The World Trade Bridge at the Laredo Port of Entry in the next few years will garner updates to allow for automated pre-screening and inspection data collection of U.S.-bound cargo earlier in the supply chain, and to integrate scanning and processing technologies, as part of a $100 million plan to enhance the port, Rep. Henry Cuellar, D-Texas announced July 5 (here). The plan will integrate a “robust” Wi-Fi capability, radio frequency identification devices (RFIDs), “drive-through multi-energy truck portal X-ray systems” and other CBP cargo processing systems into a common software package, and install state-of-the-art traffic control systems, according to the announcement. Updates will also include buildout of a cargo traffic control tower with an operations center, X-ray image analysis stations, cameras to monitor compound activities in real time, a modern inspection and technology training center and agricultural laboratory, and bypass lanes, the announcement says. CBP also plans to maximize joint inspections at the port with other U.S. federal and state and Mexican customs partners.
A slew of trade groups applauded the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) for agreeing to discussions that have already resulted in a proposed three-year West Coast port labor contract extension offer, according to a letter the groups sent to ILWU President Robert McEllrath and PMA CEO James McKenna (here). ILWU will consider the offer later this summer, the letter says. “Agreeing to early contract discussions was clearly a difficult and unprecedented step,” the groups said. “However, we believe it is a step that should serve as a model for future negotiations. Uncertainty and supply chain disruptions have caused great economic harm in the past. We strongly believe that early and continuous dialog can strengthen the U.S. economy and the competitive position of West Coast international gateways.” An early contract extension will benefit U.S. labor, terminal operators, cargo owners, transportation providers, and many U.S. workers and consumers, the letter says. The current West Coast port labor contract expires July 1, 2019.
The State Department this week granted final approval for the Presidio, Texas, port of entry project to add one lane in both directions to accommodate 18-wheelers, the office of Rep. Will Hurd, R-Texas, announced (here). State granted a Presidential Permit, which is the last step before construction may begin. “These infrastructure improvements will create jobs, reduce arduous border wait times, and facilitate the flow of goods and services through the region,” Hurd said in a statement.
The Federal Maritime Commission on April 7 voted to allow the East Coast Port Gateway Terminal Agreement to enter into force, the FMC said in a press release (here). The agreement will become effective April 10, and allow the Virginia Port and Georgia Ports authorities to discuss cargo handling practices, terminal operations, service options for ocean carriers, operating systems, equipment and joint marketing, the FMC said. However, the agreement doesn’t allow the two authorities to jointly negotiate, set and approve terminal rates or charges. The port authorities filed their agreement with the FMC on Feb. 24. "The East Coast Gateway Terminal Agreement is the latest example of port authorities and [marine terminal operators] MTOs looking to the Shipping Act and the Commission’s agreement authority as a way to improve service and operations which will ultimately benefit the American shipper and consumer," Acting FMC Chairman Michael Khouri said. "The ocean transportation services sector is a dynamic and competitive business where the marketplace drives innovation. The port authorities in Virginia and Georgia are responding to a changing industry."
The Federal Maritime Commission should move forward with a rulemaking to clarify reasonable practices for assessing of demurrage, detention and per diem charges, the American Apparel and Footwear Association said in comments (here). The comments are in response to an FMC request for comments (here) that followed a petition filed by the Coalition of Fair Port Practices (see 1612080021). "Our member companies have repeatedly relayed to us their experiences of severe congestion and delays at container terminals in U.S. ports for which they have been forced to bear the costs of demurrage and detention for incidents largely out of their control," the AAFA said. The FMC needs to address this problem and should "grant the petition and open a rulemaking to ensure that U.S. imports and exports are not burdened with unfair demurrage and detention charges," it said.
