December 1, 2010 -   The U.S. Senate on Tuesday passed legislation to update and strengthen the nation's food safety regulations.
 
The FDA Food Safety Modernization Act (S. 510) passed by a vote of 73 to 25. The bill will now move to the House for consideration.
 
Erik D. Olson, director of the Pew Health Group food programs, called the legislation "a major step toward improving how the U.S. Food and Drug Administration protects people from preventable illnesses that sicken millions and kill thousands of Americans every year."
 
He referenced the recent examples of disease outbreaks related to contaminated foods, including eggs, lettuce, spinach, cookie dough, and peanut products, that have either sickened and killed many people.
 

"This legislation will guarantee stronger rules regarding the safety of imported foods, strengthen safety standards for food facilities and provide the FDA with the power to issue a mandatory recall of contaminated food, among other authorities," Olson said. "This is crucial because the FDA is responsible for the safety of 80 percent of the nation's food supply."

However, some major trade groups, including United Fresh and Produce Marketing Association, have withdrawn their support of the Senate bill due to an amendment that exempts small farms from the rules.

"Unfortunately, instead of adhering to a science- and risk-based approach that was consistently the foundation of the underlying bill, the Senate has chosen to include a provision that will exempt certain segments of the food industry based on the size of operation, geographic location and customer base," said Robert Guenther, United Fresh's senior vice president of public policy. "This provision creates a gaping hole in the ability of consumers to trust the safety of all foods in the commercial marketplace."

"We stand firm that the entire produce industry must be committed to providing safe fruits and vegetables, no exceptions, because pathogens don't discriminate based on company size, commodity or distance to market," added Bryan Silbermann, president and chief executive officer for the Produce Marketing Association.

The produce industry, however, supports many reforms included in the Food Safety Modernization Act, such as:

· Requirements for written food safety plans.
· A broad view that addresses both U.S. and non-U.S. product.
· Mandatory recall authority for the FDA.
· Commodity-specific protocols for fresh produce.

"We strongly encourage the House leadership to request a conference to reconcile differences between the House-passed food safety legislation and the flawed Senate bill," Guenther said.

"The House bill makes no arbitrary exemptions from basic food safety standards. This principle is at risk of being discarded for temporary convenience to pass a bill, but it is a fundamental mistake that will come back to haunt consumers, the food industry and even those producers who think they are escaping from food safety requirements." 

  

November 30, 2010 - (LIMA) Peru is negotiating agreements for direct flights to China, Japan and South Korea from 2011, Peruvian Trade and Tourism Minister Eduardo Ferreyros said on Sunday.

'We have had some preliminary talks, but in early 2011 we will make a specific visit to speak directly to Chinese, Japanese and South Korean airlines to encourage them to set up direct flights to Lima,' Mr Ferreyros told state-run agency Andina.

The arrangement follows the March signing of a free-trade agreement with China and the conclusion of free-trade talks with Japan and South Korea. Peru is scheduled to sign agreements with the latter two in the first half of 2011.

Mr Ferreyros said that Chinese, Japanese and South Korean airlines would be offered discounts on airport fees of between 90 and 100 per cent, depending on the aircraft's weight, distance travelled and frequency of flights, for up to 24 months at Jorge Chavez airport that serves capital Lima and the main port city Callao.

Peru's trade and tourism ministry has recently signed an agreement with the Peruvian Corporation of Airports and Commercial Aviation (Corpac) and Lima Airport Partners seeking to create new international routes with Lima-Callao serving as a hub.

'Should agreements be reached with Asian airlines, agreements could be worth up to US$750,000 a year, depending on the frequency,' the minister said.

Some 50,000 visitors come to Peru from South-east Asia each year, and this could quickly double should an agreement be struck, he added. Corpac recently bought a comprehensive air traffic control system which will raise the airport ranking to category two from the current category three.

December 1, 2010 - The European Union will tighten security rules for air cargo arriving from outside the bloc, but it remains uncertain whether new resources will be made available to help combat the emerging threat, reported The Wall Street Journal.

EU Transport Commissioner Siim Kallas said that he would present to transport ministers from the 27 member countries proposals for new steps to ensure that air freight from outside the EU meets the same tight screening standards as cargo loaded at European airports. If the proposals are accepted, as expected, they should take effect early next year, he said.

