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Freight News ArchiveCalifornia Container Tax Up For Vote North to Hawaii? Postal Rate Increase Shipping Discounts for the Holidays Ocean Carrier to Increase Rates Christmas Trees Already Shipping Hawaii Ports Back to Normal Earthquake hits Hawaii Port Security Funding Cost of Oil Drops Sentate Approves Port Security Bill Noise Pollution from Ships Fast Shipping Restriction Shipping Earnings Oilfield Closure May Impact Shipping Costs Fuel Costs Hurt Carrier Fuel Surcharges Shipment Complete Freight In Outer Space National Monument SSN Hawaii Economic Growth Ferry Service Pineapples California Container Tax Up For Vote A California State proposed container tax will increase the cost of goods shipping to Hawaii. The proposal will add a $30 tax on each 20 foot container but most containers shipped to Hawaii are 40 feet so the tax would double and the cost would be passed on to the Hawaiian consumer. The majority of shipments to Hawaii come from California ports and shipping companies like Hawaiian Ocean Transport a division of American Fast Freight, Inc. oppose this tax, "This proposed tax would directly penalize the entire shipping community but would place an even greater burden on businesses shipping to Hawaii." North to Hawaii? Like the popular 1960 movie, North to Alaska which featured John Wayne in a story about the Alaskan gold rush, Alaskans might be looking for gold but elsewhere, as in golden sunsets. Alaska Airlines is now offering non-stop flights from Anchorage and Seattle to Honolulu and Lihue. The new flights will be operated with Boeing 737-800 aircraft, accommodating 16 passengers in first class and 141 in general seating. This could be a big win-win for vacationers and fish lovers alike, recently Alaska Airlines starting shipping fresh Alaska salmon to Seattle so the only question is whether there are plans to do the same for Honolulu. Those departing Anchorage can expect to leave at 3:20 PM and arrive by 8:40 PM for an introductory pricing of $159. Postal Rate Increase According to the United States Postal Service (USPS) website, May 14 will be the effective date for new rates and fees for all classes of mail except Periodicals (delayed until July 15). The new rates reflect operations and marketplace changes, offering more choices while ensuring that all mail costs are covered. The new rating structure will generate a more efficient mailing system, decreasing the cost as low as possible. The USPS will include incentives to create mailpieces compatible with their processing systems and to deposit flats and parcels closer to where they are delivered. In addtion, the USPS wants to reduce the costs associated with the handling of undeliverable-as-addressed mail by making it easier and less costly for mailers to get updated addresses. And, shape matters. It’s important to the USPS because the cost of handling each mail shape – letters, large envelopes (”flats”), and packages (“parcels”) – varies widely. Shape is also important to you because it affects how you position your message or your product. Shipping Discounts for the Holidays Many retailers are offering free shipping but with certain conditions. Amazon.com offers free 3-5 day shipping on orders $25 or more for eligible products but with Christmas just days away, Amazon.com customers may opt for the Amazon Prime membership that offers free two-day shipping (on eligible items) for a annual membership fee of $79. Some companies like REI will provide free store pickup, Sears is offering a free 5 minute in-store pickup guarantee and free shipping on orders $99 or more. In Alaska or Hawaii deals on shipping costs maybe hard to find from most online only stores but retailers with online and ‘brick and mortar’ locations still seem to offer shipping discounts on orders for pick-up. Ocean Carrier to Increase Rates The Matson Navigation Company announced that effective January 1, 2007, it will raise terminal handling charges to $150 per westbound container and $75 for eastbound containers and that shipping rates will increase on average by 3.3 percent. The rate increase is expected to help offset rising operation costs and to support investments in Hawaii services. In recent years Matson has made replacing its fleet a priority, investing over $500 million into new more fuel efficient containerships. Terminal handling costs however are approximately 40 percent of Matson’s operating expenses, which is driven by rising labor and security costs that are outside of Matson’s control. In the past five years, terminal handling costs have risen by 34 percent but Matson has and continues to absorb a vast majority of these increases. Christmas Trees Already Shipping According to Hawaii's Department of Agriculture an estimated 100,000 Christmas trees are in route in over 200 shipping containers. Local merchants are expecting higher tree sales this year after last year's unexpected demand and some stores are already selling Christmas trees as early as this weekend. Hawaii Ports Back to Normal After Hawaii’s earthquake, shipping has returned to normal in Kawaihae