First Choice Logistics E-News

U.S. Freight Shipments Up 3.9% in December

2012-02-10T06:38:00.000-08:00

(Journal of Commerce Online – William B. Cassidy)

Freight volumes passed January 2005 record, grew 6.4% in 2011, BTS says

U.S. freight shipments hit an all-time high in December, rising 3.9% from the previous month, the largest monthly increase in domestic freight shipping in 17 years, the federal Bureau of Transportation Statistics said Wednesday.

It was the strongest month-to-month increase of the year for the BTS Freight Transportation Services Index, which climbed only 0.1% in November from October. December’s growth rate topped a 2.5% increase in June. Read more here.

NAFTA Surface Trade Rises 12.7%

2012-02-02T13:14:00.000-08:00

(Transport Topics)

Surface trade among the United States, Canada and Mexico rose 12.7% in November from a year ago, the Department of Transportation said Tuesday.

Trade among the North American Free Trade Agreement partners rose to $76.7 billion, DOT’s Bureau of Trade Statistics said in its monthly report. Month-to-month trade, which is affected by seasonal factors, slipped% from October, BTS said.

U.S.-Canada trade rose 12.2% to $44.3 billion, while U.S.-Mexico trade improved 13.3% to $32.4 billion.

Truck imports to the United States rose 10.7% year-over-year to $26.3 billion. Exports rose 10.9% to $27.3 billion. Rail imports rose 12.6% to $8.1 billion, while exports increased 23.6% to $4.8 billion. Pipeline imports increased 26.5% to $5.6 billion and exports jumped 48.2% to $714 million.

Surface transportation consists largely of freight movements by truck, rail and pipeline. About 90% of U.S. trade among NAFTA partners moves by land.

TransCore’s Canadian Freight Index Sees Record Performance in 2011

2012-02-02T13:11:00.000-08:00

(Canadian Transportation & Logistics – Lou Smyrlis)

TransCore’s Canadian Spot Market Freight Index had a record-breaking year with the highest annual volume over the last decade.

As the transport year wound down, however, December experienced a 4% drop year-over-year and a 14% decline from November levels. Despite the decline in the final month, fourth-quarter freight was the highest since 2005. An influx of shipments earlier in the quarter also resulted in an overall increase of 10% compared to the previous year.

Capacity was 7% below recorded levels for December 2011 while the equipment-to-loads ratio increased slightly for the third consecutive month. Available equipment in December was down 11% from the prior month. Read more here.

Public Support Grows for New Detroit-Canada Bridge

2012-01-31T02:47:00.000-08:00

(Journal of Commerce Online – R.G.Edmonson)

Support hurt, however, by $6 million negative advertising campaign

Public support for a new bridge between Canada and the U.S. at Detroit is growing, but a $6 million negative advertising campaign against the New International Trade Crossing has taken its toll, according to published reports.

The poll, sponsored by the Detroit Free Press and a local television station, found that opponents had a 9 point advantage, but only a few months ago opponents outnumbered supporters 2-1. Support for the new bridge is strongest in the three counties that comprise the Detroit metropolitan area. Read more here.

Michigan to Build Ambassador Bridge Ramp Within Months

2012-01-27T22:43:00.000-08:00

(Journal of Commerce Online – R.G.Edmonson)

Latest development in battle between MDOT, bridge owner

The Michigan Department of Transportation said it will build an off-ramp connecting the Ambassador Bridge, the busiest U.S.-Canada crossing, to two interstate highways within the next few months.

MDOT received the federal go-ahead after Detroit International Bridge Co., the owner of the bridge, deeded the property to the department. MDOT and DIBC have battled over who should have to build the bridge for two years, with the fight most recently leading to the brief jailing of bridge owner, Manuel “Matty” Moroun. Read more here.

U.S. Cargo Crime Hits New High

2012-01-23T22:05:00.000-08:00

(International Freighting Weekly – David Badger)

More trucks are hijacked, but better security means gangs are forced to target lower-value shipments

Cargo crime in the US hit another record high in 2011, as criminal gangs escaped with hauls worth an average of almost $320,000 – but this figure is down on recent years. In its annual U.S. Cargo Theft Report, FreightWatch International, a global logistics security services provider, said 974 cargo theft incidents were recorded last year.

