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Released: March 12, 2009
NASSTRAC Conference To Give Resources, Ideas To Battle Economy
Let’s face it. The current economy has created radical shifts in market demand and capacity. Volatile energy prices have drastically changed freight costs. And legislative developments are creating new challenges for shippers and carriers alike. Find the knowledge, networking and solutions head-on that will help you get through these challenges at the NASSTRAC Logistics Conference & Expo in Orlando, April 26-29. Here’s a snapshot of what you can expect:
- Keynote Mark Finley of BP America will give a global perspective on recent trends in energy markets and how the role of oil in the world’s energy mix is evolving. Given transportation consumes a significant percentage of the world’s total energy and produces much of the world’s air pollution, this is particularly relevant.
- Closing keynote Charles “Shorty” Whittington, Chairman of the American Trucking Associations, will share unique perspectives on today’s issues involving motor carrier operations, services, and capabilities.
- Two “C” level executive panel discussions with the nation’s leading carriers in various modes of transportation.
- How long will the current freight downturn last and how much more capacity will the industry lose? Two of the industry’s most reputable domestic industry analysts will shed light on this question: John Larkin of Stifel Nicolaus & Co., and John Langenfeld of Robert W. Baird.
- On the international front, Charles Clowdis of HIS Global Insight will cover how to manage the transportation & distribution functions (and costs) when fewer goods move through the system.
- In addition, transportation executives from leading companies such as Dell, PetSmart, and BASF Corp. will share how they leverage their knowledge to be more profitable in this challenging economic landscape.
> More
Obama, DOT May Revive Mexican Truck Program
Shortly after a large government spending bill passed that included provision to end the U.S.-Mexican cross-border trucking program, the new Obama administration asked the U.S. Department of Transportation to look into reviving it.
According to a DOT statement: “The president has tasked the DOT to work with the U.S. Trade Representative and the Department of State along with leaders in Congress and Mexican officials to propose legislation creating a new trucking project that will meet the legitimate concerns of Congress and our NAFTA commitments.” NAFTA stands for the North American Free Trade Agreement among the U.S., Canada and Mexico, implemented in 1993.
Sen. Byron Dorgan (D-N.D.) sponsored the amendment to end the program. The DOT suggested that he “has written to us to express his willingness to work with the administration in good faith to address this issue.” The pilot program, started by the Bush administration, allowed some Mexican trucks full access to U.S. highways, beyond an approximately 25-mile border zone. The Teamsters union and safety advocacy groups including Public Citizen have opposed the cross-border program, suggesting there are potential safety issues with Mexican trucks, and had expressed their approval of the earlier decision to scrap the program.
U.S. Rail Freight Traffic Drops
The recession kept hitting every category of commodity and consumer goods carried on U.S. railroads in the first week of March. Overall freight traffic was down 13.9 percent to an estimated 29.2 billion ton-miles in the week ending March 7, according to the Association of American Railroads. Intermodal trailers dropped 34 percent while containers dropped only 6 percent to bring all intermodal traffic down 12.7 percent with 180,047 units hauled. Metals and products was the hardest hit commodity group, falling 57.3 percent. Other raw materials for manufacturing, such as waste and scrap materials, chemicals, metallic ores, continued steep declines. Grain shipments declined 17.7 percent. Farm products other than grain dropped 41.4 percent. Motor vehicles and equipment eased the year’s 55.7 percent declining pace with a 47 percent plunge.
Groups Seek To Overturn HOS
In early March, a coalition escalated their case against two regulations concerning truck drivers’ working hours by filing a federal lawsuit. The Teamsters, Public Citizen, Advocates for Highway and Auto Safety, and the Truck Safety Coalition contend that regulations allowing drivers to work an 11-hour workday and reset their weekly limit by taking a 34-hour break is unsafe and unhealthy for truck drivers. The Bush administration issued the regulations in 2003, extending the workday by one hour. The D.C. Circuit Court twice threw out the rule, but both times, the FMCSA re-instated. The latest FMSCA rule was issued Nov. 13 and took effect Jan. 19. The groups filed a petition Dec. 18, asking FMCSA to overturn the rule. The FMCSA denied the petition Jan. 16.
> View previous NASSTRAC filings on Hours of Service.
NASSTRAC Files Comments On Rail Transportation Contracts
NASSTRAC filed comments with the Surface Transportation Board on Feb. 5, 2009, in the STB’s Rail Transportation Contracts proceeding. For rail shippers, determining whether shipments move under contracts or under tariffs can be extremely important because the STB lacks jurisdiction over contract disputes. For captive shippers and for shippers who may experience unreasonable practices, losing recourse to regulatory relief may be important, but major railroads have argued that “informed consent,” or the knowing waiver of STB jurisdiction by shippers, is inconsistent with modern business practices. According to John Cutler, NASSTRAC’s legal counsel, NASSTRAC pointed out in its comments that contracts between motor carriers routinely include the explicit waiver required by 49 U.S.C. Section 11401(b). NASSTRAC also expressed concern about a proposal by the STB to find that its jurisdiction is waived, even in “signatureless” contracts, where the railroad includes a statement to the effect that contract carriage is intended.
> View the filing in its entirety.
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