Cargo Congestion on West Coast

From our friends at A. N. Derringer

Cargo Congestion on West Coast
of US & Canada

Cargo congestion prevails among US and Canadian West Coast ports. Shippers concerned with US West Coast labor negotiations between the International Longshore and Warehouse Union (ILWU) and their management have increased cargo throughput to US ports, as well as rerouted freight to Canadian ports. A chassis shortage and labor unrest among striking truckers at the ports of LA and Long Beach have also increased congestion.


The congestion has pushed freight to the Canadian ports of Vancouver and Prince Rupert causing increased dwell times for inland destined cargo and pushing rail capacity. CN Rail has advised they are giving priority to customers with cargo traffic regularly routed through Canadian ports, meeting its service obligations to year-round customers first.

The Coming Truck Driver Drought

From Bloomberg Business Week Online

http://www.businessweek.com/articles/2013-11-14/2014-outlook-truck-driver-shortage

Add truck driver to the list of jobs Americans don’t want to do anymore. Long weeks on the road away from home and family and stagnant salaries are making it hard to recruit drivers. The average age of a commercial driver in the U.S. is 55, according to the Bureau of Labor Statistics, and retirements in recent years have long-haul carriers worried about filling their spots. Many would-be younger drivers are instead drawn to construction and other jobs that pay more than the average $38,000 a year truckers make.

“There has been an underlying quality driver shortage for many years, but it’s been masked by the recession,” says Mike Hinz, president of the van division at Roehl Transport. Nationwide there are about 25,000 unfilled truck driving jobs, according to the American Trucking Associations (ATA). That’s a manageable shortfall for now, given a still-struggling economy and lower-than-expected demand. Analysts expect freight volumes, which were flat in 2013, to rise only slightly in 2014—but that could be enough to create a need for more drivers. “As exports rise,” says Hinz, “we’ll see a driver shortage that is modest today become acute.” The U.S. government projects that 330,000 new truckers will be needed by 2020.

Federal regulations have also made a career behind the wheel less attractive. New rules have reduced the hours truckers can drive and require more breaks—so long-haul drivers paid by the mile are on the road longer without extra pay. Trucking companies are reacting by stepping up recruitment, offering signing bonuses, and reimbursing driving school tuition, which can run up to $5,000.

Some shipping companies are readying for a shortage by looking to “intermodal” transportation systems that combine trains and trucks to move products from factory to store shelf in a single container. Double-stacked rail cars can hold at least twice the amount of cargo as a standard long-haul truck. Intermodal promises to cut costs by transporting more cargo with fewer resources.

The Federal Highway Administration says intermodal transportation will become more popular as over-the-road freight networks are less able to meet demand. The ATA calculates intermodal will grow an average of 5.1 percent a year until 2018. That makes sense, says Ryan Bouchard, an analyst with Avondale Partners: “The message of less costly and more efficient movement is resonating with clients.”

U. S. Commercial Service Regional Conferences

U.S. COMMERCIAL SERVICE REGIONAL CONFERENCES

DISCOVER GLOBAL MARKETS SERIES.  The U.S. Commercial Service is proud to announce this unprecedented national series of conferences to help U.S. business compete, win, and grow in the international marketplace.  Reserve your place now at a DISCOVER GLOBAL MARKETS event in 2014.  For registration details, see:   http://export.gov/discoverglobalmarkets. Below is a list of upcoming events in the series. 

• Free Trade Agreement Countries, Sept. 9-10, Detroit, MI                    
• Greater China, Oct. 7-8, New York, NY            
• The Americas, Oct. 29-31, Charlotte, NC              
• Sub-Saharan Africa, Nov. 5-6, Atlanta, GA                
• Healthcare and Life Sciences, Nov. 17-18, Minneapolis, MN

Happy 4th of July

4^th Of July Holiday Notice

Dixie Cullen Interests, Inc.

Office and Warehouse will be closed on Friday, July 4th in observance of Independence Day.

We will re-open for business at 7am on Monday, July 7th.

