|
|
 | Israeli Port Workers Strike Shuts Down Shipping |
Januarry 5, 2011 - Two thousand five hundred workers at the Eilat, Haifa and Ashdod ports began a strike Monday after unsuccessful salary negotiations between the Histadrut National Labor Union and the Finance Ministry broke down.
The strike has halted the loading and unloading of cargo in the three ports.
In a statement released by the Histadrut the strike was launched after a dead-end, was reached with the ministry. The union says salary negotiations have been ongoing for the last ten months and the dispute concerns salary supplements for second-generation port workers who began employment at the port following the reforms agreement of 2005. The Histadrut union is fighting to get a 5-percent salary raise after not receiving bonuses that were supposed to be awarded under the 2005 reform act.
The Finance Ministry responded to the strike with a statement saying that the port workers have the highest average pay in the public sector and their wages recently increased by 35% following a reform agreement. In response to second-generation workers salary, the Finance Ministry says those port workers wages have increased 50-percent over the last five years.
The Federation of Israel has agreed to resume talks with the union in hopes of getting workers back to work. If the strike lasts a week, it could cost the economy NIS 400 million.
Port workers in Israel are among the highest paid public sector employees.
Maritime Executive
|
|
French port container traffic crippled by strike | |
Le Havre is posied for further disruptions this weekend
January 5, 2011 - Container traffic at Le Havre, France's leading box hub, has been hit by a dockworker strike which brought container handling to a standstill, according to international media reports.
Port operations across France were halted earlier in the week when members of the General Confederation of Labour (CGT) union staged a 24-hour walk out.
Members were protesting against a major port services reform that was introduced in 2010.
Further halts are expected this weekend.
Although operations at most ports had resumed to normal by today, CGT claimed that all 1,800 freight workers in Le Havre, and most of the employees of the port authority were still refusing to go back to work.
In a statement to the media, a spokesperson for Le Havre said: "Within the scope of the national negotiations underway with unions about the French port trade collective agreement and the issue of special provisions concerning hard jobs, the CGT union has decided to continue its action with new stoppages."
The port faces further disruption this weekend from 22:00 on Friday, January 7, until 06:00 hrs on Monday, January 10.
According to local media, there will be "no cargo-handling operations and no manoeuvring of mobile structures" during this time.
Cargo-handling operations on terminals are also expected to be disrupted, the port confirmed.
It is unclear at this stage whether the other French ports will face similar disruptions this weekend.
Port World
|
| Truckers in Egypt enter fourth week on strike |
But main union won't support hauliers' action
December 30, 2010 - A strike by hauliers in Egypt has entered its 20th day in five governorates, making it one of the country's longest-running industrial disputes in recent memory.
On 10 December, HGV drivers began striking over a series of government decrees, including increased taxes, a ban on highway driving on Thursdays and Fridays and a requirement to transform all semi-trailers to full-trailers.
Although the tax increase threat was rescinded four days later, drivers continued the strike after the government refused to meet their other demands.
Frustrated agricultural exporters have called on the government to bring an end to the strike "by any means necessary". Exports account for nearly 60% of goods transported by HGVs.
Zaki al-Tras, a transportation company owner and member of one of the HGV unions heading negotiations with the Chamber of Commerce in Cairo, called on all truck owners to join the strike.
However, in a symbolic breaking of ranks, the country's General Trade Union of Road Transport has announced it does not support the strike.
Union head Mohamed al-Jabali said that, as the union was in talks with the Chamber of Commerce, truckers had no right to continue the strike or call for a new one.
He urged the truckers to wait for the government's final decision on their demands.
A number of truck drivers claim security forces have pressured them to return to work. IFW
|
| New Zealand launches Hong Kong trade agreement |
Januarry 3, 2011 - WELLINGTON: New Zealand and Hong Kong launched a Closer Economic Partnership (CEP) Monday which New Zealand Trade Minister Tim Groser said was part of a regional drive towards trade growth through liberalisation.
"I am pleased to confirm that Hong Kong and New Zealand have both completed the necessary legislative measures and that the CEP has come into force," he said.
"As the only two developed economies with Free Trade Agreements (FTA) with China, New Zealand and Hong Kong have both mitigated the worst effects of the global recession through our businesses' performance in that dynamic market."
