Shippers see worst Great Lakes year in seven decades
Breakbulk Industry News

With the lowest cargo valume in 71 years for iron ore and the worst in 77 years for coal, the two chief backbones of U. S. Great Lakes shipping, fleet leaders are expecting better shipping in 2010. But only mildly better.

The third biggest item for Great Lakes shipping, limestone, was down to it's lowest level in 25 years, since the recession year of 1984, to 23.5 million net tons.

link to balance of of article

Exports Increasing from our Almeda Geona Facility

Since opening our Almeda Genoa facility we have seen a major increase not only the number of containers/flat racks and items going break bulk that are being prepared for export at our facility but also a wide variety products.

Steel Coils, Tires, steel bar, construction equipment, mobile cranes even a few motor vehicles, machine tools and an assortment of project cargo.


Included in the services that we offer our export clients is the planning and laying out the loads, blocking with ISPM 15 Certificed blocking and dunnage. Preparing packing lists and photo journaling the project for our customers. But also making sure that fuel certificates and dock receipts are in hand to go with the shipment to avoid delays. Scheduling with freight forwarders and trucking companies are all in a days work for us. This saves time and worry for our customers.

Decline of 2009 has bottomed out

Energy Information Administration predicts rising oil demand, prices
January 15, 2010 Break Bulk Connection

Global oil demand fell in 2009 and 2008, the first time since 1983 that oil demand has fallen for two consecutive years, according to a short-term energy outlook released this week by the US Energy Information Administration. However, the decline bottomed out in mid-2009 and the EIA expects recovery to continue with oil demand growth of 1.1 million barrels per day in 2010 and 1.5 million bbl/d in 2011.

Countries outside of the Organization for Economic Cooperation and Development will lead 2010 demand recovery while OECD countries should see some demand growth in 2011, the EIA said. Overall, China is expected to lead world consumption demand growth with estimated increases of more than 0.4 million bbl/d both years.

The EIA expects the benchmark West Texas Intermediate crude oil price per barrel, which averaged $62/bbl in 2009, to average $80 in 2010 and $84 in 2011. EIA’s forecast assumes U.S. GDP growth of 2 percent in 2010 and 2.7 percent in 2011 and world oil-consumption-weighted growth of 2.5 percent in 2011 and 3.7 percent in 2011.

The EIA also expects annual average natural gas spot prices in the U.S. to increase from $4.06 per thousand cubic feet (Mcf) in 2009 to $5.36 Mcf in 2010 and $6.12 Mcf in 2011.
Global investments in oil and gas exploration and development, and related heavy-lift and project cargo movement, can be expected to increase as oil and gas prices rise.

World Steel Production Increases in October
Breakbulk News 11/23/09

Production of crude steel, a key breakbulk cargo, in the 66 countries that report to the World Steel Associaiton increased 3% from September to October, or to 112,177 Million metric tons from 108,816 metric tons. However, total global steel production for the ten months through October lagged 13.5%, reaching only 982,143 metrick tons compared to 1,135,544 during the same period of 2008.

Chinese steel production during the first ten months of 2009 was 472,474 metric ton, an increase of 10.5% over the same perios in 2008. China's ten-month 2009 total accounted for 48% of global total for the period. Japan accounted for about 7% of the global total; Russia, about 5%; India, about 5%, US, about 5%, South Korea, about 4% and the EU, about 11%

Implementation of Debarking Requirements

The American Lumber Standard Committee has notified agencies accredited for Wood Packaging Material that the European Union has implement a debarking requirement as of July this year. At this time the SPIB is not obligated to enforce this requirements so compliance is a business decision for the producer.

The anticipated restriction is that areas of bark up to 3 centimeters wide are unlimited in length or if over 3 centimeters wide can not exceed the size of a credit card. This restriction is based on a proposed change to the ISPM 15

Breakinig News:

U. S. Truck Driver Hours of Service rules to be Re-written

The Federal Motor Carrier Safety Administration (FMCSA), in response to a legal challenge to the current hours of service (HOS) regulations, will completely rewrite the 2008 HOS reuglations. The agency will issue a proposed rulemaking within 9 months and a new Final Rule in less than two years.

