C-TPAT Mutual Recognition Decision

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New Colon Container Terminal Approved at Panama – The Panama Canal Maritime Authority has granted permits for a fourth container terminal to be built at the end of the Panama Canal. The $600 million terminal will be built by a consortium of private Asian developers called the Panama Colon Container Port LLC, and will be designed to have an annual capacity of two million TEUs.

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Free Trade Zone Discussed between China, Japan, and South Korea – Trade ministers from China, Japan, and South Korea are scheduled to discuss the possibility of a trilateral free trade area (FTA) this week. However, since the ninth gathering between the officials in China last week, China and South Korea launched negotiations for a bilateral FTA. This could be a risk for Japan which is pushing for a trilateral FTA.

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Civil War Ironclad Inhibits Harbor Dredging – The U.S. Army Corps of Engineers are in charge of the $653 million dredging project to deepen Savannah’s harbor, river, and shipping canal out to sea from 42 feet to 47 feet. However, the wreck of the Confederate States Ship Georgia was scuttled by Confederate sailors in 1864 and now lies 40 feet below the surface of the Savannah River. The Corps plans to contract marine archeologists to survey, salvage, and conserve the historical artifact so that the project can continue. Savannah won’t be able to handle new super-sized container ships coming through the Panama Canal in 2014 until the harbor is dredged.

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Drayage Strike at Port Klang

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China and South Korea Discuss Free Trade Pact – China and South Korea will begin discussing the terms of a free trade agreement this month. Since a free trade agreement will be strategic from both economic and political standpoints, both countries are interested in establishing the accord as soon as possible. The two countries’ goal is to lift trade to $300 billion by 2016.

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Cotton Export Ban Lifted – Last month Indian authorities imposed a restriction on cotton exports after record overseas sales caused concern about domestic supplies. As the world’s second-largest producer and exporter of cotton, the government justified the ban by saying that India needed to protect supplies for its own cotton mills. Trade Minister Anand Sharma has stated that registration for cotton exports will be allowed, but will be reviewed on a fortnightly basis.

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Clean-Air Program for Ships at Port of Los Angeles – The Environmental Ship Index (ESI) is a clean-air program for vessels that is projected to significantly reduce harmful emissions such as sulfur oxide, carbon dioxide, nitrogen oxide, and diesel particulate matter. The Port of LA is the first US port to adopt this program; however, 14 European ports have already embraced it. Under the ESI, vessel operators are rewarded for implementing voluntary engine, fuel and technology enhancements that reduce vessel emissions beyond the regulatory standards.

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Port of Tanjung Priok Container Terminal Project Approved

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Clean Sailing Cargo Ships – Japan has three projects in progress to make ships more ecologically sustainable by adding masts, sails, and other efficiency technologies. The Wind Challenger will use carbon-fiber sails to reduce CO2 emissions by up to 50%. The Aquarius MRE, from Eco Marine Power, incorporates solar panels, lithium batteries, control systems and sails in order to cut fuel costs 10-20%. Lastly, the NYK Super Eco Ship will use fixed sails, aiming to reduce emissions 69% by 2030.

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Port of Los Angeles to Invest in Infrastructure – The Port of Los Angeles is investing billions of dollars into its transportation infrastructure in an effort to maintain its ranking as the largest container port in the US. The port‘s ranking is threatened by North America’s Pacific Coast ports competitive intermodal service to the Mideast. East and Gulf coast ports are preparing to launch a similar development project once the Panama Canal expansion project is completed in 2015.

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Port of Melbourne Redevelopment – Ted Baillieu, Premier of Victoria, has announced a $1.2 billion redevelopment of the Port of Melbourne with hopes of solidifying Victoria’s reputation as the freight and logistics capital of Australia. The focus of the project will be the construction of a new container terminal at Webb Dock while infrastructure upgrades will also be made at Swanson Dock in order to increase existing container capacity. This announcement is an important part of the Coalition Government’s plan to provide the infrastructure required to meet growing demand.

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US-Colombia Free Trade Agreement Effective in May

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Sabine Pass Natural Gas Export Plant Approved – The Federal Energy Regulatory Commission has voted in favor of Cheniere Energy’s plan to build a giant natural gas liquefaction and export terminal at Sabine Pass, which straddles the Texas-Louisiana border just north of the Gulf of Mexico. This $10 billion, 500-acre project is scheduled to begin before July.

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Facial Recognition in China’s High Speed Rail Stations – The Beijing-Shanghai high speed rail line is planning on installing facial recognition surveillance systems at three of its stations: Shanghai Hongqiao, Tianjin West, and Jinan West. The identification system will allow officials to identify criminals via surveillance cameras and will work even when people are moving. Police say the real-name ticket purchasing system also helps them catch criminals.