Under the agreement, New Zealand goods currently entering Hong Kong at a zero tariff will be bound at that level and remaining tariffs will be progressively reduced to mirror those in the New Zealand-China FTA.
Hong Kong is New Zealand's ninth largest export market, worth 865 million dollars (675 million US) in the year to October 2010.
Groser said the "strategic importance" of the CEP is that it will help New Zealand companies in Hong Kong as well as support companies building business in China from a Hong Kong base.
The CEP represents part of a "wider regional drive towards growth in trade through liberalisation" which has seen New Zealand conclude FTAs with Singapore, the P4 countries (Brunei, Chile and Singapore), Thailand, China, ASEAN and Malaysia, he said.
New Zealand is currently negotiating Free Trade Agreements with India, South Korea and Russia.
Channel News Asia
|
|
China-Africa trade set to keep on booming in 2011 |
January 2, 2011 - It has been a bumper year for commerce between China and Africa.The Asian giant is hungry for resources to fuel its expanding economy - and many African nations are determined to feed it in order to trade their way to prosperity.
The boom in Sino-African trade has caused concern in some circles - but 2011 is expected to see business between the two hit record levels.It is probably the biggest factor we have most noticed on our travels around the continent for Africa Business Report.
Ethiopia is a good place to see the impact of Chinese investment. The capital Addis Ababa is a crowded, busy place - not surprising when you consider that Ethiopia is the second most highly populated country in Africa, home to an estimated 88 million people.The city is alive with construction - everywhere you go you will come across building sites and cranes.And much of that construction is being done by the Chinese.
Big potential
Despite the fact that Ethiopia is still a poor country, it is seen as having huge potential, which is why there is such strong investment coming in from China.The Chinese are also in the farming sector in Ethiopia - still a poor and largely rural country
The new headquarters of the African Union - a prestige project - is being built by the Chinese - as are roads, bridges and other major projects around the country.
So far, so uncontroversial.But when you look at another natural resource attracting attention from China - you get a bit more of a fuss.
Sore point
China - and others - are buying up vast tracts of land to grow food that is sent straight back home. That has been fuelling resentment amongst Ethiopian farmers. Agriculture is also proving a sore point elsewhere. Zambian poultry producers complain that what started out as Chinese investment in the sector has now turned into direct - and unfair - competition.
"These Chinese, they came here as investors," complains one man. "But they are vendors."
Andrew Chipwende, head of Zambia's Development Agency: reserving some business for locals. The Chinese deny they have any unfair advantage and say they are helping to keep the Zambian poultry market healthy.
Investment questions
But it's not just the chicken farmers who are up in arms. There is growing anger about the growing presence of small-scale Chinese operators in the retail sector.
Andrew Chipwende, the head of the Zambian Development Agency, says action will be taken. "What we'll be doing is developing some sector cords which are going to regulate which sectors are reserved for local businesses," he explains.
"So you'll find that what are described as 'survival' businesses, such as serving at the market, running a hair salon or running a taxi, those are bound to be reserved for Zambians."
Questions persist about the wisdom - and ethics - of the deals being done. It is suggested by some critics that many Chinese companies bring in their own workers yet pay their wages to banks in China, thus limiting the actual flow of cash into Africa.
Edward George: technology will be the next development prospect
They also suggest that their skills are not being passed on to African workers and that workers' rights are not properly observed. Yet some observers say they are detecting a new willingness from China to observe international standards on environmental and labour law practices.
Another bumper year
China expects trade with Africa to exceed $110bn (£71bn) in 2011 and technology could be the new frontier. One who thinks that will be so is Edward George, who specialises in African affairs at the Economist Intelligence Unit.
"That's probably one of the biggest potential growth areas in Africa," he says.
"We've seen explosive growth in mobile communications in the last ten years. Africa has just had a brand new fibreoptic backbone installed across the continent. So this means development of 3G services, internet over the mobile phone.
"Chinese firms could clearly lead this effort across Africa. But they're going to have to look over their shoulder as you've had the Brazilians and the Indians who've made large investments".
Africa is determined to continue its quest for development - and China is equally determined to fuel its surging economy. This relationship can only grow in importance. By Egon Cossou BBC |
|
ISM reports strong manufacturing growth in December | |
January 3, 2011 - Keeping in line with its strong momentum in the manufacturing sector gleaned from previous reports, the Institute of Supply Management (ISM) reported that the manufacturing sector remained on a growth path in December.
