drayage Truck Registry and to equip each truck with a radio frequency identification tag or other technological device to allow the port to monitor and control truck entry to port facilities. Motor carriers must also certify, among other things, that any truck dispatched to the port will comply with all federal, state, and port safety, security and environmental regulations. Similarly, motor carriers will acknowledge responsibility for ensuring that all drivers dispatched to the port possess a valid commercial drivers' license and a Transportation Worker Identification Card. The Registration further acknowledges the right of the Port to deny entry to any truck or driver that does not meet these regulatory requirements. The Registration and Agreement also contains a carrier's acknowledgement that its trucks are subject to inspections while on port property to further ensure safety, security, and environmental compliance. Port officials believe that the new Registration and Agreement provides the port the information and authority it needs to ensure compliance with its Clean Trucks Program.

29 organizations, including the National Retail Federation (RILA) and the National Industrial Transportation League (NITL) called on the mayors of New York and Newark, NJ with a letter to withdraw their support for changes in federal law that would allow local regulators to bar independent owner-operators from harbor trucking. The groups, referring to the legal challenges to the Los Angeles regulations, note that Los Angeles officials have said their clean air effort is moving ahead of schedule at the port even though the provision affecting drivers have not been implemented because courts have ruled they violate Federal law. "We fully support efforts by the ports, including the Port Authority of New York and New Jersey, to improve their air quality," the letter said. "However, there is absolutely no need for a change to longstanding federal law to achieve this goal, nor any justification on outlawing independent owner-operator trucking firms from serving our nation's ports."

The AAR (Association of American Railroads) reports that while U.S. rail intermodal traffic in September was down 14.6 percent (to 993,235 units) compared with the same month last year, average weekly intermodal units in September 2009 were the highest since November 2008. AAR noted that the relative improvement in intermodal traffic may be related to retailers restocking shelves for the upcoming holiday season.

Norfolk Southern is announcing an $11 million investment in their Philadelphia Navy Yard intermodal facility. The expansion is part of their multi-state Crescent Corridor initiative to establish a high-speed intermodal freight rail route between the Gulf Coast and the Northeast. The investment will create the capacity to handle more than 72,000 containers and trailers a year. Construction is scheduled to begin in mid 2010.

On November 5th the Port of Richmond broke ground on a $40-million rail project designed to increase BNSF Railroad service to the port as well as upgrade the existing rail line that serves industrial tenants along the port entrance roadway. As part of the project, the port will add a second, dedicated rail line to handle more than 145,000 imported vehicles per year and serve other automotive accounts. The port expects to handle 150,000 - 180,000 vehicles per year once the business ramps up.

On October 26 the FMCSA (Federal Motor Carrier Safety
Administration) entered into a settlement with several advocacy groups in an effort to resolve a lawsuit by these organizations challenging FMCSA's current hours-of-service rule. Transportation Secretary Ray LaHood believes the U.S. Department of Transportation (DOT) can save lives by starting over to develop a new rule. However, the American Trucking Association (ATA) believes the current HOS regulations are good safety rules. "Safety in the trucking industry has greatly improved while operating under the current hours-of-service rules," said ATA President and CEO Bill Graves. "Over the past five years we've seen a strong decline in truck-involved crashes on our nation's highways."

ILA members will vote November 17 on a two-year extension that would provide East and Gulf Coast ports with labor peace through September 2012. The proposed extension would prevent nervous shippers from diverting cargo to avoid a possible work stoppage and would give the union and employees an extra two years to allow economic conditions to stabilize.