Kallas said his proposals would include new legislation to expand existing inspection laws to cover non-EU air cargo; an increase in intelligence sharing; and greater coordination through the United Nations' air regulator, the International Civil Aviation Organization. ICAO members recently pledged to boost cooperation on cargo security.

Under EU rules since 2004, member countries conduct security inspections under the oversight of officials from the European Commission, the EU's executive arm. Freight flying within the EU and to the US is inspected very closely, while cargo to other regions faces varying degrees of scrutiny.

Freight coming from outside the bloc is screened based on standards set by carriers and the country of origin. The EU will now require that all cargo entering the bloc meet specific screening standards.

The move follows an international security alert on October 30, when terrorists based in Yemen managed to get explosive devices onto US-bound flights in packages that were transferred in Germany and the United Kingdom. The bombs were located and removed before they left Europe, thanks to an informant's tip.

Since the incident, some politicians in Europe and the US have said all air cargo should be inspected, but Kallas said screening 100 percent of freight would be impractical. "We should not fall into the trap of overreacting," he said. "That would be a victory for our enemies."

A spokesman for the Association of European Airlines, which represents many of the EU's biggest carriers, said the group was positive on the announcement.

The EU wants to make greater use of electronic Customs data that is already supplied, said Radoslaw Olszewski, a European Commission official handling aviation security.

Cargo inspection can be quite labour-intensive, partly because few scanners exist to vet large freight containers. Industry officials have complained that Europe lacks a sufficient number of inspectors to handle the volume of cargo being shipped by air.

The US Transportation Security Administration has more than 500 cargo inspectors. Far fewer inspectors cover the EU, although a precise number is not public.

Kallas said the new rules will stress prioritising threats rather than recruiting armies of inspectors. "We should make a proper risk-assessment and devote our resource where they are needed most," Kallas said. "At this first stage, we will work with the resources we have," he added.

   

December 1, 2010 -   American Shipper reported Monday that Maersk Line would charge a fee from Jan. 1 to cover the costs associated with the start of the European Union's Advanced Manifest Rule in 2011.

The rule requires liner carriers to submit an entry summary declaration (known as an ENS) to the first EU port of call at least 24 hours before cargo is loaded onto the vessel bound for the EU.

Other carriers have likewise announced similar fees in recent days. OOCL will charge a $25 filing charge per bill of lading and $40 for an amended bill of lading related to the advanced manifest rule. APL's fee is charging a $40

Hyundai Merchant Marine said an ENS filing surcharge is "under consideration."

More carriers are likely to release information in coming days. 

  

November 29, 2010 - Malaysian ports handled 16.6 per cent more containers in the first 10 months of this year compared with the same period in 2009, reflecting a recovery in both domestic and transhipment cargo, according to Business Times.

Container traffic at the 11 major ports rose to 15.3 million TEUs from 13.1 million a year ago.

Transport Minister Kong Cho Ha said transhipment traffic was up 17 per cent. Export containers showed a 17.6 per cent increase, while import traffic rose 14.1 per cent.

Port Klang, comprising Northport and Westports, solidified its position as the busiest container port in the country, with nearly half or 48.5 per cent share of the total number of containers handled by all Malaysian ports.

Its container throughput rose 24.8 per cent in the January-October 2010 period compared with the same period in 2009. It moved 7.43 million TEUs against 5.95 million TEUs the year before.

More than half or 61.7 per cent of Port Klang's container volume was from Westports, which generated 4.58 million TEUs. Northport accounted for the remaining 38.3 per cent or 2.85 million TEUs.
The Port of Tanjung Pelepas in Johor continued to be the second largest container port, handling 35.2 per cent of the country's total throughput in the period.

Its container throughput rose 8.8 per cent to 5.38 million TEUs against 4.95 million TEUs before.

Kong said since container throughput in every Malaysian port was growing, his ministry was confident that the total throughput will reach 18.4 million TEUs by year-end.

The country's ports handled 16 million TEUs in 2009.

November 30, 2010 - Trade using surface transportation between the U.S. and Canada and Mexico totaled $68.3 billion in September, up 19.3 percent from a year earlier, the Transportation Department reported.

