Danish Cargo Ship Seized in Argentina, Charged with Helping Falkland Islands, trucking logistics, freight forwarders

March 11th, 2010

Freight forwarders have to be careful how they get stuff to their customers, for they might wind up shipping stuff via an adversary of your customer. For instance, shipments heading to Israel had best avoid sending the shipment through Arab countries hostile to Israel.

A lot of folks may have forgotten that the British and the Argentineans are not on good terms due to their dispute over the Falkland Islands in the South Atlantic near Argentina; the British grabbed custody of the Falklands in the 1830 and reversed an Argentinean invasion of what the Argentineans call the Malvinas in 1982. When governments are in tough shape, they can sometimes look to create a foreign policy crisis to rally public support, and the current Argentinean government, who lost control of the legislature last fall, is looking to protest British oil development in the Falklands.

Getting caught up in the middle of this is a Danish bulk carrier carrying oilfield equipment that was in the port of Campana near Buenos Aires; the Danes and the Argentinean producers of the pipes claim that they were heading for the Mediterranean, but the government states that the ship was heading to the Falklands’ main city of Port Stanley.

Whether the Danish ship was heading to the Falklands or they were just used as a convenient tool to gin up nationalist support reminds to be seen; meanwhile, trucking logistics firms may need to tread carefully in that region and steer clear of Argentinean ports.

Sources: http://www.handyshippingguide.com/shipping…s-shipping_1288
http://www.google.com/hostednews/afp/artic…j3BTCewpI_bplPg

US Storm Ending, Greek Storm Next Week, Customs Strike to Cut off Turkey from EU, freight carriers, interstate transport, trucking logistics

March 11th, 2010

The second big storm to hit the east coast in a week is still slowing down freight carriers; Delaware still is under a state of emergency that precludes most trucks from traveling in the state, including I-95. Package delivery services suspended service to some affected areas, including Maryland and the District of Columbia and many trucking firms with hubs in the mid-Atlantic had to shut down operations.

However, another storm is brewing in Europe, one that is man-made; customs workers in Greece are slated for a three-day strike next week, protesting budget cuts by the Greek government. That will cut off any seagoing traffic going into the country and cut off interstate transport coming from Turkey and the rest of the Middle East from its main land route with the EU.

The Greek government has run a massive deficit and has implemented an austerity plan to close the deficit, which includes a pay freeze for government workers, including the striking customs workers as well as only replacing 20% of retiring workers. The large deficit has put downward pressure on the Euro, as Greece has the Euro as its currency; the rest of the EU is debating whether to do anything about the Greek government’s deteriorating financial position.

Without any outside help, budget cuts are the government’s best solution, but one that angers the unions that helped put the current government into office. That will mean trucking logistics will be made very problematic in the weeks to come as militant public-sector unions protest having to bear the brunt of the country’s budget woes.

Sources: http://www.capegazette.com/storiescurrent/…/updates12.html
http://news.bbc.co.uk/2/hi/europe/8508688.stm
http://www.handyshippingguide.com/shipping…-next-week_1283
http://www.breakbulk.com/content/?p=1219

Freight Carriers Sharing Capacity and Space?, European freight carriers work together, freight carrier, container trucking

March 9th, 2010

Survival of the fittest is definitely the rule of business in the freight carrier industry of late and Europe has had just as tough a time dealing with the problems in the industry as the rest of the world. The moves and hard choices that have had to be made by many firms has kept them in business while firms in financial situations that aren’t as strong have fallen by the roadside. The ocean freight industry has started slow-steaming and put freight capacity away in order to reduce costs and keep the ships traveling back and forth with freight. The container trucking industry has begun looking at the newest technologies to help reduce costs and deal with the problem of reducing their carbon footprint on the surface of the Earth.

European freight carriers LD Lines and Transeuropa Ferries have decided to combine business resources in an effort to improve the services each firm supplies to customers in the geographical regions of Europe in which they both do business. The current agreement is for the firms to share space on ferries moving back and forth along the channel run between Ramsgate and Ostend next month. This means that freight capacity on the run will be increased sometime in the second half of 2010. They haven’t provided a firm date for the start of the service, but this will improve freight movements on this run and provide customers using the run with the more space for moving freight.

The freight industry could see more similar agreements between firms looking to take advantage of freight capacity that isn’t being used. Firms can improve their services by using the ability of another firm with overlapping freight services and services that one firm or the other doesn’t have as much capacity for. This kind of agreement is good for the industry as it makes use of the present capacity we have, rather than building additional capacity that is expensive and might not be used to its full. This will definitely reduce overall costs for firms that can use this strategy and should make the freight industry healthier as a whole.

http://news.bbc.co.uk/2/hi/uk_news/england/kent/8504588.stm
http://www.ifw-net.com/freightpubs/ifw/ind…tid=20017746639
http://info.jctrans.com/jcnet/news/osn/2010210850387.shtml

2010 Container Traffic Debated, Retaliers Upbeat, Railroads See Flat, container transport, container trucking

March 9th, 2010

The old Harry Truman joke was that if you laid all the economists end to end, you couldn’t reach a conclusion; that may well be true of folks who are forecasting container transport volumes.

