Air

U.S., EU Reach Agreement on Open Skies Pact

A last ditch effort between negotiators from the U.S. and EU to agree on terms for a trans-Atlantic air pact has resulted in a major breakthrough.

The main sticking point, which involved what percentage of foreign ownership of an air carrier each could acquire, was finally resolved.

Under the proposed agreement, European airlines will be allowed to fly anywhere to the U.S. from anywhere in Europe, and U.S. carriers will receive reciprocal rights for flights to Europe.

The proposal now goes before the European Commission later this month. If approved, the deal could come into force as soon as October 28, 2007.

While the pact will benefit passenger carriers most, the cargo market is expected to see growth of between 1 and 2 percent.

Truck

Latest PIERPass Survey Shows Improvement for Truckers

The latest survey of truck drivers in the Los Angeles-Long Beach port complex shows that drivers are making more turns with the PIERPass extended gate program and, likewise, higher earnings.

Research firm Fairbank, Maslin, Maullin & Associates also found that one-quarter of the drivers reported that off-peak shifts are being underutilized because there simply isn’t enough customer demand late at night.

Among the findings, 61 percent of drivers rate the program positively while 67 percent believe it has reduced traffic congestion.

The survey of 451 drivers was conducted last November.

Mexican Truckers Get Green Light in U.S.

The U.S. Department of Commerce is launching a pilot program to allow Mexican trucks unrestricted access to U.S. roadways.

The provision was supposed to begin in 1993 with the ratification of the North American Free Trade Agreement (NAFTA), but opposition by U.S. industry groups delayed implementation for years.

Under the pilot program, one hundred Mexican trucking firms will be given access to U.S. roadeways once their trucks and drivers pass a safety certification test.

Rail

Port of Vancouver, WA Approves Rail Project

The Port of Vancouver, Washington, has approved a $1.5 million rail project-the West Vancouver Freight Access (WVFA) project-that will help the port accommodate rising freight volumes from Asia.

Work on the project is to begin this fall and is scheduled to be completed in July 2008.

According to the port’s executive director, Larry Paulson: “More than 70 percent of cargo travels to and from the port by rail and that figure is projected to increase to over 80 percent in the next 20 years.”

Lawmaker Seeking Shorter Work Hours

Democratic Representative James Oberstar of Minnesota, who is the new chairman of the Transportation and Infrastructure Committee, is considering new regulations that would limit train crews to 10-hour shifts, down from the current 12 hours.

The move is uniting railroads and labor unions, both of which are opposed to government involvement in the matter.

The Federal Railroad Administration wants to retain its authority to set rules for crew schedules, and the agency recently proposed ‘hours-of-service’ legislation similar to that already in place for truckers.

Ocean

Seaports Prepare for Rollout of TWIC

Ten seaports around the nation are preparing for the rollout of the Transportation Worker Identification Credential (TWIC), which is set to start in April with full implementation anticipated by mid-2008.

The TWIC program is designed to supplement the government’s layered approach to supply chain security. However, the rollout has been delayed over software and hardware issues as well as the specific requirements for worker background checks.

The Transportation Security Administration (TSA) has yet to disclose the identity of the ten seaports chosen to debut the TWIC card.

New Port Proposed for Savannah River

The governors of South Carolina and Georgia announced a plan to jointly develop and operate a new port on the Savannah River, ending years of legal tussling over the rights to develop the port.

Under the proposal, the two states would form a Bi-State Port Authority, to be approved by the two states’ legislatures and ratified by the U.S. Congress.

“If South Carolina and Georgia are going to maintain our respective competitive advantages when it comes to being Southeastern shipping destinations, the time to act is now,” said South Carolina Governor Mark Sanford.

Technology

Proliferation of RFID Tags Slower Than Expected

Even though over 1 billion Radio Frequency Identification (RFID) tags were sold worldwide in 2006, logistics analysts had predicted that number to be considerably higher.

There are several reasons for the lower than expected numbers. For starters, consumer goods companies are hesitant to sink more money into technology that is still developing while others say they’re investing just enough to keep up with RFID mandates from the big retailers.

Nonetheless, research firm IDTechEx is forecasting that sales of RFID tags will experience significant growth in 2007, growing to about 1.71 billion by year’s end.