CEO Barry Conlon said: “While the rate of theft continues to rise, we are pleased to see the average value per incident begin to decline. This shows that shippers, and the industry as a whole, are beginning to secure their high-value cargo more effectively, forcing criminals to target less-valuable loads.” Read more here.

Identity Theft: Just Who is it that is Picking up Your Cargo? – February 9, Mississauga

2012-01-23T03:13:00.000-08:00

(CIFFA eBulletin)

Please join expert legal and insurance panelists, colleagues and Directors from CIFFA’s National Board in an engaging morning discussion focused on some current issues facing freight forwarders, importers and exporters.

In the panel discussion  ”If Everything is Coming Your Way, You’re Probably in the Wrong Lane”  Canada’s leading transportation legal and insurance experts share their take on risk filled scenarios that should be top of mind as we head into 2012. When business people start taking short cuts, and things seem to be going just a bit too efficiently.... there may well be a price to be paid. By not following convention or best practices in the securement of bills of lading, or in the lack of due diligence or screening in the selection of interline or other carriers, things could go from not so great to worse. Invite your clients to join us as we explore two current issues in today’s commercial environment that are fraught with risk.

February 9, 2012   Delta Meadowvale Resort Hotel, Mississauga

$55 + HST        CIFFA Members and Guests

08:00 – 08:30    Full breakfast
08:30 – 10:00    Panel Discussion

Release of Cargo Without the Original Bill of Lading – Error or Fraud?

Exactly what are the consequences of releasing cargo before obtaining original BLs? What steps should the reputable forwarding company take to mitigate risks? We’ll review some of the commercial realities freight forwarders face every day – and the risks attached to those realities for freight forwarders and importers.

Identity Theft: Just Who is it that is Picking up Your Cargo?

The involvement of a surface transport freight intermediary and “double brokering” practices may present efficiencies in the movement of cargo but they also enhance the risk of the theft and of cargo not making it to destination. What is happening in the current market and what steps might be taken to prevent “identity theft”?

Expert Panelists:
Gordon Hearn, Fernandes Hearn LLP.
Gavin Magrath, Magrath O’Connor LLP
Len Notaro, CG&B Group

Register on-line today at: https://www.ciffa.com/events_register.asp

Changing Pallet Rules to Add Costs of Shipping to Canada

2012-01-20T12:24:00.000-08:00

(The Packer – Tom Karst)

The U.S. and Canada are expected to change the requirements for wood pallets transporting goods between the two countries. Industry officials said the change will add costs for shippers and may stress supplies for shippers in both countries not already using heat-treated ISPM15 compliant pallets.

The proposed regulation on the requirements for wood packaging materials imported from Canada was published in December 2010, but the final rule has not yet been issued. The proposed rule eliminates an exemption allowing wood packaging material from Canada to enter the U.S. without first meeting the treatment and marking requirements required of wood packaging from all other countries. According to the proposal, removing the exemption is necessary to prevent invasive pests from entering the U.S.

“It was supposed to start last year, but the regulation did not get published and that’s why everything is on hold,” said Edgar Deomano, technical director for the National Wood Pallet and Container Association. Deomano said Canada is ready to enforce the regulation but is waiting for an agreement with the U.S. so the two countries can begin enforcement at the same time, he said. Read more here.

U.S.-Canada Border Crossings Increase 5%

2012-01-17T03:48:00.000-08:00

(Detroit Free Press)

Border crossings increased about 5% in 2011 over the previous year at 11 U.S.-Canada crossing sites, but the modest increase will do little to end debate on the need for a new bridge between Detroit and Windsor.

In all, some 37.1 million cars, trucks, buses and other vehicles crossed the border at the 11 sites among Michigan and upstate New York. Passenger car traffic rose 6.6% to 30.3 million crossings, while commercial truck traffic was flat from the year before at 6.7 million crossings.

The Ambassador Bridge remained the busiest crossing by far, accounting for 4.6 million passenger car crossings and 2.6 million truck crossings. Read more here.

