The shipping of containers into the United States is about to move to the next level of security with US Customs and Border Protection (CPB) implementing the next phase of their Import Security Filing (ISF) protocol, commonly known as 10+2. This requires importers as well as carriers to file additional data on their cargo 24 hours before loading it onto a vessel that is bound for the United States. This is a significant part of the CPB’s enforcement strategy that is aimed at reducing the threat of terrorism while simultaneously encouraging legitimate trade. Non-compliance or misfiled information will begin to attract a hefty fine during July 2013. This can be as much as $5,000 per violation but may also cause the CPB to withhold the release of the goods from customs or even stop them from being unloaded at US port facilities. It has been widely noted that some shippers have become lax about their security commitments for goods that are being shipped to the US and these moves may prove to be a rude awakening for some in the industry. At the same time it is pointed out that these measures are finally rewarding those shippers that have spent…
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The practice of dumping cheap products on the US market has brought Chinese imports into the spotlight in recent years. The US government has been aware of these dumping practices and associated duty subsidization since at least 2008 and has been moving slowly towards a solution. The strict antidumping duties which have been set by the US Department of Commerce were put in place to curtail the import of goods at below cost, particularly those that have been flagged by the Department as coming from Chinese government subsidized factories. The first of these cases will go before the US International Trade Commission when it next meets in September. The action was set in motion over a year ago by The Coalition for Fair Trade of Hardwood Plywood and they have been pivotal in ensuring that the countervailing duties that are being imposed on Chinese plywood products are being collected. This requires US importers to make a cash deposit on these goods when they import them from China to ensure that any adverse impacts that are determined by the Trade Commission will be fully funded. Presently duties on such imports from China attract cash deposits of between 22% and 67% and…
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In an effort to improve the integration of North American infrastructure and transport networks, the United States and Canada have initiated the Beyond the Border action plan. First launched in 2011, it is intended to improve the coordination of transport facilities on both sides of the border, and the first step has been to begin processing south-bound trucks on the Canadian side of the border before they enter the US. This is the initial stage of a wider reaching cooperation and common approach to border management by the two countries. Critics of the plan point out that by integrating their information sharing systems, Canada has allowed itself to be absorbed into the US-dominated security perimeter. The main focus of the new scheme is to address any potential security threats at the earliest possible point and to ensure that the movement of people and freight between the US and Canada complies with all of the local laws. At the same time it is aimed at increasing the speed and efficiency of transport across the border for legitimate trade and travel. Phase one of the program was launched in mid June 2013 and has the set objective of determining the viability of,…
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In a move that is seen as a leveling of the playing field in the trucking industry across Texas, legislation has been passed by the state that dramatically increases the penalties for overweight vehicles. Previous to this, the law on overweight trucks was barely a deterrent and many companies worked on the premise that it was cheaper to pay the penalties than to comply with the law and pay for a permit. Before the introduction of the new vehicle licensing bill, the average fine incurred by an overloaded truck was around $150, less than the average speeding ticket. The new legislation introduces a sliding scale of penalties, with first offenders liable for fines of up to $10,000 and fines for third-time offenders being doubled. The new law also includes heavy fines for trucking companies that have a history of repeatedly offending, and even shippers can be held liable, if they demand that heavy loads be carried without obtaining the proper permits. Truckers will be able to utilize the shipper’s certificate of weight as a defense against prosecution for carrying overweight loads that have been loaded by the shippers. Because of this potential liability, shippers are being advised to ensure that…
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One of the strongest indicators of a return to economic stability has been the growth of intermodal volumes during the past year. Across the board increases of 5% in Q2 of 20121 have encouraged new investment in developing intermodal infrastructure. These in turn have contributed significantly to the general national economy. The increased volumes have also added to the bottom line for companies like J.B. Hunt who experienced significant growth in income for Q1 20132 as the effects of the increased volumes have filtered into the industry. Part of the success of the railways at the moment is due to the influence of decreased transit times for rail freight as the development of intermodal infrastructure begins to impact on freight handling efficiency. The transition of the railways from bulk carriers to container cars has also contributed to their increased volumes. The most significant factor in their good returns has been driven by the cost of fuel which has seen a great deal of freight moving from trucks to trains as consumers take advantage of the renewed rail networks. At the same time some major transport companies are being cautious about making projections while trying to maintain their optimism for 2013.…
