Southern California Agency To Unilaterally Develop Emissions Cut Rules At Rail Yards 12/5/2023
The South Coast Air Quality Management District (AQMD) in Southern California, frustrated by what it perceives as insufficient collaboration from Union Pacific Railroad (UP) in developing emission reduction strategies for intermodal rail yards, has decided to take a more direct approach. Initially, both UP and BNSF Railway were open to cooperating on a memorandum of understanding (MOU) with AQMD. However, UP proposed a "shared financial responsibility" plan, requesting public funds to subsidize its efforts, leading to a breakdown in collaboration. Consequently, AQMD has shifted its focus to the Independent Source Rule (ISR) process, enabling the agency to independently implement regulations for emissions reduction at rail yards. While UP believes public funds should be part of the MOU, BNSF Railway is willing to cooperate without such conditions, expressing a commitment to achieving emissions reductions in Southern California rail yards promptly. The move to ISR allows AQMD to expedite the development of regulations for emissions cuts without UP's collaboration. AQMD is concurrently working on ISRs for emissions reductions in warehouses, ports, and rail yards in Southern California. The warehouse ISR was approved in 2021, and regulations for the ports of Los Angeles and Long Beach are expected in early 2024. The goal is to complement the California Air Resources Board (CARB) regulations covering major pollution sources at intermodal rail yards. Despite delays in the port ISR rollout, AQMD aims to strengthen CARB regulations and bring Southern California into compliance with federal air quality standards. However, the proposed emissions cap in the port ISR is controversial, with concerns raised by the Pacific Merchant Shipping Association (PMSA) that it could limit cargo growth at the largest U.S. port complex. PMSA argues that AQMD is relying too heavily on ports and freight carriers to meet federal requirements, emphasizing the need for a more comprehensive approach to address pollution.
Source: JOC |
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Railroads Take On EPA's Pollution-Reporting Proposal 11/29/2023
The Biden administration's proposal to alter the reporting of air emissions data by rail carriers is facing resistance from both rail companies and state government agencies. The Environmental Protection Agency (EPA) has suggested making reporting on rail yard locomotive activity mandatory instead of the current voluntary system, aiming to enhance air quality in local communities. The EPA acknowledges the mutual benefit of voluntary reporting but is considering a direct regulatory approach for rail companies to provide activity data. The Association of American Railroads (AAR) opposes this change, emphasizing their standardized methodology for collecting and providing data to estimate emissions. AAR argues that the proposed "rail companies" approach would introduce unnecessary complexity without clear additional benefits. They caution against using national-level locomotive fleet data to estimate local-level emissions, highlighting the practical limitations of such calculations. State environmental agencies also express concerns about the proposed timelines and lack of federal resources to accommodate the additional reporting requirements. States like Arkansas and Ohio argue that the EPA should have engaged with them to assess the feasibility of implementing such changes, emphasizing the potential strain on state resources, mandated unfunded expenditures, and risks to data quality. The West Virginia Department of Environmental Protection asserts that the proposed rule is not realistically implementable, regardless of whether states handle air pollution reporting or leave it to the EPA.
Source: FreightWaves |
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New Chassis Pool Launches In Memphis To Boost Competition In Markets 11/2/2023
Memphis now has a new chassis pool that has been introduced to address the frustrations of truckers and cargo owners dealing with restrictions on which chassis can be used for hauling ocean containers. The North American Chassis Pool Cooperative (NACPC) recently launched the Memphis Pool of Choice (MPOC) with a soft launch in August and secured key agreements with Ocean Network Express (ONE) and BNSF Railway. Currently, the pool has 2,500 units, with plans to double this number within a year.
The main chassis suppliers for the pool are NACPC and Milestone Equipment Holdings. MPOC chassis will be used for ONE containers at Union Pacific Railroad's Memphis terminal, and a depot inside BNSF Railway's terminal will provide equipment for truckers. In the BNSF ramp, MPOC chassis will be interchangeable with most merchant haulage cargo containers, promoting what's known as "interoperability."
Dave Manning, president of NACPC, emphasized that their goal is to offer a well-run pool that benefits beneficial cargo owners (BCOs). Unlike marine ports, grounded terminals like those operated by Canadian National Railway, CSX Transportation, and Norfolk Southern Railway have fewer restrictions.