EXPORTING TO AUSTRALIA: The Benefits of a Free Trade Agreement
Friday, June 27, 2014 | 1919 Smith St., 10th Floor Bayou Room, Houston

Australian Prime Minister Tony Abbott announced during a visit to Houston on June 13 that “Australia will open a Consulate-General in Houston in the next 12 months in recognition of the significant two-way investment between Australia and the global energy capital.”

Join us next week to learn more about market opportunities in Australia, tips for success and why targeting countries with free trade agreements is beneficial for U.S. firms.   Afterwards, receive one-on-one counseling on questions specific to your business in Australia. The event is organized with the support of the Australian-American Chamber of Commerce and Qantas Freight Services.

Australia is the fourth largest economy in the Asia-Pacific region and can be considered as a platform for doing business in Asia. The Australia-U.S. Free Trade Agreement, which went into effect in 2005, enhanced the long and successful trading relationship by eliminating tariffs on almost all U.S. manufactured and agricultural goods. Leading sectors for U.S. exports to Australia include:  Aircraft and Parts; Automotive Parts & Accessories; Biotechnology; Construction Machinery; Cosmetics; Franchising; Information Technology Services; Medical Equipment; Mining Equipment; Oil and Gas Field Machinery; Renewable Energy; and Travel and Tourism.

AGENDA
8:00 am   Registration and Continental Breakfast
8:30 am   Welcome: Pam Plagens, Senior International Trade Specialist, U.S. Commercial Service, Houston
8:35 am   Introduction: Mark Hawley, President, Australian-American Chamber of Commerce, Houston
8:40 am   Exporting to Australia: Donna Carter, Commercial Specialist, U.S. Consulate, Perth, Australia
9:30 am   Panel Discussion including Kathleen Malaspina, Chief Innovation Officer & Vice President Of Marketing, OrthoAccel; Glen Kearns, Laser Scanning & Dimensional Control Services, Intertek; and Lisa Butler, Senior Associate, Squire Patton Boggs (US) LLP. Moderated by Duaine Priestley, Principal, Priestley International Consulting
10:30 am   Adjourn
10:45 am   One-on-one meetings with Commercial Specialist Donna Carter

*****
When:   Friday, June 27, 8:00 am Registration; 8:30-10:30 am Program
Where:   1919 Smith St., 10th Floor Bayou Room, Houston, Texas
Cost:   $35.00 (coffee and continental breakfast provided)
Registration:   https://emenuapps.ita.doc.gov/ePublic/event/editWebReg.do?SmartCode=4Q7U
Questions:   Contact Pam Plagens at 713-209-3106 or pam.plagens@trade.gov

Mid-June PSS Postponed!

Mid-June PSS Postponed;
Some Carriers Implement GRIs

Amid a volatile shipping market and concerns of US West Coast slowdowns, ocean carriers have postponed the peak season surcharge from the Far East and Indian sub-continent to the US and Canada. The PSS was announced earlier in the month with an effective date of June 15, which has been postponed to July 1. The proposed PSS rates are below.

$320 USD per 20’
$400 USD per 40’ STD
$450 USD per 40’ HC
$506 USD per 45’
$8 USD per CBM LCL ($8 w/m, $8 min)


The mid-June anticipated general rate increase for ocean shipments from the Far East and India to Canada has also been postponed to July 1. However, some steamship lines are opting to implement the GRI for shipments to the US. 

Local ISF Enforcement Begins for Imports

Thank you to A. N. Derringer for shairng this information with us

Local ISF Enforcement Begins Local US Customs and Border Protection (CBP) offices have been flexing their Importer Security Filing (ISF) enforcement. This enforcement strategy allows local port-level discretion to hold cargo or issue liquidated damages/penalties against importers who do not comply with ISF filing requirements. Enforcement actions are focused on the most egregious ISF violators, such as those with missing or significantly late ISFs. Non-compliant importers are given three warnings before CBP assesses liquidated damages. CBP will track ISF importer violations in a database that will provide visibility to local officers in an effort to identify offending importers nationwide.

