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FRANKLIN TRAFFIC TOPICS
VOL. MMIX No. 8 April 17, 2009
MORE 2009 RATE INCREASES
The following carrier has announced a rate increase for 2009. This carrier is in addition to those we have already reported to you in previous newsletters.
FFE Transportation Services 5.50% 4/06/09
USF HOLLAND CLOSES TERMINALS
As of the beginning of April, USF Holland has closed several terminals in order to "reduce marketplace confusion and redundancy of operations". They have closed terminals in Richmond, VA and Wichita, KS and will now serve these customers through their sister company YRC. They have also ceased operations in Albany, Allentown, Baltimore, Bedford, DuBois, Harrisburg, Philadelphia, Syracuse and Wilkes-Barre. These areas are now being served by their sister companies New Penn Motor Express and YRC. If you have pricing in effect with USF Holland, they have announced their goal is to protect the same pricing with these sister carriers as you have had in effect in the past. More information on these changes is available at www.yrc.com, www.usfholland.com, and www.newpenn.com.
LEGISLATION INTRODUCED TO BAN INTERSTATE TOLLING
Representative Glenn Thompson (R-PA) has introduced the "Keeping America's Freeways Free Act". This legislation states the U.S. Secretary of Transportation "shall not permit the imposition or collection of any toll on any portion of a Federal highway facility. Most truckers support this bill as they argue tolls are a double tax since they already pay federal fuel taxes. Another basis of the bill is to increase public safety. It is believed many trucks will run on secondary highways not designed for heavy trucks rather than pay tolls on interstate highways, which could compromise the safety of the public. Representative Thompson has stated he would like the provisions of this bill to be incorporated into the next highway reauthorization bill (which is due in September).
PRESIDENT NAMES ACTING CHAIRMAN OF STB
President Obama has named Francis P. Mulvey to be the acting chairman of the Surface Transportation Board (STB). Mr. Mulvey is the lone Democrat on the three-member board. The naming of the chairman of the STB is the President's prerogative. The previous chairman, Republican Charles D. Nottingham will continue as a commissioner through the end of his term in 2010.
PARTS OF LA/LONG BEACH CLEAN TRUCK PLAN BLOCKED
The U.S. Circuit Court of Appeals for the Ninth Circuit has ruled in favor of the American Trucking Associations (ATA) in their lawsuit over the Clean Truck Program at the ports of Los Angeles and Long Beach. The Clean Truck Program is a part of a five-year Clean Air Action Plan to reduce port truck emissions at these ports by 80% and emissions from all sources by 45%. Effective October 1, 2008, 1988 and older trucks were banned from the ports with a gradual phased-in ban of older trucks until by January 2012 all trucks 2006 and older will be banned. The ports also began collecting a clean truck fee in February. These provisions of the Clean Truck Program were not challenged by the ATA and they remain in effect. The lawsuit was concerned with provisions of the plan that have to do with economic and environment concerns rather than safety issues and allege these provisions are in violation of federal law. The Court of Appeals has agreed with this and remanded the case back to the U.S. District Court. The provisions of the Clean Truck Program that have been halted and remanded to the lower court include the ban on any truckers from entering the ports if they are not in compliance with the port's concessions agreement. Also, the port of Los Angeles' ban on owner-operators has been enjoined. The results of this case are important as ports around the country are watching and considering implementing similar plans.
STB TAKES ON RAILROAD LIABILITY ISSUE
The Surface Transportation Board (STB) has instituted a declaratory order process as requested by the Union Pacific Railroad (UP) regarding the transportation of chlorine. The railroad wants to set aside its common carrier obligation to haul toxic inhalation hazard cargoes (such as chlorine). These are chemicals that could create a deadly cloud if released due to an accident or attack, resulting in massive liability to the railroad. The Union Pacific has issued a new tariff that would put the haulage risks for these chemical shipments on the shipper. The STB must now decide if railroads can issue such a tariff to avoid their common carrier obligation for chemicals that pose such a public safety issue and such a large liability exposure for the railroads.
EU APPROVES SALE OF HAPAG-LLOYD
The European Union competition regulators have approved the sale of Hapag-Lloyd to Albert Ballin (a Hamburg investment group). This was the last approval needed before the sale could be completed. TUI is selling Hapag-Lloyd in a $5.7 billion sale while retaining a 33% stake in the carrier. Hapag-Lloyd is the world's fifth largest ocean carrier.
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Franklin Traffic Service Inc.
5251 Shawnee Rd. Sanborn, New York 14132
Phone: 716.731.3131 Fax: 716.731.2705
Toll Free 800.731.7234
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