HANJIN IN RECEIVERSHIP

hanjin-shipAfter months of negotiations between Hanjin and Korea Development Bank (KDB) (the shipping company’s main creditor) to restructure Hanjin’s debt, the attempts have failed.  KDB withdrew its support of Hanjin because the final funding plan proposed was not enough to meet the company’s debt of $5.5B.  

 

As a result, Hanjin has filed for receivership, which is a form of bankruptcy protection. The courts will now decide if the company will be liquidated or restructured.   

 

Reports indicate that restructuring is remote. There will be no Korean government bailout for the 7th largest ocean carrier, and the government has requested Hyundai, also a Korean ocean carrier, to buy Hanjin’s healthy assets.

 

Hanjin’s ships both in the US and abroad have been denied berthing access or even seized. Terminal operators around the world, including Oakland, are restricting the movement Hanjin equipment. Cargo worldwide is going to be at risk.  It is going to be a long and messy clean up.

 

We will let you know more as the picture comes into better focus.

FROM NORTHERN NEVADA: HEADLESS BURNERS

burning-man-2015-001aEvery Labor Day weekend, out on the Black Rock Desert in Northern Nevada is an arts festival that attracts about 70,000 people each year.  The week-long event culminates with the burning of a 40′ wooden effigy.

This year’s theme is da Vinci’s Vitruvian Man.  The plan was to have the “man” rotate on a circle like da Vinci’s drawing.  However, when it came time to rotate the structure, it was discovered the gears were broken. Now, the poor guy is upside down and headless.

And, yes, that is one of our trucks making a delivery out there.  We have been a transportation provider to event-goers for many years.

EXPORTS, CHINA & ZIKA CERTIFICATION

zikaThe Chinese government issued a directive requiring all loaded containers from Zika-infested countries, including the US, have a “Mosquito Eradication Certificate.”  Without this certificate, the cargo is subject to quarantine or forced fumigation.  US agencies are working with their Chinese counterparts to mitigate and more clearly define the requirements.

 

Here are some highlights of what you need to know regarding compliance:

  1. The rule applies to all cargo shipped from the US to China.
  2. The certificate does not need to have a government seal or stamp of any kind.
  3. Fumigation is not required.  Cargo owners can use disinsection means instead.

Refrigerated cargo transited at 59 degrees or below is not required to have a certificate.

NEGOTIATE EARLY

ilwu-crane-operator-viewWe remember all too well the pains of the west coast labor negotiations in 2014/2015. It took nearly a year to finalize the contract and the US Labor Secretary’s involvement to close the deal.  The aftermath and clean up took months to clean up.

The current contact is set to expire on June 30, 2019.  The PMA sent a letter to the ILWU requesting early negotiations, and the labor union sought approval from its rank-and-file. The matter was voted on by ILWU delegates last month, and the majority elected to enter into early contract negotiations.

It is a hopeful sign.  The industry was set to have simultaneous negotiations with both the east/gulf coast contract and the west coast contract expiring in close proximity.  A nationwide disruption would be devastating to the county  Not to mention the industry cannot handle further disruption to cargo flows on the west coast alone.

MEMOIRS OF A RED-HEADED STEPCHILD

Last year, cargo interests in Oakland had about three days to adjust to the chassis in/out gate fees.  On the Wednesday after Memorial Day, we were informed there would be a gate fee for chassis starting the followingNight Operation SSA Monday.  

 

We protested.  We tried to negotiate.  We asked for more time.  All of our pleas fell on deaf ears. The charges moved forward.

 

A year later with much more notice, the terminals in Southern California announced the same thing. All of the sudden, everyone is up in arms and the Federal Maritime Commission gets involved. The port-wide fee is aborted in favor of individual terminal operators negotiating with the chassis providers.  

 

We know the ports of LA/Long Beach handle considerably more volume than does Oakland, but seriously???

NAME THAT PART

name-that-part-sept-2016Do 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!  

FROM THE DRIVER’S SEAT: ARE YOU READY FOR SOME FOOTBALL?

football-trucking-familyWell, Steve Rochelle is…who is not pictured above by the way.  Steve is an independent contractor who owns his own truck and schedules his work to coincide with his sons’ college football games.  He has two sons. Matt played starting offensive tackle for the Air Force, and Isaac plays defensive lineman for Notre Dame.

Steve has traveled the country delivering goods and watching is boys play.  He even made it to two bowl games last season.  Air Force v Cal in the Armed Forces Bowl in Fort Worth, TX on December 29th and Notre Dame v Ohio State in the Fiesta Bowl in Glendale, AZ on January 1st, all while delivering a load of chicken meal to Nestle Purina’s dog food plant in Flagstaff, AZ.

Now, that is a savvy independent contractor and a great dad!

As we kick off National Driver Appreciate Week, we want to recognize Steve, Devine’s drivers and all the hardworking men and women out there. Thank you for all you do to keep our economy going and roadways safe.

DELIVERY TRUCK, MEET DRONE

drone-delivery-truckDrones are all the rage when talking about the future of small parcel, e-commerce deliveries, but we are not there yet.

The slightly more relaxed rules as recently established by the Federal Aviation Administration (FAA) require the operators to be licensed, the drones to be flown during daylight hours only, no more than 400 feet off the ground and remain visible to the operator at all times.

Amazon’s and other on-line retailers’ goal of using drones for deliveries to the consumer will not work with the “line of sight” requirement.  Enter the electric delivery truck and drone combo.  This technology will enable the drone to remain visible to the driver while expanding the number and scope of deliveries.

 

NOT SO FUN FACT

Drivers in Reno beware.  Two new city ordinances aimed at distracted driving went into effect.  To avoid the $305 fine, the Reno Police Department suggests you avoid eating, shaving, applying make up, reading a book, yelling atdistracted-driving your kids or having your puppy on your lap, especially if you cannot do these tasks while driving.