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Released: August 6, 2009
NASSTRAC Opposes New Port Restrictions
In response to pressure from several members of the California Congressional Delegation to amend federal law and to expand the authority of states and local port authorities to regulate activities that have been under the authority of the federal government, NASSTRAC joined with other groups in opposing the proposed action. At issue is an attempt to amend a federal law, the Federal Aviation Administration Authorization Act (FAAAA), that would give local ports such as Los Angeles and Long Beach the ability to regulate harbor trucking as a method to address environmental, port security and other matters that have been historically governed by federal law.
NASSTRAC signed a joint letter to Rep. James Oberstar (D-MN), chairman of the House Transportation and Infrastructure Committee, and all members of that panel, opposing efforts to restrict federal preemption. In the statement, the group emphasized: "While we strongly support efforts to improve air quality and port security in and around America's ports, the effort to undermine federal preemption of interstate commerce is an attempt to overturn losses in the federal courts restricting local regulation of truck drayage services. If successful, these efforts will not improve air quality or port security in and around the nation's ports, but will re-impose a fragmented, local, patchwork regulatory structure on foreign and interstate commerce, contrary to the U.S. Constitution and acts of Congress." Click to view more on this story and to download a copy of the letter
> Read more and download a copy of the letter
NASSTRAC Takes Stand With Others on Lacey Act Implementation
NASSTRAC, along with other shipper and importer groups, have joined forces to support a “Consensus Statement” on Lacey Act implementation to Congress. The consensus statement was worked up by industry representatives (i.e., importers and manufacturers using wood and wood products from outside the U.S.) and non-governmental organizations. Industry experts believe this will lighten importer paperwork burdens as to wood and wood products imported into the United States, which can impact supply chains of many shippers.
> Read more and download a copy of the statement
Indicators Show Economy May Be On The Verge of Recovery
Most major economic indicators recently released point to the possibility that the economy may be on the verge of recovery. The economy slowed at a much slower pace and new home sales experienced strong gains. First, the Gross Domestic Product (GDP) fell at a 1.0% annual rate in the second quarter, compared to a revised 6.4% decline in the first quarter, according to the Bureau of Economic Analysis. The slowdown in the rate of decline was driven by a slower decline in business and residential investment and exports and was propped up by strong public sector spending. Second, the Census Bureau reported that new home sales in June surged 11.0% to 384,000 units, and the amount of available inventory on the market dropped by 281,000 homes in June. This represents a supply of 8.8 months at the current sales rate, down from 10.2 months in May. Despite recent improvement, new home sales compared to June 2008 fell 21.3%. Third, the global industrial production index, which is considered a leading indicator of industrial demand that looks at pricing for a broad assortment of raw materials used in industrial production, grew nearly 16 percent since the beginning of May, even after a slight decline the week of July 10.
Plunge in Intermodal Hits Railroads’ Q2 Earnings
A significant drop in intermodal business helped to drag down second-quarter earnings for the largest North American railroads. Intermodal revenue dropped by $474 million to $956 million at Burlington Northern Santa Fe, the railroad that hauls the most intermodal freight. Its intermodal volume fell 19%. This trend was similar at Union Pacific, where shipments dropped 18% and revenue was off $174 million to $595 million. In addition, total intermodal loads at CSX fell 14%, while Norfolk Southern Corp.’s volume slipped 20%. Profits fell at four of the five largest U.S. railroads. Before the recession-induced results this year, rail earnings had been rising for more than five years. Given transportation is a lagging indicator in the economy, industry analysts see current market conditions will continue, without seeing much growth in the second half of this year. |
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