The reduced number of shipping alliances -- soon to be down from four to three -- is a "market-driven phenomenon" and not necessarily anti-competitive, Commissioner Rebecca Dye of the Federal Maritime Commission said during a Jan. 31 National Industrial Transportation League event (here). "The alternative to operational alliances is not the status quo," she said. "The dynamics of our liner shipping markets will continue to produce commercial and economic change," she said. The agency holds no position on alliances in general, but will seek "to ensure that the dynamics of the marketplace determine economic outcomes," she said. The Justice Department Antitrust Division voiced objections to the FMC over two recent alliance proposals and advised the agency to stop the alliances in court (see 1611280024). While the FMC didn't stop the alliances, it used analysis similar to the DOJ's and the Federal Trade Commission's, Dye said. One recent staff paper found that "the impending reduction from four to three strategic alliances should, considered in isolation from other factors, actually decrease freight rates." Dye also provided an update on the Supply Chain Innovation Teams (see 1605030029) and said the coming next phase will focus on export supply chains. "I will also continue to pursue options for the development of a robust conceptual model or a pilot project for a national portal for critical supply chain information," she said.
A new Commerce Department report offers some suggestions toward improving port efficiency based on some best practices used around the country, a Commerce news release said (here). Commerce compiled a list of effective operational practices at individual ports as part of the report (here). “More than 70 percent of America’s international merchandise trade flows through our seaports, linking our producers and retailers with their sources and customers and our nation’s supply chains with the global economy,” Commerce Secretary Penny Pritzker said in the release. “The efficiency and productivity of U.S. seaports and their connecting infrastructure is crucial to our nation’s ability to successfully compete in the global marketplace.” Increased communications through working groups, use of port information sharing technologies and planning improvements for chassis availability are among the suggested improvements. The report is based on port roundtables and recommendations from the Commerce Advisory Committee on Supply Chain Competitiveness (see 1609010022).
A national portal with Information such as container, chassis and dray truck availability would improve port performance and boost U.S. competitiveness, according to Supply Chain Innovation Teams that Federal Maritime Commissioner Rebecca Dye has led since May, the Federal Maritime Commission said (here). The teams found that meaningful, specific information, rather than “vast volumes of unfiltered data,” would help U.S. companies engaged in trade. The three teams, which averaged 12 members each, focused on imports through the ports of Los Angeles, Long Beach and New York/New Jersey, according to the executive summary of the teams’ interim status report (here). Dye’s Supply Chain Innovation Initiative will launch “Phase Two” next year, and will consist of three teams, focus on exports and pursue a “robust conceptual model” for a national supply chain portal, FMC said.
The Federal Maritime Commission will carefully consider a petition filed by the Coalition for Fair Port Practices for the agency to issue a rulemaking preventing common carriers and marine terminal operators from charging demurrage, detention and per diem fees during events beyond the control of shippers, FMC Chairman Mario Cordero said in a statement emailed to International Trade Today. The 25-member coalition submitted the petition on Dec. 7 (see 1612080021). Cordero said given the “seriousness” of the issues raised in the petition, FMC will determine “the most appropriate next step.” Cordero added: “Given the Commission’s commitment to maintaining the most efficient ocean-linked supply chain system possible, we are always interested in allegations of any practices or behavior that contribute to diminishing efficiency or increasing costs.”
The Department of Homeland Security’s 1,400 radiation portal monitors at U.S. ports of entry are 100 percent operational and can function beyond their estimated service life, until at least 2030, as long as they are properly maintained and spare parts remain available, according to a Government Accountability Office report released Nov. 30 (here). DHS started planning for replacing the entire fleet in fiscal 2014 and 2015, as the monitors began to reach the end of their estimated 13-year service life, but the department in 2016 changed to a selective replacement policy, entailing the use of monitors upgraded with new alarm threshold settings or buying “enhanced, commercially available” monitors to gain operational efficiencies and reduce labor requirements at some ports, GAO said. During fiscal years 2016-2018, DHS plans to replace about 120 monitors along the northern border with upgraded units, and from fiscal year 2018 through fiscal year 2020, intends to replace monitors that can’t be upgraded with new alarm thresholds at northern land border crossings with existing upgraded inventory, the report says.