Harbor. Engineers, divers and Hawaii Dept. of Transportation inspected terminals and piers which appeared to be in good condition. Overall, most freight companies had few disruptions due to the earthquake. Earthquake hits Hawaii Hawaiians review the damage after an earthquake 10 miles northwest of Kailua-Kona shook the Big Island at 7:07 Sunday morning. Reported as largest since 1983, the earthquake measured a magnitude of 6.5 and was followed by aftershocks that were has high as 5.8. Most of the power that was knocked out has been restored to the main island but many on Oahu are still without electricity. Port Security Funding The Department of Homeland Security announced 168 million dollars in funding for ports across the country. Over one million dollars in federal grants will be spent improving port security in Hawaii. The improvements will include a new identification system, small weapons and radiation monitoring. The shipping and transportation industry will likely find operation costs to decrease as the price of oil drops below $60 a barrel today. Oil inventories appear to be growing and BP will soon restart production on the eastern half of Alaska’s Prudhoe Bay which, when combined with tensions easing in the Middle East have contributed to lower fuel prices. On average gas has declined around 24 cents per gallon in the last two weeks. Sentate Approves Port Security Bill The Senate approved port security legislation sponsored by Senators Ted Stevens (Alaska) and Daniel Inouye (Hawaii). The bill approves $835 to be spent on maritime and port security which will eventually include screening of US all bound cargo containers for radiation and Weapons of Mass Destruction (WMD). Noise Pollution from Ships Shipping volumes have doubled in the past 40 years and ocean carrier traffic has increased. In a recent study using underwater listing devices from around the world, the ocean is a loud place. Comparisons made to declassified Navy documents indicate that global shipping is the probable reason for a rise in undersea noise pollution. Since records were made in the mid 1960s, noise rates have increased by 3 decibels per decade to a current total of 12 decibels. In the last 40 years the world’s shipping fleet has doubled and new ships are bigger, faster and use more power for propulsion. The impact of increased noise levels on marine wildlife is yet unknown. Fast Shipping Restriction The U.S. government proposes limiting ship speeds to reduce the number of right whale collisions. With congested shipping lanes and increased ship speeds, the number of whale strikes is on the rise. Plans to help the depleted right whale population would require ships longer than 64 feet to reduce speed to ten knots where whales frequent or through migration paths. The shipping and transport industry has reported poor earnings which may indicate a slowing economy. However the Dow Jones Transportation Average was up today closing at 4161.99. Recent threats to airlines, rising fuel costs and declining exports maybe a cause for the recent slump in shipping earnings. The performance of shipping companies is often the first indicator of a decline in economic growth. Even with lower profits reported from UPS, Union Pacific and Continental Airlines other shipping and transport firms like the Overseas Shipholding Group still show strong revenues. Oilfield Closure May Impact Shipping Costs Fuel costs are expected to rise after BP America, Inc. announced it would shut down the Prudhoe Bay oilfield in Alaska. The shutdown will reduce production by 400,000 barrels per day, accounting for about 3 percent of the US crude oil supplies. The closure follows a discovery of severe corrosion in an oil transit line; repairs are likely to take several days but the price of crude oil has already spiked. Fuel Costs Hurt Carrier Rising costs stunts growth for the world’s largest shipping carrier. The United Parcel Service (UPS) said earnings that were lower than expected, causing stock market shares to fall. The failure to meet market predicts was blamed on rising fuel and rail costs for shipping, pensions and health care. Local sea expeditions, helicopter, airplane flights even inter-island transport have all increased in cost due to rising fuel prices. According to AAA, Hawaii has the highest average for a gallon of regular gas at $3.372 and prices are not expected to drop soon. As a result of higher transport costs, products that ship to and from Hawaii have also seen a price increases. The United States space shuttle Discovery landed in Florida today after a successful 2 week mission. Next month the space shuttle Atlantis will be able to deliver supplies and equipment so that the construction of International Space Station can resume (after waiting for over three years). Freight In Outer Space The space shuttle Discovery that launched on July 4th will deliver over two and half tons of supplies to the International Space Station, which include an oxygen generator that will allow the station to host a six member crew. Almost as much old equipment and trash will be unloaded from the station for the return trip.