This settlement is in response to a legal challenge brought against FMCSA by Public Citizen, Advocates for Highway and Auto Safety, the Truck Safety Coalition and the International Brotherhood of Teamsters. In March 2009 the groups asked a DC Appeals court to throw out the HOS rule. The March 2009 challenge was the third challenge to the Bush Administration's HOS rules.

11th Fastest Growning Woman Owned Business

Dixie Cullen Intersts was honored by the Houston Business Journal as "Houston's 11th Fastest Growing Woman Owned Business".

Our management and customer services TEAMS have been instrumental in this growth, by providing our customers with quality service.

We also wish to Thank You, our customers for entrusting us with your industrial storage and export packing needs.

It will be our pleasure to continue serving you and your needs in the future.

Cargo off at Texas ports | Breakbulk Industry News

Cargo off at Texas ports | Breakbulk Industry News

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All Companies Need Economic Operator Registration and Identification Number (EORI)

From Export News Newsletter - US Export Assistance Center

As of July 1, 2009, nearly all companies doing business in the EU or companies exporting to the EU will need an Economic Operator Registration and Identification number (EORI as EORI numbers are required for Customers Declarations and to apply for Authorized Economic Operator status. Member states may have different procedures for applying for EORI numbers and exporters will be required to register for EORI in the first member state they do business in after July 1. Any companies that do not have EORI number or do not know if they have one should be sure to check the EU Customs page that explains whi is impacted.

For more details see www.buyusa.gov/europeanunion/whatsnew.html

Pam Plagens Pam.plagens@mail.doc.gov

Nyamusi Igambi Nyamusi.igambi@mail.doc.gov

What's New in the European Union

From the September issue of Export News - U S Export Assistance Center

New Requirements for US Exporters of Machines:

As of December 29, 2009 when the new MACHINE SAFETY DIRECTIVE (2006/42/EC) becomes mandatory, US exporters of machines will need to identify a person established in the European Union who is authorized to keep the manufactuer's technical file or have quick access to it. This person's name must appear on the declaration of conformity along with the name and address of the manufacturer. The person could be no more than a letterbox, a point of contact for the authorities in case there are questions about confomrity of the machine or about accidents. The person based in Europe could be the importer/distributor, a lawyer, an authorized representative, or any other person. The manufacturer remains responsible for compiling the technical file. This requirement is an example of the beefed up surveillance and enforcement the EU is putting into effect to back up the CE marking program.

For your copy of Export News

Nyamusi Igambi - Senior Trade Specialist Nyamusi.igambi@mail.doc.gov

Pam Plagens - Senior Trade Specialist Pam.plagens@mail.doc.gov

Low dollar boosts used equipment exports

posted by bwyker Breakbulk News

If there is any silver lining for the shipping industry in the clouds enveloping the US economy, it's the increase in exports fueled by the weakness of the dollar. For the breakbulk and project cargo sector of the industry, the export boom has generated a big increase in shipments of used construction and agricultural equipment, dismantled plants, old locomotives and high and heavy vehicles.

The trend is so pronounced that some breakbulk ports are beginning to look like giant garage sales -- with every inch of storage yard stacked high wuth used cranes, dismantled refining equipment, graders, bulldozers, harvesters and tractors.

Read more on this artical -- click here

Carloads Grow at Large Railroads

posted by jnodar On July 16, 2009 Breakbulk Industry News

Carlaodings of machinery and bulk materials rose in the latest week to the strongest level in three months at major U. S. railroads, as freight picked up after the slow July 4 holiday period

The latest weekly rail traffic report is in line with other signs that the economy continues to bump along the bottom, with some idnicatiors that strength is returning bu others showing freight sectors are flattened or moving in an up and down pattern over the weeks.

