 | Beijing announces tax reduction for Taiwan's cross-strait flights |
September 17, 2010 - CHINA's Ministry of Finance (MOF) has announced that Taiwanese airlines can enjoy a tax allowance on business and income generated from Taiwan's direct flights to China, reported Xinhua.
The exemption is retroactive to June 25, 2009, according to a joint statement issued by the Chinese MOF and the State Administration of Taxation.
Taiwanese airlines that have paid business tax on cross-strait direct flights from June 25, 2009 will receive a reduction in their total business revenue taxes, and those paid in income tax will then receive a refund in 2010.
Shipping Gazette
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Spain Unions Want to Suspend Sept 29 International Flights | |
September 20, 2010 - Unions have asked for permission to halt all international flights in Spain on Sept. 29, the day set for the country's first general strike in eight years to protest government austerity cuts and labour reform.
The unions also want to halt all medium and long-distance trains and cut back local train services. Under Spanish law, workers in certain sectors must provide a minimum level of services and the unions must agree with the government on what minimum levels should be.
Spain's public works ministry said it would now review the unions' proposals on transport and make a decision in the next few days.
A spokeswoman for Iberia said it would get in touch with any affected passengers once minimum levels of service were announced.
The scale of transport stoppages is likely to be a major factor in the level of disruption caused by the strike as they could prevent many non-strikers from getting to their place of work.
A poll for El Pais by Metroscopia on Sept. 5 showed while 58 percent of Spaniards thought the strike justified, only 9 percent definitely planned to take part.
However, some analysts thought the actual take-up on the day was likely to be higher and significant disruption would be caused in large cities by union demonstrations in the main streets and cancelled buses, metros and trains.
Reuters
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| EU agrees to sign FTA with South Korea |
Pact will take effect in July 2011, will create EU exports worth 19b euros
September 17, 2010 -The European Union yesterday agreed to sign a free trade agreement with South Korea, one of the most far-reaching trade pacts the union has negotiated with a third party, Belgian Foreign Minister Steven Vanackere said.
'This the first generation of bilateral trade agreements which will bind Europe and Asia together in an ever-closer economic bond,' Mr Vanackere told a news conference on the sidelines of a meeting of EU leaders in Brussels.
'This is a very big step in opening markets in Asia for our companies,' he added.
The deal is due to be formally signed at an EU-South Korea summit in Brussels on Oct 6 and will come into force from July 1, 2011, Mr Vanackere said.
EU officials say the agreement will create about 19 billion euros (S$33 billion) of new exports for EU producers.
Combined EU-South Korea trade in goods was worth about 53 billion euros in 2009, according to EU figures.
Companies that may benefit include pharmaceutical producers such as London-based GlaxoSmithKline plc, chemical makers including BASF, based in Ludwigshafen, Germany, and consumer- electronics manufacturers like Amsterdam-based Royal Philips Electronics, as well as farm exporters.
Shipping and financial and legal services industries also stand to gain.
The EU has been racing to secure an agreement with South Korea, the world's 12th largest economy and one of the few to avoid recession during the global economic downturn, as it wanted to strike a pact before the United States did so.
European carmakers opposed the agreement, saying it will give an unfair edge to companies such as Hyundai Motor Co and Kia Motors Corp because of a disparity in auto trade.
The EU imported about 450,000 Korean cars into its market of 15 million in 2008 while exporting 33,000 autos to Korea, where one million new cars are sold annually.
Italy had resisted giving its approval to the pact - which requires unanimous backing from all 27 EU member states - because of Italian concerns about car imports. Italy gave its support after a compromise was reached to delay the introduction of the agreement by six months.
Yesterday's verdict in Brussels came after the Italian government demanded concessions to ease the impact on Fiat SpA, the country's biggest carmaker.
The accord, approved by both sides last year, will eliminate Korean import duties worth 1.6 billion euros annually and European levies of 1.1 billion euros, according to the European Commission, the EU's trade authority.
The accord will phase out the EU's 10 per cent tariff on Korean cars over three to five years and end an 8 per cent duty on European autos in the same period.
A US-Korea free trade agreement from 2007 is on hold while the administration of President Barack Obama seeks to tackle an alleged imbalance in car trade.
In 2009, Korea was the world's eighth largest exporter and 10th largest importer, according to the World Trade Organization. The EU is the world's largest trading zone.