The ISM's Manufacturing Report on Business stated that the index the ISM uses to measure the manufacturing sector-also known as the PMI-was 57.0 percent in December, which was 0.4 percent higher than November. Any reading that is 50 or better represents economic growth, and November represents the 17th consecutive month that the PMI is more than 50, along with the fact that the overall economy has been on a growth track for 20 straight months.
"The manufacturing sector continued its growth trend as indicated by this month's report," said Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee, in a statement. "We saw significant recovery for much of the U.S. manufacturing sector in 2010. The recovery centered on strength in autos, metals, food, machinery, computers and electronics, while those industries tied primarily to housing continue to struggle. Additionally, manufacturers that export have benefitted from both global demand and the weaker dollar. December's strong readings in new orders and production, combined with positive comments from the panel, should create momentum as we go into the first quarter of 2011."
Some of the notable PMI readings from the December report include: New Orders at 60.9 percent (up 4.3 percent from November); Production at 60.7 percent (up 5.7 percent from November); Employment at 55.7 percent (down 1.8 percent from November); Inventories at 51.8 percent (down 4.9 percent from November); Backlog of Orders at 47.0 percent (up 1.0 percent from November); and Prices at 72.5 percent (up 3.0 percent from October).
In an interview, Ore said it is encouraging to see 17 straight months of manufacturing growth, and he noted that 2010 will go down as a very good year for manufacturing, with the overall 2010 manufacturing index coming in at 57.3.
"The best thing about the manufacturing outlook right now is that with New Orders above 60 and Production also above 60, it seems to signal that the first quarter of 2011 is going to hold up quite well," said Ore. "With these levels intact, solid manufacturing growth is sustainable."
Over the last two months, New Orders and Production have fallen more in line with each other, with a large spread between the two not typical unless something very negative or very positive is taking place, he said. And prior to November, Production was growing significantly faster than New Orders, which was a concern at that time. New Orders typically over time averages 0.3 of a point more than Production, and it usually leads Production, according to Ore.
Looking at inventories, the ISM report noted that Inventories were down nearly 5 percent at 51.8, and Customers; Inventories were off by 5.5 percent in December at 40.0.
Ore said there has been a remarkable period in the last year, where the destocking cycle was quite extended, followed by a significant re-stocking period that has yet to catch up.
"The operative thought process, with Inventories dropping to 51.8 is that there is marginally an increase in December over November but not at the same rate as what occurred in November," he said. "It tells me inventories are becoming balanced, although we are not there yet. And Customer Inventories falling would indicate we are not there yet in terms of balancing of inventories, but it will start to slow in the first quarter in my opinion and we will see some catch-up. Anecdotally, I am hearing from a number of [shippers] that they still have not caught up on their inventories. They had lowered inventories so significantly and then demand picked up. When they tried to rebuild inventories, demand picked up significantly and they were running the demand more than they were able to catch up on inventory."
Logistics Management
|
| New customs IT system cripples air cargo in Mumbai |
January 5, 2011 - MUMBAI air cargo complex has experienced a slowdown after customs introduced a new electronic system to clear international cargo, reports the Indian Express.
Cargo agents say the backlog of uncleared imports at the air cargo complex has now reached 3,500 tonnes against 2,500 tonnes that the complex handles daily.
A backlog of around 1,000 tonnes developed over the last week. For traders, this means that the delivery of imported goods that have arrived via air will continue to be slow for another next week, said the report.
"In the last six days, the air cargo complex cleared 1,600 tonnes of import goods for delivery, which is only 52 per cent of its full capacity. In exports, the complex cleared around 1700 tonnes of goods - which is around 60 per cent of the usual volume," said an airport source.
Airport officials and cargo agents blame teething problems of the new customs EDI 1.5 system. "The customs department was obviously not as prepared as they should have been before the introduction of the new version," said a cargo agent.
This system was introduced in Mumbai on December 24. It has also been introduced in Ahmedabad, Bangalore and Delhi.
"The introduction of the new system was slightly in Mumbai. When it was implemented in Delhi, officials were able to clear only around 10 per cent of the goods," an official said.
Shipping Gazette
|
| Congestion surcharge slapped on Manila cargo |
January 3, 2011 - Several international shipping lines servicing Manila's South Harbor and the Manila International Container Terminal (MICT) will be imposing a congestion surcharge starting this January, the Philippine International Seafreight Forwarders Association (PISFA) said.