On one hand, we have the monthly Global Port Tracker report, which is forecasting a 25% rise in containerized traffic from for the first quarter of 2010 compared with the first quarter of 2009. The report is put out by the National Retail Federation, who may well be cheerleading people into stores to buy all those imports.

President Truman always longed for a one-handed economist, because the able-bodied ones always added “On the other hand …” Playing the second hand, we have a major railroad executive expecting international intermodal shipping to be flat for 2010.

However, those two factoids could coexist nicely. If traffic rebounded in the last part of 2009, we could have container trucking going to stores up quite a bit from early 2009 and yet be stable when compared with late 2009. The other prospect, which goes against trends, is for intermodal to get a smaller share of import traffic. Given that we’re seeing an increase in intermodal traffic over the years, a reversal of intermodal market share seems unlikely.

Chrystal balls have a way of getting rather hazy, especially on the economic front. We’re not quite sure what 2010 will bring yet, as there are too many variables at play to make a firm conclusion of where the world economy is going.

Sources:http://www.joc.com/node/416609
http://www.cargobusinessnews.com/news/monday/news1.html

Philippine Shipping Lines Being Investigated, Suspicious charges and fees?, container transport, freight carriers

March 8th, 2010

There’s a battle brewing in the container transport industry in the Philippines over suggestions by freight professionals in the Philippines freight industry that they’re paying fees and charges that are unfair in order to move freight. Apparently, the list of charges and fees is significant and suspicious to many firms and they have called for an investigation to be conducted on whether shipping lines have been adding charges that are unnecessary and over the top.

There’s no reason not to investigate claims of abuse, but freight carriers have to be prepared to accept the decision of the agencies tasked with the investigation. They might not get the decision they’re looking for, but they could be right and such things do need to be investigated. Shipping lines should have the right to alter their fees and charges, depending upon conditions and expenses, after all they do need to make a profit, but just as surely we need to keep an eye out for possible abuses.

There are a few changes in the works that could help alleviate this problem a little in the future, they’re planning on implementing a new nationwide Import Assessment System in the ports of the Philippines that should help decrease charges and fees by moving the assessment process on line. This system has already been in use in ports in the Philippines and has been met with some success, so maybe the implementation in all of the ports of the Philippines will allow for the fees and charges to be more consistent.

In the meantime freight carriers will just have to deal with the situation, until the investigation comes to a decision, which could take awhile. The costs will be passed onto customers anyway, which is a bad situation for all involved, but what other choice to they have?

http://www.ifw-net.com/freightpubs/ifw/ind…tid=20017747342

Rolling Highway Proposed for I-81, Trains to Carry Whole Trucks on Flatbeds, freight carriers, trucking loads, trucking transport

March 8th, 2010

A different type of intermodal transport is being proposed for the I-81 corridor, which is quickly becoming a favorite of freight carriers; since it goes through the relatively unpopulated Shenandoah Valley rather than the more populated I-85 and I-95 routes, it has less traffic to contend with. A rolling highway has been proposed for a Harrisburg PA-Knoxville run, giving trucks the option of rolling onto a flatbed rail car, grabbing a seat in a passenger section and let the railroad do the rest.

That’s not as efficient as classic intermodal transport, where just the container is moved by rail and picked up by another tractor or ship at the other end. However, some freight can’t be containerized and some firms might opt to have their driver and trailer come along. Such systems are currently being used in Austria and Switzerland to ease the burden of trucks trying to tackle the Alps on their own.

It’s a nine hour drive between Harrisburg and Knoxville, and if trucking loads came from a bit further away, drivers would have to stop for the night to finish the run; with a rolling highway taking 15 hours to cover that run, a trucker could get his time away from the truck in and be ready to do the rest of the leg. That would cut four hours off the trip if a trucker needed 10 hours of down time to keep HOS-legal.

Such a rolling highway would take some of the strain off of I-81 and take away the need to expand the highway to accommodate extra traffic. The key question is whether such a rolling highway would make economic sense to trucking transport firms and whether it would have to be subsidized by state and local governments in order to make it cost-effective for truckers.

Sources: http://www.thetrucker.com/News/Stories/201…81gridlock.aspx
http://www.railsolution.org/
http://en.wikipedia.org/wiki/Rolling_highway

Freight Logistics Tough Business in Last 20 Months, Making freight movements more efficient

March 4th, 2010

Freight logistics companies servicing the freight industry predictably had the same kind of year that overseas shipping companies and international car shipping firms experienced. One firm with results that are typical for most in the logistics industry is Ceva Logistics. They reported revenues and profits were down in the first part of 2009, but the numbers started to look better as the year went on and they were hoping that things were going to be even better in 2010 for Ceva Logistics and the freight industry. They remain positive despite the last twenty months of down numbers in most parts of business operations and are looking forward to growing their business in 2010 and beyond.

Ceva Logistics did implement a strategy of implementing as many cost-savings policies as they could think of to help them recover as much of the loss as possible in 2008 and 2009. Despite the year they had they were able to get the company debt down by about 7 percent according to the company with their tactics and even found a few new customers to help them improve the numbers a bit. They haven’t reported any numbers for the first part of 2010, so far, but things have been going up in some freight sectors in the first part of 2010, so if they reported slightly better numbers in their freight business with overseas shipping companies, it wouldn’t be a surprise.