EU foreign affairs chief Catherine Ashton, who previously served as EU trade commissioner and negotiated the early stages of the South Korean deal, spoke at length to Italian officials in recent days to push for their support, diplomats said.
Reuters, Bloomberg
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Thailand Dawai port project back on the map | |
September 20, 2010 - Thailand continues to get more serious about the Dawei deep-sea port project as the Strait of Malacca , which it uses for import and export of goods , has a growing problem with shipping traffic jams, reported The Nation.
If completed, the project would reduce logistical and labour costs for the kingdom as well as create job opportunities for Burma.
The project was mooted 10 years ago with a study by the Thai government of possible alternative routes to the strait. And in May 2008, Thailand and Burma signed a memorandum of understanding (MOU) to launch it, with Italian-Thai Development as a potential site operator.
The Burmese government and the Myanmar (Burma) Port Authority (MPA) have also signed an MOU, said Tanit Sorat, vice-chairman of the federation of Thai industries and board member of the joint standing committee on commerce, industry and banking (JSCCIB).
The total project, estimated at US$11.39 billion, was revealed during a conference between business operators and government sectors under the project Westgate Landbridge, organised by the JSCCIB. The four investors are PTT, Nippon Steel, Egat and Petroleum National Bhd (Petronas).
The Landbridge is in two phases: the first commencing early next year to construct a four-lane road; and the second, the building of eight-lane roads. These two phases are expected to be finished by 2015.
Italian-Thai Development project manager Surin Vichian said the highway route would begin from Phu Nam Ron in Kanchanaburi province to Dawei in the Tanintharyi region of Burma, a distance of 160km.
Currently 100km have been cleared to mark the road's unsealed route from Dewei and Phu Nam Ron. Work on the forestry area is to be left to the last as there are problems negotiating with the Burmese military, but the road planned by the Thai and Burmese governments does not cut through any village or community.
Within the Dawei project, plans are for deep-sea ports and industrial estates.
Its area is said to be much bigger than Laem Chabang and Map Ta Phut put together.
In January next year, the deep-sea port will begin construction, together with roads for industry and public utility as the first phase. Completion is expected in five years.
Tanit said the cost of the deep-sea port is estimated at $3.25 billion.
The length of the port is approximately 12 km which can be expanded in the future and it will allow for large container shipments. The second phase will commence in 2013 with the building of a shopping complex and government centre.
Many countries, such as Japan and the US are paying attention to this project, attracted by Myanmar's plentiful natural resources. Thailand's, on the other hand, are dwindling every day, said Tanit.
In addition, there are projected supporting projects such as a 600 MW hydropower dam, and a corridor link to China; a railway link to Kunming (Yunnan, Sichuan and Guizhou); and a high speed rail project in Thailand linking Bangkok to Nong Kai, Chiang Mai, Rayong and Padang Bezar.
Tourism to Myanmar could also be attracted from Thailand, which has over 10 million visitors a year.
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Greek Truck Strike Enters Second Week | |
Parliament sets deregulation vote in face of protests
September 22, 2010 - The Greek parliament will vote on controversial plans to deregulate road transport Tuesday as a nationwide truck drivers' protest strike entered its second week.
Up to 2,000 truckers were planning to march toward parliament as lawmakers debate a draft bill that would open up the tightly controlled trucking sector to competition.
Hundreds of trucks are parked on roads on the outskirts of Athens, Thessaloniki and other cities causing serious delays to traffic. According to reports, more than 3,000 maritime containers are stranded at the nation's top box hub, the port of Piraeus.
The strike is the latest in a series of actions to protest the government's plan to deregulate the trucking industry.
Under the current "closed shop" system, trucking freight rates are centrally fixed and trucking licenses are strictly controlled.
Truckers say the planned reforms are too sudden and will bankrupt owner-drivers who have borrowed money to buy licenses.
The Socialist government has rejected a demand by the drivers' union for a five year transition to an open market and insisted that the reforms will be implemented as soon as they are voted into law.
The government has de-regulated other sectors, including freight and passenger ferries operating between the mainland and the country's many Aegean islands.
Journal of Commerce
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Taiwan seeks logistics ramp up | |
September 21, 2010 - The country is looking to transform into a logistics hub in Asia Pacific, potentially teaming up with China to set this plan in motion.