The fee is on top of the container imbalance charge (CIC) being collected by carriers for shipping empty containers out of Manila.
According to PISFA, foreign shipping companies made this decision due to the chronic traffic jam in the said ports which is preventing them from disembarking and loading cargoes immediately.
Meanwhile, congestion at the South Harbor and MICT has somewhat eased with operators of the two facilities sending some of their empty containers to their respective Batangas and Subic terminals.
Several shipping lines have also begun picking up their empties at South Harbor and the MICT. But it still requires five to eight hours for a truck to drop an empty container at any of the ports and about the same length of time to carry a laden container out of the port facilities.
PISFA said that several carriers have in fact begun imposing the congestion surcharge right after notifying the Philippine Ports Authority (PPA) of such a charge.
"The greater burden will be shouldered by the public with the application of the new surcharge," PISFA said in a statement.
Cargonews Asia
|
| Beijing, Taipei start cutting tariffs under new trade pact |
The treaty, dubbed 'vitamin' by Taiwan, also covers opening of industries January 3, 2011 - (TAIPEI) China and Taiwan have lowered import taxes on more than 800 products under the first trade treaty between the former civil war foes, an accord that the island called a 'vitamin' for its economy.
China was to cut duties from Jan 1 on 557 items imported from Taiwan including fish and bicycles, an increase from 539 when the agreement was signed in June. Taiwan will lower tariffs on 267 items such as tea and cement from the mainland as part of the 'early harvest' accord.
A batch of incense from China to Taiwan and a shipment of fruit from Taiwan to China became the first import and export deals on Jan 1 under the treaty, China's Commerce Ministry said on its website.
Cross-strait tensions have eased since Taiwanese President Ma Ying-jeou took office in May 2008 and dropped the pro-independence stance of his predecessor, making economic relations with the mainland the government's priority. The island has signed 15 deals with China since 2008, most recently an agreement on medical and health cooperation in December.
'Taiwan's economic growth is very likely to overshoot in 2011 because of the agreement with China,' Aidan Wang, an economist at Yuanta Securities Investment Consulting Co, said Taipei on Dec 31. 'More significantly, Chinese tourists and capital will contribute to Taiwan's domestic demand and help the island to be less export dependent.'
Mr Ma, who described the so-called Economic Framework Cooperation Agreement (EFCA) as a 'vitamin' in July, is betting that strengthening commercial ties with China, the island's biggest trading partner and investment destination, will bolster Taiwan's economy.
The 'early harvest' list includes items that will enjoy preferential tariffs first under the EFCA, a treaty that also includes the opening of industries.
Taiwan's benchmark Taiex index has climbed 21 per cent since the accord was signed and closed at a 21/2-year high on Friday. China's Shanghai Composite Index jumped as much as 30 per cent since the signing and pared the gain to 16 per cent after two interest-rate increases, amid concerns the government may impose more measures to ease home prices.
China was also to open markets in six service industries starting on Jan 1, including banking, securities, insurance, hospital services, design services, and civil aircraft repairs.
Taiwan's Giant Manufacturing Co, the world's largest bicycle maker by revenue, counts China as its third-largest market behind the United States and Europe, according to a company presentation.
The seventh round of cross-strait talks this year will continue to discuss an investment protection accord, Zheng Lizhong, vice-chairman of the Beijing-based Association for Relations Across the Taiwan Straits, told reporters in Taipei last month.
Taiwanese-run factories in the mainland make about a 10th of China's electronics exports, including iPhones and PlayStations, according to the Taiwan Institute of Economic Research.
About 29 per cent of the island's overseas shipments head across the Taiwan strait, government data show.
Bloomberg
|
| Logistics world looks beyond China in 2011 |
January 4, 2011 - The world's economy may not be seeing the acute instability of the past two years but it is not quite out of the crisis yet. Growth in world trade remains strong at around 5%, which augurs well for the sectors such air and sea freight, yet the drivers of growth may not be quite the same as those in the recent past.