The freight logistics business for firms like Ceva Logistics will get better as the volume of freight being moved goes up in 2010 in all sectors of the freight industry. But the fate and revenue of companies like Ceva Logistics is tied directly to the health of the freight industry and the business of moving freight will have to get better for the freight logistics industry to improve significantly.

http://www.ifw-net.com/freightpubs/ifw/ind…tid=20017754628

Playing Possum to Avoid Temporary Coops, Malaysian Truckers Stop to Avoid Weigh, bulk trucking, freight carrier, trucking loads

March 3rd, 2010

Here’s an interesting bulk trucking cat-and-mouse game coming from Malaysia; the Malaysia version of the DOT had set up a checkpoint on one of the main roads going into Singapore in its Malaysian sister city Johor Baru, or JB as the locals call it. JB has grown to become Malaysia’s second largest city and is a key manufacturing hub; it’s become intertwined with Singapore not unlike the relationship between Windsor and Detroit over the US-Canadian border.

Trucks hauling construction material into Singapore caught wind of the checkpoint and pulled over to the side of the road; if they were overloaded, they could be hit with a year in jail and a $2900 fine; justice is a bit rougher in Malaysia, for I can’t think of overloads getting someone arrested in the US. By pulling off the road, the police could only hit them with a $90 ticket for traffic obstruction, since they had no good way to figure out whether the freight carrier was overweight or not.

Overloaded truckers in the US have been known to engage in coop-dodging, where they’ll exit just before a weigh station, go overland for a bit, then get back on the freeway after the station. Here, the truck drivers merely had to play possum until the coop-equivalent shut down, then continue trucking loads of gravel and other items into Singapore.

Finding loopholes in rules is as old as anything, and knows no borders; in fact, the more authoritarian a country is, the more people are forced to game the loopholes.

http://motoring.asiaone.com/Motoring/News/…209-197579.html
http://en.wikipedia.org/wiki/Johor_Bahru
http://www.bloomberg.com/markets/currencie…currencies.html

Hey, I’ve Got a Bridge to Sell You, Canadian DOT May Buy DET-Windsor Bridge, trucking loads, freight carriers

March 3rd, 2010

The Canadian government is looking to buy the privately owned Ambassador bridge between Windsor and Detroit; with a steady flow of trucking loads crossing each day, the bridge carries a quarter of the trade between the US and Canada. One of the reasons why Transport Canada (the northern analog to the DOT) is interested in buying the bridge is that the owner of the bridge, Matty Moroun, has been in court trying to slow down an alternative bridge that the Michigan and Canadian governments are working on downriver from the current bridge that would shunt a lot of freight carriers south. The area has a need for more room to cross the border, but the new bridge would cut down on business at the Ambassador, so Moroun is keeping his lawyers busy.

Moroun has supposedly put a $3 billion price tag on the bridge, but with only $60 million in toll revenue, the bridge would be more likely worth half that figure; at a 5% required return, $60 million a year indefinitely would only be worth $1.2 billion before expenses were factored in. Transport Canada was willing to pay closer to half of Moroun’s asking price.

This might be a good place for eminent domain to kick in and have the governments involved force a sale at fair market value. Unlike some of the more controversial uses of eminent domain where cities have forced a sale of property in order to turn it over to developers, this one would be a seemingly legit use of that government power, although one a bit tainted by the collateral benefit of shutting up a pesky adversary.

Source: http://www.nationalpost.com/news/story.html?id=2538184

New Paccar MX Engine Introduced, Million Mile Engine is EPA2010-Compliant, trucking transport, freight carrier

March 1st, 2010

Engine maker Paccar is launching an MX class of diesel truck engine that is slated to become standard in Kenworth and Peterbilt trucks later this year; if they live up to their PR, they will be welcome additions to a freight carrier’s fleet. Paccar is currently importing the engines from a Dutch subsidiary but will be building them in Mississippi later in the year. The MX is designed up to current EPA 2010 standards, with exhaust recirculation and a truck version of a catalytic converter.

Our vocabulary term for the evening is B10, which is the time it takes 10% of a product to fail. The MX has a B10 of a million miles. That sounds like a lot when you’re comparing it to car engines that are expected to last around 100,000-200,000 miles, but a million miles would be 6.7 years of being used five days a week, 600 miles a day. Most trucks engines have B10s of half as long. The warranty is for 250,000 miles, so they aren’t counting on the Peterbilts petering out for a few years.

Trucking transport firms don’t like replacing trucks if they don’t have to and are leery of tackling the new 2010 truck standards as a beta-tester, but the MX has the advantage of already being used in Europe and China; that will be a good selling point for them going forward. Knowing that someone else has put the engines through their paces already will help get firms to fork over the bongo bucks required to by a truck these days.

Sources:http://www.truckinginfo.com/news/news-deta…_category_id=36
http://www.surveymethods.com/glossary/B10_%20Life.aspx