  Monday, March 15, 2010 |
China Shipping fined US$440,000 for 'unfair' rate cutting
WITHOUT admitting guilt, China Shipping Container Line (CSCL) has settled for a US$440,000 penalty from the US Federal Maritime Commission (FMC) for improper rate cutting on 1,000 shipments over four years, contrary to the 1984 US Shipping Act.
The carrier and three non-vessel owning carriers agreed to pay a total of $625,000 and desist from such activities and cooperate with further inquiries, reported American Shipper.
CSCL was charged with providing transportation services to intermediaries without tariffs, licences or bonds, mis-describing cargo and charges of shippers and charging below tariff rates.
New Jersey-based ATI USA Inc was also fined $115,000 for allegedly mis-declaring size of automobile shipments and charging below published rates.
Improper access to service contracts and charging below published tariffs were directed at the NVOs of Texas-based NVO MT Global Freight Solutions Inc and California-based Cosa Freight Inc, which included a violation of mis-described cargo shipped and paid $35,000 each in fines.
FMC chairman Richard A Lidinsky said the penalties should serve as a reminder to carriers "tempted to disregard the commission's rules against unfair or deceptive practices."
US retail February performance beats analysts' expectations
US retail sales unexpectedly rose last month, lifting optimism on the economic outlook, reported Dow Jones.
Retail sales rose last month by 0.3 per cent, the US Commerce Department said Friday as electronic store sales soared. Economists surveyed by Dow Jones Newswires had forecast a 0.3 per cent decrease.
Excluding the car sector, all other retail sales rose 0.8 per cent. Economists had forecast a 0.1 per cent increase.
Retail sales data, released just before next week's Federal Open Market Committee rate policy meeting, are an important indicator of consumer spending. Consumer spending makes up 70 per cent gross domestic product, which is the broad measure of American economic activity.
"This is a stronger-than-expected report across the board, mildly offset by downward revision to January. The market is clearly feeling this with prices lower across the board," said David Ader, head of government bond strategy at CRT Capital Group LLC.
Panama-fighting US West Coast Collaboration's makes moves
IN it first press release with its own letterhead, the US West Coast Collaboration (USWCC) group of western American transport interests has summed up its aims and objectives in a communique that says little else.
Founded at the World Shipping Summit in Qingdao last year in the face of west coast cargo being siphoned off to the east coast via the Panama Canal, the USWCC plans to counter these trends, magnified by the Panama Canal expansion that will double the waterway's capacity in 2015.
Banding together, the container ports of Los Angeles, Long Beach, Oakland, Portland, Seattle and Tacoma, as well as the BNSF Railway and the Union Pacific Railroad, delegates met at the recent Transpacific Maritime conference at Long Beach "to further the global gateway".
While many US Gulf and east coast ports have received more Asian cargo via Panama - and even Suez - it is the Port of Savannah made the point that keeping cargo on the water is cheaper, and having it land close to the consumer-rich American eastern seaboard is more convenient than hauling it across the vast and largely empty western states.
Fighting back, USWCC partners have made joint calls on members of Congress, participated in a National Port Summit with Transportation Secretary Ray LaHood and conducted a joint promotional programme at the Retail Industry Leaders Association's Logistics Conference.
Members are promoting the benefits of the US west coast as the premier region for trans-Pacific trade, by highlighting the west coast's advantages, which include: dozens of fast, frequent vessel services; six deepwater ports with excellent connections to key markets across North America; consistent, reliable inland rail service and capacity; a competitive cost structure; and the lowest overall carbon footprint for goods moving between Asia and markets in the US.
In addition to the panel discussion at the TPM conference, the group held a lunch with support from the International Longshore and Warehouse Union and the Pacific Maritime Association.
The group also is calling for a national goods movement plan to sustain America's role in global trade, create jobs and maximise the advantages of the west coast in moving cargo between Asia and the US.
Hong Kong stages biennial China Maritime Exhibition March 15-19
THE biennial China Maritime Exhibition will take place at the Hong Kong Convention and Exhibition Centre (HKCEC) in Wanchai from Tuesday March 16 to Thursday March 18 featuring 20 shipbuilders and other marine interests from 10 countries.
Nine engine and propulsion system manufacturers are exhibiting as are eight interior furnishings and seating suppliers. They will be joined by six deck machinery suppliers, 16 marine equipment manufacturers and a similar numbers of the world's best known names in marine electronics.
Also exhibiting will be classification societies, bunker suppliers, marine media, governments, educators and NGOs.
