Unleashing Pool Power
Port of Long Beach / http://www.polb.com/news/displaynews.asp?NewsID=1419&TargetID=1
The San Pedro Bay ports are on track to move cargo faster by making a chassis supply problem a thing of the past.
The nation’s busiest harbor complex now has a “gray chassis fleet” – a new model for managing the equipment that drayage trucks use to haul containers – to ensure chassis are available when and where they are needed.
The gray fleet serving the ports of Long Beach and Los Angeles – which move nearly 40 percent of the nation’s containerized imports – is the first of its scope and size to tackle a problem experienced by all major U.S. ports in recent years. The program is already helping to relieve the region’s current congestion, and it is expected to help to prevent chassis shortages in the future.
“We are solving a systemic problem that has played a major role in cargo piling up on our docks,” said Port of Long Beach Chief Executive Jon Slangerup. “When you’re using a truck to move a container, both pieces of equipment – the tractor and the chassis – should always be available at the same time.”
The ‘Pool of Pools’
Effective March 1, three companies – Direct ChassisLink Inc. (DCLI), Flexi-Van Leasing Inc. and TRAC Intermodal – that own more than 80 percent of the fleet serving the San Pedro Bay ports began operating under a new agreement that allows their chassis to be used interchangeably. The landmark pact creates a “pool of pools” of more than 81,500 chassis.
All but one of the container terminals in the harbor complex, as well as off-dock rail yards, are participating. The remaining marine container terminal uses its own chassis fleet, but could opt to participate in the future.
“The concept is chassis interoperability,” said DCLI Senior Vice President and Chief Operating Officer Ron Joseph. “Terminal operators can load any chassis with any container and a motor carrier can return a chassis to any one of 12 terminals. This improves efficiencies by reducing chassis dislocation and empty miles.
“We also believe the gray fleet will improve turn times since the driver avoids returning the chassis to an originating terminal,” Joseph said. “Other real benefits include clean air gains. Fewer truck trips, lower emissions.”
A team of representatives from each of the three pool operators oversees and coordinates the day-to-day logistics and repositioning of the combined fleet. The pools remain commercially independent, with each chassis provider competing for business and setting its own leasing terms and rates. A separate third-party service provider manages the accounting of the usage between the pools and other proprietary customer information.
Origins
Congestion problems that snowballed at West Coast ports in recent months highlighted the growing need to improve chassis availability and utilization across the supply chain. Previously, ocean carriers owned and provided the chassis, considered standard operating equipment, at no cost to cargo owners or trucking companies.
Over the past decade, shipping lines have been abandoning that model, which was unique to the United States. Accelerated by the recession, the trend led to a patchwork of new ownership and leasing models of non-interchangeable pools. It did not alter the fact that the vast majority of drayage trucks serving U.S. ports are not equipped with their own chassis.
Seeking a better model for the San Pedro Bay ports, the Port of Long Beach formed the Chassis Operation Group in 2012. Representatives of ocean carriers, terminal operators, beneficial cargo owners, trucking companies, the railroads, labor and the Port of Los Angeles came together to explore solutions.
“The group identified a gray chassis fleet as the best solution for our gateway,” said the Port’s Managing Director of Commercial Operations and Chief Commercial Officer, Dr. Noel Hacegaba. “That collaboration set the stage for the ‘pool of pools.’ ”
DCLI, Flexi-Van and TRAC began meeting in fall 2013 to develop the new model. In addition to working with the two ports, the companies collaborated with the Harbor Trucking Association, beneficial cargo owners and other industry stakeholders.
The process also involved submitting the gray fleet proposal to the Antitrust Division of the U.S. Department of Justice, which found, “The increased flexibility created by the interchangeability will enhance customer service, improve chassis productivity and respond to the desire of the Long Beach and Los Angeles ports authorities to achieve better overall utilization of the region’s chassis fleets.”
At the recent Journal of Commerce Trans-Pacific Maritime Conference in Long Beach, executives of DCLI, TRAC and Flexi described the gray chassis pool as an emerging model they expect will evolve. DCLI CEO Bill Shea, TRAC President and CEO Keith Lovetro, and Flexi-Van Executive Vice President Phil Connors said their companies continue to work closely with other links in the chain to further harmonize operations and improve chassis utilization and supply.
More Solutions Ahead
In recent months, lack of available chassis compounded delays created by a combination of factors: cargo growth, changing dynamics in the shipping industry, a shortage of rail cars due to demands in other markets and protracted contract negotiations between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU). On Feb. 20, the PMA and the ILWU announced a tentative agreement on a new five-year contract covering nearly 20,000 workers at 29 West Coast ports.
