Transportation/logistics: National Retail Federation leads opposition to seaport drayage regulation

In a remarkable demonstration of solidarity, scores of shippers’ associations have come together to champion a single cause: rejection of a change to federal trucking laws.

“We understand that a campaign is underway to persuade Congress to grant to local governments the ability to regulate the harbor drayage industry to address environmental and port security matters,” stated a letter from the National Retail Federation (NRF) to Rep. James Oberstar, D-Minn. “While we strongly support efforts to improve air quality and port security in and around America's ports, the effort to undermine federal preemption of interstate commerce is an attempt to overturn losses in the federal courts restricting local regulation of truck drayage services.

Oberstar, who chairs the Committee on Transportation, was warned that legislation eliminating the federal preemption of state and local regulation of foreign and interstate commerce would not improve air quality or port security in and around the nation's ports, “but will re-impose a fragmented, local, patchwork regulatory structure on foreign and interstate commerce, contrary to the U.S. Constitution and acts of Congress.”

Joining the NRF in this appeal are National Association of Manufacturers, The National Industrial Transportation League, The Waterfront Coalition and more than 30 other lobbying groups. Together, they oppose new laws proposed by the Port of Los Angeles and others that would exempt harbor drayage from preemption under the Federal Aviation Administration Authorization Act.

House Committee spokesman, Jim Berard, said in an interview that the letter has not been widely circulated among committee members yet, and that a position or statement has yet to be issued.

As reported in LM, the issue of exempting port trucking services from federal preemption emanated with the Port of Los Angeles' claim that ocean cargo gateways should be

allowed to regulate interstate trucking services in order to improve air quality and port security in the aftermath of 9/11. Shippers argue that the supporters of this special exemption are only seeking to change federal law in response to a series of unfavorable legal decisions restricting their authority over port drayage operations and to undermine ongoing litigation in this area.

Read the rest of the logisticsmgmt.com article here.

Logistics and Business Manufacturing: Economic Data Presents Mixed Views for Recovery

At a time when freight volumes remain depressed amidst the recession, coupled with reports indicating that the economy has “bottomed out,” it is very clear that those optimistic for a near-term recovery need to take a long-term view.

Some recent economic indicators for this sentiment include:

• A recent report from the Federal Reserve indicating industrial capacity usage in May, at 68.3 percent, hit a record low in May.
• Retail sales in May fell 4.7 percent year-over-year, according to the National Retail Federation.
• The U.S. trade deficit rose to $29.2 billion in April from $28.5 billion in March, with (adjusted for inflation) exports and imports down 4.3 percent and 2.7 percent, respectively.

The news is not all bad, though. Recently-released data from Panjiva, an online search engine with detailed information on global suppliers and manufacturers, notes that May represents the third consecutive month that there was an uptick in the number of global manufacturers shipping to the U.S. May saw a two percent bump, following gains of two percent in February and eight percent in March. Panjiva said this is the first time it has seen three consecutive monthly increases since it began tracking this metric in July 2007.

Even though these numbers are heading in the right direction, the company cautioned that last spring it also saw some uptick in the number of global manufacturers shipping to the U.S., leading to the possibility that there may be a seasonal component to these findings. Also, the company noted the two percent May gain is “modest,” with the recovery to pre-trade levels likely to be a while.

“We are seeing some encouraging signs, but there is still a low level of overall activity in an absolute sense,” said Panjiva CEO Josh Green in an interview. “It feels like the ‘deer in the headlights’ moment is over.”

Another positive, he noted, is that the sense of economic panic from earlier in the year seems to be gone, but there is still a long way to go. Companies continue to be cautious in their approach to placing orders, according to Green, and they are much more cognizant of the risks that are in their supply chains.

Examples of this risk are directly related to the fallout from last October’s financial crisis, Green noted, with companies not being as diligent as they need to be when it comes to volatile conditions in the market.

Read the rest of the Supply Chain Management Review article here.

Ocean cargo/global logistics: Florida shippers poised to take advantage of regional marketing alliance

PANAMA CITY—Port Manatee’s stature as an emerging container port took a major step forward late last week.

Executive director David L. McDonald and Panama Canal Authority CEO Alberto Alemán agreed to a two-year strategic marketing alliance. The accord, known as a Memorandum of Understanding (MOU), allies the two organizations to achieve increased trade by soliciting shippers worldwide through collaborative marketing and information sharing.

Port Manatee becomes the 10th U.S. member of an exclusive Panama Canal MOU fraternity, including the Port Authority of New York and New Jersey, Georgia Ports Authority, South Carolina State Ports Authority, Virginia Port Authority, Massport, Port of Miami, Port of Tampa, Port of Houston and the Port of New Orleans. Port Manatee, the closest U.S. deepwater seaport to the Panama Canal, is the only non-established container port in the group.

“After Miami, we are the closest deepwater port to Panama Canal,” said Steve Tyndal, senior director of trade development and special projects.

In an interview with LM, Tyndal also noted that public-private financing was providing revenue for significant enhancements for the port’s infrastructure.

“The MOU with the Panama Canal Authority formalizes a relationship we have enjoyed for nearly 40 years and demonstrates the canal’s confidence in Port Manatee’s future as a container port. In time, that confidence will result in thousands of regional jobs,” McDonald predicted after the signing.

Two years ago the Panama Canal Authority (ACP) broke ground on the $5.25 billion Panama Canal expansion. The project essentially doubles the canal’s capacity with the creation of two new sets of locks, enhanced navigational features and the addition of new access channels – all to accommodate larger post-Panamax-sized ships. Construction is expected to be complete in five years.

“This collaboration is beneficial as we seek innovative ways to provide our customers with the most safe, reliable and efficient service,” added Alemán. “Looking ahead to 2014 and the completion of the waterway, we anticipate growth in trade and the emergence of new economic opportunities.”

source www.logisticsmgmt.com

Logistics and transportation business: U.S. Census Bureau says new manufactured goods orders are down

- Interesting article from logisticsmngmt.com

eff Berman, Group News Editor -- Logistics Management, 4/24/2009

WASHINGTON—The United States Census Bureau reported that new orders for manufactured goods in March decreased $1.3 billion—or 0.8 percent—to $161.2 billion, marking the seventh decrease in the last eight months.

This data follows a 2.1 percent increase for new orders of manufactured goods in February, which was revised following a previous estimate of a 3.4 percent monthly increase.

The Census Bureau added that shipments of manufactured durable goods in March decreased $3.0 billion—or 1.7 percent—to 175.0 billion. February shipments were down 0.8 percent, with shipments down for eight consecutive months.

Inventories of manufactured durable goods in March decreased $3.7 billion—or 1.1 percent—to $331.6 billion, following a 1.3 percent decrease in February, said the Census Bureau.

An Associated Press report said that February’s increase in new orders followed by a small drop in March “show some faint signs of life in manufacturing.”

But that has yet to translate into growing freight transportation tonnage and volumes, which have been severely impacted by the recession.

“Things will likely continue to dip freight-wise as consumer product companies are still working through their inventories,” said David K. Schneider, Logistics Management Contributor and President of supply chain and transportation consultancy David K. Schneider & Company LLC. “But it is encouraging to see things pointing up after being down for such a long period of being pointed downwards.

(source:www.logisticsmngmnt.com

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