In the Memphis market, NACPC aims to compete with Consolidated Chassis Management (CCM), a long-standing chassis provider since 2007. NACPC believes it can offer a better chassis pool, while Manning criticizes CCM for not adequately representing the needs of cargo owners and truckers. However, CCM's CEO, Mike Wilson, disagrees and suggests that NACPC's pool may worsen fragmentation and hinder interoperability in the Memphis market, as other providers have launched private pools over time.
Source: JOC |
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Borderlands: Cargo Theft Trends Changing As Supply Chain Shifts To Border Regions 10/23/2023
Theft in the cargo industry is undergoing a shift as supply chains move to border regions in the United States, Mexico, and Canada. Trucking and logistics companies are losing up to $1 billion annually due to increased crimes against truckers. Historically, cargo theft in the U.S. was concentrated in places like California, Texas, and Florida, while in Canada, it occurred mainly in the Toronto region, and in Mexico, it targeted trucks and logistics centers in the central states. The relocation of manufacturing facilities from Asia to border areas may impact the tactics of cargo thieves.
Criminals have become more sophisticated, employing tactics like fake web domains and spoofing software to evade tracking devices. In the U.S., cargo thefts have risen, particularly in the second quarter, with electronics, home and garden goods, food and beverages, building materials, and auto parts being common targets. In Mexico, there were 1,280 cargo theft incidents recorded from January to September, about 142 per month.
Circle Logistics, a logistics company in Indiana, emphasizes an anti-fraud approach and urges shippers to verify drivers and equipment when freight is picked up. They shared an incident involving fraudulent carriers, highlighting the need for caution and vigilance. Source: FreightWaves |
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US, Mexican Trade Officials Ask Texas Governor To End Truck Inspections 10/5/2023
Cargo trade between the U.S. and Mexico is facing severe disruption, with over $1.5 billion worth of goods stranded at the border due to long wait times for trucks. The issue stems from state-run cargo truck inspections in Texas, causing delays of over five hours in places like El Paso and Eagle Pass. While there has been a recent increase in migrants at the border, these state-run inspections, overseen by the Texas Department of Public Safety (DPS), are primarily responsible for the commercial trade disruptions.
Homero Balderas, the general manager for the Eagle Pass International Bridge System, highlighted that the inspections have significantly slowed commercial traffic, reducing the number of trucks passing through by more than half. This disruption has been exacerbated by the closure of one of the border bridges due to the migrant surge and the reallocation of U.S. Customs and Border Protection personnel. The Texas DPS inspections, which began on September 20, were intended to combat drug smuggling by cartels. However, they have added to the congestion at border crossings, leading to wait times of over four hours for cargo trucks and even longer for commercial vehicles in certain lanes.
In response to these delays, Canada-based manufacturing firm Bombardier Recreational Products (BRP) temporarily halted operations in Juarez, where it operates three plants, due to supply chain issues caused by the border slowdown. Other industries, including the maquiladoras in Juarez, foreign-owned factories that rely on supply chains through the El Paso port of entry for manufacturing, have also been severely affected.
Trade officials in Juarez expressed frustration with the situation, placing blame on Texas Governor Greg Abbott for what they see as an unnecessary disruption to supply chains. Manuel Sotelo, vice president of the Juarez chapter of Mexico’s National Chamber of Freight Transport, estimated that the DPS inspections have resulted in more than $1.5 billion worth of goods stranded at the border.
Efforts to address the issue are currently underway, with calls for Governor Abbott to reconsider the state-run inspections and their impact on commercial trade. However, as of now, there has been no official response from Texas officials regarding the matter.
Source: Freightwaves |
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What Happens To Freight If The Government Shuts Down? 9/29/2023
Ten federal agencies that oversee various aspects of the U.S. freight economy have outlined their contingency plans in case Congress fails to pass the necessary appropriations bills. As of now, there is an increasing likelihood of a government shutdown, with Congress yet to pass any of the 12 appropriations bills that set discretionary spending levels. If a shutdown occurs, it would be more extensive than the partial shutdown in 2018, potentially affecting various industries and companies involved in moving freight.
Here is a summary of the plans and concerns of these federal agencies in the event of a full government shutdown:
- Federal Maritime Commission (FMC): 94% furloughed- The FMC, responsible for container shipping competition oversight, would cease most of its activities, impacting shippers and carriers' ability to submit filings and applications related to ocean transportation.
