Air

Sea-Tac Next Test Site for Air Cargo Security Program

The Department of Homeland Security has chosen the Seattle-Tacoma International Airport (Sea-Tac) as the next site to for its air cargo screening pilot program.

Last year, the Air Cargo Explosives Detection Pilot Program began at San Francisco International Airport (SFO). The program uses the latest X-ray equipment and other technology to screen air cargo.

The Sea-Tac tests will assess different technologies, the flow of cargo, speed of screening and the effect of screening on the commercial air cargo system.

The $30 million program is intended to provide the Transportation Security Administration (TSA) with information for future air cargo security policy.

Transatlantic ‘Open Skies’ Pact Loses Altitude

A decision by the U.S. to withdraw proposed legislation that would have made it easier for foreign companies to have greater ownership of U.S. airlines has set back progress on a transatlantic open skies pact.

Negotiators have been working for many months to try and hammer out a deal that would allow airlines based in Europe or the U.S. to fly with little or no restrictions to each other’s territories.

U.S. transport secretary Mary Peters said the latest move by the U.S. was prompted by protests from the industry as well as Congress

Trucking

Border Truckers Preparing for New U.S. Passport Rules

Although the U.S. government had delayed the implementation date of a new rule requiring U.S., Canadian, and Mexican citizens entering or re-entering the U.S. to show passports, a recent notice in the Federal Register states that the target date is “as early as January 1, 2008.”

There had been requests by some in the transportation industry that the U.S. Transportation Workers Identification Card (TWIC) be accepted in lieu of a passport, however, they were denied since the TWIC does not establish citizenship.

Air travelers will be required to show passports beginning January 23, 2007.

Softening Market Conditions Predicted for 2007

Fitch Ratings says demand for surface freight transportation will continue to soften in 2007, particularly in the trucking sector.

“Increasing interest rates, uncertainty in the housing sector and high gasoline prices appear to have put a damper on consumer spending growth, which has led to a softening in the manufacturing environment,” said the firm.

Furthermore, “The moderation in demand growth will likely have a more pronounced effect on the trucking industry than on the railroads in 2007. The large truckers are more exposed to retail and industrial production than the railroads, and therefore have a greater economic cyclicality risk. Volume growth for the truckers, in particular the less-than-truckload (LTL) carriers, will likely be modest, although demand for regional LTL services is expected to continue outpacing demand for longer-haul nationwide services. This is due in part to just-in-time manufacturing and retail inventory management practices favoring shorter-haul next day and second day regional services.”

Rail

Port of Portland Plans New Rail Project

The Port of Portland will begin work on a new rail project to help boost intermodal volumes through the port’s Terminal 6 container facility.

Port officials say the project is crucial to the port’s ability to serve as a gateway for containerized cargo from Asia. In addition, the new rail track will support continued growth of the port’s auto import business.

Construction on the project will begin this year and will be completed by July 2007.

Rate Hikes Planned for 2008

BNSF Railway and Union Pacific Railroad have informed ocean carriers that they are looking to raise rates by as much as 30 percent for Asia to U.S. West Coast freight that moves inland by rail from the seaports.

Shippers will begin to feel the effects in 2007 when they begin contract negotiations with the ocean carriers.

Some shippers plan to move more freight by all-water service to the East Coast in order to avoid the rate hike.

Ocean

Ports of Savannah, Charleston to Create Chassis Pool

Port authorities in Georgia and South Carolina have agreed to form a chassis pool to boost efficiency and share resources. In addition, it helps free up terminal space by reducing the number of chassis needed to move containers at the terminals.

The ports of Savannah, Charleston, as well as the inland hubs of Atlanta, Georgia and Charlotte, North Carolina will use the chassis pool.

The 18 members of the Ocean Carrier Equipment Management Association are also involved in the agreement. Last August, the group began operating a chassis pool at the BNSF Railway intermodal facility in Memphis.

Study Shows Barges Could Reduce Truck Traffic in Oakland

A study commissioned by the Port of Oakland asserts that 400 trucks could be taken off Bay Area roads if the port were to invest in a pair of barges to transport ocean containers from the port to Sacramento.

The study compares the barge concept with the “start of the interstate (highway) system” and says it could be “the beginning of what the nation needs in high-density traffic areas where there is a water alternative.”