Rail Traffic Surge Shows Canada Economy May Beat Growth Forecasts

2012-01-13T11:16:00.000-08:00

(Bloomberg)

A boom in traffic at Canadian National Railways Co. (CNR) and Canadian Pacific Railway Ltd. (CP), the country’s two largest rail companies, may mean Canada’s recovery will be buoyant even after economists and the Bank of Canada pared their outlook for growth this year.

Canadian freight volumes accelerated in the fourth quarter to their fastest pace in 2011 on a year-over-year basis, while commodity carloads were up 6.8 percent in December from November on a seasonally adjusted basis, according to data from the Association of American Railroads. Data from Statistics Canada showing stronger volumes in the August-October period also suggest future economic growth. Read more here.

Jailing Not Likely to Sway Opponents of a New Bridge

2012-01-13T09:41:00.000-08:00

(Detroit Free Press – Dawson Bell)

Billionaire Ambassador Bridge owner Manuel (Matty) Moroun had a bad day Thursday. But he probably doesn’t have to worry that being jailed for contempt of court improves the chance Gov. Rick Snyder will persuade the Legislature to approve construction of a publicly owned bridge a few miles downriver from Moroun’s crossing.

Opponents of the public bridge project, which is languishing in the state Senate after it was rejected in committee last fall, said Moroun’s incarceration was irrelevant to their concerns about Snyder’s proposal.

“How Matty Moroun conducts his business is not a major concern with our members,” said Ari Adler, a spokesman for House Speaker Jase Bolger, R-Marshall. “Our concerns are about the proposed new bridge, the need for it” and the potential that taxpayers could end up on the hook if it can’t pay for itself.

Amber McCann, spokeswoman for Senate Majority Leader Randy Richardville, R-Monroe, who sponsored the bridge bill, said it was unlikely the views of lawmakers on either side of the issue would shift because Moroun and Detroit International Bridge Co. President Dan Stamper were jailed for contempt. Read more here.

Canada-U.S. Bridge: With Work Undone, Billionaire and Aide Jailed

2012-01-13T08:27:00.000-08:00

(LA Times)

The United States and Canada peacefully share the world’s longest border, but a bridge linking the two countries has prompted legal fireworks -- including the jailing of an 84-year-old billionaire and one of his top business aides.

Wayne County Circuit Court Judge Prentis Edwards on Thursday ordered Manuel “Matty” Moroun, 84, and Dan Stamper, an executive with Detroit International Bridge Co., to jail for failing to comply with deadlines to build freeway connections to the Ambassador Bridge, which links Detroit and Windsor, Ontario.

Both men were taken out of a Detroit courtroom and sent to jail until they comply with the judge’s order that they complete their contract with the state to build the connecting ramps. Read more here.

NAFTA Surface Trade Rose 12% in October

2012-01-06T10:10:00.000-08:00

(Journal of Commerce Online – Joseph Bonney)

U.S. trade up 28.7% from two years ago, up 8.7% from 2008

The value of trade using surface transportation between the U.S. and Canada and Mexico rose 12% to $79 billion in October, the Transportation Department reported. Totals were up for trade with both U.S. partners in the North American Free Trade Agreement. U.S.-Canada trade posted a 14.1% year-over-year gain to $46.4 billion. U.S.-Mexico trade rose 9.1% to $32.6 billion. Read more here.

U.S.-Canada Trade Agreement May Begin to Benefit Trucking This Year, Execs Say

2012-01-05T11:40:00.000-08:00

(Frederick Kiel — Transport Topics)

Trucking executives said the industry could see some benefits of the recently announced U.S.-Canadian trade agreement as early as this year.

President Obama and Canadian Prime Minister Stephen Harper signed an agreement on Dec. 7 at the White House dealing with a range of trade and border issues. The agreement built upon a framework assented to in February.

“Trucking should benefit from specific objectives listed, including an integrated cargo security strategy, developing pre-clearance initiatives to relieve border congestion, provide information on border wait-times and service levels, establishing a single window for electronic data submissions and enhancing border infrastructure,” American Trucking Associations said in a statement. Read more here.

