Global Air Cargo – Have we reached bottom?

IATA has released their air cargo volumes for the month of February and it is no surprise that numbers are significantly lower than February numbers for 2008.

February international freight volumes were 22.1% below 2008 levels. This is the third consecutive month at more than 20% below previous year levels (-23.2 in January and -22.6% in December).

The only bright spot (if you can call it that) is that the drastic decline in volumes as compared to 2008 appear to be leveling out. The last three months of international cargo volumes have been in the -23% to -22% range indicating that we may have reached a bottom. Having said that, 3 months might not be sufficient enough of a time frame to formulate a trend.

Freight traffic, which began its decline in June 2008 before passenger markets were hit, has now had three consecutive months in the -22% to -23% range. We may have found a bottom to the freight decline, but the magnitude of the drop means that it will take time to recover,” said Giovanni Bisignani, IATA’s Director General and CEO.

Asian carriers continue to see the sharpest declines.

Asian carriers – the largest players in cargo – saw demand fall by 24.7% as the region’s high-value export-dependant industries were hard hit by falling consumer demand in the major markets of Europe, the US and Japan. Japanese exports have almost halved from February 2008 levels.

Click here for the complete report from IATA.

Popularity in using ocean containers for housing grows

As of an hour ago it was a front page news item on Yahoo!:

While a number of resourceful people have converted shipping containers into make-shift shelters at the margin of society for years, architects and green designers are also increasingly turning to the strong, cheap boxes as source building blocks.

Shipping containers can be readily modified with a range of creature comforts and can be connected and stacked to create modular, efficient spaces for a fraction of the cost, labor, and resources of more conventional materials.

They then highlight, with cool photos, 12 different homes made from shipping containers. We’ve mentioned this phenomenon in the past here and here.

I think I like the ATC (All-Terrain Cabin) and the Ecopods best.

Reader looking for warehousing services in Henderson, NV

We recently received a request from a reader who is looking for a company that can provide warehousing services, including pick and pack, in the Henderson, NV area. If your company fits the bill, please drop us a line and let us know.

Breaking News: Court rules against LA/Long Beach Clean Truck Program

Via TheTrucker.com:

The U.S. Court of Appeals for the Ninth Circuit ruled in favor of the American Trucking Associations (ATA) today in its lawsuit seeking an injunction against the Ports of Los Angeles and Long Beach Concession Plans.

The three-judge panel ruled unanimously to remand the case to the U.S. District Court and indicated that the judge should grant the ATA an injunction against all or part of the concession plans.

“In short, motor carriers should not be required to adhere to the various unconstitutional provisions in the Ports’ [concession] agreements, and are likely to suffer irrevocably if forced to do that or give up their businesses,” the court’s opinion said. ATA had not challenged the ports’ Clean Truck Program, which bans older trucks and uses a container fee to subsidize the purchase of newer, cleaner trucks.

Here’s more from the Journal of Commerce:

“The district court shall proceed as quickly as possible so that ATA will not suffer unnecessary harm from any unconstitutional provisions,” the appellate court stated. The judges also said they will not entertain a petition for rehearing.

Of most immediacy, it appears that the Port of Los Angeles can not require that harbor trucking companies by the end of this year must replace 20 percent of their owner-operator drivers with employee drivers.

“That requirement is dead,” said Curtis Whalen, executive director of the ATA’s intermodal conference. “We are very pleased with this decision,” he said.

The Los Angeles-Long Beach clean-truck program seeks to reduce pollution from harbor trucks by 80 percent over the next five years. The trucking industry supports that goal and noted that a number of motor carriers have already introduced into their fleets new clean-diesel or liquefied natural gas vehicles that comply with the ports’ strict emission standards.

However, the program also requires that motor carriers sign concession agreements with the ports that govern many aspects of their operations. The 9th Circuit said some of the requirements, such as the employee-driver mandate, financial disclosure statements and truck parking restrictions amount to state or local regulation of interstate trucking. The appellate court said such regulation is clearly preempted by federal law.

Needless to say, the Naural Resources Defense Council, who supported the employee-driver mandate, is not pleased:

“This decision today places in jeopardy the clean air goals at the ports, as well as every port infrastructure expansion project that relies on clean trucks. We’re going to vigorously fight to protect these truck plans in court. Properly maintained, well-managed goods movement at the ports is good for business and good for the health of people living in port communities.”

The funny thing is, I would venture a guess that the ATA and the trucking interests in the ports would agree completely with the last sentence of that paragraph. I can’t find any indication that the trucking industry is challenging any of the environmental elements of the Clean Truck Program, apparently has no problem with the drayage truck registry or the upgrading/replacement of older trucks, etc. It’s only the concessionary agreements, particularly the employee-driver mandate, that they have opposed.

We’ll see what else we can learn about this, but in the meantime, or for those of you who are just stumbling onto this topic, here’s a lot more info for you:

ATA vs. LA/Long Beach port authorities: the battle continues

ATA legal challendes to LA/Long Beach “concession plans” – it’s not over yet.

ATA appeal denied by Ninth Circuit Court

FMC to possibly derail Oct. 1 Clean Truck Plan implementation date?

LA/Long Beach Clean Trucks Program on track to start October 1st

ATA goes to appeals court to stop SoCal ports’ truck plans

ATA takes ports to court over Clean Truck proposals

LA/Long Beach Clean Truck Program approved

Truckers coalition opposes portions of the Clean Air Action Plan

Environmental issues threaten competitiveness in Southern California

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