Despite the increase, the value of surface-transportation trade between the U.S. and its North American Free Trade Agreement partners was 4.8 percent below levels of September 2008, when the financial crisis hit.

September's total was up 0.5 percent from August. Month-to-month changes can be affected by seasonal variations and other factors.

In September, 86.9 percent of U.S. trade by value with Canada and Mexico moved by truck, rail and pipeline.

U.S.-Canada surface transportation trade totaled $40.2 billion in September, up 15.7 percent compared to September 2009. The value of imports carried by truck was 10.7 percent higher in September 2010 compared to September 2009, while the value of exports carried by truck was 17.4 percent higher during this period.

U.S.-Mexico surface transportation trade totaled $28.1 billion in September, up 24.8 percent compared to September 2009. The value of imports carried by truck was 23.3 percent higher in September 2010 than September 2009 while the value of exports carried by truck was 20.7 percent higher.

November 29, 2010 - Ocean customers in the eastbound Pacific aren't batting an eye over carrier intentions to increase freight rates by $400 per 40-foot container to the West Coast and $600 to inland and East Coast destinations.

However, companies that import consumer merchandise from Asia told carriers they better not surprise them with add-ons and multiple peak-season surcharges throughout the year. "Carriers told us about the increases, but they can't add five or six more, or we won't be able to lock down our landed costs," said Pat Moffett, vice president of global logistics at Audiovox.

The Transpacific Stabilization Agreement, a discussion agreement representing 15 carriers, announced on Nov. 19 its voluntary guidelines for 2011-2012 service contracts, most of which take effect on May 1. In addition to the base freight rate increases, the TSA recommended a $400 peak-season surcharge from June 15 to Nov. 30, 2011, and an "improved collection" of floating bunker charges, inland fuel charges, Panama Canal and Alameda Corridor surcharges and other fixed accessorial charges.

In a normal year, the recommended base rate increases would be considered a modest proposal, but 2010 has not been a normal year, and the kind of grudging acceptance of the higher base rates reflects the high tensions that have spread through international trade over the past two years.

The container shipping industry began the year more than $15 billion in the red because of the global trade recession of 2009. To stop the bleeding, carriers slashed capacity in the trans-Pacific by about 10 percent and implemented the cost-saving strategy of slow-steaming, effectively cutting capacity another 15 to 20 percent.

Retailers, with inventories slashed to the bone, began to rapidly rebuild stocks in early 2010, and a resurgent U.S. economy, with a kick-start federal stimulus spending, raised shipper confidence. As a result, imports from Asia soared more than 15 percent, leading to deep shortages of vessel space and equipment.

Carriers this year responded with a series of rate increases and surcharges. Customers compounded the problem by bidding up the price of vessel space and equipment, driving the Drewry Shipping Consultants spot rate from Hong Kong to Los Angeles to about $2,800 per FEU by August. The spot rate had dropped below $900 per FEU in the depth of the recession in August 2009.

Shipping lines attempted to secure a second peak-season surcharge this fall, but by then imports from Asia had peaked and were starting to edge lower. Freight rates declined as well, dropping to about $2,100 per FEU by mid-November, according to the Drewry measure.

Freight rates are expected to drift lower in the coming weeks as the trade enters the slow season in the eastbound Pacific. Rates may bump upward in January, however, because Chinese New Year in 2011 will be earlier than normal. Factories will fast-forward deliveries before they close for more than a week beginning Feb. 3 for the celebration.

Carriers appear to be taking a measured approach to freight rate increases for next year's service contracts. The price increases of 2010 in the trans-Pacific and other busy trade lanes are projected to produce an industrywide profit of about $5 billion this year, according to Drewry. As long as rates don't crash during the slow winter months, the proposed rate increases would ensure carrier profitability in the coming year.

Supply-demand economics in the eastbound Pacific will determine whether the carriers can raise their rates. The TSA said imports from Asia in 2010 would increase about 12 percent. The TSA projects further growth of 6 to 9 percent in 2011.

If there is a problem, it will develop on the supply side. Trans-Pacific capacity increased 18.6 percent in 2010, according to Paris-based AXS Alphaliner, and will increase about 10 percent in 2011.