The Council for Economic Planning and Development (CEPD) saw Taiwan committing US$3.19 billion between 2010-2013, according to Tso Heng, head of the council's Centre for Economic Innovation and Deregulation.
China is also willing to work with Taiwan in logistics services, Focus Taiwan reported. Taiwan's Ministry of Economic Affairs, the Ministry of Finance and the Ministry of Transportation and Communications will be initiating discussions with China.
"We want to take advantage of warming cross strait ties after the implementation of the economic cooperation framework agreement to strengthen Taiwan's logistics services," Tso said.
He believed the two countries could invest in each other's airport and harbour facilities in the future. Linking the cross-strait logistics sectors will increase Taiwan's attractiveness as a logistics hub for foreign companies, he added.
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World's leading container lines join forces in fight against piracy | |
September 22, 2010 - The world's three largest container shipping companies have decided to cooperate in the fight against piracy in the Gulf of Aden and the Indian Ocean. The cooperation between CMA CGM, MSC and Maersk Line includes information exchange on safety measures, piracy policies and procedures as well as coordination to ensure the issue is addressed with all relevant stakeholders.
"Our first and foremost concern is the safety and security of our crews. Piracy continues to be a problem for the shipping industry and if we want to address it effectively, we as ship owners must cooperate," CMA CGM, MSC and Maersk Line said in a joint statement.
CMA CGM, MSC and Maersk Line agree on the importance of the Best Management Practices for safe sailing in the area where the Somali pirates continue to attack and hijack vessels.
"Following the Anti-Piracy Best Management Practice is an important step in preventing hijackings and we fully support the use and further development of the BMP," CMA CGM, MSC and Maersk Line said.
CMA CGM, MSC and Maersk Line welcome and support the international community's efforts to fight the problem of piracy in terms of the naval presence in the Gulf of Aden and the pursuit of appropriate legal frameworks to ensure pirates are prosecuted and held responsible for their crimes.
"The root causes of this problem cannot be addressed overnight. Therefore, it is imperative that the naval forces have a strong and dynamic mandate to match the constantly changing situation in the area. It is also vital that the acts of piracy do not go unpunished, which is why appropriate legal frameworks for prosecuting pirates are needed," CMA CGM, MSC and Maersk Line said.
CMA CGM, MSC and Maersk Line also support proposals for regional capacity building to address the issue such as a regional coast guard and possible transit corridors to East Africa.
Transport Weekly
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Judge Confirms LA Clean-Truck Order | |
Trucking group to appeal at once, fight employee driver mandate
September 16, 2010 - Judge Christina A. Snyder issued her order in the Port of Los Angeles clean-truck case, confirming her recent ruling and dissolving the preliminary injunction that has prevented Los Angeles from implementing the employee-driver mandate in its clean-truck plan.
The American Trucking Associations, which had requested the injunction against implementation of the clean-truck plan's concession requirements, will file a formal appeal with Judge Snyder.
Curtis Whalen, executive director of ATA's intermodal conference, said the attorneys later today will file a notice of intent to appeal. ATA will then have 14 days to actually file the appeal, giving its reasons why the trucking organization believes lifting the injunction would be detrimental to harbor truck drivers.
ATA will not wait 14 days, but will most likely file its formal appeal next week, Whalen said.
Meanwhile, the Port of Los Angeles is drafting a plan for implementing the clean-truck concession requirements, including the employee-driver mandate. ATA opposes all of the concession requirements, but especially the requirement that harbor trucking companies hire drivers as direct employees.
Most harbor truck drivers at U.S. container ports are owner-operators.
Such independent contractors, by law, can not be organized by labor unions. The Teamsters Union supports the Los Angeles employee-driver mandate as it would open up the harbor to possible unionization by the Teamsters.
The port staff is scheduled on Sept. 27 to present to the Los Angeles Harbor Commission its plan for implementing the concession requirements in the clean-truck plan. Geraldine Knatz, the port's executive director, has stated previously that Los Angeles wants to implement the plan in a measured way so as not to disrupt trucking capacity in the harbor.
Under the employee-drive mandate, for example, trucking companies serving Los Angeles would most likely have to begin to transfer the status of the owner-operators to that of direct employees.
