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Proposed tariffs on Chinese goods = Headwinds for US economy

Trump has imposed tariffs on steel and aluminum shipments of export cargo and import cargo in international trade.

Proposed tariffs on Chinese goods = Headwinds for US economy

During six days of public and interagency hearings held by the US Trade Representative in late August, the recreational boating industry joined hundreds of other industries and businesses to express deep concern about the harmful effects of the escalating trade war, including Section 301 tariffs targeting $200 billion in Chinese imports.

US businesses, including those making up the uniquely American-made recreational boating industry—which sees ninety-five percent of boats sold in the US made in the US—shared numerous examples during their testimony on how the tariffs negatively impact the US economy. From increasing the cost of parts, materials and components to creating uncertainty for American businesses, the testimony shed light on the worries of countless US industries, spanning from recreational boating to food, apparel, construction, and more.

“When you force American companies to pay taxes on $200 billion worth of Chinese imports—parts, components and materials that these companies have relied on for decades to build quality American products that are not only sold here in the US but around the globe—you’re paralyzing a significant part of the American economy,” said Nicole Vasilaros, senior vice president of government relations and legal affairs at the National Marine Manufacturers Association (NMMA). “Why put American businesses and American jobs at risk when there are better ways to go about fighting unfair trade?”

During the hearings, recreational boating industry leaders cautioned the administration that tariffs are not the solution to our country’s trade issues.

“Instead of these Section 301 tariffs, which do the opposite of what they’re intended to do and put our country’s economy at risk, we need to see a more strategic approach and negotiate a trade agreement with China that takes into consideration the real needs of US businesses and American workers,” said Vasilaros.

In her testimony, Vasilaros emphasized the effects tariffs are having on the global supply chain. “While we recognize and support the need to deal with China’s unfair trade practices, the administration’s proposal to levy a 10-25 percent tariff on $200 billion worth of imports will increase the harm US manufacturers are already experiencing due to misguided US trade policy,” she said. “The recreational boating industry will continue to suffer the consequences as American business are subjected to compounding tariffs that disrupt global supply chains and increase the cost of US manufacturing. Simply put, doubling down on bad trade policy will wreak havoc on American-made industries.”

Chris Welch, Supply Chain Manager of Magic Tilt Trailers, spoke on the disproportionate affects the tariffs are having on the marine manufacturing industry. “Although Secretary Ross was able to demonstrate on television that 25-percent steel tariffs will have little impact on the overall cost of a can of soup, the reality of our situation couldn’t be more opposite,” he said. “I don’t think the secretary would have garnered the same visual result had he presented a two-ton steel boat trailer as his example. Price increases along our entire supply chain on metal products have been swift and significant since the domestic steel and aluminum premium markets moved north, absorbing the ramifications of the Section 232 investigation and subsequent tariff decisions.”

John Hoge, President of Sea Eagle, highlighted how small businesses like his are negatively impacted by the trade war, possibly resulting in less job opportunities in the future. “Fewer orders means that fewer Americans will be employed in occupations from warehouse work to web development,” he testified. “Marketing budgets will have to be cut sharply and that will mean cancelled orders for advertising, catalog printing, video production and digital marketing. Fewer orders means less business for carriers such as FedEx and UPS. Jobs that are currently secure will be lost overnight.”

Software helps manage truck shipments of export cargo and import cargo in international trade.

Transportation One in technology partnership with FreightRover

Transportation One, one of the nation’s fastest-growing logistics companies, has joined forces with FreightRover to drive supply chain efficiencies through digital freight automation.

Record-tight capacity and record-high rates have many shippers and third-party logistics providers scrambling to develop private freight marketplaces and other proprietary solutions in response. Taking a much different approach, Transportation One selected FreightRover’s suite of tools to quickly add digital freight brokerage to its business model. The company also plans to leverage FreightRover’s customizable platform as a tailored transportation management system unique to Transportation One’s operations to support faster growth and scalability.

Transportation One now will provide their customers with a private, proprietary freight marketplace branded to their business, as well as a carrier-facing portal for quicker carrier payments (many quick pay options offered) and overall seamless payment automation. In addition, Transportation One will use FreightRover’s white-labeled SmartLTL to instantaneously gather rates from multiple carriers and simplify LTL shipment management.