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Port of Stockton Public-Private Partnership Project – The Port of Stockton has put together a public-private partnership that has recently completed a $1.2 rail project. The project is funded by the port in partnership with Union Pacific Railroad and Metropolitan Stevedore. The additional 5,825 feet of new track will allow the Port of Stockton to double its volume of iron ore and coal exports.

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Panama Canal NADO Report March 2012

Panama Canal Improvements May Cause Freight Flow Changes – The Panama Canal Expansion project may potentially change global freight flows by causing a shift in a percentage of Asian imports to the East and Gulf Coasts. This could affect transportation and economic networks. The National Organization of Development Organizations has released a report to help regional planning organizations prepare to take advantage of the changes.

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Mombasa Port to be Expanded and Modernized – The dredging of the Kilindini Harbour in Mombasa, Kenya will deepen the channel by 15 meters and widen it to 500 meters in order to accommodate larger vessels of up to 4,500 TEUs. Currently, the port can only accommodate ships with an average length of 200 meters and 2,000 TEU. Although the project is expected to be completed in August, the work will be completed this month instead. As a result, the Kenya Port Authority is facing new pressures to expedite the expansion and modernization of the Mombasa port.

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Reverse Logistics in Cuba – In Cuba businesses are forced to deal with extreme resource scarcity where a lack of food, medicine, electricity, and raw materials is a daily struggle. As a result, Cuba has created supply chains that re-use and re-cycle almost everything, despite the lack of government-mandated recycling programs. This adaptation to recycling may be the type of closed loop supply chains need in the future.

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South Texas Alliance for Regional Trade – The ports of Corpus Christi, Laredo and San Antonio are working on ways to begin their land-sea-air joint marketing initiative, the South Texas Alliance for Regional Trade. The initiative was created in 2011 after the ports came to a consensus to build working relationships that could facilitate trade. The Alliance would market South Texas’ energy, aerospace, manufacturing, consumer and military industries, among others, to the rest of the world through Corpus Christi’s water connections and air and land connections in San Antonio and Laredo, which is the largest inland U.S. port.

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Logistics to the Power of 10

Dedola Obliterates 3PL Industry with New 10PL Service – In case you haven’t already heard, Dedola has recently revolutionized the logistics industry by launching the world’s first 10PL service on April 1st.  If you’re itching to find out more, check out Stephen Dedola’s introduction of our groundbreaking new service in a short video available at www.dedola.com/10PL HAPPY APRIL FOOLS!

Frankfurt Night Flight Ban Upheld in Court – A German court has upheld a controversial ban on night flights at Frankfurt airport, Europe’s second largest air freight hub. The court ruled in favor of a ban on flights between 11 p.m. and 5 a.m. and also reduced the number of flights permitted an hour before and after these times from 150 to 133. The new restrictions are a response to local citizens’ complaints about noise.

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SMART Port Security Act – The US House of Representatives Homeland Security Subcommittee on Border and Maritime Security has begun their review of Securing Maritime Activities through Risk-based Targeting for Port Security Act (SMART Port Security Act) or HR 4251. The purpose is “to authorize, enhance and reform certain port security programs through increased efficiency and risk-based coordination within the Department of Homeland security.”

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Free Trade is Main Topic at North American Summit – Canadian Prime Minister Stephen Harper met with U.S. President Obama and Mexico’s President Felipe Calderon at a North American summit earlier this week to secure a public endorsement for Canada’s aspirations to join in the Trans-Pacific Partnership (TPP). The TPP is a nine-member Asian-Pacific free-trade proposal being negotiated among the U.S., Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. Canada, Japan and Mexico have all signaled they want in on the talks.

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Turkey-South Korea Framework Agreement

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Seaway Pipeline Expansion – Enbridge Inc. and Enterprise Products Partners LP will more than double the capacity of the Seaway Pipeline as a way of easing the oil glut of crude in the U.S. Midwest by adding 450,000 barrels per day (bpd). According to Enbridge the additional barrels will raise the pipeline’s capacity to 850,000 bpd by mid-2014. The company also plans on increasing the size of its Flanagan South Pipeline.

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Import Trade Auxiliary Communication System (ITACS) Now Available – The US Food and Drug Administration (FDA) has implemented an ITACS system as a way of improving communication between the FDA and the US import trade community. The ITACS provides three functions: the ability to check on the status of an entry, the ability to submit entry documentation electronically, and the ability to submit goods availability information for targeted shipments electronically. The ability for the ITACS to submit more detailed entry statuses than what is currently transmitted via the Automated Broker Interface (ABI) is one of the biggest benefits of this new system.

