August 4, 2008 | Link This | Email this | Comments (1)

A coalition of prominent shipper associations has urged Congress to ask Customs and Border Protection (CBP to conduct a prototype program on its proposed "10 + 2 Rule" before making a final decision on its full implementation. This seems reasonable and practical.
The proposed rule requires 10 new categores of data to be collected on U.S.-bound shipments 24 hours before loading in foreign ports, and raises serious concerns for both large and small shippers sourcing goods from overseas manufacturing sites.
As the recent breakdown of the World Trade Organization negotiations in Geneva indicates, U.S. shippers are no longer ruling the global roost. Implementing this proposed rule now would only raise the cost of doing business for them when they can least afford it.

July 18, 2008 | Link This | Email this | Comments (0)

In a plea for reason, the International Air Transport Association (IATA) is calling upon world governments to abandon punitive environmental taxes in favor of a more balanced -- and effective -- approach to cutting carbon emissions. IATA's four-pillar strategy focuses on technology investment, efficient operations and infrastructure, and positive economic measures. According to IATA, this is a comprehensive solution based on business realities, and designed to circumvent "green grandstanding" currently in vogue with our politicians. 

July 14, 2008 | Link This | Email this | Comments (2)

As U.S. shippers try to meet the surging demand for raw materials and high-end manufactured goods, the main challenge has been to locate containers, chassis, and outbound carriers. A much more serious impediment has surfaced now that the International Warehouse and Longshore Union has stalled its contract talks with the Pacific Maritime Association. Last week the bosses instructed their gangs to "go slow" with loading cargo. The result: one vessel departing from the Port of Tacoma sailed minus 83 boxes. While we understand the collective bargaining process of the union, this kind of behavior reflects poorly on the ILWU, and brings into question its sincerity and good faith during negotiations.

July 2, 2008 | Link This | Email this | Comments (0)

Michael Berzon, chairman of the National Industrial Transportation League's ocean transportation committee, recently told LM that a dockside work disruption on the Pacific Rim can be mitigated by sound planning.
"The alternative ports on the U.S. east coast have been explored," he said, "as have those in Mexico and Canada. Shippers are not going to be caught off guard again if the west coast shuts down."
Berzon, who also works as a consultant for Fortune 500 companies, advises his clients to have continegency plans in place for other emergencies as well.
"I tell them that a 'plan B' is simply not enough," he said. "They have to have a plan C and D as well. Natural disasters and other unforseen catastrophes can cripple a supply chain, too. Shippers must stay flexible and keep their options open."

June 27, 2008 | Link This | Email this | Comments (1)

The numbers are in, confirming what we in the trade community long suspected. U.S. exports are still strong, and it seems to signal a significant trend. According to the Department of Commerce, real exports of goods and services increased by 6.5. percent in the fourth quarter followed by an increase of 5.4 percent in the first quarter of 2008. This six-month surge kept our otherwise troubled economy from sinking further and gives trade analysts reason to hope for a rebound sooner than later. Indeed, the overall economy grew by 1 percent in the first quarter, and analysts suggest that demand for our cargo was an important element in that equation. Trade policy makers had better take notice, especially when it comes to renewing existing treaties and agreements.