Canadian Ports Say U.S.-Bound Traffic Has Fallen

2012-01-05T10:01:00.000-08:00

(Journal of Commerce Online– R.G.Edmonson)

Ports tell FMC that U.S.-bound container traffic has fallen 3.2% since 2000

Four Canadian ports said Wednesday their share of U.S.-bound containerized cargo has dropped in the last decade, contrary to the claims of members of Congress and U.S. West Coast ports that spurred a Federal Maritime Commission inquiry.

The ports of Prince Rupert, Vancouver, Halifax and Montreal told the Federal Maritime Commission that in 2010 their share of U.S.-bound containers was 2.5% in 2010, down from 3.2% in 2000. In contrast, U.S. ports handle more than 8% of the containers destined for Canada. Read more here.

TransCore's Canadian Freight Index Steady in November

2011-12-22T13:33:00.000-08:00

(Canadian Transportation & Logistics)

TransCore's Canadian Freight Index remained steady in November with no change from October levels, the company announced. However, year-over-year load volumes increased a "healthy" 17%, according to TransCore officials.

Historically, November experiences a decrease in spot freight, but November 2011 was the second-best November on record, with levels just behind those reached in November 2005. TransCore began recording data in 2001 when TransCore acquired Link Logistics.

Equipment postings in November were up 5% from October, however, the lowest levels for any November since 2005. Capacity was 8% below recorded levels for November 2010.

There was no change in the equipment-to-loads from volumes reached in October.

What Does 2012 Hold for the Logistics Industry?

2011-12-20T23:33:00.000-08:00

(Transport Intelligence – Thomas Cullen)

2011 was the third year of what has been called by the economist Paul Krugman, the “lesser depression”. This phrase attempts to describe the prolonged lack of growth as well as the periods of contraction seen over the past three or four years. Of course there will be some who immediately point out that emerging economies have been growing consistently and that world trade has continued to increase at a substantial rate.

Indeed the strength of world trade in particular has meant that for some parts of the logistics sector this period has been positive. 2011 saw modest growth with even previously savaged areas, such as automotive logistics, performing well. Only towards the end of the year have there been signs that demand is falling.

However, 2012 may not be such a good year. The second wave of macro-economic pain is likely to exact a heavier toll than the first. Read more here.

Canadian Trucking Alliance: Canada-U.S. Border Agreement Win-Win

2011-12-15T02:03:00.000-08:00

(Trucker News Services)

The Canadian Trucking Alliance is lauding a U.S.-Canada border agreement announced Dec. 7 by President Barack Obama and Canadian Prime Minister Stephen Harper as an “historic achievement that takes meaningful steps to bring the Canada-U.S. border into the 21st century,” adding that trucks are the “major mode of trans-border freight transport between the world’s largest bilateral trading partners.”

David Bradley, president of the 4,500-member company trucking alliance, said it was a great day for both countries. “The leaders and the governments of both great nations are to be commended,” he said. “The action plans effectively balance security and trade imperatives while restoring a meaningful return-on-investment in the trusted trader programs and creating the opportunity for a more efficient and productive border.” Read more here.

Truckload Carriers Bullish on 2012 Rates

2011-12-12T15:19:00.000-08:00

(Journal of Commerce Online – William B. Cassidy)

More than half of truckers in TCP survey expect pricing, volume to rise next year

A large majority of truckload carriers expect freight volumes and truck rates to rise next year, according to new survey.

Optimism buoyed by manufacturing demand and pre-holiday sales appears to offset economic uncertainty. More than 60% of truckload carriers surveyed in November said they expect volumes to increase in 2012. Only 2% expect freight levels to drop next year, trucking analysis and research firm Transport Capital Partners said. Read more here.

Railroads, Unions Reach Tentative Accord

2011-12-02T13:41:00.000-08:00

(Journal of Commerce Online – Mark Szakonyi)

Agreement with engineers, dispatchers eliminates strike threat — for now

Two unions representing railroad workers have reached tentative agreement with major U.S. railroads, averting the immediate threat of a national labor action.

