INTERNATIONAL TRANSPORTATION

TRANSPORTATION ISSUES

DOT ANNOUNCES ARREST
08/05

On August 10th, DOT announced the arrest of a Florida man charged in an eight-count indictment with conspiracy to transport and smuggle property by air containing HazMat from the U.S. to the Bahamas. The Iridium-192 was allegedly not properly identified on either the export or import documents. Further, neither the individual nor his company is licensed, trained, or certified to handle or transport radioactive HazMat.

Business Proprietary Information Is Publicly Available
1/03

Under current law, a wealth of proprietary information about import and export shipments is gathered by publishers who then sell that information to the public. As a result, shipper and consignee names and addresses, ports of loading and unloading, quantities and product descriptions are easily obtained by anyone willing to pay the cost.

Knowing of industry’s concern about even more proprietary information becoming public due to the expanded requirements resulting from the new 24 hour advance manifest rule, Customs has yet to take meaningful action. Therefore, importers and exporters are advised to seek confidential treatment of their shipping details to the full extent allowed by law.

Questions re 24 Hour Rule
1/03

Want to get your questions answered about the advance manifest rule? Customs is holding meetings with the trade: January 13 - air cargo, January 16 - truck cargo; January 21 - rail cargo and January 23 - ocean cargo. Check the Customs website for more details

Same Goal, Different Method
12/02

In California, the means to address port truck congestion is enactment of legislation which imposes fines on terminals if a trucker is required to wait in line more than the specified time. If the terminal, however, has a reservation system, it is not subject to that regime.

In New York/New Jersey, truckers came up with a different solution. They filed a petition at the Federal Maritime Commission seeking an investigation into the practices of the named terminals on the grounds these terminals have unreasonable practices regarding rates, tariffs, charges and truck detention rules. For more information contact Carlos Rodriguez, who is representing the truckers, at 202-293-3300 or rodriguez@Rodriguez O’Donnellgw.com.
 

Truckers at the Port of NY/NJ Petition the FMC to Investigate Truck Detention Practices
11/02

On November 18, 2002, the firm filed a Petition for Investigation on behalf of the Association of Bi-State Motor Carriers, Inc. requesting that the Federal Maritime Commission (“FMC”) investigate the egregious unreasonable practices of the New York Terminal Conference at the Port of NY/NJ (“the Port”) and its unreasonable rates, tariffs, charges, and rules on truck detention, which violate Section 10(d)(1) of the Shipping Act of 1984, as amended by the Ocean Shipping Reform Act of 1998.

While trucking companies would rather the Port minimize congestion to allow several moves per day, the truckers asked that the Port include the time spent idling outside the terminal gate in the terminals’ calculation of truck detention penalties, which is a lengthy wait currently excluded from such calculation.

Many will remember that the FMC investigated the Port as far back as the 1960’s because of severe port congestion that resulted in the excessive detention of truckers waiting to deliver or pick-up containers.  After extensive litigation, the FMC finally enacted several rules and regulations to regulate the activities of the Port directly relating to truck detention penalties paid to trucking companies delayed beyond allowable “free time” under the rules. The FMC eventually removed the rules in 1992.  Notably, even these former rules failed to include the truckers’ lengthy wait of several hours in the queue outside the terminal gate, waiting for access to containers at the terminal, in their calculation of truck detention penalties. The only truck detention time applicable was the wait of truckers inside the terminal gate.

Port congestion today has resulted in a need for the FMC to revisit the Port’s congestion problems and their effects on truck detention. In fact, in the absence of effective federal regulation, California enacted a new law that will fine terminals $250 every time a truck is detained at a terminal for more than 30 minutes. This law was enacted to diminish the growing pollution caused by trucks idling on streets before they are able to pick-up or deliver containers to a port. Currently, there is no incentive to diminish congestion at the Port of NY/NJ because terminals there only have to compensate truckers once they are past the terminal gate. By manipulating entry to their gates, terminals minimize their payment of truck detention penalties. However, with increased technological capabilities, the inclusion of wait time outside the terminal gate is easily recordable. Therefore, the truckers have requested the FMC to investigate the practices and rules of the New York Terminal Conference to address these important issues. 

If these problems are not remedied by the FMC, there is a rising possibility that frustrated shippers and carriers will route cargo through other ports, having a severe impact in the NY/NJ region's economy.  As the Petition outlines, it is clear that truckers are unable to make a decent living making only one or two moves per day when they could make twice as many moves at other ports around the country. Federal regulations already prohibit truck drivers from lengthy “on-duty” time, which limits the moves they can make with such excessive wasted time at the Port. These delays also impact on the cost of transportation to importers and exporters, as well as the overall logistics chain.
 

MINIMIZE CARGO DAMAGE
09/00

Wondering what you can do to minimize damage to your goods during shipment? Two excellent video tapes have been put out. One is geared towards ship operators and is entitled "Container Matters." The one directed to shippers and preventive measures available for use in the stowage of their containers is called "If you think any fool can stuff a container, think again!" Both can be ordered from www.ukpandi.com <http://www.ukpandi.com/> at US$50 each.

DO SWITCHED GOODS LEAD TO CARRIER LIABILITY?
09/00

In a case more common than most would wish to acknowledge, goods were substituted at time of stowage. The shipment was delivered seals in tact. Upon being opened, it was discovered that the 14 containers were stuffed with cement blocks instead of video tape holders. The seller had long since been paid through a letter of credit and disappeared, so the buyer sued the ocean consolidators and lost before the lower court. The trial judge found the bills of lading were not evidence of the contents of the containers. There is a line of cases arising in the shortage context which holds that where there is a weight variance, the fact that the goods being delivered weighed less might put the carrier on notice of a shortage. Such circumstances did not exist here. The shipment arrived seals in tact. The court found there was no way for the carrier to know about the substitution of goods from an external examination of the containers. While there was a slight weight variance, the court found it was not enough to put the consolidators on notice that goods were substituted. The shipper failed to put on proof regarding what the weight should have been. There was also the question of whether prompt notice of the claim was given as several containers remained unopened until weeks after delivery. Hence, the consolidators had no liability.

UP CLAIMS SUBJECT TO STB
12/97

One grain company recently sought a court order that Union Pacific Railroad be required to deliver 500 rail cars as promised. The court dismissed the case finding the matter had to be brought before the Surface Transportation Board. Will other claims against UP over their recent service problems reach the same result?