Vilden Associates, Inc.

Clean-Air Program for Ships Picked Up By LA Port

admin — Thu, 24 May 2012 20:21:58 +0000

On May 10th, the Port of Los Angeles (POLA) became the first port in the U.S. to implement the Environmental Ship Index (ESI) to help reduce harmful vessel emissions. POLA is hoping the ESI program will help reduce the levels of sulfur oxide, carbon dioxide, nitrogen oxide, and diesel particulate matter in the port.

Under this program, vessel operators will be incentivized with financial assistance for implementing voluntary engine, fuel and technology enhancements that help reduce pollutants. The Los Angeles incentives will range from $250 to $5,250 per vessel call if they meet different requirements, such as engine specifications (Tier II, Tier III) and emissions certification, use of low-sulfur fuel and/or the capacity to use shore-side electrical power.

To participate, shipping lines must enroll their vessels through the IAPH/WPCI website as well as the port. Registration is free. The ESI program takes effect the first of July, with first incentive payments made in October.

ESI Fact Sheet: Click Here

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Trucking Executives Warn Shippers About Rising Costs

admin — Thu, 24 May 2012 20:20:09 +0000

Last Tuesday at the National Industrial Transportation League’s Freight Policy Forum in Washington, D.C., trucking executives from around the nation gave a stern warning about rising operation costs and how it can impact shipper’s budgets.

Carrier executives warned that shippers could face much higher transportation costs in 2012 as higher demand meets tightened capacity, coupled with rising driver wages, insurance premiums, and equipment pricing. One executive expects a 4 to 4.5 percent increase in total costs in 2012, which would trickle down to the carrier rates paid by the shippers. The topic concluded that motor carriers and shippers will only be able to manage these heightened costs and avoid potentially damaging rate spikes if they form close partnerships. Stay tuned as more unfolds

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TSA Proposing $600 Peak Season Surcharge

admin — Thu, 24 May 2012 20:18:17 +0000

Expecting a strong peak season, eastbound Pacific shipping lines are proposing a peak season surcharge of $600 per 40-foot units (FEU). The Transpacific Stabilization Agreement announced the proposed surcharge to take effect June 10^th with no expiration date given. Also, this surcharge is intended to apply to service contracts negotiated by retailers and other importers with ocean carriers.

This latest proposed surcharge doesn’t come as a surprise, as the TSA had been pushing rates up steadily throughout the year. Increases announced January 1^st, March 15^th and April 15^th have largely been successful.

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Diesel Prices Fall Below $4 a Gallon

admin — Thu, 24 May 2012 20:16:50 +0000

National Diesel prices fell below the $4 mark, slipping 4.8 cents in the week ending May 21st. The national average fell to $3.956, after dropping for five straight weeks. Year over year, the national average is 4.1 cents lower than it was at the period last year. However, prices are up 17.3 cents from where they were at the beginning of the year.

Prices fell in all regions, with the East Coast’s New England region, Central Atlantic, and the West Coast remaining above $4.

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Asia-Europe Carriers Rates Have Peaked

admin — Thu, 24 May 2012 20:15:41 +0000

After freight rates in the Asia-to-Europe container trade increased fourfold from December 2011 to now, it seems that the Asia-Europe carrier rates have finally reached their peak. Between December of last year and late April, spot pricing went from $490 per 20-foot equivalent (TEU) to $1,934 per TEU.

However, it seems the truce in the rate war between ocean carriers has ceased as forward rates have dipped going into May. Many carriers simply cannot agree on the state of the market, with many of them itching to deploy their new 10,000 plus TEU ships, most of which would enter the Far East-Europe trade lanes. With demand still recovering and new ships entering the market, it wouldn’t come as a surprise if the Asia-Europe trade rates continue to dip going into the second half of 2012. Stay tuned as more develops.

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Truck Tonnage Continues Slow Rise through March

admin — Tue, 01 May 2012 17:59:13 +0000

Truck freight continued its steady growth through March according to the American Trucking Association’s Truck Tonnage Index. The report shows that truck tonnage slightly rose by .2 percent from February. Year-over year, the adjusted tonnage rose 2.7 percent in March, the smallest annualized increase from the index since December 2009. With the index showing a 5.5 percent year-over-year growth from February, researchers are forecasting a stable but slowed outcome for 2012.

Compared to 5.8 percent growth in both 2010 and 2011, the ATA expects moderate growth of 3 percent in tonnage growth this year.

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Federal Maritime Commission Chairman Proposes Modernization of NVO Rules

admin — Tue, 01 May 2012 17:53:01 +0000

Federal Maritime Commission (FMC) Chairman Richard Lidinsky Jr. outlined a proposal to overhaul FMC regulations covering NVOs at the annual meeting of the National Customs Brokers & Forwarders Association of America. He said the FMC would begin discussing the modernization process for licensing, registration, and proof of financial liability for NVOs and freight forwarders in May. The FMC will also discuss updating regulations pertaining to NVOCC service arrangements and negotiated rate agreements.

Lidinsky says he hopes that by streamlining the documentation process, it can eliminate some of the errors and headaches that plague NVOs. Other proposed changes include exempting foreign, unlicensed NVOs from tariff-filing; adding negotiated rate agreements to include non-rate terms; and narrowing the current prohibition on amendments to these rate agreements.

Chairman Lidinsky concluded that the FMC is trying to balance the regulatory burdens of the NVOs with the duty to protect the maritime community against scams and unjust practices. Stay tuned as more develops.

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Trans-Pacific Spot Rates Hold Ground

admin — Tue, 01 May 2012 17:47:09 +0000

Trans-Pacific spot rates eased last week after the nearly 20 percent spike the week prior, following the rate hikes by the shipping lines members of the Westbound Transpacific Stabilization Agreement (WTSA).

The Container Rate Benchmark slid by 2.8 percent, settling at an average of $2,337 per 40 foot equivalent (FEU) container from Hong Kong to Los Angeles. The spot rate is 30.2 percent higher than it was a year ago ($1,795), and 62.7 percent higher than the $1,436 per FEU benchmark in the final week of 2011.

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Diesel at Highest Price Since Summer 2008

admin — Mon, 30 Apr 2012 21:57:04 +0000

National averages for diesel fuel hit there highest pricing point since August 2008 in the week ending April 9th. The average price is $4.148 per gallon, up 7 cents from where they were a year ago.

Prices rose in all regions except the West Coast, where prices dipped to $4.40. The sharpest rise came from the New England region, where the price per gallon rose 1.6 cents to $4.278. Crude oil is currently priced at $102.46 a barrel.

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Boston Port Gets First Truck Under Clean-Truck Program

admin — Mon, 30 Apr 2012 21:55:06 +0000

After being successfully implemented in the ports of Los Angeles and Long Beach, the Clean-Truck Program has been picking up steam in ports across the nation. Boston saw its first clean truck purchased this month, funded by the Massachusetts Port Authority. Last fall, Massport teamed up with the Environmental Protection Agency (EPA) to establish the jointly-funded program and bring 2007 emission compliant or newer trucks to the New England area.

The Clean-Truck Program aims to replace pre-2007 trucks with 2007 or newer emission compliant trucks. With a combined $1.5 million support provided by the Massport-fund and EPA Diesel Emissions Reduction Act grant to help, truck owners will have 50 percent of the replacement cost covered by the state (up to $25,000).

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