Archive for December, 2009

Container Transport Industry Floating Still

Tuesday, December 22nd, 2009

The container transport industry worldwide has been struck hard with the recession. The European shipping industry is no exception. Some of the largest shipping companies are based in European nations such as Denmark, Switzerland, France and Germany. The Danish Maersk has the largest fleet, owning 15% of the world’s market share. It has been predicted by analysts its fleets will be reduced by several millions by the end of this year.

Twelve percent of the industry’s fleets are left idling. The industry’s attempt to reduce their excessive numbers of fleets is evident with the ships left along the shorelines of Singapore. Now referred to as ghost ships, hundreds of crewless vessels from Western nations are left anchored together in the southern Malaysian area.

The city of London is said to be the bastion of container transport industry. It is also the place where the effects of reduced trade and plunging profits are felt the most. Chartering costs have plummeted to encourage business but with very little result. Last year, a container capable of carrying 80,000 tons of freight would have cost £31,000 or $50,000 for each day that it was used. With the recession, the cost dropped to a mere £3,400 or $5,500. A year ago, a 40 foot container holding goods from China bound for the UK cost £850, not including other charges. This year, the price dropped to £180.

With the cost of running ships per day exceeding their daily profits, European container companies are left with hard decisions. The industry is keeping a close eye with the demand for the Christmas season, hoping that there would be a flurry of activity and demand for their services. For now, looking forward to a brighter new year might be a long way off.

Shipping Rates From Asia to Go Up

Tuesday, December 22nd, 2009

I hadn’t heard of the Transpacific Stabilization Agreement before, but it is a coalition (I almost said cartel) of big shipping companies serving the Asia-to-North-America run; it sets recommended “voluntary, non-binding guidelines” for cargo rates going to the US from Asia. A Westbound Transpacific Stabilization Agreement covers traffic heading back to Asia from the US.

A quick look of the list of carriers is a who’s-who of international shipping. The one glaring omission is Maersk, but that will change on Christmas Eve, as they rejoin the grouping.

The group has recommended a $320 surcharge per twenty-foot unit equivalent and a $400 surcharge per forty-footer. These are to be added to existing contracts; a larger increase is in their guidelines is in effect for new contracts to be negotiated next year.

This seems a bit odd that contracts can be unilaterally changed mid-stream, and especially in concert with other shipping company. However, when the TSA makes up a near-monopoly of the shippers, the firms can act as a cartel; with low shipping rates, ships are being pulled off the market and finding alternative shipping could be difficult.

I’m wondering why this isn’t illegal under price-fixing laws. If all the airlines said they were going to “voluntarily” raise their rates $50 a flight and then all did just that, the FTC would be in court that afternoon. The international nature of these firms, none of which are US-based, might make this fall under international rather than US law.

This is not good news for domestic container shipping firms, for the cost of shipping going up will mean less shipping.

Problems in the IH-10 Transportation Corridor, The IH-10 ICM

Monday, December 21st, 2009

The San Antonio IH-10 Transportation Corridor is a difficult route for transport trucking firms trying to manage the trucking logistics of there fleet as they attempt to get the goods and products Americans need to life to their destination promptly and on time.
Transport trucking in this busy transportation corridor is plagued with transport problems that make this task almost impossible at present to accomplish in the way transport firms need. The problems with traffic congestion in this corridor are like many American transportation corridors, as users are forced to deal with traffic congestion on a daily basis that makes traveling down this corridor a pain.
Users of this transportation corridor must deal with traffic from the downtown business district of San Antonio, residential and commercial traffic, along with the traffic from a number of large education institutions in the area and a busy medical center located in the northwest corner of San Antonio. In addition, users must deal with the traffic from the Six Flags Fiesta Texas attraction, along with a number of retail shops and commercial development that has recently come into the area.
For these reasons, along with others, the San Antonio IH-10 Transportation Corridor was a perfect candidate for the United States Department of Transportations to name this transportation corridor as one of its Pioneer Sites for its Integrated Corridor Management Initiative.
The implementation of the San Antonio IH-10 ICM Initiative is therefore a project that is needed to improve the ability of Americans living and working in the area to move around and conduct business in an efficient and timely manner.

Highway Ratings System

Monday, December 21st, 2009

Every year for eighteen years now the Reason Foundation, a non-profit group, has performed a detailed study of the United States individual state-controlled highway systems. This information is important for any trucking service.

