World Trade - November 2008 - (Page 10)

TRUCKING AIR OCEAN TECHNOLOGY TRADE FINANCE 3PL WAREHOUSING SUPPLY CHAIN AIR Watch create a new port of entry and a 2.7-mile, four-lane highway that links to the existing California highway system to provide more traffic capacity through the region. In Laredo, Texas, the East Loop Bypass Project will build a new rail bridge across the border and new rail bypass around the city, which will add rail capacity and improve safety, while in Blaine, Wash., the DOT is working on a project to provide real-time, border-crossing wait-times and other travel information using the latest technologies. Air Cargo Screening Program Launched at Dulles The Department of Homeland Security has launched its air cargo screening program at Washington’s Dulles International Airport. Under the program, all cargo will be screened via radiation detectors, whether carried on cargo planes or passenger aircraft. Many in the aviation industry are critical of the program, especially the requirement to screen 100 percent of domestic air cargo. They contend that there are already strict controls in place, many the result of the 2001 terrorist attacks. Furthermore, they say the new program will result in delays, confusions, and extra costs. Government officials say the program will be rolled out to four more airports by year’s end. business that do not provide any public beneﬁt,” Schwarzenegger stated. The author of the bill, State Sen. Alan Lowenthal, said he would introduce the legislation again in 2010 when the governor leaves ofﬁce. Meanwhile, the Clean Trucks Program at the ports of Los Angeles and Long Beach was implemented on October 1. The program requires shippers to pay a $35 per TEU fee to help cut truck-related pollution in the Los Angeles harbor. It also phases out ‘dirty’ trucks, beginning with a ban on all pre-1989 trucks in the port complex. RAIL Union Paciﬁc Signs Lease with Port of Tacoma Union Paciﬁc railroad has signed a 10-year lease agreement with the Port of Tacoma that’s intended to diversify business and promote the local economy. Under the deal, UP will relocate its domestic business to Tacoma from the Port of Seattle, allowing the company to free up room in Seattle for new international business. The railroad will also use the Tacoma site for transloading, or moving cargo from truck to rail and from rail to truck, for cargo produced and distributed within the U.S. According to port spokesperson Tara Mattina, transloading is a growing trend and Tacoma is keen on expanding the service. SUPPLY CHAIN MANAGEMENT Survey Shows Supply Chains Under Increased Risk A new survey from consultancy McKinsey & Company shows that 4 out of 5 top executives polled say the risk of a problem in global supply chains has risen in recent years, and most top international companies say they are trying to centralize more of their operations. Specifically, the executives identiﬁed soaring energy prices and volatile financial markets, as well as the trend toward more complex products and services that could more easily be managed closer to home, as responsible for compounding supply chain risk. The consultancy also found that more companies have centralized supply chain management over the past five years, “not only to take advantage of synergies, but also to strengthen their operational expertise.” Trucking Firms Call for U.S. Energy Plan Trucking ﬁrms are calling on federal lawmakers to implement a comprehensive energy plan that will ensure an affordable supply of oil and limit the effect of rising fuel costs on the U.S. economy. During a recent Congressional hearing, an executive with a leading trucking ﬁrm said her company’s fuel costs have risen 55 percent compared to last year and she expects to spend an additional $950,000 more on fuel this year. “It is clear that our energy crisis is a complex problem that requires a comprehensive solution,” she said. “This dramatic year-over-year increase in the cost of diesel fuel is harmful to the trucking industry and the U.S. economy. The fuel crisis we face today is severe.” The executive added that the trucking industry is doing its part to reduce fuel consumption by slowing truck speeds, reducing idling, and properly maintaining equipment. Such steps, however, do not begin to offset the rising cost of fuel, she said. WT TRUCKING OCEAN California Governor Strikes Down Container Fee Bill California Governor Arnold Schwarzenegger has struck down legislation that would have levied a $30 per TEU fee on cargo moving through the ports of Los Angeles, Long Beach, and Oakland for the third straight year. According to the governor, the timing for the bill was not appropriate, given the nation’s economic turmoil. “It is vitally important that the state does not worsen the situation by mandating added costs on DOT Projects to Ease Truck Congestion at U.S. Border Crossings The U.S. Department of Transportation (DOT) has announced a number of projects designed to reduce truck congestion along U.S. border crossings in California, Texas, and Washington states. The projects are unique in that they will explore partnerships that combine traditional federal and state funds with privatesector expertise. These types of partnerships can reduce project costs, speed project delivery, and protect the taxpayer from project risks, according to the DOT. Several examples of the projects include San Diego’s Otay Mesa East Port of Entry project that will 10 WORLD TRADE NOVEMBER 2008

Table of Contents Feed for the Digital Edition of World Trade - November 2008

World Trade - November 2008 Contents Unexpected Responses to Unanticipated Change Reading the States of Risk in Today’s Global Economy Supply Chain Watch Tradewinds Failed Promise: Mexico and NAFTA, 15 Years Later The Short Tale Marrying Trade Finance and Transportation into a Single Transaction Trucking Gets a Double Whammy Are We Safe Yet? Logistics Resurrects the Rust Belt Keep on Compressing

World Trade - November 2008

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