FMCSA Announces Steps to Reduce GPS-Caused Bridge Strikes

The Federal Motor Carrier Safety Administration will begin issuing official recommendations to members of the commercial trucking industry on the proper uses of Global Positioning System navigation devices and incorporate GPS training into new entry-level certification programs for commercial motor vehicle operators.

This means that commercial drivers will be trained, and reminded, to only use GPS systems designed specifically for the industry.  These specialized units take into account the specifics of the truck they're in, including the height, weight and contents, and will then route the trucks onto appropriate roads. The consumer GPS units too often being used are frequently routing trucks onto inappropriate roads, causing them to crash into low overpasses and bridges.

In September, U.S. Sen. Charles Schumer called on the Department of Transportation to investigate the dramatic increase in low bridge strikes by commercial trucks across New York State as a result of the growing use of GPS by drivers. According to reports from local police organizations, GPS-related bridge strikes in New York represent over 80% of all such accidents. Schumer has been working with the DOT on investigating this problem and, alongside FMCSA Administrator Anne S. Ferro, announced that major steps are being taken to address GPS-related bridge strikes.

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Port upgrades urged to keep pace with Panama Canal expansion

Port and city officials have called for expediting planned upgrades at the ports of Los Angeles and Long Beach to stave off the threat of losing cargo traffic when the $5.25-billion Panama Canal expansion is completed next year.

At a hearing Friday at Los Angeles City Hall, state officials heard testimony from trade economists, shipping line representatives and labor groups on how the state can promote the ports so they keep their share of U.S. cargo traffic, which harbors on the East and Gulf coasts are eager to lure away.

The two seaports, the largest in the U.S., currently receive about 40% of the nation's cargo traffic.

But as construction nears completion on two new Panama Canal locks that will be able to accommodate massive cargo vessels, Southern California officials are increasingly worried about the effect on the state economy — namely the loss of logistics jobs. An estimated 640,000 people work in trade-related jobs in Southern California.

A coalition of labor, business and government estimates that the ports could lose up to 25% of their cargo traffic when the canal upgrade is completed. Trade economists, however, say it's too early to make any reliable estimates on the economic effect on the state.

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Carriers Failing to Match Capacity

Despite attempts by carriers to pull capacity from east-west trade routes, significantly weaker cargo volumes have limited the success of their attempts to lift freight rates for any sustainable periods, according to Drewry Maritime Research's latest Container Forecaster report.

Since the huge overnight success of the March 2012 general rate increases (GRI) implemented by shipping lines to bring rate levels back above break-even, there have been a further seven attempts to lift rates – equating to a total of around $2,800-$3,000 per FEU on the Asia-to-North Europe trade. During this period, average headhaul freight rates have actually declined from about $2,700 in early March to $2,400 as of early January 2013.

While this is not a disaster for the carriers, it proves that there is a fundamental weakness in the market compounded by low volumes on the back of a non-existent peak season last year. Coupled with a marked reluctance by carriers to pull enough capacity, particularly in the Asia-Mediterranean trade, average headhaul load factors have remained in the 75-percent to 85-percent range for most of the second half of 2012 and the strategy of missing sailings has proved to be insufficient to lift freight rates for any sustainable period. With another 40 ships of at least 10,000 TEU due for delivery this year, carriers will have a very difficult time deploying them without doing further damage to the supply/demand balance. Operational alliances across virtually all global trade lanes will certainly increase.

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Put down the phone in Illinois!

Three important pieces of legislation supported by the Illinois Department of Transportation aimed at reducing cell phone use while driving and clearing lanes of traffic immediately following crashes are now in effect as of Jan. 1.

House Bill 5101 prohibits texting or using a hand-held cell phone while driving a commercial motor vehicle and makes this a serious traffic violation. Previously, Illinois law prohibited texting while driving for all vehicles, but cell phones were permitted. Illinois statutes were since amended to be in compliance with the Motor Carrier Safety Regulations law that prohibits texting and cell phone use by commercial motor vehicle drivers.

Senate Bill 2488 prohibits cell phone use in construction or maintenance speed zones regardless of the speed limit in those zones. Motorists can use cell phones in voice-operated mode, which includes the use of a headset or cell phones used with single button activation.

Prior to the passage of this law, the speed limit in a work zone had to be lower than the posted speed limit, or it was not actually considered a work zone by the definition in statute and the higher ticket did not apply. Voice activated use of cell phone was permitted prior to this change.