Space Shuttle Discovery Embarks on 12-Day Mission The Space Shuttle Discovery is in orbit after a picture-perfect launch Tuesday, the first-ever shuttle mission to lift off on America's Independence Day holiday. After two cancellations due to poor weather conditions, Discovery rocketed away from Cape Canaveral, Florida under near-cloudless skies for a 12-day mission. Headed by Commander Steven Lindsay, Discovery's seven-member crew, will visit the International Space Station Thursday to deliver supplies and equipment, and to evaluate safety procedures. At least two spacewalks are planned. One crewmember, Mission Specialist Thomas Reiter of Germany, will remain on the space station for a six-month stint. The launch went forward despite concerns stemming from a small crack that was discovered in the foam insulating Discovery's mammoth external fuel tank. It was a chunk of foam that broke off of the Space Shuttle Columbia during a 2003 lift-off that was blamed for the orbiter breaking up upon reentry to the Earth's atmosphere, killing all seven crewmembers. Prior to lift off, NASA officials said the foam crack on Discovery was meticulously inspected, and they did not believe it posed a danger. Initial reports after the launch indicated no major problems with the insulation or any other components or systems. Even so, NASA Space Shuttle Program Manager Wayne Hale acknowledged that some particles did fall away from the orbiter during lift-off. "What we saw happened after the time that we are concerned about debris coming off. And that is really good news," he said. NASA officials explained that, as the shuttle rises during a launch, the atmosphere becomes thinner and particles that fall away are no longer accelerated to a speed that can cause damage to the shuttle. That out-of-danger point is reached about two minutes after initial lift-off. NASA may opt to extend the mission to a 13th day, with a final decision on the orbiter's return date expected by Thursday. This is Discovery's 32nd mission, the 115th overall for the space shuttle program, and the second since the Columbia disaster. The shuttle fleet is scheduled to be retired in 2010. The above news article was provided by: President George Bush established a new national monument in the Northwestern Hawaiian islands spanning nearly 140,000 square miles. The local fishing industry will lose jobs because of this new marine sanctuary but conservation organizations have promised to help compensate those who are impacted by new fishing restrictions. The area is said to be the world's most remote and biggest marine reserve that supports more than 7,000 species with more than 100 unique to the surrounding islands. U.S. Navy's new nuclear attack submarine to be christened. The Virginia class submarine named the SSN Hawaii is a new submarine with improved stealth and sophisticated surveillance capabilities that will allow it to conduct anti-submarine and surface warfare. The Department of Business Economic Development and Tourism (DBEDT) predicts positive economic growth for Hawaii. In the first quarter of 2006, Hawaii’s unemployment rate fell to the lowest in the United States and Wages are forecasted to increase by over 3.5% in 2007. Tourism in Hawaii is expected to total more that 7.5 million visitors, an increase of almost 3% since 2005 and tourism spending for 2006 should be well over 12 billion dollars. In July of 2007, a new Hawaiian “Superferry” is expected to start service from Honolulu to Maui and Kauai with a second ferry connecting Honolulu to the Big Island in the following year. The famous pineapple industry in Hawaii faces slumping exports due to cheap competition from other countries such as China, India and Costa Rica. Production revenues of pineapples fell to 88 million dollars but production from coffee, flowers and other fruits have dramatically increased. |
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