Houston's Women Business Enterprise Expo

This past week we had the opportunity to connect with  current and with potential new customers at the Women's Business Enterprise Expo,  for "certified women owned businesses".   It's a great way to make new and renew old contacts.

One of the things that I believe sets our company DIXIE CULLEN,  apart is that we "TEAM" with our customers to provide the best service to meet future and growing needs of our customers, customers.   This year  AIM Global Logistics  had a booth at the WBE Expo,  and we wanted to take the time to thank them for stepping out and sharing their business.

Fact Friday: Houston Port Celebrates 100 years

On a personal level,  I love learning, especially the "HISTORY" of things,  loved this article on the Port of Houston's history.  So I thought I would take a few moments to share this from the Port's Website

In 2014, the Port of Houston celebrates 100 years as a deep-water port and one of the city’s most important economic assets. The road to deep water took enormous public support and perseverance, and the investment has paid off handsomely for Houston, Harris County and Texas.

In the early days of Houston, the shallow draft of Buffalo Bayou to the foot of Main Street was sufficient. Cargo from larger ships was offloaded near Galveston onto barges for the long and winding trip from the Gulf of Mexico. It was a costly compromise for Houston’s lack of a deep-water port.

Local Houston business leaders sent a steady stream of information to their representatives in Washington to prove the financial necessity for a ship channel. They pointed to the many international customers who depended on Texas cotton. But it was not until the combination of Mother Nature’s fury, the discovery of oil, and a young congressman’s dedication that Houston’s maritime destiny was fulfilled.

During the 1890s, U.S. Representative Tom Ball, for which the community north of Houston is named, spent countless hours trying to convince his congressional colleagues to support a deep-water port for Houston. Then in September 1900, a devastating hurricane slammed into Galveston and created one of the worst disasters in American history. More than 8,000 lost their lives and much of the island city and its businesses were swept away by the waves.

Ball’s arguments for a protected port 52 miles upstream from Galveston’s exposed position took on greater meaning. With the discovery of oil at Spindletop in 1901 and crops such as rice beginning to rival the dominant export crop of cotton, Houston’s ship channel needed the capacity to handle newer and larger vessels.

Tom Ball proposed a revolutionary concept. He suggested that Houston share the cost with the federal government for dredging a deep-water channel to Houston. Congressional Rivers and Harbors Committee chairman D.S. Alexander and the other congressional committee members were amazed by the bold proposal from Houston. The congressmen voted unanimously to accept the idea, which became known as the Houston Plan.

The Harris County Houston Ship Channel Navigation District was formed, and a campaign was launched to persuade voters to approve $1.25 million in bonds to pay for the District’s share of the waterway. No campaign to date had ever been conducted more passionately, and the voters carried the measure by a majority of 16 to one.

Despite voter enthusiasm, the bonds needed to be sold. Unlike today, such financial instruments were little known then by prospective buyers, and the banks and brokers weren’t interested because of the small commissions they could earn.

Jesse H. Jones, who would be a major force in the port’s destiny, took it upon himself to ask each Houston bank to accept the bonds. In just 24 hours, he persuaded each bank to buy its share. It was an investment that has paid off many times over.

Work on the deep channel commenced in 1912. The laborers took a keen interest in similar precedent-setting maritime projects of the time such as the Gulf Intracoastal Waterway, and the 51-mile long Panama Canal. On the morning of September 7, 1914, the dredge Texas signaled by whistle the completion of the channel.

A celebration to match this long-sought accomplishment was planned. A parade was held in downtown and 40 blocks were strung with a new invention: incandescent lights. A ceremony to open the channel was held Tuesday morning, November 10, 1914. Dignitaries gathered at the Turning Basin in great anticipation.

Thousands of people attended the ceremony, which was marked by a 21-gun salute. From his office in Washington, D.C., President Woodrow Wilson fired a cannon via remote control to officially mark the channel as open for operation.