The health of the Chinese economy continues to be a vital question. Although growth in both domestic demand and export activity is still very high, the signs of over-heating continue to emerge. The money supply is growing fast, driven in part by the effects of quantitative easing in the US, whilst the economy still seems hugely over-balanced in favour of investment. Wage rates are rising and the viability of the property market is in question. There is the risk that an unstable China could result in an acceleration of the shift of manufacturing export production away from Southern China. This in turn could also lead eventually to a realignment of trade patterns with many other low cost markets benefiting.
In fact 2011 could well be the year when many emerging markets come of age. Although many of these, such as Brazil, are influenced by Chinese investment and demand, they are also experiencing growth in domestic consumption as GDP per head rises. Consequently opportunities for domestic orientated logistics provision in these markets look good. Indeed, whilst top-line growth numbers may be weaker, the attractions of markets in say Turkey or Brazil may be greater due to stable and transparent markets. This aspect may counter-balance possible instabilities in exports from these countries, such as agricultural products and mineral raw materials.
Europe presents a very mixed picture but it is important to note that its prospects are brighter than is often supposed. German growth is now being driven both by vigorous export and domestic demand, something reflected by the level of activity at German ports. This is likely to spill over into much of the hinterland of the German economy, such as central Europe and Netherlands, and this implies sound growth in areas such as road and rail freight. Both volumes and investment in new capacity are likely to be good.
Certainly, the 'peripheral' euro states are distressed with some governments approaching insolvency. However impact on the logistics economy may be more nuanced. In small markets such as the Irish Republic lower wage costs are positively affecting export led growth, whilst in Greece the logistics sector is being restructured violently. As regards the larger countries, Spain is a concern although Italy has been stagnating for so long a crash here may be of only a gradual impact.
The US market is more difficult to assess. Its debt and budget problems are depressing demand and undermining confidence, yet there are clear signs that logistics demand is continuing to grow both in the domestic sector and for international traffic. Road transport is still suffering from over-capacity and consequent lack of profitability leading to a likelihood of major players going out of business. Rail freight in contrast continues to benefit from an attractive market mix and big margins. It should be remembered though that both Canada and Mexico are strong economic performers and are likely to expand across all logistics sectors in 2011.
Therefore global trends suggest demand is capable of supporting the sort of growth seen in the global logistics over the past six months. Problems of over-capacity may loom in certain markets, notably shipping, but as ever this will be a two edged sword with freight forwarders likely to benefit from lower prices.
As ever the joker in the pack is oil prices. These are presently high despite moderate demand in western markets. Even if a restrained recovery in consumer spending takes place in markets such as the US the oil price might increase to levels capable of suppressing demand for transport.
Therefore if 'business as usual' is not quite the description of 2011 the perhaps 'a few less surprises' might be appropriate..
Transport Intelligence
|
| Highest ever VAT rate puts pressure on UK supply chain |
VAT rate in UK hits 20 percent as retailers struggle not to increase prices
January 3, 2011 - The 2.5 percent increase in VAT came into effect today as the rate hit 20 percent, a move which the government says will raise more than £13 billion a year to help reduce the UK's high budget deficit.
Retailers are eager to cushion the blow for consumers who will no doubt be tightening their belts in terms in the wake of Christmas spending. However, stores have warned that they will not be able to cover the cost of the VAT increase for a long period of time. Cost pressures in the supply chain could prevent retailers from shielding the cost from consumers and result in increased prices.
According to research by the Centre for Retail Research and online shopping group Kelkoo, retail sales will fall by about £2.2 billion in the first three months of the year as a result of the rise in VAT. One of the UK's largest department stores, Debenhams, said it would not increase VAT "across the board", but products arriving in store over the coming months would be sold at higher prices to reflect the increase.
A spokeswoman said: "We will aim to keep price increases to a minimum but there are cost pressures in our supply chain, including higher VAT, which will be reflected in some of our spring summer 2011 prices."
The rise from 17.5 percent to 20 percent means that an item previously costing £9.99 would retail for £10.20 at the increased rate. VAT (value added tax) does not apply to food, children's clothing, newspapers or magazines..
E-Commerce Best Practices
|
|
N.Y.-N.J. employers, longshoremen in deal | |
January 4, 2011 - An employer group said an agreement with New York and New Jersey locals of the International Longshoremen's Association representing lashers and maintenance workers would result in higher lasher costs for larger containerships and strengthen the union's work jurisdiction.