To augment the chassis supply when demand is greatest, the Port of Long Beach is pursuing its own peak season pool. The Port expects to issue a formal request for proposals in the coming weeks for an operator.
Also this month, the Port extended a lease with Pasha Stevedoring & Terminals L.P. to continue operating a temporary container storage depot on Pier S through Sept. 30. The Port also expanded use of the 30-acre site to include staging chassis and wheeled loaded containers.
The ports of Long Beach and Los Angeles are also now free to jointly pursue regional solutions to avoid future delays and logjams. In late February, the Federal Maritime Commission (FMC) granted the ports’ request to collaborate with their industry partners on projects and programs aimed at eliminating supply chain inefficiencies of vessel, marine terminal, trucking, chassis and railroad operations. Representatives of the two ports plan to hold their first meeting March 23 to map out how they will move forward together.
Ports Begin Talks to Improve Supply Chain Efficiencies
Port of Long Beach / http://www.polb.com/news/displaynews.asp?NewsID=1430&TargetID=1
Long Beach, Los Angeles collaborate to improve cargo flow
Top executives from the ports of Long Beach and Los Angeles held a kickoff meeting earlier this week to begin working together to focus on cargo conveyance strategies that will enhance velocity and efficiency throughout their gateway's supply chain.
In their first meeting under the formal discussion agreement recently approved by the Federal Maritime Commission, ranking staff of the two San Pedro Bay ports — the busiest seaport complex in the United States — agreed that the primary goal of the collaboration is to get cargo moving more efficiently.
The initial meeting, held at Port of Long Beach headquarters, set the stage to discuss a framework for how the ports will cooperate, work with stakeholders from throughout the supply chain and communicate the results of the efforts.
At the end of February, the Federal Maritime Commission agreed to allow the two ports to cooperate far more strategically on finding new ways to prevent congestion and cargo delays, improve the transportation network and enhance air quality. The decision came after several months of severe congestion and shipment delays caused by a number of factors.
"Through this working group, we will engage with our stakeholders to discuss issues and develop solutions for optimizing cargo flow through our ports," said Port of Los Angeles Executive Director Gene Seroka. “Our ports, customers, labor force and supply chain partners are committed to taking this gateway to a new and higher level of performance, and we’ll accomplish this by working together.”
“Our shared goal is to optimize the performance of the trans-Pacific supply chain,” said Port of Long Beach Chief Executive Officer Jon Slangerup. “The San Pedro Bay has always been the fastest route between Asia and the U.S. and I’m confident we will find ways to significantly increase the velocity of goods movement and overall efficiency of our end-to-end system, thereby reinforcing our gateway as the No. 1 choice for shipments to and from Asia.”
The ports will discuss innovative approaches to improving the efficiency of marine terminal, trucking, rail and vessel operations. The ports also plan to discuss legislative advocacy, security enhancements, infrastructure, technology and environmental improvements related to supply chain optimization.
The deployment of larger ships, coupled with a new level of vessel-sharing dynamics created by carrier alliances, have created congestion issues at many large ports, but the problems have been especially severe at the San Pedro Bay ports due to the higher volumes of intermodal cargo that flow through the gateway.
The Port of Los Angeles and Port of Long Beach are the two largest ports in the nation, first and second respectively, and combined are the ninth-largest port complex in the world. The two ports handle approximately 40 percent of the nation’s total containerized import traffic and 25 percent of its total exports. Trade that flows through the San Pedro Bay ports complex generates more than 3 million jobs nationwide.
CITES Country-Specific Trade Suspensions
U.S. Fish & Wildlife Service / http://www.fws.gov
Background: At the 65th meeting of the Standing Committee of CITES (July 2014), eight countries of concern in the poaching of elephants and illegal trade in ivory, were directed to develop and submit a National Ivory Action Plan. On March 19, 2015, the CITES Secretariat issued Notifications No. 2015/012, 2015/013, and 2015/014 indicating that the Standing Committee recommend all countries suspend commercial trade in specimens of CITES-listed species with the Democratic Republic of the Congo, the Lao People’s Democratic Republic, and Nigeria until further notice for failure to submit the required National Ivory Action Plan.
The Endangered Species Act prohibits trade (import, export, re-export, and introduction from the sea) in specimens contrary to the CITES Convention. Articles II and VIII of the CITES treaty require countries to take appropriate measures to enforce provisions of the treaty and to prohibit trade in specimens that are in violation. These treaty measures also require countries to monitor trade in CITES-listed specimens and file required reports. CITES documents may only be issued and considered valid when it is determined that the specimens have been legally acquired and when the country is appropriately implementing the treaty.