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Protest at Port Nehru – Port Jawaharlal Nehru, India’s largest container gateway, has been shut down due to a protest by local political parties and trade unions.  Protestors are upset over the delays in worker compensation packages. The strikers are forcing ocean carriers to skip calls at the port and have set up blockades on access roads to prevent trucks loading or unloading containers at cargo terminals.

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Georgia-EU Free Trade Agreement In Progress

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The Largest Container Ship Ever Calls at Port of LB – The Mediterranean Shipping Co.’s 12,500-TEU container ship, the Fabiola, is the largest container ship to ever call at a North American port. Many vessels calling trans-Pacific ports are already 8,000-TEU capacity; however, Long Beach anticipates that other carriers will gradually upgrade the size of their vessels. Long Beach is scheduled to spend $4.5 billion for marine terminal and infrastructure development in the next decade.

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U.S. Imposes Tariff on Solar Panels from China – After concluding that the Chinese government has provided illegal export subsidies to manufacturers, the U.S. Commerce Department stated that it will impose a small tariff on solar panels imported from China. Once the Commerce Department decides whether China is “dumping” solar panels into the U.S. at prices lower than their actual cost, additional tariffs could be imposed in May. Solar panels from China currently account for about half of the American market, while panels from the U.S. account for less than a third.

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Cotton Exports Banned in India – As the world’s second-biggest cotton producer and exporter, India has caused U.S. cotton futures to surge by banning all exports of cotton indefinitely. India imposed the ban because it’s worried about a possible supply crunch in the country. India’s move could start a new rise in cotton prices and in effect, a price spike for consumers.

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The Most Environmentally Advanced Terminal in the World –

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New Train Connection in Edmonton –Canadian National Railway (CN) is expanding its service to the Port of Prince Rupert in order to accommodate the growth of Alberta, one of the fastest growing industrial and consumer based economies in North America. Beginning in June, CN will add a container train connection to Edmonton and relocate its Calgary Intermodal Terminal to a larger logistics park. The new logistics park will provide Alberta fluid access to world markets as well as two prime export routes. The new facility is expected to be open in January.

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China Defends Rare Earth Export Restrictions – Earlier this week, the EU, U.S. and Japan went to the World Trade Organization (WTO) with a request to settle a dispute concerning China’s export restrictions on rare earth materials. The complainants claim that the export restriction was imposed for the sake of keeping rare earths in China for its own future use. Chinese officials have responded by stating that the rare earth restrictions have been made out of consideration for the environment and the sustainable utilization of resources, not export protection. Chinese Foreign Ministry Spokesperson Liu Weimin states that China provides more than 90% of the global supply of rare earth minerals and some control measures needed to be adopted.

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Joint Hearing Concerning NY-NJ Port Tolls – State Legislators are holding a joint hearing on April 20 at the Center for the Arts at the College of Staten Island to examine the “lack of accountability” of the Port Authority of New York and New Jersey. The hearing was called in response to last fall’s controversial toll hike along with internal and external audits critical of agency spending and other practices. The toll hike has already cut into the volume of containers handled by the New York Container Terminal on Staten Island because shippers are unwilling to pay the additional surcharges.

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Free Trade Agreement Between India and Indonesia Progresses

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Work on Liverpool Port Terminal Will Begin Next Year – Beginning next year, the Port of Liverpool will begin construction on a $480 million deep water container terminal. This new terminal will have the capability to simultaneously handle two container ships of 13,500 TEUs each and will double the port’s annual capacity to 1.5 million TEUs. The terminal is scheduled to open in 2015.

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NAFTA Forms Under Review – U.S. Customs and Border Protection (CBP) has issued a call to the general public for comments concerning information collections for the North American Free Trade Agreement (NAFTA) Regulations and Certificates of Origin. In regard to the Paperwork Reduction Act of 1995, certain CBP forms pertaining to the NAFTA Regulations and Certificates of Origin are being targeted for expiration. All comments must be received by March 22, 2012.

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New Export Control Offices for Investigating Shipments  – Two new export offices are being opened as part of President Obama’s multi-year effort to reform the country’s Cold War-era export control regime. The Information Triage Unit, operated by the Commerce Department Bureau of Industry and Security, will be a center for the exchange of information and will be in charge of administering the control laws. The Export Enforcement Coordination Center (E2C2), managed by Immigration and Customs Enforcement, will coordinate enforcement of activities of a number of agencies such as the FBI and the department of Homeland Security and Commerce. Both offices will expedite investigations into shippers believed to be illegally exporting goods that require federal approval and licensing.

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