A statement from J. Randolph Brown, president of the employer group, the Metropolitan Marine Maintenance Contractors Association (Metro), said the agreement with Locals 1814 and 1804-1 will extend a the contract through the end of 2012. Brown said negotiating committees will recommend the extension agreement be ratified.
"The most difficult of the issues involved lasher manning on container vessels with more than 1,500 moves. Unfortunately, the agreement reached will involve an increase in lashing costs for these larger vessels. The exact details are being worked out by the lashing contractors," Brown said in a statement.
"Lasher manning will remain the same on vessels with 1,500 or fewer moves. The latter currently covers approximately 75 percent of the container vessels calling the Port of New York and New Jersey," Brown said.
The base wage for all Metro-ILA workers will increase $1 per hour on Jan. 1, 2012 under the contract extension.
Metro said the language in the contract strengthening the union's "historic work jurisdiction" would provide "for the inspection of all chassis to insure that only roadworthy equipment is released from the terminals and depots."
The National Labor Relations Board said Monday an unfair labor practice complaint filed by employers against the union earlier this year has been withdrawn. The employers had said they had reached an agreement with the union, but complained to the NLRB that the union refused to execute a memorandum of agreement and bargain in good faith.
American Shipper
|
| Top Ocean Carriers' Capacity Swelled 14 Percent in 2010 |
Strong recovery in freight volume drives top 20 lines to take on tonnage January 4, 2011 - The top 20 container lines increased their operated capacity 14 percent over the last 12 months, as the strong recovery in freight volume led carriers to take on new tonnage over 2010, Alphaliner reported.
The total liner capacity of both cellular and non-cellular vessels grew 8.6 percent in 2010 to reach 14.8 million 20-foot equivalent units as of Jan. 1, 2011, according to the Paris-based information service.
The total cellular fleet stands at 4,849 ships with a nominal capacity of 14,270,000 TEUs, up 9.1 percent from January, 2010.
The total capacity of the fleet operated by the top 20 carriers reached 12.3 million TEUs compared to 10.8 million TEUs a year ago.
The overall share of the top 20 carriers as a percentage of the global liner fleet rose to 83 percent from 79 percent, as the large carriers' capacity additions outpaced the overall increase in liner capacity.
Over the last year, the top 20 carriers have reduced their idled capacity from 740,000 TEUs, or 6.9 percent of their operated capacity as of Jan. 1, 2010 to only 136,000 TEUs currently, or 1.1 percent of their operated fleet.
Eighteen of the top 20 carriers increased their operated capacity, with only NYK and "K" Line logging a decline in the last 12 months, Alphaliner said.
Mediterranean Shipping Co., the second largest container line, recorded the largest increase in capacity over the last 12 months, adding 375,000 TEUs to its fleet, up 25 percent.
In relative terms, the strongest capacity increase was made by CSAV with a 74 percent growth in the last 12 months from 333,000 TEUs to 579,000 TEUs currently, Alphaliner said.
By contrast, the capacity of Maersk Line, the world's largest carrier, increased a modest 5 percent in the 12-month period, while that of Evergreen, the fourth-largest carrier grew 8 percent. Journal of Commerce
|
| FMCSA proposes on-duty truck driver limits |
December 28, 2010 - The Federal Motor Carrier Safety Administration put some coal in the stockings of motor carriers when two days before Christmas it issued a proposed rule that changes some of the hours-of-service rules governing how long drivers can stay on duty behind the wheel and their rest periods.
For shippers the rule would mean increased costs for their trucking providers and reduced availability of qualified drivers.
The new hours-of-service proposal would retain the "34-hour restart" provision allowing drivers to restart the clock on their weekly 60 or 70 hours by taking at least 34 consecutive hours off-duty. However, the restart period would have to include two consecutive off-duty periods from midnight to 6 a.m. Drivers would be allowed to use this restart only once during a seven-day period.
Additionally the proposal would require commercial truck drivers to complete all driving within a 14-hour workday, and to complete all on-duty work-related activities within 13 hours to allow for at least a one-hour break. It also leaves open for comment whether drivers should be limited to 10 or 11 hours of daily driving time, although FMCSA currently favors a 10-hour limit.
"A fatigued driver has no place behind the wheel of a large commercial truck," Transportation Secretary Ray LaHood said in a statement. "We are committed to an hours-of-service rule that will help create an environment where commercial truck drivers are rested, alert and focused on safety while on the job."
