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Released: March 24, 2009
NASSTRAC Conference Provides Education, Connections To Weather 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.
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ATA Wins Appeal in Clean-Trucks Case; Owner Operators Protected
In a major victory for the harbor trucking industry, the U.S. Court of Appeals for the 9th Circuit ruled last Friday that at least some of the Los Angeles-Long Beach concession requirements under their clean-truck program violate federal law. The 9th Circuit remanded the case back to the U.S. District Court in Los Angeles "for an appropriate preliminary injunction."
The appellate court said the district court, in a decision rendered last summer, erred in not granting the American Trucking Associations' request for a preliminary injunction that would have blocked implementation of the concession requirements. In addition, the 9th Circuit demanded expeditious action. "The district court shall proceed as quickly as possible so that ATA will not suffer unnecessary harm from any unconstitutional provisions," the appellate court stated. The judges also said they will not entertain a petition for rehearing.
Of most immediacy, it appears that the Port of Los Angeles can not require that harbor trucking companies by the end of this year must replace 20 percent of their owner-operator drivers with employee drivers. The Los Angeles-Long Beach clean-truck program seeks to reduce pollution from harbor trucks by 80 percent over the next five years. The trucking industry supports that goal and noted that a number of motor carriers have already introduced into their fleets new clean-diesel or liquefied natural gas vehicles that comply with the ports' strict emission standards.
However, the program also requires that motor carriers sign concession agreements with the ports that govern many aspects of their operations. The 9th Circuit said some of the requirements, such as the employee-driver mandate, financial disclosure statements and truck parking restrictions amount to state or local regulation of interstate trucking. The appellate court said such regulation is clearly preempted by federal law. The 9th Circuit left to the discretion of the district court whether to enjoin the concession agreements in their entirety or to enjoin only those requirements the appellate judges said are illegal.
Industrial Production Index Falls To Lowest In Seven Years
Industrial production, a key measure of shipping demand, fell 1.4 percent in February, according to a report from the Federal Reserve. After four consecutive monthly declines, the overall index dipped below 100 to hit its lowest point since April 2002. At 99.7, industrial output in February was 11.2 percent below its year-earlier level. Despite a little help from a return to production of motor vehicles and parts after January's plant shutdowns, production in the manufacturing sector moved down 0.7 percent in February. The output of mines slipped 0.4 percent. Above-average temperatures contributed to a 7.7 percent drop in the output of utilities. Capacity utilization is at a historic low of 70.9 percent, matching the low usage near the end of the Reagan era recession in December 1982. The rate is 10 percentage points below the average from 1972 to 2008, said the Federal Reserve.
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