Carriers have yet to announce their winter deployment schedules, although observers do not anticipate a wholesale slashing of capacity. Customers expect carriers will remain nimble, removing vessels when cargo volume drops, such as during the Lunar New Year, but returning the capacity when volume grows. "That's a good business decision," Moffett said.

Importers probably will not balk at a single, measured rate increase in 2011 contracts, but they will resist a series of rate increases and multiple surcharges, said Dave Akers, managing director of the Toy Shippers Association. "The real issue is add-ons and surcharges, a second peak-season surcharge on top of a peak-season surcharge. That's what I'm talking about," Akers said.

November 24, 2010 - Some surprising figures have emerged from the Transporeon 'Transport Market Monitor' an index of European road freight prices based on the Transporeon freight exchange. Overall the index saw a rise in freight rates in the third quarter of the year, up 0.8% compared with the 2nd quarter. Overall prices are higher than the same period last year, by 7.5%, yet it is still 2% lower than the 3rd quarter of 2008. So for the road freight sector in Europe the recession does not quite appear to be over.

The main driver of continuing comparatively soft freight rates is greater capacity which has increased strongly over the past quarter, although the 25% growth has in part been due to seasonal factors. However it remains 26.7% lower than the same period last year and 18% lower than Q3 2008. What appears to be happening is the sector is increasing vehicle capacity from a low base in the first half of the year, possibly encouraged by the hardening of rates.

Another factor in rate increases is that of fuel. Diesel did show a continuing rise in price during the beginning of Q3 2010, however it fell back later in the quarter. Overall it seems that the diesel price is not driving the hardening of rates as these increased steadily throughout the quarter.

The 'Transport Market Monitor' also breaks-down the road freight by market segment. Here there appear to be few really major trends other than an apparent fall in movement of timber. Construction materials continue to recover - although again this must include substantial seasonality - as does food and beverages.

It is tempting to read into these figures a reflection of the wider European economy. A strong recovery early on in the year from a low base followed by a moderation in growth by Q3 does appear to resemble the wider macro-economic picture. However caution would be wise not least as it is unclear what is driving capacity and what limits there are on its growth.

November 30, 2010 -  A strike at the Greek port of Piraeus has ended after the government instructed workers to return to work.

Workers at the port had been striking since November 23 after the government brought in labour reform plans to deal with the country's debt crisis.

The strike had disrupted ferry services and other deliveries to the port.

A local source told Bunkerworld on Tuesday that bunker deliveries at the port had not been affected. 

December 1, 2010 -   Geert Dancet, executive director of the European Chemicals Agency (ECHA; Helsinki) tells CW that the Reach registration of high volume and hazardous chemicals, which closed yesterday, has been a "success." ECHA says its online registration system for the European Union (EU) Reach program was operating normally despite a last minute rush for companies to register their substances. "I congratulate companies for rising to the challenge to comply with Reach," Dancet says.

As of 24:00 GMT yesterday ECHA received 24,675 registration dossiers for 4,300 substances. The overall number of registrations accepted for processing is in line with the original forecast made by the European Commission. The final number of registrations and substances will be made available at the end of February 2011 when all submitted dossiers are due to have been processed. "We did what we could" to help companies register their substances, Dancet says.

Almost 400 substances registered are for chemicals classified as carcinogenic, mutagenic or reprotoxic (CMR). Of these, 27 are already on the candidate list of substances of very high concern.

Approximately 86% of registrations were made by large companies and 14% by small or medium-sized companies. Only representatives Companies representing non-EU manufacturers, known as only representatives, made up 19% of registrations. This "demonstrates the ability of non-European companies to participate successfully in Substance Identity Exchange Forums [SIEF]," ECHA says.

Companies failing to register substances under Reach are faced with a "no market" scenario for their products, but if they register quickly they will then be able to sell their products in the EU once again, Dancet says. Companies that submitted dossiers which fail the so called 'completeness checks' will have a further four months to provide the missing data.

ECHA says it will closely examine more than 5% of dossiers submitted in so called quality checks to ensure information registered meets the required standard. Inspectors in EU member states may also check quality issues via safety data sheet information, Dancet says.

Lessons learned from this initial registration round completed yesterday will be taken forward into the 2013 and 2018 registration deadlines for smaller volume production chemicals. ECHA is due to file a report on how to improve on the registration process by June 2011.