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October 2004 |
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The West Coast Congestion is Expected to Simmer Through 2005 The various problems that have plagued service this year; skipped port calls, waiting for berths, train shortages, gate delays, highway congestion are expected to force carriers to continue the peak season surcharge for at least an extra 5 weeks. 2005 will see capacity increase, however, the growth of container traffic is expected to keep pace with the new capacity – leaving us exactly where we are now. All water services via the Panama Canal to East Coast destinations are useful but only if you can find space, since vessels in this trade lane have been fully booked since March. Adding vessels into this service is unlikely in the short term. Terminal operators are hopeful that the service can improve simply by overpowering it with the addition of 3000 longshoremen. Some question the impact of these in the short term because of their inexperience. UP Rail will not set a date as to when they might be able to meet customer service levels. Return to Newsletter Front Page Senate Adopts New Port Security Legislation 9/24/04 The U.S. Senate on Tuesday by voice vote passed as amended S. 2279, the Maritime Transportation Security Act of 2004. As noted by Sen. Fritz Hollings (D-S.C.), the bill puts into action transportation recommendations from the 9-11 Commission Report. S. 2279 mandates that unclaimed cargo be removed from docks to a regulated customs warehouse within seven days and an administrative penalty of $5,000 may be imposed on the consignee for each bill of lading in violation of the new requirement. This measure requires federal grants to assist ports to implement security plans to be awarded based on risk assessment, including taking into account national security priorities, and national economic and strategic defense concerns. The grants are to be awarded after review by the Coast Guard Captain of the Port and the regional Maritime Administration official. S. 2279 requires a report to Congress on the security of ships and facilities used in the cruise line industry; a report on the design of maritime security grant programs; a report on transportation worker background investigation programs; and, a report on security at Caribbean ports. The bill requires MarAd, in coordination with the State Department, to identify foreign aid programs that could be used to help less developed countries implement port security programs. In addition, the measure requires MarAd, in coordination with the Federal Law Enforcement Training Center, to establish a curriculum to educate federal and state officials on commercial maritime and intermodal transportation. The House of Representatives must now consider S. 2279. Return to Newsletter Front Page New Shipbuilding Surge Continues The world shipbuilding industry is expected to spend US$5.3 billion on marine propulsion systems in 2004 and this is set to rise. In 2004 alone, engines are likely to be installed with a total power output the equivalent of about 15 nuclear power stations”. The world shipping and shipbuilding industry is currently enjoying a strong upturn. World economic growth is buoyant and it is expected to remain strong in the medium term boosted by the very strong growth of the Chinese economy and to a lesser extent in other developing economies. Return to Newsletter Front Page New Study Reveals How Freight Rail Can Alleviate Gridlock on America's Highways, Help Commuters Save Time and Fuel WASHINGTON, Sept. 16 /U.S. Newswire/ -- A new study of 49 major cities shows that freight rail can help reduce gridlock. The study reports that if by 2025, 25 percent of freight volume is shifted from road to rail, commuters across America could save an average of 44 hours each year. The same shift would both save each commuter an average of 257 gallons of fuel each year and reduce congestion costs by an average of $620 per household each year in the cities studied. "With freight volume expected to grow by two-thirds over the next 20 years, freight railroads will become even more critical to easing congestion," said Wendell Cox, a transportation expert and author of the annual study. "In order to carry increasing freight volumes, railroads need more capacity. Rail capacity depends on investment returns. Since railroads are not meeting their cost of capital, government policy makers may want to consider investment incentives to help meet the growing demand for freight rail." Transporting more freight by rail also would positively impact the environment. The shift would lower air pollution by an average of 882,000 tons annually in the cities studied. Additionally, it would lessen highway capacity challenges. Overall, the study shows that, by 2025, a 25 percent shift of freight from road to rail, on average, would: -- Save each commuter 44 hours per year -- Save each commuter 257 gallons of fuel per year -- Save the economy $620 per household in congestion costs each year -- Reduce air pollution by nearly 900,000 tons each year "One freight train can carry as much cargo as 500 trucks and one intermodal container train can carry nearly 300 truck trailers," said Edward R. Hamberger, president and CEO of the Association of American Railroads. "The intermodal partnership between the rail and trucking industries combines the best abilities of the transportation modes and is an important solution in the battle against traffic congestion." Note: To receive a copy of the report visit http://www.tomorrowsrailroads.com. © 2004 U.S. Newswire Return to Newsletter Front Page CPR - Restricted Commodity Items Many of the loads CPR transports include many that are not properly loaded or secured or packaged that can damage our environment or the equipment. Because of these issues CPR restricts or prohibits the movement of some commodities. The commodities that CPR lists in various tariff items or in other customer communication that are considered to be embargoed, prohibited or restricted have been updated. The purpose of this notice is to let you know about these changes and to ensure that you have an opportunity to review the changes prior to the new tariff items becoming effective. "Restricted, Prohibited, Forbidden Commodities and Equipment with either Non Acceptance and/or Conditions of Acceptance" terms are listed in the following tariffs: 1) Tariff 7000 Item 190 will be effective September 15, 2004. This applies to our Domestic US traffic. 2) Tariff 7100-C Item 3463 will be effective September 2, 2004. This applies to our Domestic Canada traffic. 3) Tariff 7800 Item 160 will be effective September 15, 2004. This is a new tariff for International traffic. You can view these items by accessing tariff items at http://www.cpr.ca or by requesting a copy of the tariff that applies to your traffic from your Commercial contact. These Items neither increase nor add any new tariff costs. These Items have a short list of prohibited and forbidden commodities. In addition there is a list of commodities from coils and cigarettes to rolled paper and waste that are classified as restricted commodities. Just because a commodity is listed on the restricted commodity list does not mean that you are not allowed to load it and ship it by CPR. It just means you either need special arrangements or agree to adhere to some provisions around the transportation of that particular commodity. You can move them but may need special equipment, specialized loading securement approved by CPR or special contract tariff items. Once you meet those loading requirements CPR will move those shipments safely and efficiently.
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