“Utilizing FreightRover’s leading-edge features and leveraging its technology as the foundation to build our own robust platform enables Transportation One to become a digital freight broker that competes with the top proprietary solutions out there,” said Jamie Teets, CEO of Transportation One. “We believe that investing in both people and technology will drive efficiencies and improve carrier and shipper satisfaction that will place us at the top of the industry.  We are excited for this collaborative and strategic partnership.”

FreightRover’s suite of digital products are positioned to increase Transportation One’s efficiency and productivity, improve margin to generate customer cost savings, and reduce overall operating costs. By providing customers with personalized service and employees with software that eases everyday manual processes, Transportation One is poised to continue their rapid growth.

“While the transportation industry focuses on improving efficiencies in an era when consumers demand time-sensitive and visible delivery end-to-end, Transportation One is investing in new capabilities that drive profitable growth,” said Eric Meek, CEO of FreightRover. “FreightRover has taken a comprehensive approach to technological advancement, building individual solutions to touch upon each of the fragmentation points within transportation.”

FreightRover continues to transform transportation digitization through online carrier quick pay, automated LTL rate return and invoicing, and a private freight marketplace where shippers and 3PLs post freight to their preferred carriers.

Now, transportation companies can use FreightRover’s next-generation technology suite as a solution branded to their business, effectively providing customers with the same products and services as the largest 3PLs in the industry with improved scale and speed.

POLA sets new record for cutting emissions

Emissions of nitrogen oxides (NOx), a key component of smog, are down an unprecedented 60 percent compared to 2005 emissions levels, their lowest level to date. The 2017 Inventory of Air Emissions released by the Port of Los Angeles shows it set new record lows for emissions reductions while its container volume reached an all-time high of 9.34 million TEUs.

Overall, the 2017 findings show the port has maintained or exceeded the dramatic clean air progress it has made over the last 12 years, and has now met all of its 2023 Clean Air Action Plan (CAAP) goals. Diesel particulate matter (DPM) remains down 87 percent, and sulfur oxides (SOx) remain down 98 percent.

“Our port is driving the global economy forward and showing the world how we can produce record-breaking growth and protect the environment at the same time,” said Mayor Eric Garcetti. “Our progress on reducing emissions to just a fraction of our 2005 levels while we ship more cargo than everis proof that our Clean Air Action Plan is working and exceeding expectations.”

“As of this inventory, we’ve hit all our 2023 targets for tackling the primary pollutants associated with port operations during our busiest year ever,” said Harbor Commission President Jaime Lee. “This is great news for our Port, our industry and our community.”

To reduce emissions while also significantly increasing cargo volumes, the port had to reduce the average amount of emissions it generates to move each container. Using this type of measurement, the port also posted its best year ever, lowering the average amount of emissions the port generates to move each container of cargo for all eight pollutants tracked by the port’s emissions inventory, including greenhouse gases (GHG), which were down 30 percent per container on average since 2005.

“We’re seeing the combined benefits of our ongoing clean air strategies and increased efficiencies across the supply chain,” said Port Executive Director Gene Seroka. “The results also validate our focus on further reducing NOx and greenhouse gases going forward.”

Based solely on tonnage, though, GHGs are down only 13 percent, which is a result of the substantial increase in activity in 2017 leading to the record cargo volumes. The port’s best year for reducing tons of GHGs was 2013 when GHG emissions were down 23 percent, a year when TEU volume was still down from its pre-recession peak.

“This is why cleaner technology and increased efficiency matter,” said Chris Cannon, Director of Environmental Management for the Port of Los Angeles. “Greenhouse gases come from burning fuel. The more cargo we move, the more CO2 emissions we generate, and greater the need to switch to cleaner low-carbon based equipment, while continuing to optimize port operations.”

Larger ships carrying more TEUs played a key role in preserving the port’s clean air gains. Container ship calls were down 22 percent while the average number of TEUs per vessel increased 60 percent since 2005. Fewer ship calls also led to fewer harbor craft trips.