This year’s study (covering data gathered for the year 2007) rated state highways based on eleven categories that, in addition to traffic congestion and bridge conditions, included pavement conditions, maintenance expenditures, rural interstate conditions, and fatalities on those highways. Overall conditions of these highway systems generally improved in 2007 with one of the most important categories—fatalities—showing a 4.6 percent decrease in highway deaths.
However, two key indicators showed declines overall. The number of bridges rated deficient or structurally obsolete increased and urban interstates with poor pavement also increased.

In 2007, for the ninth year in a row, the study gave North Dakota the title of the best performing highway system with New Mexico coming in second and Kansas coming in third. Alaska was determined to have the worst performing highway system with Rhode Island following close behind.

According to the study, more than half of our state-owned highways experience congestion—not a surprise considering the United States’ growing population. The study also assesses bridges and has found that Rhode Island and Massachusetts bridges are in the worst condition.

Spending on state highways increased by 10 percent with a total of $109 billion spent, and with administrative costs taking an ever greater portion of expenditures.

For complete information, view the report at the Reason Foundation website at http://reason.org/files/highway/18th_annua…hway_report.pdf.

To learn more about the Reason Foundation, go to http://reason.org .

European Shipping Recovering from Storm

Monday, December 21st, 2009

Trucking across the English Channel has gotten back to normal. The Operation Stack that Dover-area officials used to keeps trucks on one side of the road on the M20 expressway has been ended, as trucks are now moving onto either ferries or the Chunnel without obstruction. Freight trains through the tunnel are back to normal, although the condensation-related glitches that stopped passenger rail traffic have yet to be fixed.

Authorities seem to have weathered the storm rather well. They might have had some practice back in February when a similar storm hit the area. However, a combination of snow and ice is still affecting the area. Scotland’s airports are slowed down due to bad weather and Manchester was badly hit, closing its airport for parts of the weekend.

International transportation, especially air transport, took a double-whammy from the storm that did in the English Channel area and the storm that hit the US northeast over the weekend. It looks like most of the freight issues will iron themselves out by Christmas, which can’t be said of the passenger issues in that area.

US airports are used to handling a lot of snow, even if it shuts them down for a time while the snow is coming down, but European countries outside of traditionally snowy areas like Scandinavia (it was a Swedish inventor that put automatic tire chains into usable form) often don’t know how to handle snowy weather, since areas like southern England only get multi-inch snowstorms once or twice a decade rather than multiple times a winter.

http://www.handyshippingguide.com/shipping…ues-vanish_1069
http://news.bbc.co.uk/2/hi/uk_news/8424338.stm

Container Scanning

Friday, December 18th, 2009

Container trucking and transport go through a series of checks from port to port. The most effective process is scanning what is inside the container to make sure that nothing illegal is being carried in inside a certain country. Different types of technology are used to scan containers. One of the active systems used nowadays are Acoustic –an ultrasonic device that uses acoustic sensors to detect the reflection of what is inside the container. Once that is done, an image is formed. It is able to identify presence of threat so long as it is in liquid form. It does not however provide material discrimination. It takes about 2-5 minutes for this system to determine what is inside of a certain object within a container.
Gamma Ray is also used in container scanning.

Gamma Rays interact with what is inside a container and these are displayed as images. This system is able to indicate the presence of threat of the “merchandise” inside a container but like the acoustic-based system, it does not provide material discrimination. TNA or Thermal Neutron Activation on the other hand can determine if there is potential threat inside a container and can also provide material discrimination. This sophisticated technology can be either fixed or mobile but it is rather expensive.

X-Ray is more efficient though but it is more expensive than TNA. However, if a container inspection is looking for nuclear weapons and other radioactive materials, the best combination for an inspection system would be neutron and gamma ray detection. It does not stop there though, because if the material is covered by something to hide it from the first inspection device, there would be a need to use x-ray. The ICIS also known as Integrated Container Inspection System has all the above mentioned capabilities –making scanning a breeze for everyone.

Penske for Rhode Island

Thursday, December 17th, 2009

Local trucking services in the state of Rhode Island provided by Penske will cost $29.95 for every 24 hour period of usage whether the choice of vehicle is a 12ft. truck or a 14 ft. truck, both for household rentals. $49.95 is charged for a 26 ft. truck in one business day. On the other hand, Penske household truck rentals for one way trips outside the Rhode Island will cost $184-$265 for 12 ft. and 16 ft. trucks while the 22 ft. and 26 ft. trucks will cost $242 for two business days.

