OAKLAND’S TRANSITION PLAN

Ben Franklin Feb 2016By now, everyone knows Ports America will be closing their terminal in Oakland in short order. Here is an update of the latest developments:

 

Ports America’s Outer Harbor Terminal LLC filed for bankruptcy. The Port of Oakland accepted the early termination of their lease agreement.  The port will receive $6M in lease payments for February and March and $5.1M for clean up expenses.  To aid in a smooth transition, the port is giving the terminal operator an additional 30 days rent free. As a result, vessel operations will be extended through March 31st and terminal operations through the end of April.

 

85% of the cargo will find a new home at SSA’s Oakland International Container Terminal (OICT), thereby, increasing their volumes by nearly 70%.  So, what is SSA doing to accommodate this significant uptick in traffic?

 

They will offer Saturday gates for export containers in, “One Stop” import containers out, wheeled containers, refrigerated containers in and out, and empties in and out.  For those unfamiliar with a “One Stop,” if you have twenty or more containers on the same vessel, SSA will put them all in one stack served with a top pick versus in the ever-crowded transtainer rows. The trade off is a specific container cannot be selected. The driver receives the container at the top of the stack.  

 

Shippers Transport Express (STE), an SSA sister company, has plans to move approximately 2000 import containers per week from SSA to their yard in Oakland. The containers will be selected randomly. There is no charge to the cargo owner for these moves.  These dray offs will be in addition to the paid moves nominated and paid for by cargo owners.

 

SSA will take on additional acreage virtually next door to operate a depot for empty containers. Empty containers can be picked up from or returned to this depot.

 

SSA will offer night gates Sunday through Thursday.  Sounds good so far, right?  Well, here is the disappointing part…these night gates will ONLY service refrigerated cargo, which equates to 5-10% of their overall volume. It has been said SSA will review the night gates in a month’s time to see what other transactions should be added. 

 

With queues stretching for miles, turn times degrading to horrific levels, their import yard being so busy by 8:30am they begin closing entire sections, and export receiving windows narrowing to 2-3 days or less, in a month’s time, we will be buried under a mountain of unmoved freight.  We need additional services on the night gates now!

 

Yes, night gates are expensive, about $1400 per longshoreman per shift. The more services you offer on the night side, the more people needed to work the shift.  We get it.  But, there is also a cost…monetarily, reputation, migration of business to other gateways…not to expand these gates.

 

The Port of Oakland has approval to spend $1.5M to help subsidize these additional gates at a rate of $10,000 per gate. A reefer-only night gate is not getting them the bang for the buck that is necessary to keep cargo moving fluidly.  As such, port management is exploring increasing the per gate subsidy.  We support this idea and hope for a quick review and implementation.

THE VIEW FROM ABOVE

Dick in Goodyear Blimp Feb 2016 001 Dick in Goodyear Blimp Feb 2016 002Richard Coyle, President Devine Intermodal and Chairman California Trucking Association, was given the honor of flying in the Goodyear blimp. The voyage took place during the Super Bowl weekend festivities in San Francisco.

How cool is that?!?!

NEXT SUPREME COURT JUSTICE?

Nevada is making national news again. Nevada Governor Brian Sandoval (R) was being vetted to replace Justice Antonin Scalia on the US Supreme Court. However, he withdrew his name from consideration when his was the only name leaked to the press.  It was suspected his consideration was only a political ploy between the White House and Senate republicans. Governor Sandoval said he “was not willing to be used as a political bludgeon or pawn at the highest levels of this country.”Brian Sandoval

NAME THAT PART

Do you know what this part is?  It is something used in intermodal or truck transportation.  Play “Name That Part” by liking us on Facebook.  Click here to be directed to our Facebook page and place your guess.  Good luck!  Name That Part Mar 2016

TRYING TO KEEP UP WITH SOLAS

SOLASThe Safety of Life at Sea (SOLAS) rule requiring shippers worldwide to certify the weight of the cargo and container is set to go into effect on July 1, 2016.  Meanwhile, there are more questions than answers regarding its implementation and enforcement.

 

Will the implementation be postponed by a year? Can shippers use an average container weight provided by the ocean carrier for each container size to calculate the Verified Gross Mass (VGM)? Will the IMO accept two certifications, one from the shipper for the cargo and second from the ocean carrier for the container?  Will a variance be allowed, and if so, how much?  Will the rule require yet another, and different, cut off for information and cargo?  Will that cut off vary by ocean carrier?  How will the ocean carriers receive the weight information?  Will a terminal operator deny ingating a container without a certified weight already on file? Will terminal operators provide the service of weighing containers?  What are the penalties for non-compliance or misinformation?

 

With only four months until worldwide implementation, we are running out of time to get answers to these and the other myriad questions.

TRUCK DAY

Baseball Truck Day 2016February 10th marked “Truck Day” in Major League Baseball.  It is the day when clubs pack up on their equipment for transport to spring training.
The trucking community is proud to play a part in the Great American Pastime.

ADVOCACY MATTERS

Dick in Washington DC Feb 2016The Federal Aviation Administration Authorization Act (F4A) contains language prohibiting states and municipalities from enacting rules and regulations restricting or impeding interstate commerce.  22 states around the country have enacted such rules and are chipping away at the constructs of F4A.  Richard Coyle (President, Devine Intermodal and Chairman, California Trucking Association) and Mike Yadon (2016 President, California Trucking Association) joined other trucking industry professionals in a call on Washington DC to impress upon legislators the importance of solidifying and strengthening F4A and avoiding a patchwork of regulations across the country which will stymie interstate commerce.

FUN FACT

Smiley Clover 1St. Patrick’s Day is on the horizon, but did you know St. Patrick was not Irish? He was actually born in Great Britain.  As the story goes, at 16 years old, he was kidnapped by pirates and held captive in Ireland for six years.