The largest ships tend to be new-builds with cleaner engines, another contributor to clean air gains reported in 2017. Additionally, in compliance with California’s progressively stricter shore power requirements, more ships plugged into shore-side electricity instead of burning fuel at berth. Ships that cannot plug in increasingly used alternative technology to capture emissions at berth.

Effective 2017, all ships calling at the port met California and North American Emissions Control Area requirements to use fuel with 0.1 percent or lower sulfur content. More ships also are reducing fuel consumption by slowing down within 40 nautical miles of the Port.

Ongoing turnover of the truck fleet and upgrades of cargo handling equipment with the cleanest available engines also helped hold the line on emissions. More than half of nearly 17,000 drayage trucks calling at the Port in 2017 have 2010 model year or newer engines. Nearly 47 percent of cargo handling equipment – including cranes, tractors and forklifts – have Tier 4 or equivalent diesel engines, the cleanest diesel emission technology on the market.

“The percentage of cargo handling equipment using the cleanest available diesel technology has nearly doubled since 2016,” Cannon said. “That’s an example of how seriously terminal operators, trucking companies and our other partners are investing in new equipment and working with us to achieve our clean air goals.  We look forward to continuing to partner with them using private investment and public funding programs to develop and deploy even cleaner technologies as we move toward new CAAP goals.”

The latest findings are based on data collected during calendar year 2017 and reviewed by regional, state and federal air regulatory agencies. The annual inventory details the impact of all strategies for reducing emissions from port-related sources: ships, locomotives, trucks, cargo handling equipment and harbor craft.

As container throughput increases, the port is working to implement more aggressive strategies to maintain its clean air gains and continue to meet the 2023 goals.

New in the 2017 Clean Air Action Plan (CAAP) Update are targets for reducing GHG emissions: 40 percent below 1990 levels by 2030 and 80 percent below 1990 levels by 2050. Strategies for reaching these targets include transitioning the on-road drayage fleet serving the Port to zero-emissions trucks by 2035 and all terminal equipment to zero emissions by 2030. Improving operational efficiencies, deploying advanced technology and managing energy resources are essential to this progress.

Near-term measures for accelerating clean air progress include requiring all trucks entering Port service for the first time to meet 2014 model engine emissions standards. Technology advancements expected to further reduce emissions by improving the flow of cargo include the Port Optimizer™, which gives the supply chain a head start of about two weeks to plan operations and allocate resources for handling inbound cargo.

To advance long-term goals, the port is working with private and public sector partners to test more zero emissions drayage trucks and demonstrate near-zero and zero emissions cargo handling equipment.  The Port launched a number of projects before the 2017 CAAP Update was finalized.

Redevelopment will allow port to handle more shipments of export cargo and import cargo in international trade.

POLB approves Toyota’s green terminal makeover

The Long Beach Board of Harbor Commissioners has approved a proposal by Toyota Logistics Services to redevelop its facility at Pier B and build a renewable energy fuel-cell power plant and hydrogen fueling station.

Toyota operates a marine terminal at the port where new automobiles are off-loaded from ships, processed and transported off-site via truck and railroad. The planned redevelopment would make those operations more efficient.

Construction on the private project is anticipated to begin later this year and be completed in 18 months.

Work will include replacing separate office, car washing, fueling, auto body and other facilities with a new, single building. Plans also call for construction of a 2.3 megawatt fuel-cell power plant and a new fueling station that will include hydrogen.

“Toyota is demonstrating hydrogen fuel as a viable alternative for fueling vehicles,” said Harbor Commission President Tracy Egoscue. “The example they are setting at the Port of Long Beach should be applauded not only by the goods movement industry, but by everyone who wants a sustainable present and future for our planet.”

“Toyota is one of our oldest customers,” said Port of Long Beach Executive Director Mario Cordero. “We’ve grown together during a business partnership that’s almost a half-century old, and part of the reason we’ve remained successful is recognizing the need to invest in modernization projects like this to improve our operations.”

Tariffs

Coalition launches campaign to oppose Section 232 auto tariffs

The Driving American Jobs Coalition, a group representing the United States’ leading auto manufacturers, parts suppliers, auto dealers, parts distributors, retailers, and vehicle service providers, announced today the formation of a new coalition to oppose potential new tariffs on imported automobiles and motor vehicle parts.