Commercial truck drivers who violate this proposed rule would face civil penalties of up to $2,750 for each offense. Trucking companies that allow their drivers to violate the proposal's driving limits would face penalties of up to $11,000 for each offense.
Other key provisions include the option of extending a driver's daily shift to 16 hours twice a week to accommodate for issues such as loading and unloading at terminals or ports, and allowing drivers to count some time spent parked in their trucks toward off-duty hours.
The proposal is "overly complex, chock full of unnecessary restrictions on professional truck drivers and, at its core, would substantially reduce trucking's productivity," Bill Graves, president of the American Trucking Associations, said in a statement.
The nation's largest trucking organization opined that the proposed rule would likely reduce maximum daily driving time to 10 hours, reduce the maximum daily working time window by an additional hour, and actually abolish the 34-hour restart as it exists.
Graves noted the trucking industry has made great safety strides during the past seven years, with crash-related fatalities down 33 percent and fatality and injury rates at their lowest levels ever despite increasing volumes of trucks and motor vehicles on the road.
When viewed against trucking's sterling safety record," Graves said, "it's plain that the Obama administration's willingness to break something that's not broken likely has everything to do with politics and little or nothing to do with highway safety or driver health."
The White House is using driver health rather than road safety as the justification for the new rules, the ATA said.
The organization noted, "FMCSA previously found that the 11th hour of driving time does not increase driver weekly hours; is used for flexibility purposes; does not increase driver-fatigue risks; and that eliminating it would promote more aggressive driving (to meet time constraints) and lead to placing tens of thousands of less experienced drivers on the road who would pose greater crash risks. With respect to the 34-hour restart, FMCSA has correctly found in the past that requiring two nights of sleep would disrupt drivers' circadian cycle and add to more daytime driving in congested periods, again increasing crashes. FMCSA's reversal on these crucial matters is hard to explain in other than political terms."
The proposed changes "will be enormously expensive for trucking and the economy," Graves said. FMCSA, he noted, estimated two years ago that reducing the daily drive time by 1 hour and significantly changing the restart provision would cost $2.2 billion.
"This proposal includes even more restrictions than what FMCSA previously considered," Graves added. "As a result, we will be evaluating FMCSA's proposed costs and benefits very carefully."
This is the second time since 2003 FMCSA has had to revise its hours-of-service rules under court order.
The notice of proposed rulemaking will be published in the Federal Register on Wednesday and be open for public comment for 60 days.
American Shipper
|
| Regulations affecting the supply chain go into effect |
January 4, 2011 - Several laws or programs that went into effect in 2010 or are under consideration will impact manufacturers, shippers and other organizations up and down the logistics supply chain.
Compliance, Safety Accountability Program
This program, launched by the U.S. Department of Transportation's Federal Motor Carrier Safety Administration aims to improve commercial truck and bus safety. However, the program could result in a driver shortage if otherwise qualified drivers do not meet all the regulations. The FMCSA promises "strong civil penalties" when carriers have not taken appropriate corrective action.
Food Safety Modernization Act
This bill, introduced and passed by the U.S. House of Representatives in late December (having been introduced and passed in the Senate in November), will give broad new powers to the U.S. Food and Drug Administration to increase and enhance food supply chain inspections in order to prevent outbreak of diseases such as salmonella and E coli, to initiate food recalls and to access company records at farms and production facilities. The bill's cost is estimated at $1.4 billion over the next four years, which includes employing about 2,000 additional FDA inspectors. Small local growers will be exempt. The American Frozen Food Institute prefers the Senate version over the House version.
Importer Security Filing
This is a regulation of the Customs and Border Protection Agency, designed to be a component of the Department of Homeland Security's task to secure borders and enhance supply chain security. Under this rule - also called the "10+2 Program" - importers or designated agents must submit 10 data elements electronically no later than 24 hours before cargo is brought aboard any vessel headed to the United States. Carriers also must submit two data sets no later than 48 hours after the vessel has departed. Violations could result in a $5,000 fine per incident.
Certified Cargo Screening Program
The U.S. Transportation Security Administration has a mandate for scanning on-passenger flights for U.S.-origin air cargo that originates overseas. Other measures were taken recently, including the DHS's ban of all cargo coming from Yemen and a directive from the TSA to industry carriers to begin implementing additional security measures for international flights inbound to the United States.