Read more of this article click here

Wind Power's Long and Winding Road
Break Bulk News August 10, 2009 Peter Leach


Stephen Donchez feels the pain of drivers who get stuck behind one of his big rigs.

"Motorists hate to see us on the road because we're slow moving and slow down traffic." said Donchez, president of American Transport Systems, a Vineland NJ motor carrier that specializes in carrying massive, oversize wind power components.

American drivers had better get used to the frustration, because they're likely to see a lot more big righs hauling windmill blades, towers and turbines on U. S. roadways: energy economists expect wind farms will produce 20 percent of the U. S. electricity supply by 2020. That means a multitude of new wind farms nationwide.

Read more of this article

Most American's Support Heavier Trucks

from eTrucker.com news

The Coalition for Transportation Productivity, a coalition of more than 100 shippers and allied associations seeking increased federal weight limits on interstate highways, today, July 15, announced the results of a national poll it says demonstrates a majority of Americans support raising interstate trucks weight limits without making trucks larger.

To read more about the survey and key findings click here

Ocean Carriers Planning a $500.00 Rate Hike

for Asia - US Containers

The 14 shipping lines of the Transpacific Stabalization agreement are planning to increase rates for Asia - US Containers starting August 1st.

To read more : click here

US Trade Gap Lowest in 9 years!

The BBC reported:

The US saw it's deficit narrow to $26 bn in May, it's lowest level i more then nie years, according to figures from the commerce department.

Imports continued to fall while exports increased, pushing the deficit to it's lowest level since November 1999.

READ MORE

U.S. Box Imports Plummet 22 Percent
Bill Mongelluzzo Jun 9, 2009 6:28PM GMTThe Journal of Commerce Online - News Story

Slight April gain over March gives weak signal for peak season

Container volumes at U.S. ports edged up in April compared to March, but remained well below the volumes recorded in April 2008, according to the monthly Port Tracker published by the National Retail Federation and IHS Global Insight.

The second half of 2009 appears to be trending the same way the first half progressed, with containerized imports creeping up compared to the month before, but down noticeably from the same month last year.

It therefore looks like the back-to-school shopping season this summer, traditionally the second busiest period on retailers' calendars, will be disappointing. Prospects for the holiday shopping season that follows look equally bleak.

These developments are reflected directly in the cargo volumes moving through the eight major U.S. container gateways covered by Port Tracker.

"Retailers are still being cautious with their inventory levels in anticipation of slow sales this summer into the fall," said Jonathan Gold, vice president for supply chain and customs policy at the National Retail Federation.

Containerized imports in April increased 2 percent over March, but were down 22 percent compared to April 2008, according to Port Tracker. April was the third lowest month since 2004 and marked the 22nd month in a row of year-over-year declines in volume.

Projections call for May to be down 21 percent and June 19 percent from the same months last year. Port Tracker projects that containerized imports in the first half of 2009 will be down 21 percent compared to the first six months of 2008.

Port Tracker projects volumes in the peak summer-fall months through October will be down about 16 to 18 percent compared to peak season 2008.

Logistically, the U.S. port and intermodal transportation networks are operating efficiently and without any disruptions. Ports are congestion-free from vessel to gate. Rail service levels are good and the harbor trucking industry is operating with excess capacity.

On the other hand, all of these transportation industries are struggling with weak revenues and over-capacity.

Introduction of the federal security program known as the Transportation Worker Identification Credential has successfully taken place at all major gateways.

Contact Bill Mongelluzzo at bmongelluzzo@joc.com.

Shippers Throw Support to Heavier Trucks
John Gallagher Jun 8, 2009 7:12PM GMTThe Journal of Commerce Online - News Story


Coalition supports bill to raise size, weight limits on interstates

Big shippers are throwing their weight behind legislation allowing heavier trucks on federal roads as a way to boost carrier productivity, save fuel, and cut transportation costs.