As a member of CITES, the United States is committed to carrying out decisions and policies approved by CITES countries that reflect appropriate interpretations of the treaty. The failure by a country to file the required reports constitutes a major problem with implementation of CITES. In addition, when countries fail to implement the required CITES legislation, the United States cannot establish the legal origin of wildlife that is exported or re-exported from the affected country. The United States also cannot allow trade to the affected country since the necessary enforcement provisions are not in place to ensure the CITES treaty is being implemented.
Action: Effective immediately, the United States will:
- Prohibit the commercial import or introduction from the sea of CITES-listed specimens from the Democratic Republic of the Congo, the Lao People’s Democratic Republic, or Nigeria;
- Prohibit the commercial export or re-export of CITES-listed specimens to the Democratic Republic of the Congo, the Lao People's Democractic Republic, or Nigeria; and
- Prohibit the commercial import of CITES-listed specimens with a country of origin of the Democratic Republic of the Congo, the Lao People’s Democratic Republic, or Nigeria when such specimens were exported from the restricted country of origin on or after March 19, 2015.
All such prohibited shipments or specimens are subject to seizure and forfeiture. Additional information on CITES trade suspensions may be found at: http://www.cites.org/eng/resources/ref/suspend.php.
$430,000 in Counterfeit Perfume Seized at Champlain Port of Entry
US Customs & Border Protection / http://www.cbp.gov/newsroom/local-media-release/2015-03-24-000000/430000-counterfeit-perfume-se
CHAMPLAIN, N.Y. – On March 19, U.S. Customs and Border Protection officers working at the Champlain port of entry seized over $430,000 in counterfeit perfume.
“This is an excellent seizure that protects the country’s economy and the consumer,” said Paul Mongillo, CBP port director for the Port of Champlain. “If you purchase counterfeit perfume, you don’t know what’s in it, or what chemicals were used to make it.”
“While counterfeiters are becoming increasingly sophisticated in their efforts, consumers can still act as the first line of defense in protecting themselves from substandard and often dangerous goods," said James Spero, special agent in charge of Homeland Security Investigations (HSI) Buffalo. "We urge consumers to look for the tell-tale signs including prices that are too low and inferior quality in product materials. Saving a couple bucks is not worth risking your health."
On February 21, CBP officers encountered a tractor trailer hauling a commodity listed as perfume. Initial review of the shipment revealed suspicious labeling and packaging consistent with counterfeit goods. Further review by CBP import specialists confirmed the goods were counterfeit and violated trademarks from the following manufacturers: GUCCI, Calvin Klein, Miss Dior, Juicy Couture, Ralph Lauren, and Carolina Herrera.
The shipment was seized for bearing marks identical with or substantially indistinguishable from trademarks.
The seizure was a result of a joint effort with Immigration and Customs Enforcement HSI Special Agents.
CBP at JFK Seizes Counterfeit US 100 Dollar Bills Arriving in Parcels through an Express Cargo Facility
U.S. Customs & Border Protection / http://www.cbp.gov/newsroom/local-media-release/2015-03-24-000000/cbp-jfk-seizes-counterfeit-us-100-dollar-bills
JAMAICA, N.Y. — U.S. Customs and Border Protection officers at John F. Kennedy’s International express cargo facility seized $65,200 dollars in counterfeit 100 dollar bills.
On March 21, CBP officers found $65,200.00 counterfeit $100 U. S. bills concealed in place mats and a shoe bag from Ecuador.
“Every day CBP officers are protecting the American public from various dangers,” said Robert E. Perez, Director of CBP’s New York Field Operations. “This seizure is a testament to the dedication our Officers demonstrate daily in support of CBP’s mission.”
“Partnerships, as we have with CBP at JFK, are essential in preventing counterfeit currency from entering the United States,” said John McQuade, Resident Agent in Charge of the Secret Service’s JFK office. “Cooperation among agencies at JFK, and throughout New York, has allowed us to focus our resources and respond quickly to uncover and prevent counterfeiting and other criminal activity.”
A total of $65,200 (652 - $100.00 notes) of counterfeit U. S. currency was seized; this investigation is ongoing and no arrests have been made yet.
Decisions on Import of Sport-Hunted Trophies Support Conservation of Rhinos and Elephants
U.S. Fish & Wildlife Service / http://www.fws.gov/
Based on extensive assessments of the associated conservation and management programs, the Service finds that the import of two sport-hunted black rhinoceros trophies from Namibia will benefit conservation of the species, while the import of any elephant sport-hunted trophy from Zimbabwe will not. Under the Endangered Species Act, the Service authorizes imports for sport-hunted trophies of elephants and rhinos only when hunting in the country of origin is well-regulated, sustainable and benefits conservation of the species in question.
News Release