Commentary

From trade deals with Europe and Asia to the situation in Iran, there are any number of pressing international issues, but the one on every U.S. trader’s mind right now is ACE. Unless you’ve been living on a remote island with no connection to the outside world, you know Customs and Border Protection set Nov. 1 as the deadline by which all entries and cargo releases must be filed in its latest computer system, the Automated Commercial Environment.

I’ve always failed to understand the air of suspicion, and the periodic questions national antitrust authorities have raised, about alliances. Alliances are a carryover from the days when container lines enjoyed antitrust immunity. It’s been suggested that there is a “culture of collusion” that could take root within an alliance framework, but the evidence speaks for itself: No market in which collusion is occurring would still be plagued by the pricing volatility we see today.

CSX's Northwest Ohio intermodal hub is essentially a giant classification yard for intermodal containers, with huge gantry cranes serving as the functional equivalent of switch locomotives. Strategically located at an operational node of the CSX east-west network, it serves CSX in much the same manner as an airline hub. Containers are flown from one train to another rather than cars being switched, although flat switching still occurs when the volume of like-destination cars in a train reaches a certain threshold.

The law governing motor carrier (and rail) freight loss and damage was enacted in 1906, the Carmack Amendment to the Interstate Commerce Act. A lot of transportation law has changed since then, but Carmack hasn’t. Its current incarnation reads the same as did the original, meaning judicial interpretations and applications issued many years ago are as valid today as they were when pronounced by the courts.

Rates in the trans-Pacific eastbound trade from Asia to North America are starting to resemble the paltry Asia-Europe and trans-Pacific westbound numbers. Within a couple weeks, we may have three-digit numbers for spot rates for 40-foot containers moving from China-based ports to Los Angeles and Long Beach. I can’t recall seeing rates this low in my 42 years in the business.

The Los Angeles Board of Harbor Commissioners and officials from the port are packing their bags and heading to Chile and three countries in Asia this month to shore up relations with key shipping lines and fruit exporters impacted by the recent 9-month-long labor dispute at the ports of Los Angeles and Long Beach.

On-time delivery guarantees have existed for more than 30 years for express and 17 years for ground service, but the time has come for parcel carriers to put an end to them.

Some of the most pivotal developments in U.S. container transportation, such as the first double-stack train in 1984 and the launch of the first post-Panamax vessel four years later (both APL innovations), helped fuel the rise of West Coast ports as the primary U.S. container gateways. Now we’re witnessing another game-changing development potentially on par with those earlier ones, although for the West Coast the impact is the opposite.

After shipping a 24-piece order prepaid, f.o.b. destination, a distributor says five pieces were damaged. The price to reorder those five pieces was higher because the quantity was lower. The distributor files a claim with the LTL carrier, but the carrier refuses to pay the higher price, despite the enclosed replacement invoice reflecting the increase in cost. What is the procedure to best handle “special orders?”

The reality of being a trade-dependent company involves understanding and abiding by its governing laws and regulations, and it can’t just be when financial times are good and/or compliance-related problems are inexpensive to fix.

The U.S. is rapidly approaching another watershed moment, with the stopgap funding of the Highway Trust Fund running out at the end of July. Although the likelihood appears to be another kicking of the can down the road, there may be a growing realization even in Congress that the continuation of the status quo is a recipe for decline. For me, it’s hard to imagine a more appropriate function for the federal government than the funding and enhancement of our national transportation system.

Although the actual number of attacks on shipping has diminished, the fact that thieves still manage to get on board ships underway in a navigation channel or alongside at a container terminal makes the case for good watchkeeping. Every potential attack is a potential fatality, and that shouldn’t be overlooked. However, in comparison with the fear that shipping faced in 2010–12, there is a sense of normal business with predictable business risks in mid-2015.

Misdeclaration of cargo and weight by shippers whether unintentional or otherwise has been part of container shipping since its beginning. And the problem is only growing because containers carry a greater percentage of global trade, ships are getting much bigger, and competitive pressures throughout the system often lead players to turn a blind eye to safety. The two fundamental challenges are ensuring the weight and the description of cargo are accurate.

The 1980s brought us Reaganomics. 2012 brought us Abenomics, the economic revitalization effort by Japanese Prime Minister Shinzo Abe. And a year after China’s surprising rejection of the P3 partnership among the world’s three largest ocean carriers, it’s clear container lines have adopted their own form of economics. Call it Alliance-omics. It aims to pull its target beneficiaries out of recession (carriers’ combined losses in the last several years measure in the billions).

It was a secret ballot, but the decision of the 40-strong International Maritime Organization Council was clear: Lim Ki-tack will be the next secretary-general of the IMO, if the IMO Assembly gives its approval in November.

A third-party agent questions the liability for a shipment that was fully crated and signed for a clear delivery by the consignee. Damage was noted after unpacking. The carrier was asked to pay a damage claim, but said it wasn’t alone in the blame. Responsibility should be shared by the shipper, the carrier and the receiver, it said. Is there any recourse?

As we enter the second half of 2015, the year is unfolding as an amalgamation of pleasant and unpleasant surprises, a stinging interview, some conflicting actions and actions that defy logic. Many shipping interests might say, “So what’s new? It’s a typical year for the industry.”