The coalition will inform policymakers and stakeholders on the negative effects of imposing new auto tariffs, including massive job losses and significant consumer price increases for virtually all motor vehicles and parts, whether domestic or imported.  Higher auto tariffs will also result in less capital for investments in innovation and less competition in promoting cutting-edge automotive technologies developed here at home.

At a time of unprecedented growth, new tariffs on imported vehicles and parts represent a significant threat to our economy and the tremendous job growth that has occurred since the president took office.

That is why the American Automotive Policy Council, the Auto Care Association, the American International Automobile Dealers Association, the Alliance of Automobile Manufacturers, the Association of Global Automakers, the Motor & Equipment Manufacturers Association, the National Automobile Dealers Association, and the Specialty Equipment Market Association have joined this unprecedented, industry-wide effort through Driving American Jobs. The group replaces a prior coalition of the same name formed to address other trade issues.

“Tariffs are particularly harmful to the auto industry because they will result in job losses that will be felt across the entire supply chain,” said Bill Hanvey, President and CEO of the Auto Care Association. “Prices for vehicles, parts, and repairs would go up, hurting consumers, and American jobs would disappear.”

“Under these proposed tariffs, autos of all brands would go up in price by as much as $6,900, a cost that would hit not only consumers but also the auto dealers and dealership employees who sell and service the vehicles,” said American International Automobile Dealers Association President & CEO Cody Lusk. “The resulting loss in auto and auto parts sales, dealership employment, and facility investment would be devastating for the communities that rely on these small businesses to drive their economies.”

“There is no national security justification for taxing vehicle and auto parts imports,” said John Bozzella, President and CEO of the Association of Global Automakers.

Environmental laws cover vessels that carry shipments of export cargo and import cargo in international trade.

Singaporean shipping company to pay $1 million fine

United States District Judge Helen Gillmor has sentenced Hai Soon Ship Management, a Singaporean shipping company, to pay a fine of $1 million and serve a two-year term of probation for charges stemming from its the failure to maintain an accurate oil record book in violation of the Act to Prevent Pollution from Ships (APPS), and false statements concerning the illegal dumping of oil contaminated bilge water at sea.

The company pleaded guilty to the charges on June 14, 2018. Pursuant to its plea agreement with the US Attorney’s Office, Hai Soon Ship Management’s vessels operating in US waters will be required to comply with a comprehensive environmental compliance plan that provides for regular inspections under the supervision of an independent auditor.

According to court documents and information presented in court, Hai Soon Ship Management is the operator of the 3,878 gross ton oil tank vessel called the Hai Soon 39. The Hai Soon 39 provided refueling services to fishing vessels operating at sea. International and US law require that vessels like the Hai Soon 39 use pollution prevention equipment to prevent the discharge of oil-contaminated bilge into the sea. Should any overboard discharges occur, they must be recorded in an oil record book, a log that is inspected by the US Coast Guard. In October of 2017, the Chief Engineer of the Hai Soon 39, along with other engine room staff, constructed a hose in the engine room to bypass the ship’s pollution prevention equipment, including its oil water separator, and pump oily waste directly overboard. The resultant discharges were never recorded in the ship’s oil record book, as required by APPS, and the Chief Engineer made false entries in the oil record book to make it appear that the discharges had been routed through the oil water separator when in fact they had not.

“The marine environment that surrounds the Hawaiian Islands is unique, and part of the Islands’ natural beauty,” said US Attorney Kenji M. Price. “This Office will continue to work with the US Coast Guard and use every tool at its disposal to bring to justice those who violate the law by polluting the sea.”

As part of its sentence, Hai Soon Ship Management will be placed on a two-year term of probation that includes the environmental compliance plan to ensure, among other things, that all of the ships the company operates that come to the United States fully comply with all applicable marine environmental protection requirements established by national and international laws. The compliance plan will be implemented by an independent auditing company and supervised by a court-appointed monitor.

Software helps manage intermodal shipments of export cargo and import cargo in international trade.

