The Federal Maritime Agreement will accept public comment until Nov. 29 on a proposed P3 Network Vessel Sharing Agreement, it said on Nov. 19. The agreement would be effective Dec. 8 if the process continues without interruption, said the FMC. The proposed alliance would align the three largest container carriers, Maersk Line, CMA-CGM, and Mediterranean Shipping Company (see 13102314). FMC Commissioner William Doyle said in a statement he approved of the decision to extend the comment period. "It’s important to allow the shipping public and stakeholders the opportunity to comment on an alliance such as this that comprises the world’s three largest container ship carriers," he said (here).
The liquefied natural gas (LNG) export approval and rescinding process delivers significant capital investment protection to LNG export facilities, at the expense of the U.S. manufacturing industry, said Industrial Energy Consumers of America President Paul Cicio in a Nov. 7 letter (here) to Energy Secretary Ernest Moniz. The Energy Department is failing to uphold its duty to preserve U.S. public interest in its LNG authorization process by allowing natural gas prices for domestic consumers to rise, said Cicio.
Federal Maritime Commissioner William Doyle outlined a number of concerns and questions about a Chinese Value Added Tax (VAT) for freight charges during the U.S.-China Bilateral Maritime Consultative Meeting in Chicago on Oct. 28, the FMC said. Doyle "explained that businesses in the U.S. are seeking clarity and guidance on the new VAT rule as well as confirmation from China that the VAT is being applied fairly to all businesses," the press release said. Companies are "concerned that they may be paying too much on the VAT and would like to know the reimbursement process," and "if businesses were paying too little, they were concerned that they would be billed or penalized later," Doyle said. The Chinese Ministry of Transport attended and "listened carefully to the concerns and committed to seeking further answers from China's State Administration on Taxation (SAT)," said the FMC. The FMC said recently it would take a closer look at the VAT program and its potential negative impacts on international commerce between the U.S. and China (see 13091919).
The air cargo’s current woes are signs of structural changes in the air cargo industry that will likely result in overcapacity for years to come, said Oliver Evans, chief cargo officer at Swiss WorldCargo, in a blog post Nov. 4. Although some await the air cargo industry’s return to the steady growth that characterized the last 25 years, the “awful truth” is beginning to sink in that the industry faces more than a manageable downturn, said Evans. “It is a structural change, or a combination of changes, that runs deep down to the foundations of our industry, threatening all who turn a blind eye to it.”
The Federal Maritime Commission released a notice of the filing of the following agreements under the Shipping Act of 1984. Interested parties may submit comments on the agreement to the Secretary, Federal Maritime Commission, Washington, DC 20573, within 10 days.
The Maritime Administration plans to hold a National Maritime Strategy Symposium to discuss "Cargo Opportunities and Sealift Capacity," the agency said. The symposium is scheduled for Jan. 14-16 and will be held at the U.S. Department of Transportation in Washington, D.C. The meeting is meant to "generate ideas that will improve, strengthen and sustain the cargo opportunities and sealift capacity," it said. Suggestions for agenda topics and other comments are due by Nov. 29.
Federal Maritime Commission Chairman Mario Cordero is requesting regulators from the E.U. and China to meet for a "Global Regulatory Summit: to discuss the proposed P3 Global Alliance, the FMC said in a press release. The proposed alliance would align the three largest container carriers, Maersk Line, CMA-CGM, and Mediterranean Shipping Company. The meeting would happen in Washington and allow for the regulators to discuss their roles for such an alliance, said the FMC.
Florida Governor Rick Scott will recommend to the state legislature to put $35 million toward "strategic port projects across Florida," he said in a press release. The projects will enhance our ports’ ability to move more goods which will position Florida to play an even greater role in global trade, he said. "Our strategy to make Florida the gateway for global trade is working.”
The Canadian National Railway is facing the possibility of a strike beginning Oct. 28, after negotiations between the railroad and the Teamsters Canada Rail Conference broke down. The union, which represents 3,300 conductors, trainmen, yardmen, and traffic coordinators at CN, is “gearing up for a fight with the railway company,” it said in a statement Oct. 14 (here). The labor dispute concerns working hours and rest time between trips.
Air freight traffic will grow by 4.8 percent annually over the next 20 years, said Airbus in its “Future Journeys” Global Market Forecast. With passenger traffic growing by 4.7 percent each year during the same period, that means the world will need about 30,000 new aircraft worth about $4.4 trillion over the next 20 years, the report said, including over 2,500 new freighters.