A band played the National Anthem from a barge in the center of the Turning Basin while Sue Campbell, daughter of Houston Mayor Ben Campbell, sprinkled white roses into the water from the top deck of the U.S. Revenue Cutter Windom. “I christen thee Port of Houston; hither the boats of all nations may come and receive hearty welcome,” she said.

Since then, the growth of Houston’s port has been phenomenal. The Houston Ship Channel is recognized as a feat of civil engineering. More importantly, it connects Houston to the world and the port remains the nation’s leading port in terms of foreign tonnage, and 2nd in overall tonnage.

And we thought . . . .

 . . . . . We had big spreader beams

We have a large assortment of  "spreader beams"  that we use in our day to day operations at our warehouse facility.  However this one give new meaning to "BIG".   It's designed for 400 Ton lifting capacity and we're storing it until it's sent to the ship that it will be used on.

Fact Friday: A record Breaking Tonnage . . .

Well a record breaking tonnage for 1923,  a far cry from what is handled through the Port of Houston today.

Memorial Day Holiday Notice

Just a Quick Visit

This little guy dropped by for a quick visit.   It's was a long trip in from California,  but the ship was not in,  so we accepted delivery,  unloaded from the trailer,  and set into storage for a couple weeks while waiting for the ship to come in.

Safety is always a primary concern, so we use lift baskets to get our crew to the top of the unit, for hooking and securing the load for lifting.

Export Compliance Seminars

Register now to attend: "Complying With U.S. Export Controls" 4/08/2014 - 4/9/2014   &   "How to Develop an Export Management and Compliance Program" 4/10/2014

When Tuesday April 8, 2014 at 8:30 AM CDT -to- Thursday April 10, 2014 at 5:00 PM CDT Add to Calendar Where Norris Conference Center (City Centre) 816 Town & Country Blvd., Suite 210 Houston, TX 77024 Driving Directions                     The Houston District Export Council is pleased to co-sponsor The Bureau of Industry and Security two day seminar on April 8-9, 2014: "Complying with U.S. Export Controls" and one day seminar on April 10, 2014: "How to Develop and Export Management and Compliance Program": "Complying with U.S. Export Controls": Dates:       Tuesday, April 8th & Wednesday, April 9th This two-day program is led by BIS's professional counseling staff and provides an in-depth examination of the Export Administration Regulations (EAR). The program will cover the information exporters need to know to comply with U.S. export control requirements on commercial goods. BIS instructors will focus on what items and activities are subject to the EAR; how to determine your export control classification number (ECCN); steps to take to determine the export licensing requirements for your item; when you can export or reexport without applying for a license; export clearance procedures;  and record keeping requirements. Presenters will conduct a number of "hands-on" exercises that will prepare you to apply the regulations to your own company's export activities. This program is well suited for those who need a comprehensive understanding of their obligations under the EAR. Technical, policy, and enforcement professionals from BIS, as well as specialists from other U.S. Government agencies such as the Office of Foreign Assets Control and the Bureau of Census will participate in certain programs.   "How to Develop an Export Management and Compliance Program": Date:       Thursday, April 10th  This one-day program is led by BIS's professional counseling staff and will provide detailed and hands-on training regarding development of an export management and compliance program.  For information regarding this event: Get more information Register Now! I can't make it Vendors and Exhibitors: Exhibition Space is available for $1,000.  This includes prime exhibition space, acknowledgement at the event, in materials and on the event webpage.  If you are interested in becoming an exhibitor, please contact Bill Prout at 713-600-6686 or by email at wprout@bankhouston.com

Update on Houston Ship Channel: 3/25 6pm

Posted on: March 25, 2014

Shortly before 1300 today, the Coast Guard began allowing ships to move through the safety zones established after Saturday's collision.   Deep draft vessels are currently moving outbound from Houston.  The Houston Pilots report 14 vessels have sailed with 29 more pending outbound and 46 waiting to come in to Houston.  Daylight only restrictions are in place on all movements in/out of the safety zones, with hours of darkness beginning at 1930.  Some inbound vessel movements to Houston could occur this evening subject to the daylight only restriction.

Tow movements are allowed in both directions on the ICW as well as into the Port of Houston.