Global logistics software group acquires US intermodal trucking company TMS provider

Global logistics solutions group, WiseTech Global, today announced the acquisition of Trinium Technologies, a leading provider of intermodal trucking transportation management systems (TMS) in the United States and Canada.

Headquartered in Los Angeles, Trinium offers a complete enterprise TMS for the efficient movement of sea freight containers between port terminals, inland rail terminals, container yards and warehouses. Trinium’s leading product, Trinium-TMS, enables companies to completely automate their processes from order receipt, through customer service, dispatch operations, billing and driver settlements. Trinium also provides container tracking functionality through its integration with dozens of marine terminal and rail systems throughout the US and Canada.

Trinium has over 185 trucking customers including Horizon Freight System, NFI Industries, California Cartage Companies, ContainerPort Group, Schneider Logistics Transportation, The Pasha Group, and many other logistics providers.

“Trinium enables specialized road transport for the first and last mile container movement required on every international shipment, which is a highly specialized transportation process distinct from general road freight,” said WiseTech Global founder and CEO Richard White. “With its valuable experience in containerized road transport, extensive port connections, well-regarded leadership team, and highly scalable, asset-based enterprise solution, Trinium is an important further addition to our cargo chain ecosystem. Together we will leverage our global reach and powerful development capacity to scale up our broader TMS offering globally, building out the eco-system further, and providing ever more productive and integrated solutions to customers across the supply chain.”

Trinium’s long-time managing director, Michael Thomas, said: “Trinium has been providing quality enterprise solutions for intermodal truckers for 17 years, assisting customers in driving real productivity improvements in their operations. Joining the WiseTech Global group will help us take our TMS into markets adjacent to trucking as well as across the globe. With WiseTech, we have an opportunity to innovate and automate at a faster pace and future-proof our applications. This is an important next step for us and our valuable customers.”

Remaining under the leadership of Michael Thomas, with Chief Technology Officer, Barry Assadi, and vice president for sales and marketing Dennis Lane, Trinium will continue to deliver solutions directly to customers across the US and Canada, and potentially to the 7,000 logistics providers across the world that utilize WiseTech’s integrated supply chain execution solutions including its flagship, CargoWise One.

Across 130 countries, CargoWise One enables logistics service providers to execute highly complex transactions in areas such as freight forwarding, customs clearance, warehousing, shipping, tracking, land transport, e-commerce, and cross-border compliance and to manage their operations on one database across multiple users, functions, countries, languages and currencies.

Software helps manage shipments of export cargo and import cargo in international trade.

India launches global customs transit system

India  has launched of the multimodal and digital TIR customs transit system looks set to revolutionize the country’s trade and transit potential.

The implementation of TIR in India echoes the impressive developmental progress of the nation, with this latest milestone taking regional connectivity to the next level. It will be easier and more efficient to move cargo along multiple trade corridors, including the International North-South Transport Corridor (INSTC) via Iran.

The INSTC provides global access to markets, connecting India to the wider TIR network, including Iran, Azerbaijan, Russia and Central Asia.

TIR could also contribute to the implementation of regional Motor Vehicle Agreements, which will help India integrate with Myanmar and Thailand as well as Bangladesh, Bhutan and Nepal.

Deputy Secretary General , Nirankar Saxena from the Federation of Indian Chambers of Commerce and Industry, which led the process, said: “The challenge of expanding regional trade has been the incompatibility of transport and customs systems – in particular across the Bangladesh, Bhutan, India, Nepal (BBIN) sub-region. These countries need a practical tool – like TIR – to make bilateral and regional transport arrangements operational and to facilitate the movement of goods across borders.”

He added, “We are grateful for the Government’s support and in particular the support of the Central Board of Indirect Taxes and Customs (CBIC), and the collaboration with IRU in helping to put TIR into practice.”

Rapid TIR implementation is also critical in helping India implement the World Trade Organization’s Trade Facilitation Agreement.

Umberto de Pretto, IRU Secretary General said: “We are deeply impressed with the full mobilisation of India’s resources and transport community to swiftly accede to and operationalise the TIR system. The momentum builds as we now focus our joint efforts on promoting TIR accession among India’s neighbors.”