Consumer Products Safety Improvement Act
Introduced after revelations of toys imported from China containing lead, this law has strict requirements for retailers, manufacturers and others in the supply chain to produce certificates of conformity stating that their products have been tested and meet safety standards as outlined in the CPSIA.
Greening the Supply Chain
In January 2010, the Securities and Exchange Commission issued guidance on business developments related to climate change, the impact of which would have companies scrutinizing up and down their supply chains. In October, the Federal Trade Commission presented 229 pages of "Guides for the Use of Environmental Marketing Claims," which could evoke additional scrutiny of suppliers regarding their messaging. Southeast Supply Chain News
|
| ECHA receives 24,529 substances for classification & labeling |
January 5, 2011 - By 3 January 2011, European Chemicals Agency - ECHA received 3,114,835 notifications of 24,529 substances for the Classification and Labelling Inventory. By this deadline, industry had to notify the classification and labelling of all chemical substances that are hazardous or subject to registration under the REACH regulation and placed on the EU market.
Geert Dancet, Executive Director of ECHA, said This is a perfect start for the International Year of Chemistry. The Classification and Labelling Inventory, which will be publicly available later this year, will significantly improve safety by providing up-to-date information on all the hazardous substances that are on the EU market today.
The Classification, Labelling and Packaging regulation relates to chemical substances and mixtures. It introduces into the EU the criteria of the United Nations' Globally Harmonised System for classifying and labelling chemicals. One of the aims of the CLP regulation is to improve the protection of human health and the environment by providing criteria for defining when a substance or mixture displays properties that lead to its classification as hazardous.
CLP applies to manufacturers, importers, users or distributors of chemical substances or mixtures. They must classify, label and package any substance or mixture, regardless of its annual tonnage, in accordance with the Regulation.
The largest number of the notifications, over 800 000, came from Germany. Over 500 000 notifications were submitted from the United Kingdom and nearly 300 000 from France. All together over 6 600 companies notified at least one substance.
European Chemicals Agency - ECHA
|
| Brazil Freight Transport Report Summary |
January 5, 2011 - Brazil is growing rapidly but its infrastructure to carry freight is still poor and requires rapid development. In general, the Brazilian market has appeared to be strongly supportive of the local freight transport sector. The country's GDP expanded at the fastest rate in 15 years and is expected to be 6.0% for 2010.
Dilma Rouseff of the ruling office Partido dos Trabalhadores (PT) was elected president in October, 2010 after her victory in a run-off poll, when she beat José Serra of the centrist opposition PSDB with 56% of the vote against 44%, after failing to beat him in the first round. Increased infrastructure spending is thought to be on her agenda.
Recent economic reports have noted that Brazil's airport infrastructure is still lagging behind demand. In 2008 and 2009, the air freight industry was shaken by capacity, air traffic control and safety problems.
However, we have noted that a process of gradual improvement is underway. We project that air cargo volume will grow by 7.6% in 2010, following a -12.4% slump in 2009.
Brazil's main ports are bouncing back after the decline in 2009. For 2010, we forecast that volume at Santos which is the county's main port will grow by a strong 12.3%. For the rest of our five-year forecast period to 2014, the port will be at the centre of Brazil's dynamic trading activity. We predict annual average volume growth of 10.6% to 2014. At the southern Port of Itajaí growth will also be strong.
Last year was not a typical year, with volumes rising sharply following a fall caused by flooding damage at the Teconvi terminal in late 2008. However, for 2010 we project tonnage to increase by 19%.
The government is considering new rules to boost competition in the rail sector. Total tonnes carried by rail, fell by -8.1% in 2009, are expected to surge by 18.8% in 2010.
In real terms, Brazil's trade slumped by -10.9% during last year's global recession but it is set to bounce back very strongly in 2010 with 20.3% growth. As domestic demand powers ahead, imports should decisively lead the way with growth of 31%, while exports will grow by a more modest 8% in 2010.
For 2011, the expectation is that exports will increase to 12.8% but imports will fall to 14% as domestic consumer spending declines giving a real growth in total trade of 13.5%. An overly strong consumer boom in 2010 would increase demand for freight transport, but it is likely to be short-lived and be followed by slower growth in 2011. We do not expect a major double dip recession to hit Brazil in 2011 or that China will massively reduce its consumption."
Companies and Markets Report
|
|
|
|
|