The move relieves shippers’ fear of an immediate labor strike or stoppage as early as next week that would have crippled shipping amid the peak holiday season. Agreements have been struck with 12 of the 13 railroad unions, most recently with the Brotherhood of Locomotive Engineers and Trainmen and the American Train Dispatchers Association, which represent approximately 26,500 workers. Read more here.

Ground Transportation Costs Remain Constant, Base Rates Fall in September

2011-12-02T13:35:00.000-08:00

(Canadian Transportation & Logistics)

The cost of ground transportation for Canadian shippers in September remained the same month-over-month, according to the latest figures from the Canadian General Freight Index (CGFI).

However, the Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, decreased by .1% for the same period. It was the first decrease in base rates since March.

Offsetting the decrease in base rates were slight increases in both average fuel surcharges assessed by carriers and other accessorial charges. During this period, fuel surcharges assessed by carriers equated to 20.16% of base rates, up from 20.1% in August. The combined effect of lower base rates and higher accessorial charges resulted in no change in average transportation costs for Canadian shippers, according to the report. Read more here.

Monthly Surface Trade with Canada and Mexico Down 3.3% in September

2011-12-01T01:36:00.000-08:00

U.S. monthly surface transportation trade in goods with NAFTA partners Canada and Mexico fell 3.3% in September after an 11.1% gain in August, according to statistics released Nov. 29 by the Department of Transportation. The September total of $77.7 billion was up 13.8% from a year before. Over the last ten years total surface transportation trade with Canada and Mexico has risen 83.0%, including a 99.0% gain for exports and a 71.3% increase for imports.

Surface transportation includes freight movements by truck, rail, pipeline, mail, foreign-trade zones and other modes and in September accounted for 85.6% of U.S. trade by value with Canada and Mexico. Surface trade between the U.S. and Canada totaled $46.1 billion, down 2.9% from August but up 14.7% from a year before. Exports fell 4.5% for the month but were up 10.3% from the previous September, while imports saw a 1.4% monthly decline but an 18.8% rise year-on-year. U.S.-Mexico surface transportation trade totaled $31.6 billion, down 4.0% from August but 12.5% higher than the previous year. Exports and imports were down 6.0% and 2.3%, respectively, for the month but rose 16.8% and 9.2% over September 2010.

Vancouver Sees a Rosier Picture, 40 Years On

2011-11-25T10:21:00.000-08:00

(International Freighting Weekly – Pete Goldin)

Canadian gateway views zero-carbon leadership as key to the future

When Port Metro Vancouver in Canada releases its Port 2050 report tomorrow, it will cite expectations that sustainability leadership will lead to considerable long-term growth and prosperity.

The goal of Port 2050 is to engage a range of stakeholders to create a strategic vision – and positively impact the port’s future – by exploring two key questions: what will the port look like in the next 20 and 40 years, and what is good growth?

The report covers alternative scenarios of the world’s and the port’s future. Vancouver plans to work toward two of those scenarios which are expected to generate “considerable growth across cargo sectors”. Read more here.

North American Trade Improved Last Year, but Still Below 2008

2011-11-23T14:21:00.000-08:00

(International Freighting Weekly – Pete Goldin)

Data shows 25% increase in cross-border freight

The US Bureau of Transportation has released updated 2010 statistics as part of the North American Transportation Statistics (NATS) database, that shows improvements in the volume and value of trade with Canada and Mexico.

In 2010, goods valued at more than US$918 billion crossed the US border with Canada and Mexico, 24.9% up on 2009, according to the NATS online database. However, the value of trade last year was still lower than in 2008. Read more here.

TransCore’s Canadian Freight Index up 19% in October

2011-11-23T14:10:00.000-08:00

TransCore’s Canadian Freight Index surged 19% year-over-year in October. However, the index, which monitors freight movement on the spot market, saw its month-over-month numbers drop 5% to start the fourth quarter.

October recorded the highest same-month freight volume since October 2005. While October levels were down from the previous month, volume exceeded nine of the 12 months of 2010 and was the seventh highest spot market freight volume this year.

Equipment postings in October were down slightly, 2% behind September volume. Capacity was 8% below recorded levels for October 2010.

The equipment-to-loads remained largely unchanged from September, according to the index.