All vessels are directed to check-in on channel 5A to coordinate movement with Houston Vessel Traffic.  VTS Houston Galveston will direct those movements based on emergency priorities established by the Port Coordination Team.

Update on Houston Ship Channel Status

Posted on: March 25, 2014

Captain of the Port has granted permission to run towing vessels inbound from Bolivar. VTS Houston Galveston will direct those movements based on emergency priorities established by the PCT.

Cold Snap Freezes out Cargo

From one of our clients  A. N. Derringer

Cold Snap Freezes Out Cargo

Severe cold and winter conditions impeded cargo progress last week, and the US and Canada are again cleaning up cargo delays due to blistery weather. Areas across both countries experienced severe cold and blowing snow that caused road closures, train delays, and port slowdowns at multiple points. Railways appear to be heavily impacted with delays reported for cargo bound on CN and Union Pacific. The consecutive cold weather and icy conditions have hampered cargo transportation in Saskatchewan, Manitoba, Iowa, Minnesota, Wisconsin, and northern Ontario, with heavy backlogs in Chicago and Vancouver. US ports from Virginia to Texas also experienced delays. Extended gate hours over the weekend helped to clean up some backlog, and ports and railways are expected to return to normal shortly; however, more snow storms are anticipated this week.


The Northeast and Midwest are again gearing up for some major snow storms that are expected to produce between 5 and 24 inches over the next several days. These snow storms are likely to cause delays again. In the New York and New Jersey area, terminals closed early yesterday because of bad weather, which pushes out pick-ups at the terminal until Wednesday morning. In some cases, customers may incur additional charges for storage, demurrage, per diem, and pre-pulls as a result of delays.

Customs and Border Protecton Targets Phoney Goods

From our Friends at A. N. Derringer:

What’s the Hold Up? CBP Targets Phony Goods In addition to individuals who become victim to credit fraud, identity theft applies to companies, products, and importers’ identities. Counterfeit cargo has grown increasingly prevalent over the last few years. US Customs and Border Protection (CBP) signed an ACE-ITDS memorandum of understanding with the Federal Maritime Commission (FMC) to share ACE data and other information in an effort to better target counterfeit cargo. Stronger inter-agency cooperation with focus from CBP, FMC, Immigration and Customs Enforcement (ICE), and other agencies signifies the government’s increased vigilance toward preventing intellectual property rights (IPR) violations. Most counterfeit cargo is at the very least an infringement of IPR, which is the illegal use of trademarked or copyrighted names, symbols, or designs. Counterfeit goods and IPR violations pose a financial, health and safety threat to US consumers and the economy. Top commodities targeted for counterfeiting include handbags, watches, apparel, consumer electronics, footwear, and pharmaceuticals. However, corporate identity theft often extends beyond the importers of these commodities. IPR thieves use many tactics including falsifying cargo information, delivery addresses, and manifest information. Over 20,000 IPR seizures, equating to more than a billion dollars MSRP, were made in 2012. Importers must be vigilant in reviewing their import information and accompanying documentation. Any suspicious paperwork or information should be reviewed immediately and reported to government authorities. For example, it can be a red flag when a major corporation’s email address is provided by a free email service, such as hotmail or yahoo, instead of using an email address that includes the company name, often found as the domain name. The key to avoiding IPR violations is paying attention. If something looks wrong, it is likely wrong. If you have questions in regard to corporate identity theft or counterfeit cargo, please contact a local Deringer representative. For more information about IPR, please read CBP’s report “Intellectual Property Rights, Fiscal Year 2012 Seizure Statistics".

Dixie Cullen Holiday Schedule

Christmas Holiday Notice  

Office and Warehouse will close at 12 Noon Tuesday 24^th and reopen for business 7am on Thursday the December 26^th.

Please note that all trucks must be in our gate by 11:15 the 24^th in order to be unloaded.

New Year’s Holiday Notice

Office and Warehouse will be closed on Wednesday January 1^st 2014, and will reopen for business 7am on Thursday January 2^nd.