Whalen charged that such an order would harm the thousands of owner-operators that the past two years have begun to lease costly new clean trucks. The trucking environment in the Los Angeles-Long Beach harbor complex would be muddled because Long Beach does not require employee drivers, and many of the trucking companies that serve Long Beach also work in Los Angeles.
The appeals process is far from over, based on what happened more than a year ago in the clean-trucks case. Judge Snyder at that time refused to grant ATA's request for a preliminary injunction. ATA appealed her decision to the U.S. Court of Appeals for the 9th Circuit, which overturned Judge Snyder's decision.
ATA is expected to file another appeal with the 9th Circuit if Judge Snyder refuses to reinstate the injunction.
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Shipping lines pledge to fight move to end their US anti-trust immunity | |
Shippers and forwarders back proposal to end 'antiquated privilege that has no place in today's marketplace'
September 20, 2010 - The organisation representing almost all of the world's biggest shipping lines has objected to calls for an end to the exemption from US antitrust laws the liner industry enjoys.
More than 30 groups representing shippers, forwarders and 3PLs have signed a letter to the US House Committee on Transportation and Infrastructure Chairman, Congressman James Oberstar, pledging their "co-operation and support" for new legislation to end what they describe as "antiquated and inappropriate exemption from our antitrust laws".
The lobbyists, which include the influential National Industrial Transportation League (NITL) and the Freight Forwarders' Association, told Oberstar: "This extraordinary privilege may have made sense 100 years ago, but in today's fully integrated global marketplace, competition rather than joint carrier discussions should be the determining factor which governs the price for moving freight."
Opposing the proposed legislation are the 29 members of the World Shipping Council that represent approximately 90% of the global liner vessel capacity and carry around 130 million teu a year.
In June, Oberstar said, "I think we should end the anti-trust immunity that allows the carriers to talk to each other about rates. And if we replace that with full competition, there will be a real marketplace that would see improvements in rates and service."
The letter backed his call. It said: "Congress must end the legalised cartels which are specifically allowed to engage in price fixing, cargo allocation among the carriers and even agreements to restrict capacity."
It added: "Carriers have rolled cargo and refused to load cargo without additional compensation.
"Each carrier, individually, should make its own decisions as to pricing, service and capacity without knowledge of their competitors' plans, or the agreement of their competitors."
However, the World Shipping Council argued: "Carriers have been working co-operatively with the Federal Maritime Commission and with shipper representatives in efforts to discuss how current contracting processes can be improved for all parties."
The council added that two of the principal liner discussion groups had reached out to shippers.
The Westbound Transpacific Stabilisation Agreement had recently established an export shippers advisory panel, while the Transpacific Import Advisory Council began talks last week with shippers.
It added: "All sectors of the liner shipping industry had difficulties adjusting to the rapid and unexpected growth in trade volumes following the unprecedented and financially disastrous year of 2009."
It claimed ocean carriers had added sufficient capacity to handle all US imports and exports
"Carriers have also made substantial capital commitments in ordering additional container equipment to meet customers' needs," it added.
"Lines have returned to profitability from the brink of financial disaster, although rates in the transpacific are still not at 2008 levels."
International Freight Weekly
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French workers in second general strike this month |
Tomorrow's action over industry reforms could be extended indefinitely
September 22, 2010 - French workers are set to stage their second one-day general strike this month tomorrow, as they continue to protest against government plans to increase the statutory retirement age from 60 to 62.
The signs are that tomorrow's day of action could attract at least the same level of support as the previous one, and unions have warned that, in the event of the government maintaining an "intransigent" line, the protest could be extended for an indefinite period.
The 7 September stoppage caused serious disruption to rail services and brought container traffic to a standstill at France's major box ports, Le Havre and Marseilles. Air transport was affected to a lesser extent.
It led to the government making minor adjustments to its pension reform legislation, but these were considered to be insufficient by the unions.
One of the more militant unions, Sud, has urged truck drivers represented by its road haulage branch to support a prolonged strike.
International Freight Weekly
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| India develops air cargo infrastructure to meet future growth |
September 22, 2010 - India's air cargo grew 25 per cent during the 2009-10 fiscal year ending March 31 to 691 million tonnes, up from 552 million tonnes year previous, according to Civil Aviation Minister Praful Patel.
During the period under review international air cargo volumes rose 10 per cent year on year to 1.2 billion tonnes.
