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Supply Chain Watch

December 12, 2006

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Air

TSA Delays Air Cargo Security Rules


As many in the air cargo industry had hoped, the Transportation Security Administration’s (TSA) new air cargo security rules will be postponed until mid-2007 in order to give the industry more time to implement changes necessary to comply with the broad reaching rules.

Some of the changes include Security Threat Assessments, which carriers must submit to the agency, as well as background checks and proof of credentials for a variety of industry employees.

Although the rules do not call for the mandatory physical screening of all air cargo carried on passenger aircraft, it does tighten up existing regulations. For starters, the TSA plans to consolidate the roughly 4,000 ‘Known Shipper’ lists maintained by the private industry into a centralized government database. In addition, three hundred more air cargo inspectors will be added to the ranks at 102 airports around the U.S.


Ocean

New Container Terminal for Port of Mobile


The Port of Mobile, Alabama along with Mobile Container Terminal LLC has broken ground on a new container terminal, which is expected to begin operating in early 2008.

“Alabama is experiencing unprecedented economic growth that is bringing new jobs and new opportunities to citizens all across our state. The improvements that are occurring at our port will help create an economy that is even stronger,” remarked Alabama Governor Bob Riley.

Mobile Container Terminal LLC is a joint venture between APM Terminals North America, a subsidiary of Maersk, Inc., and Terminal Link, a division of France’s CMA CGM. APM Terminal, which has an 80 percent stake, will operate and manage the terminal.

The new container terminal will initially have a capacity of over 350,000 TEUs, although eventually it will accommodate 800,000 TEUs once the project is completed.  


Rail

BNSF Tops 1 Million Container Mark


BNSF Railway’s Southern California on-dock facilities moved 1 million loads so far this year, the most the company has ever moved in a calendar year.

The 1 million mark was reached on October 15, though with holiday freight still in transit, the number is likely to expand substantially.

BNSF is operating 66 eastbound trains this year compared to 52 last year.


Union Pacific to Build Terminal in New Mexico

New Mexico has agreed to eliminate a locomotive fuel tax and provide road improvements in exchange for a new $150 million intermodal terminal to be built by Union Pacific Railroad.

The 934-acre facility will handle 100,000 containers per year, including a fueling station, train inspection area, and yard.

UP’s president and chief executive, Jim Young, noted, “The facility will enable us to improve efficiency and expand our operations in the southern New Mexico/western Texas region.”

Construction in slated to begin in 2008 and completed in 2010.


Trucking

Truck e-Manifests Surge Thirty Percent


According to U.S. Customs and Border Protection (CBP), truckers filed 30 percent more e-manifests in September than in August—a substantial increase.

Specifically, thirteen thousand electronic manifests were filed in September via the Automated Commercial Environment system, compared to 10,000 in August.

Beginning in 2007, truckers will be required to file e-manifests at all border crossings.

CBP is still rolling out the system at several crossing along the northern U.S. border, and it’s expected that the system will not be fully operational until the middle of next year.  


Mandatory Diesel Blend Will Cut Emissions

As of October 15, the federal government has required fuel producers to sell an ultra-low sulfur diesel fuel to replace the old diesel formulation, and it’s 97 percent cleaner than the previous blend.

“Diesel is the invisible force that moves the American economy, but until now it has also been a big polluter,” said the head of the Natural Resources Defense Council’s Clean Fuels and Vehicles Project. “Combining the new fuel with cleaner and more energy-efficient engines will mean healthier air and help reduce our dependence on oil.”

Diesel trucks move 94 percent of the nation’s goods—more than 18 million tons of freight each day.

The new rules will add less than 5 cents per gallon to diesel prices.


3PLs

Logistics Providers Form Aid Network


U.S. trade associations representing all phases of logistics and supply chain sectors announced last month that they would combine resources to collaborate in the event of a disaster, such as last year’s hurricanes in the Gulf of Mexico.

The newly created American Logistics Aid Network (ALAN) was launched during October’s Council of Supply Chain Management Professionals (CSCMP) annual conference in San Antonio.

“ALAN’s mission is to unite the supply chain community to support and assist humanitarian relief efforts,” explained one of the founding members.


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