Congress has failed to fully support interstate commence — a job tasked to it by our founding fathers.

The International Longshoremen's Association, in opening the door to the possibility of a long-term contract, certainly is looking to capitalize on the congestion and raw memories of the recent past that have put West Coast ports in shipper crosshairs. The ILA, indeed, is preying on that shipper sentiment, and the soon-to-open expanded Panama Canal that could shift more cargo from West Coast to East Coast. And who can blame it? That’s business.

President Obama’s legacy now will be defined at least in part by success on trade. It was indeed an achievement to have secured the first presidential “fast track” authority in eight years, paving way for completion of the Trans-Pacific Partnership with 11 nations covering 40 percent of U.S. trade. But without transportation, there can be no trade. Expanding trade agreements without improving the infrastructure needed to handle it defeats the purpose.

China’s slowing economy has led to port development projects being delayed as operating companies start to leverage more powerful IT software and more focused management expertise.

Don’t have the time to rehash last year and want to know what’s in store for the next 18 months? You’ve got freight to move, so here are the takeaways from the annual State of Logistics report released on Tuesday by the Council of Supply Chain Management Professionals and JOC.com reporting.

A collection agency asks about the lack of a “Section 7” on a bill of lading, protecting a shipper from charges on a collect shipment, and wants to know if he can collect from the consignee if payment isn’t made by the shipper.

There is a way out of the madness inherent in current labor-management relations in the port sector. Social Dialogue is the North Star that will guide the way.

Meeting in Asia this month with a number of carriers that participate in the project by submitting their berth productivity data to The Journal of Commerce, I’ve never seen a greater sense of urgency to find ways to get ships in and out of port faster. It’s a simple calculus: The quicker a ship leaves port, the slower the speed and less fuel is needed to get to the next port on schedule.

Take a close look. That truck with the empty cab where the driver used to sit may become reality much sooner than anyone thought even a year ago.

A local trucking company sometimes engages in interline transport with other carriers. And there are also times when it would arrange pickup from outside the state using another carrier. Does this company need brokerage authority to tender to another carrier any shipment tendered to them?

Cleaning up shipping and its emissions is a hot topic, pushing the whole industry and its regulators towards a greener future. Since January, the latest regulations require shipowners to use low-sulphur fuel oils in emission control areas or to retrofit their vessels with scrubbers or use alternative energy sources.

As an aviation and a technology enthusiast, it’s been exciting for me to follow the developments of two technology platforms that are poised to write new chapters in the book of aerial delivery. The first is the hybrid-airship, the focus of my February column whose first commercial application is expected to be the delivery of container-size cargoes to oil/gas, mining, and similar companies that operate in severely austere locations. The second technology is unmanned aerial vehicles, or drones.

The port operation challenges associated with mega-container ships, which only will grow as dozens of these ships enter service in the next few years, is a key issue pointing to the likelihood that conditions at ports will get worse before they get better.

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network has issued a Geographic Targeting Order aimed at Miami, Florida, electronics exporters and common carriers and calling for the reporting of cash or cash-equivalent transactions in excess of $3,000 until at least Oct. 25, 2015.

The NFL's recent controversy around the New England Patriots and a separate case involving the legality of laptop searches don't seem to have much relevance to global trade, but they share a key issue: employee privacy vs. corporate and security interests.

Importers are leaving millions of dollars on the table in what might otherwise be legally avoidable duties, simply because they’re unaware of, or unsure of, how to take advantage of a tax reduction program called the First Sale for Export rule.

Anyone who knows Jim Newsome knows he’s as competitive as they come. But the CEO of the South Carolina Ports Authority also knows that competition is healthy. So whether it’s the raising of the Bayonne Bridge to give mega-vessels access to marine terminals at the Port of New York and New Jersey or efforts to improve gate efficiency in Virginia, it’s all good for Jim.

Beneficial cargo owners are celebrating an early Christmas. Anticipating the supply-demand ratios again were trending to the demand side for the year, trans-Pacific contract rates for major BCOs barely moved, if at all. To be sure, some inland point intermodal rates bumped up, but still aren’t close to the cost levels associated with providing the services.

Today's intermodal customers seem on the verge of a similar entreaty to the Dickens character Oliver Twist: They're virtually begging for more capacity, more service and more pricing.

From transportation to communications and technology infrastructure, investments in building, maintaining and upgrading the systems that keep the U.S. economy moving are vital to long-term success. Although the United States’ physical infrastructure is impressive, it’s aging. Investing in maintenance and expansion is critical.

Changes made in National Motor Freight Classification by the Commodity Classification Standards Board won’t likely impact the filing and processing of damage claims by shippers, so don’t panic.

Last year’s story for the Class I railroads was one of higher volumes and changing traffic mix. But this year, volume is down. The big 2014 growth drivers that ostensibly helped create the congestion are notably absent this year, with a collective 4,600 fewer cars of these commodities being originated over the last few weeks versus 2014.

The law pertaining to importing goods into the United States might seem dry — until your goods aren’t allowed into the country, costing you or your customers money and time.