The Airports Authority of India (AAI) is forecasting that international air freight volumes will grow 10 per cent annually for the next five years. As for domestic cargo, volumes are expected to rise by 15 per cent in the first two years, followed by 12 per cent annual growth thereafter.
The authority plans to develop integrated cargo terminals at Port Blair Airport, Srinagar Airport, Surat Airport, Pune Airport, Patna Airport and other small airports, reports India's Economic Times.
For example, at Kolkata Airport, phase one of new integrated cargo terminal is now fully operational with elevated transfer vehicles and automated storage and retrieval systems. Chennai Airport has also prepared its new Integrated Cargo Terminal, which raises its annual cargo handling capacity from 3.5 million tonnes to 5.15 million tonnes. It is estimated that the existing capacity of both airports will be sufficient to meet demand until 2020.
Private airport developer Delhi International Airport Ltd (DIAL) has meanwhile entered into a joint venture with CELEBI for modernisation of existing integrated brown field cargo, and also awarded a second concession to Cargo Service Centre for development of a green field freight facility. Additionally DIAL has also identified areas for proposed development of supporting cargo infrastructure, including expansion of the cargo apron, the report said.
It also noted that another private airport developer, Bangalore International Airport (BIAL), is establishing a cargo village for 200 air cargo agents and freight forwarders. BIAL is also providing rent-free space to animal quarantine, plant quarantine and drug controllers' offices.
Transport Weekly
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| Export Initiative to Emphasize Small Business |
President's program focuses SBA, Ex-Im Bank, other agencies on initiative
Septemeber 16, 2010 - The federal government will step up its efforts to help U.S. exporters sell goods abroad, the White House said Thursday.
Several agencies will increase the number of trade missions and encourage foreign buyers to come to U.S. exhibitions, according to a report developed by the Export Promotion Cabinet, which includes the Secretaries of Commerce, State, Treasury, Agriculture and Labor and the heads of all the trade-related government agencies. The government will also be a commercial advocate for U.S. firms competing for international contracts and work to break down barriers to trade.
The report puts trade promotion for small and medium-sized enterprises at the top of the priority list. The Small Business Administration identified more than 2,000 potential exporters in its central contract registration.
At the same time the Export-Import Bank of the U.S. will increase small business access to export financing. During fiscal 2010, small business loan approvals increased to $4.6 billion from $3.6 billion through the same period in 2009, the bank reported.
"America is going to bat as a stronger partner and a better advocate for our businesses abroad," President Obama told an East Room audience. "We're six months into what's going to be a five-year-long process." In his State of the Union address in January, the president called for a doubling in exports by 2015.
While the initiative will improve exports, sustained economic growth will require the U.S. and its trading partners to "rebalance" their economies so that a combination of imports and exports will benefit all, said the White House.
Journal of Commerce
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| China's Transition | |
September 17, 2010 - The chemical industry continues to look to China to drive growth. Attendees at last week's China Petroleum and Chemical International Conference (CPCIC) in Shanghai, co-organized by the China Petroleum and Chemical Industry Federation and CW, are upbeat about prospects and indications are that China will continue to lead recovery (p. 15). The Chinese economy grew rapidly during first-half 2010, with GDP increasing 11.1% over the same period last year. Chemical demand outpaced GDP with several producers reporting year-over-year revenue growth of 30%-40%.
Growth slowed in the second half after the first-half surge, but there are no signs of a fundamental weakening of China's economy, according to several producers at the conference. With China committed to GDP growth of 8%-10%/year, double-digit chemical demand growth is likely to remain in place for the foreseeable future.
Some 10-15 million Chinese move from rural areas to cities each year, Michael Koenig, president of Bayer China, said in a conference presentation. At that rate, China needs to build infrastructure to support a population equivalent to that of Germany every five to six years. China is expected to have 200 million cars by 2020. Materials for automotive, transport, building and construction and the electronics segments will require enormous innovative advances to meet such needs in a sustainable manner.
China continues to offer the most attractive growth prospects, but market needs are maturing and becoming more sophisticated. Basic products and processes dominated development over the past 15 years to meet the essential needs of an emerging economy. China's economy is now maturing, with its needs becoming more sophisticated and demanding. That opens a second phase of attractive, long-term development for chemical makers which are able to offer innovative solutions that meet the needs of an evolving, more demanding, and maturing China.
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