"People are tragically injured and killed in work zones and by commercial motor vehicles due to distracted driving. Cell phone distractions have been proven to be as dangerous as drinking and driving," said Illinois Transportation Secretary Ann L. Schneider. "These laws will stiffen distracted driving laws and save lives."

Retailers, Intermodal Trucking Worry About Potential Port Strike

A coalition of more than 100 local, state and national trade associations sent a letter to President Obama yesterday urging action to prevent an East and Gulf Coast port strike next week over intermodal container handling.

The letter urges immediate action by the White House to ensure that the lack of progress in ongoing labor contract negotiations between the International Longshoremens Association, which represents 14,500 dockworkers in East and Gulf Coast ports, and the U.S. Maritime Alliance, which represents management for shipping lines and port employers, does not result in a strike.

The bargaining is for a new master contract governing containerized cargoes - commodities shipped in 20- or 40-foot containers. The latest talks between the parties broke down Dec. 18, less than two weeks before the current contract expires on Dec. 29.

A strike was averted Oct. 1 when both sides agreed to a 90-day extension through Dec. 29 - after the U.S. elections and the holiday shopping season. The group said that failure to reach a contract agreement would result in a coast-wide shutdown at 14 containerized ports from Maine to Texas which would have serious economy-wide impacts.

The impacted ports would include Boston; New York and New Jersey; Delaware River [Philadelphia]; Baltimore; Hampton Roads, Va. [Norfolk]; Wilmington, N.C.; Charleston, S.C., Savannah, Ga.; Jacksonville, Fla.; Miami; Tampa, Fla.; Mobile, Ala.; New Orleans; and Houston.

Read more here.

Retail Imports to Increase 3.9% in December Despite Port Strike

Import cargo volume at the nation's major retail container ports is expected to increase 3.9% in December despite a strike that closed the nation's largest port complex for the first few days of the month.

Retailers are keeping a close watch on a possible strike on the East Coast and Gulf Coast, according to the monthly Global Port Tracker report released by the National Retail Federation and Hackett Associates.

"After a strong kickoff on Black Friday and Cyber Monday, the holiday season is looking good and these numbers reflect that," NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. "Nonetheless, we narrowly avoided what could have been a long-term disruption with the strike in Los Angeles and Long Beach and don't want to run that risk on the East Coast and Gulf Coast. NRF is continuing to urge labor, management and lawmakers to do whatever is necessary to keep our nation's ports running smoothly."

U.S. ports followed by Global Port Tracker handled 1.39 million Twenty-foot Equivalent Units in October, the latest month for which after-the-fact numbers are available. That was down 1% from September, but up 5.2% from October 2011. One TEU is one 20-foot cargo container or its equivalent.

November was estimated at 1.22 million TEU, down 5.6% from last year. The downturn was due in part to the eight-day strike that closed most terminals at the Ports of Los Angeles and Long Beach beginning in the last few days of November, but also because November is a traditionally weak month after most holiday cargo has arrived.

December is forecast at 1.27 million TEU, up 3.9% from last year, with January forecast at 1.31 million TEU, up 2% from January 2012; February at 1.15 million TEU, up 5.9%; March at 1.27 million TEU, up 2%, and April at 1.35 million TEU, up 3.2%.

August, September and October are the three busiest months of the year as retailers bring merchandise into the country for the holiday season, and volume for the three months combined was up 3.6% at 4.2 million TEU. While cargo volume does not correlate directly with sales, NRF is forecasting that holiday sales will increase 4.1% to $586.1 billion this year.??

The first half of 2012 totaled 7.7 million TEU, up 3% from the same period last year. For the full year, 2012 is expected to total 15.8 million TEU, up 2.5% from 2011.

Hackett Associates Founder Ben Hackett said the Los Angeles/Long Beach strike shifted some cargo into December but would not have a significant effect on net volume for the year. But retailers are closely monitoring the situation at East Coast and Gulf Coast ports, where a contract extension expires Dec. 29.

"While the strike led to some diversion of cargo to Oakland and ports further afield, we believe much of the cargo destined for LA/Long Beach will simply arrive at the port later as vessels adjust their rotations," Hackett said. "As we look ahead into the coming months of 2013, the main threat to cargo flows through the ports would be a strike on East Coast and Gulf Coast. There is little option for diversion."