- Federal Railroad Administration (FRA): 35% furloughed- The FRA, overseeing railroad safety, would halt most rulemakings, which could be concerning, especially for safety-related regulations.
- U.S. Coast Guard (USCG): 13% furloughed- While the USCG's essential functions related to vessel safety and inspection would continue, its service members would go without pay during a shutdown, potentially affecting morale.
- Surface Transportation Board (STB): 99% furloughed- The STB, regulating U.S. freight railroads' competition, would virtually close, suspending activities related to case processing, regulatory filings, and litigation.
- U.S. Maritime Administration (MarAd): 24% furloughed-Most functions of MarAd, which regulates U.S. maritime markets, would continue, but certain activities within the Office of Cargo and Commercial Sealift would be suspended.
- Customs and Border Protection (CBP): 8% furloughed- CBP would retain 92% of its employees, ensuring the continued flow of trade at U.S. ports. However, policy, regulatory, legislative, auditing, and training activities may be suspended.
- Federal Highway Administration (FHWA): FHWA operations would continue as usual, but state agencies are concerned about delays in funding affecting project timelines.
- Federal Motor Carrier Safety Administration (FMCSA): FMCSA would continue normal operations, depending on available cash and authorized contract authority, ensuring the regulation of commercial vehicle drivers and carriers.
- National Highway Traffic Safety Administration (NHTSA): NHTSA would maintain its activities funded by Congress, including those supported by the Highway Trust Fund or supplemental appropriations.
- Environmental Protection Agency (EPA): 93% furloughed- EPA's core functions would mostly continue, but approvals of pending state requests, including permits for freight-related infrastructure projects, might be suspended.
These agencies play crucial roles in ensuring the smooth functioning of the U.S. freight economy, and their contingency plans aim to mitigate disruptions in case of a government shutdown.
Source: Freightwaves |
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Texas Resumes Truck Inspections Along Mexico Border Amid Migrant Surge 9/22/2023 Truck drivers operating across the Texas-Mexico border are currently experiencing lengthy delays at two entry points. This situation is a result of increased migrant arrivals and the resumption of state-run truck inspections by the Texas Department of Public Safety (DPS), which began at the Ysleta-Zaragoza International Bridge in El Paso and the Camino Real Bridge in Eagle Pass. These state inspections are in addition to regular commercial truck inspections by U.S. Customs and Border Protection (CBP), adding to the time it takes for each truck to cross the border as they must now undergo additional scrutiny.
DPS officials have stated that these renewed inspections are aimed at preventing drug smuggling by cartels across the border. Their goal is to enhance commercial vehicle safety inspections to deter such illegal activity and improve road safety. However, the duration of these state-run inspections remains unspecified.
The heightened inspections at the Ysleta-Zaragoza and Camino Real bridges are compounding delays already caused by a significant increase in migrants arriving at the Texas-Mexico border in recent days. CBP agents who would typically assist in processing commercial cargo trucks are being redirected to immigration duties to handle the influx of migrants.
At present, cargo truck wait times at the Ysleta-Zaragoza Bridge are exceeding 100 minutes in the general commercial lanes and 80 minutes for vehicles permitted under the Free and Secure Trade program. On Monday, CBP suspended cargo truck operations at the Bridge of Americas border crossing in El Paso, rerouting all commercial traffic to alternative bridges. The exact resumption date for cargo operations at the Bridge of the Americas remains uncertain.
CBP also closed Bridge I in Eagle Pass on Wednesday due to a surge in migrant arrivals, leaving Bridge II, also known as the Camino Real Bridge, open with only one lane for cargo trucks. Consequently, the DPS inspections are causing significant delays at the Camino Real Bridge, with cargo truck wait times exceeding 180 minutes, according to CBP data.
Additionally, CBP temporarily closed the rail bridge in Eagle Pass to redirect personnel for Border Patrol duties related to migrant apprehension. This closure has led to delays in Union Pacific's freight service in South Texas, prompting an embargo on shipments through Eagle Pass.
The combination of migrant surges and increased inspections by both DPS and CBP at the Texas-Mexico border is causing substantial delays for cross-border truck drivers and impacting trade flows between the two countries.
Source: Freightwaves |
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