The Coalition for Transportation Productivity, representing more than 100 associations and companies such as the National Industrial Transportation League, Kraft Foods, Archer Daniels Midland and International Paper, is urging Congress to raise federal vehicle weight limits on U.S. interstates to 97,000 lbs. through its support of the Safe and Efficient Transportation Act of 2009. The measure was introduced in Congress March 30.

The legislation stipulates raising the weight limits would only be allowed for vehicles equipped with a sixth axle, which would maintain braking capacity and weight distribution per tire. The bill imposes a user fee for six-axle units to fund bridge repair.

More freight on fewer trucks would also make roads safer, says CTP Co-chairman John Runyan.
“Accident rates among heavy vehicles are strongly tied to the vehicle miles a truck must travel to deliver a ton of freight,” he said. Allowing heavier trucks “would reduce the number of vehicle miles and overall number of trucks needed to deliver a specific amount of freight, making roads safer while cutting fuel and emissions by as much as 19 percent for each ton carried.”

Railroads have long opposed such legislation, claiming raising truck weight limits would give them a competitive edge in the fight over shipper dollars. The AAR cites a 1999 DOT study suggesting increasing truck size and weights would result in a decline in rail revenue of between $2.9 billion and $6.7 billion. Rail earnings would decline 32 percent to 46 percent, and rail car-miles would decline 4 percent to 20 percent, the study said.

Contact John Gallagher at jgallagher@joc.com.

Texas makes Port of Brownsville overweight corridor program permanent
May 21, 2009 Breakbulk News

Texas Governor Rick Perry has signed legislation that will permanently allow overweight freight to be transported by truck between the Port of Brownsville and Mexico. The corridor allows trucks carrying primarily break bulk steel but also other cargoes to be loaded to Mexican truck weights. Without the corridor, said the port’s Deputy Director Donna Eymard, shippers would have to use two trucks instead of one and the steel Brownsville handles would move to Mexican ports.

Brownsville is one of the U.S.’s largest steel ports, handling more than 2 million tons during 2008. Virtually all of the port’s import steel goes to mills in northern Mexico to be processed. After processing, some of it is then re-exported.

Port Director and chief executive officer Eduardo A. Campirano said in the port’s statement that “this is great news for the state, the port, the county, the city, and the consumer. The overweight corridor program helps to insure the sustainable growth of the Port – the economic engine for the Rio Grande Valley and Northern Mexico.”

Steel Imports Drop in March

May 5, 2009 May 5, 2009 – 1:48 pm-->By Alan Field Breakbulk from the Journal of Commerce

Shipping near record low, says industry group

The United States imported a total of 1.5 million net tons of steel in March, the American Iron and Steel Institute reported, based on preliminary Census Bureau data. Imports of this breakbulk cargo included 1.437 million net tons of finished steel, down 3 percent from February.
Precision Metalforming Association President William E. Gaskin said, “The continuing fall in steel imports in March is not a surprise given the lingering sluggishness in the U.S. manufacturing sector, which has had a real impact on our members. According to PMA’s most recent survey of business conditions, the number of metal forming companies with a portion of their workforce on short time or layoffs increased to 85 percent in April, up from 76 percent in March. And while optimism about expectations for new orders has risen over the past few months, current shipping levels remain near record lows.”

China dominates imports

In March, the largest volume of finished imports from offshore was from China (196,000 net tons, down 28 percent from February). The March tonnage from China was 14 percent of all finished imports. Other major offshore suppliers in March were Korea, Japan, and India.
March imports of hot-rolled steel dropped seven percent from February’s levels, from 152,983 to 141,792 metric tons. Cold-rolled steel imports also declined, from 111,625 metric tons in February to 96,236 metric tons in March, a drop of 14 percent.

Key products that increased in March compared to February included reinforcing bars (up 155 percent), mechanical tubing (up 46 percent), hot dipped galvanized sheet & strip (up 28 percent), line pipe (up 24 percent) and standard pipe (up 24 percent).