India’s accession to the TIR Convention last year prefaced strong commitment from government and business leaders to making TIR the national customs standard.

The TIR system secures customs duties and taxes and provides a robust guarantee mechanism, thereby reducing trade transaction costs, and facilitating higher growth of intra-regional and inter-regional trade.

Helping Companies Streamline Shipping, Ensure Regulatory Compliance

Labelmaster, a leading provider of labels, packaging and technology for the safe and compliant transport of dangerous goods and hazardous materials (hazmat), has announced that it has integrated its Dangerous Goods Information System (DGIS) with Pierbridge, Inc.’s Transtream parcel transportation management system (TMS). The combined solution enables Pierbridge customers to streamline the shipping process of dangerous goods while ensuring compliance with the latest Department of Transportation (DOT) regulations.

Pierbridge’s parcel TMS platform, Transtream, helps retailers, manufacturers and distributors automate supply chain processes across their enterprise, control shipping costs and improve delivery. Transtream supports hazmat rating, labeling and shipping for parcel carriers such as UPS, FedEx, DHL and regional carriers. In addition to carrier compliance, DGIS web services will now enable Transtream shipping app users to comply with mandated DOT labeling and paperwork.

“By integrating Transtream with DGIS, our customers can automate and control hazmat compliance for multiple carriers without having to learn multiple user interfaces,” said Bob Malley, CEO, Pierbridge. “This partnership will help our customers improve operational efficiency.”

In addition to helping Pierbridge customers more efficiently and accurately manage their multi-carrier shipping processes, DGIS validates all dangerous goods data against the latest rules and regulations, reducing the chance for a rejected shipment or fines and helping maintain a smooth supply chain.

“Shipping dangerous goods involves complex rules and regulations that are constantly changing, so ensuring compliance can be challenging and time-consuming for shippers,” said Alan Schoen, president, Labelmaster. “Integrating DGIS with Transtream will save customers time by having the information available in a single window when they have a dangerous goods shipment.  Pierbridge customers can be confident that they are compliant with the latest regulations – reducing the chance for a rejected shipment which can cause delays and disrupt the supply chain resulting in significant waste and expense.”

Negotiating rates for shipments of export cargo and import cargo in international trade.

INFOGRAPHIC: What Affects Freight Rates?

For an industry that has such a big impact on the economy and people’s lives, logistics is subject to a surprising amount of unpredictable, external conditions that can affect freight rates—such as natural disasters and changes in the workforce.

Here we break down different impacts that lead to freight rate fluctuation, how they have recently influenced rates, and how they are projected to affect rates in the future.

(Infographic provided by Zipline Logistics)

Tips for Reducing Freight Rates

With numerous cost-drivers beyond the control of shippers – market capacity, seasonality, natural disasters, etc. – it can be difficult to proactively manage transportation costs, but it is not beyond the realm of possibility.

Be flexible with service providers. With high load-to-truck ratios, truckers have multiple options available to them and will choose the orders that are most desirable. This might mean orders with convenient pick-up and delivery times, more lead time, easy-access facilities that are near major roadways, higher-paying jobs, or freight that is easy to load/unload and requires little equipment. The more accommodating you can be, the easier it will be to secure a quality driver at a fair price.

Provide as much information as possible. Freight spend can rise when unanticipated fees are stacked on top of estimated rates. Work to avoid added fees by being diligent and detailed with the information provided to service partners.

Leverage technology. IT and data analysis solutions exist to automatically identify optimal routes, modes, scheduling, consolidation, and more. These tools – in conjunction with human interpretation and intelligence – can help businesses to increase supply chain efficiencies and cut transportation costs.

Maximize loads. With carriers charging more, shippers can work to keep costs down by maximizing how much they load onto each truck. Whenever possible, making tweaks that allow for more volume per order will help cut spend because fewer trucks will be needed overall.

Don’t hesitate to say no. You may need to decide to no longer serve a certain region, or may need to raise your order minimums to make a sale profitable. Run the numbers, then be upfront and honest with your customers, educating them on the change in transportation prices. They’ll likely be receptive to your requests for different scheduling or volumes.