Marine Money magazine will sponsor a series of conferences on March 16 at the Renaissance Harbour View Hotel, next door to the HKCEC and on March 17 the Hong Kong Ship Owners Association will present a Senior Executive Forum: Future of Shipping followed by a luncheon sponsored by leading classification society Det Norske Veritas.
The guest speaker there will be Doug Woodring of Project Kaisei, who will describe his experience of investigating the North Pacific Gyre and make suggestions as to how this enormous mess of plastic and other land sourced garbage can be removed.
To conclude the Hong Kong Ship Owners Association is combining with the Marine Department of Hong Kong to present a "Year of the Seafarer" awards luncheon for the maritime industry on March 19.
The Containership Company to rely on simplicity to cuts costs
WHAT makes The Containership Company (TCC) the low-cost shipping company it claims to be is not necessarily lower rates, but simplicity of operation, co-founder Jakob Tolstrup-Moller told London's Financial Times in a recent interview.
Unlike the multi-port calls of full-service shipping lines, TCC ships will sail from Taicang, an obscure port facility within the precincts of Shanghai, directly to Los Angeles and straight back again. Fees would be structured in a simple fashion and vary with fuel prices.
With just US$25 million of capital, the company has fallen short of its $60 million fund-raising initiative, said the report. Currently listed on an over-the-counter exchange in Norway, TCC plans to issue a stock market listing later in the year.
US box retailer sees container housing increasing
JACKSONVILLE-based Conglobal Industries, one of the largest US retailers of intermodal equipment is seeing a trend for container units for housing or as office space within North Florida.
Container housing is a cheap alternative to buying a house in the wake of the subprime housing crisis and according to a University of North Florida official the study of the cargo unit for housing is ideal as "it's sensible, environmentally friendly and a great study for construction students".
The UFL study group are hopeful the steel cargo space can be shipped to disaster areas as temporary shelter reports Associated Press.
Russia launches second Sillamae Container Terminal (SCT)
ESTONIA's Port of Sillamse (Silport) will open a new container terminal in 2011 a year later than scheduled boasting a 850 metres of quay with a depth alongside of 14.5 metres to compete with the Russian port of Ust-Luga, according to Paris-based Alphaliner.
Siloport is located in eastern Estonia just 25 kilometres from the Russian border which has a container terminal with 1,000 metres of quay extendable to 1,500 metres.
US passenger compensation fines threaten flight cancellations
CONTINENTAL Airlines CEO, Jeffery Smisek has indicated that carriers would rather cancel flights than face the US Transportation Department's forced compensation to pay passengers for delays.
Speaking at a recent investor conference in New York, Mr Smisek stated his fear might develop after April when passengers kept on delayed flights in excess of three hours would be entitled to compensation of up to US$27,500 per person, which results in a $5 million loss on a fully-packed 757.
Aviation consultant Denny Kelly said the airline position had been taken to induce legislators to repeal the law, according to an NBC news report. Interviews with passengers suggest that the plan might backfire, with many stating that they would be willing to use a different carrier in the event of excessive cancellations, said the report.
DHL Express Sri Lanka opens new air-side gateway facility
DHL Express Sri Lanka has opened its airside Gateway Facility at Bandaranaike International Airport with an investment of LKR43 million (US$374,000), the company announced.
The facility, covering 4,572 square metres, is scaled to accommodate growth over the next five years and promises faster customs clearance and up to a half-day faster transit.
The Terminal 3 location enables DHL to provide enhanced solutions, said country manager Manish Patel "With this investment, the import and export processes have been made even more efficient with greater focus on speedier operations," he said.
The facility is fully equipped with CCTV, material handling equipment, radio frequency scanners, customised racking system, electronic data interface, 24/7 in-house customs and security screening.
Chengdu-Bangalore air service launched
THE first air route from south western China city of Chengdu to Bangalore, known as "India's Silicon Valley" in the south of India, has been launched by Air China, Logistics Week reported.
The service offers two flights a week using Boeing 757. Flight distance is 3,940 kilometres and duration is about five hours. The Bangalore-bound flight takes off at 2030 hrs every Wednesday and Saturday, reaches Bangalore at 2310 hrs (local time). The return flight leaves Bangalore at 0020 hrs (local time) every Thursday and Sunday and reaches Chengdu at 0720 hrs.
Mayor of Chengdu Ge Honglin has taken the maiden flight to Bangalore to attend a tourism promotion for the city there.
Launch of the line has raised the number of Chengdu's international services to 12.
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