World Trade - September 2008 - (Page 10) TRUCKING AIR OCEAN TECHNOLOGY TRADE FINANCE 3PL WAREHOUSING SUPPLY CHAIN AIR Watch Participation has been limited, regulators said, because of political wrangling about the program’s future. Organized labor, highway safety and consumer groups have fiercely opposed the initiative, which was permitted under NAFTA. Trucks from Mexico have historically been confined to U.S. border areas where they offload goods to be trucked by American companies. Last year, regulators approved a one year pilot program to allow a limited number of Mexican trucks full access to U.S. roads over congressional objections. American trucks were also allowed to operate in Mexico. Lawmakers to Probe DHL Deal with UPS The chairman of the House Judiciary Committee says he plans to hold hearings in September to review an agreement between United Parcel Service Inc. (UPS) and DHL Express that makes UPS the exclusive provider of air shipping for DHL’s North American package delivery service. The hearing also will focus on competition in the air shipping industry. “A number of concerns have been raised regarding consolidation in the airfreight business in general and the proposed consolidation involving DHL in particular, including the impact on jobs in the affected communities,” Rep. John Conyers, D-Mich., the committee’s chairman, said in announcing the hearing. Meanwhile, Sens. Herb Kohl, D-Wis., and Orrin Hatch, R-Utah, have called on federal antitrust regulators to take a close look at the deal. The senators said the deal has raised questions about DHL’s ability to compete against UPS, and they said the agreement would have a “devastating financial impact” on DHL’s current air transport providers, ABX Air and ASTAR. UPS and DHL announced their deal, a 10-year agreement, in May. Management District to help retrofit 1,000 trucks with new filters to help reduce air pollution in West Oakland. Air Quality Management District Executive Officer Jack Broadbent said he believes retrofitting trucks that use the Port of Oakland “will make a serious dent in improving public health in West Oakland.” He said the cancer risk in West Oakland due to diesel fumes emitted by trucks that use the Port of Oakland is two to three times higher than in the rest of the Bay Area. RAIL UP Predicting Weaker Peak Season The nation’s largest rail carrier, Union Pacific, is forecasting a slightly slower peak shipping season this year with international intermodal volume expected to drop 1 to 2 percent over last year’s levels. An executive with the rail carrier told analysts recently, “The drop in West Coast port volumes is keeping our intermodal business kind of sluggish, but most of that volume decline was driven by some competitive losses and the impact of the flood-related embargo.” He added that the company is predicting a “fairly mild peak season” in 2008. The rail carrier also reported that its fuel costs were up 54 percent to $1.16 billion compared to last year. lion infusion into the highway trust fund, restoring temporary solvency to the federal account dedicated to the nation’s infrastructure, reports the International Herald Tribune. By transferring $8 billion from the general Treasury fund in the fiscal year beginning in October, Congress would stave off an anticipated revenue shortfall in the trust fund that could reduce federal highway aid for state infrastructure projects by more than 30 percent. The trust fund, created in 1956, relies on the federal gas tax of 18.4 cents a gallon, or 24.3 cents for diesel. Just three years ago it enjoyed a surplus of more than $10 billion, but the balance has deteriorated as higher gas prices reduced vehicle miles traveled and induced people to drive more fuel-efficient vehicles. Another factor is that the gas tax has stayed the same level since 1993 despite inflation and rapidly rising construction costs. SOFTWARE & IT RFID Regaining Interest IT companies say their customers are showing more interest in radio frequency identification (RFID) technology, according to results of a new survey conducted by the Computing Technology Industry Association (CompTIA). The worldwide survey of 155 IT companies found that 46 percent of their customers have implemented one or more RFID solutions, either as pilot projects or production deployments. This is an increase from a 2007 survey, when IT companies reported 34 percent of their customers had initiated RFID projects. The most popular RFID deployments now used by customers are asset tracking, cited by 32 percent of IT companies surveyed; personal identification (28 percent); supply chain (25 percent); retail marketing (15 percent); and closed-loop manufacturing (9 percent). DOT Extends Mexican Truck Program Two More Years The Bush administration has extended a test program allowing long-haul trucks from Mexico full access to U.S. highways for up to two years, despite pending legislation in Congress to shut it down. “We intend this extension to reassure trucking companies that they will have sufficient time to realize a return on their investment, and we anticipate additional participation with this extra time,” said John Hill, the Transportation Department’s top trucking safety regulator. OCEAN Port of Oakland Approves Clean Truck Program Port of Oakland commissioners voted last month to grant $5 million to the Bay Area Air Quality TRUCKING House Approves $8 Billion for Highway Trust Fund The U.S. House of Representatives have approved an $8 bil- 10 WORLD TRADE SEPTEMBER 2008
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