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Since the Panama Canal opened to traffic in 1914 it has been a focal point of world trade. One hundred years later it remains a vital part of the sea lanes and sees 5% of the world’s total shipping pass through its locks every year. The US is especially reliant on the flow of traffic through the Panama Canal with 70% of all cargo into and out of the country passing through the canal1. Since the canal was first designed in 1903 the shape of the freight transport industry has changed considerably. The widespread introduction of intermodal shipping systems after the 1950s saw ship sizes increase in an effort to be a more cost effective mode of cargo transport. As the size of these ships increased fewer of them were able to use the Panama Canal and it became clear that there was a need for its redevelopment. The influence of the Panama Canal on the shipping industry has been profound and vessels are even rated by whether they are able to use the canal or not. Ships that are oversize for the short passage are referred to as post-panamax ships. As the world’s container fleet grew in size and…
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In the US trucks carry as much as 70% of the freight that is transported each year. There are 26 million trucks on American roads hauling an estimated 10 billion tons of cargo annually1. The reliance on road transport, coupled with the historically high prices of fuel in the US, has made the industry re-evaluate how it operates its fleets. Efficiency is seen as the solution to combating rising fuel costs and this has put the focus on the efficiency of the trucks themselves. European Union transport operators are examining the potential of redesigning heavy trucks to be more aerodynamic. Recent studies in Belgium have indicated that there may be significant savings for transport companies that invest in more aero-efficient vehicles. Mercedes-Benz has released a new aerodynamic truck and trailer that it claims will reduce running costs by as much as 18%. Shaped more like a bullet train than a prime mover, these new transport vehicles are still in the development stages. Mercedes-Benz is also looking at ways of incorporating modern digital technology to improve their all round efficiency. At the same time, the new style of long haul vehicles will take many years to become common on our highways…
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Kansas City is moving ahead with the development of inland port facilities that will see it continue to be an important link in the transport chain across continental America. In December the plans for a new intermodal facility in the city were given the green light by the courts1 and this has paved the way for the construction of a new freight transport hub that will become the central intermodal exchange in the US. The volume of freight traffic through KC has exceeded the current freight terminal’s efficient handling capacity and the new development is intended to build the transport hub that will be needed for the 21st century. KC already carries the greatest tonnage of freight of any facility in the US2 and with the expected growth in intermodal freight it will be vital for the city to be able to cope with increased volume in the future. A large part of the development is aimed at opening up a high volume link to Mexico from KC to take advantage of the growing potential for rail intermodal freight in that country. It is expected that a large part of the freight that is currently carried to Mexico on trucks…
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The resurgence of the economy and the development of intermodal freight facilities have seen a return to investment in transport companies on the stock markets in recent months. The growing confidence that the improvements to the infrastructure have provided has created bullish markets for these companies who are also projecting increased earnings in the future. This is on the back of increased traffic that is expected across the US when the Panama Canal project winds up in 2015 when the anticipated higher volume of traffic impacts on the US intermodal network. Transport stocks have outperformed the general growth in the markets during 2012 and these prices seem set to continue to deliver higher returns. The improvement in employment figures as well as the beginning of a recovery in the housing market is also expected to lead to increases in consumer spending that will facilitate further growth in the transport sector. The railways are leading this return to the black, and due to the intensive refitting of many rail lines to be geared towards handling intermodal freight, their growth is expected to continue well into the coming years. After four years of declining demand for truck transport the situation is turning…
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A new fleet of super-sized container ships is being launched into the world’s seaways and is set to have a significant impact on global intermodal freight capacity. The E Class ships are owned by the Maersk line, which claims that the ships will reduce CO2 emissions by as much as 50% with considerable savings in fuel as well1. Designed to be efficient freight carriers that are able to take advantage of the cost effectiveness of a larger economy of scale, these ships are able to carry 18,000 containers at once. While the technology and size of these super container ships has been in development, the seaports where they will eventually transport their goods have also been scrambling to upgrade their infrastructures and capacities to enable them to handle these giants. At present, only a handful of the world’s ports are capable of handling the behemoths, and they won’t be able to travel through the Panama Canal even after the redevelopment is finished in 2015. In the United Kingdom, only Southhampton and Felixstowe are currently capable of dealing with the E Class ships, and even these ports are limited in the volume of freight that they can accept. The new London…
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