Penske Truck Rental also offers truck leasing to answer to a huge variety of customer needs. By area, Rhode Island is considered as the smallest state in the U.S. and can be found in the New England region. A good advantage for trucking companies is that Rhode Island is a flat area without having any real mountains, thus higher points will be more accessible.

However, climate changes are apparent in Rhode Island which means that even in the summer, heavy rains occur and winters are colder and chillier than ever. That is one of the several factors that trucking services must watch out for.

When customers lease from Penske, they modify and customize their trucks to design and create the best fleet suitable for your needs. Every detail from the vehicle’s seat type to lift gate to transmission, everything can be adapted to optimize your vehicle fleet. Their vehicles are all in full compliance with environmental regulations plus, CNG-fueled and hybrid trucks are available for cost- efficient purposes.

Container Trucking Information Overload

Thursday, December 17th, 2009

Container trucking information concerns correctly receiving and processing of data related to where the container should be moved. The importance of getting the right information is paramount. When the said chain is examined, it can reveal certain discrepancies that may indicate criminal or terrorist involvement.
The amount of information generated through a container move is a bit daunting and this includes around 30 physical documents and other communication such as electronic messages. What s gathered from such a transaction is then transmitted all throughout the move and can cover a few hundred discrete information or data from the shipper.
Even if container transport companies get a lot of information about a company or an individual shipping certain goods or cargo, the said data is difficult to cross-reference. With container transport companies’ aim of dispatching the container as quickly and accurately as possible, the flow of information from the shipping company to the port suffers from fragmentation. This means that much of the data generated in the early part of the transaction does not reach the Customs of the country where the cargo is being shipped. If the information provided early on is accessed by Customs, it will be easier for them to do their security screening.
At present, the data gathered by all players in the container shipping industry is not harmonized making messaging interoperability impossible. This in itself is a security risk since there is no single controlling entity that regulates the entire transport chain. Because of this, many industry specialists and governments have concluded that the whole container transport system is vulnerable when it comes to terrorist misuse.

Scanning as a Security Measure

Thursday, December 17th, 2009

Container trucking and transport are very much vulnerable to attacks but to overcome this, ports all over the globe are advised to scan every container’s contents. Scanning remains as the most effective yet most costly security measure. A hundred percent physical inspection of the container is of course ideal but this remains unattainable given the type of technologies ports and shipping companies have. On top of that, the present trade imperatives do not give much room for a thorough search or scan.
In the UK for example, a mere 7% of all containers coming from other countries are checked. While in the US, only 10% of the millions of containers going in and out its different ports are scanned thoroughly.
But What Is Container Scanning?
As of date, there are only 2 methods of physically inspecting cargo contents. The first method is scanning through the use of NII also known as Non-Intrusive Inspection. NII is much like an X-ray. Utilizing such a device provides an accurate image of what is inside the container. When the container’s cargo or contents are not identified by the X-ray efficiently, the container is then physically opened and checked manually. This process takes up about 8 hours that is why NII is usually used to minimize delays.
NII devices have different capabilities i.e. identifying specific materials such as explosives or drugs or anything radioactive to identifying equipment. NII technology is being developed to further improve its scanning capability so that it would be easier for Customs to detect biological, chemical, nuclear and radioactive materials.

Larger Transports Allowed for Maine and Vermont

Wednesday, December 16th, 2009

Transport trucking firms have been watching carefully as a U.S. bill is currently being discussed that would set up pilot projects designed to implement long combination vehicle (LCVs) in two northeast border states. Called the FY2010 Transportation Appropriations bill, the legislation has recently passed through the House of Representatives, and would mean the start a one-year pilot program to see if heavier tractor-trailers on the busy interstate highways of Maine and Vermont are a good idea and something that will work on these routes to help transport firms deliver larger amounts of goods and materials more efficiently.

This bill means that 108,000 to 120,000 pound six-axle trucks could transport goods on the busy interstate highways and bridges of Vermont and 100,000 pound six-axle trucks on the transportation routes of Maine’s interstate routes. The present limit for transport trucks on Vermont’s highways is 80,000 pounds and specific transport trucks with particular loads can carry up to 99,000 pounds down Vermont’s highways.

There has been some negative reactions to the new bill by groups of individuals who have been fighting the changes to weight measures on these particular routes. Stating that the heavy transports will mean the routes will wear down quicker and that traveling on these routes would become less safe for all users, if the changes go forward, in a recently released press release. The Truck Safety Coalition, Citizens for Reliable and Safe Highways Foundation and Parents Against Tired Truckers warned users of these routes of the possible effects of the changes on the driving conditions on the routes where these new weight measures will go into effect.