Request more info about FMI.
Do you have a friend or colleague who would
like to receive this eFlash, click here.
|
|
| Visit us online at www.fmiint.com Request more info about FMI. |
Issue 4 Do you have a friend or colleague who would like to receive this eFlash, click here. |
Shippers who wish to participate in a test of PierPass in Los Angeles-Long Beach will have a chance to register next month, however full implementation of the program at marine terminals will be delayed until late June or early July.
Affiliated Computer Services, the technology company in charge of developing the software for PierPass, had been working toward a June 1 implementation date, but it was recently announced that full operations will be delayed, possibly until late July. Bruce Wargo, general manager of PierPass, said he is still aiming for a "soft" start on June 1, with implementation beginning in late June or early July.
With the peak shipping season rapidly approaching, and cargo volumes in LA-Long Beach already running about 15 percent ahead of last year, terminal operators are relying on night and weekend gates in order to avoid the congestion that plagued the ports last year.
The terminals, in conjunction with shippers represented by the Waterfront Coalition in Washington, have agreed to a plan whereby containers that are picked up or delivered to the ports in the daytime hours will be charged a fee. The revenue will help to fund the additional costs involved in running five night and weekend gates each week.
The fee will begin at $20 per TEU, and when the five extended gates are phased in a month or so later, the fee is expected to increase to $40 per TEU.
Wargo said he met recently with the Waterfront Coalition and the shippers indicated they will be ready next month to begin registering for the program, submitting their credit applications and entering the test phase by June 1.
PierPass is planning to offer incentives in order to get enough shipper volunteers to join the test so that meaningful user data can be developed before implementation begins.
PierPass has been under strong political pressure to move forward as quickly as possible. In addition to expanding the effective capacity of the nation's busiest port complex, PierPass is also designed to reduce pollution and traffic congestion in Southern California.
Under the current plan, every container that moves through the ports will be charged a fee. However, containers that move in designated off-peak hours, or leave the area by rail, are exempt. PierPass will issue refunds on all exempt containers. The financial transactions will take place on an account basis or through the use of credit cards.
ACS is in charge of developing the software, collecting the fees and issuing refunds for exempt moves. However, it is taking longer to develop the complex process than was first anticipated.
The US Senate will vote later this summer to slap across the board tariffs on imports of Chinese goods unless China agrees to revalue its currency.
The Senate failed to pass a vote that would kill the legislation offered by Charles Schumer, D-New York, which would give Chan six months to revalue the renminbi or face a 27.5 per cent tariff on all Chinese imports. The Senate leadership agreed to a final vote on the measure later this year to avoid having it attached to a bill authorizing State Department programs.
Sen. Schumer and Treasury Secretary John Snow recently had a sharp exchange of words on the Senate floor. Mr. Schumer charged, "this administration on this issue has had the strength of a wet noodle".
The anger in Congress is being driven in part by the rapid increase in the US trade deficit with China. According to recent figures compiled by Global Trade Information Services, a US data company, US imports from China rose 37 per cent in January and February, while US exports to China fell 10 per cent.
While most of the focus is on the growth of Chinese textile and apparel sales since the lifting of quotas on January 1, exports have also grown sharply in basic materials like steel and chemicals, as well as heavy machinery - sectors where China was historically a net importer.
The rumblings in Congress are increasing pressure on the administration to declare that China is manipulating its currency. Later this month, the treasury department is scheduled to release a report to Congress on exchange rates and many are hoping that they will find that China is in fact manipulating its currency.
However, Mr. Snow, the former CEO of CSX Corporation, would not say what the report would conclude. But Rob Nichols, a Treasury spokesman, signaled the administration would resist such pressure. "The administration's financial diplomacy approach has been effective and progress is being made in moving China to flexible exchange rate regime," he said.
Worldwide air cargo volume is estimated to have increased 9 percent in 2004 to 79 million metric tons, using extrapolated figures from Geneva-based Airports Council International (ACI), which has already gathered data from 829 airports worldwide. ACI reported 72.5 million metric tons in 2003.
This shows an acceleration of air cargo growth when compared to the 4-percent traffic gain recorded by ACI for 2003.
Cargo volumes increased in all regions during 2004 with the Asia/Pacific area showing the steepest rise of 14 percent. Middle East cargo was up 13 percent, Africa increased 10 percent, Europe up 8 percent, Latin America/Caribbean gained 7 percent and North America was up 5 percent.
Memphis remained the top cargo airport worldwide in 2004 as its air-freight volume increased 5 percent to 3.5 million tons. Closing on Memphis in second place was Hong Kong, with 3.1 million tons, up 16 percent; followed by Tokyo Narita, 2.3 million tons, up 10 percent; and Anchorage, 2.7 million tons, up 13 percent. The result for Anchorage includes transit freight.
©2005 FMI International