b'10American Journal of Transportation ajot.comI ntermodal& l ogIstIcsn ewsLarge package price increasesAlberta eyes oil route after Trump OKs harmful effects on businesses,Alaska rail linkconsumers and Postal ServiceU.S.PresidentDonaldTrumpsdecisiontothe lack of adequate pipeline capacity, Ben Brun-A new analysis prepared bybenefitfromanincreaseinapprovearaillinkbetweenCanadaand Alaskanen, a vice president at the Canadian Association economistsDebra Aron,Ph.D.Postal Service prices for pack- could open up an export route to Asia for Albertasof Petroleum Producers, said in an email. Greater andJustinLenzo,Ph.D.,withage delivery of the magnitudesstruggling oil sands producers. market access shows investors that there is a path Charles River Associates quan- proposed:theprivatecarrierThe presidential permit will push forward ato growth.tifiesthedamagingeffectsofcompetitorstothePostalSer- $17 billion project to build a rail line between FortThe company said in December that it could recent proposals to significantlyviceandtheirshareholders.McMurray, in the heart of Albertas oil sands, andbegin presenting its proposed rail link to potential increasepricesonPostalSer- The PresidentsproposedpriceDelta Junction in Alaska, according to Alaska shippers by early 2021 to seek commitments. vicepackagedeliveryservicesincreases, or even above marketAlberta Railway Development Corp., or A2A, theAlbertas government welcomes the U.S. pres-onbusinesses,consumers,andincreases at significantly lowercompany behind the project. idential permit for the project, Sonya Savage, the the Postal Service. The analysislevels, would divert most or allCanadas oil industry has struggled for yearsprovinces energy minister, said in a tweet. We demonstrates that these propos- oftheentirepackagedeliverywithalackofenoughpipelineinfrastructuretosupport the development of trade corridors that can als would force the Postal Ser- business from the Postal Serviceship its crude, with projects like the Keystone XLunlock new markets.vice to exit its profitable packagetoitscompetitors,whowouldstalled for more than a decade. Theraillinkcouldserveasanalternative delivery business, depriving the(HARMFULcontinued onRail has played an essential role for industryway for oil sands producers to sell into the Asian Postal Service of tens of billionspage 14) inreachingexistingmarkets,particularlygiven(LINKcontinued on page 11)inprofitsandrevenueswhile harmingbusinessesandcon-sumers who would face higherCONECT PRESENTS THE 19TH ANNUALprices and fewer choices.K EyF indingS in thEr EPort : NORTHEAST CARGO SYMPOSIUMImplementingtheproposed priceincreaseswouldforce thePostalServicetoexitthe VIRTUAL EVENT packagedeliverybusinessand threaten the financial viability of the U.S. postal system. Two Days of Expert Industry EducationNovember 9 & 10, 2020 At a 50% price increase, the PostalServiceisestimatedto lose 84% of its package volume.At increases of 100%, 200%, or 300%, the Postal Service would lose all of its package volume. The estimated package volume losses would cost the Postal Ser-vice over $100 billion in revenueTrade Day KeynoteTransportation Day KeynoteMario Cordero, Special Guest Speaker Randall Donlen, Barb Secor,and up to $38 billion in contribu- Executive Assistant Comm.Comm. Rebecca F. Dye,Executive Director, Kate Weiner, Sr. Director, TransportationSenior Director of Global tion (profit) over the next 5 years. Brenda Smith, Federal MaritimePort of Long Beach Director, Global Customs& Logistics, Tapestry, Trade Compliance,Underthereasonableassump- Office of Trade, U.S. CBP Commission Regulatory Affairs, Cargill Coach | kate spade |Thermo Fisher Scientifiction that higher prices at the PostalSTUART WEITZMANServicewouldleadtocompeti-tors raising their own prices, the analysisestimatesthatconsum-ers would pay between $7.86 and $16.95moreperpackagedeliv-ered to them. Package price increases would result in small businesses facingAlison Leavitt, Nicole Uchrin,Ken Kellaway, Greg BrinkmanAmy Magnus, Matthew E. Novak,reduced sales and reduced prof- Transportation Day Transportation Day President & CEO,Vice President InboundDirector, Customs AffairsVice President of Distribution its of $27 billion to $49 billionCo-chair,Co-chair,RoadOneLogistics,and Compliance, & Transportation,Wine & Spirits ShippersGemini ShippersIntermodaLogistics Bobs Discount Furniture A.N. Deringer, Inc. The Global Plumbing Group, overfiveyears.ManysmallerAssociation Association Fortune Brandsretailerswouldbeforcedto close entirely. TRADE DAYALSO FEATURING:Theanalysisestimatesthat consumerswouldpaybetweenMONDAY, NOV. 9, 1:003:30 PM Matthew Bock, Trade Day Chair,$473billionand$865billionBrenda Smith, Office of Trade, U.S. CBP Middleton, Shrull & Bockmore for delivery services over the next five years. This amountson 2021 CBP trade initiatives David Murphy, Partner, GDLSKto an income redistribution fromCONECT Counsel Peter Friedmann on presidential Bob Silverman, Partner, GDLSKcaptiveconsumerstolargepri- election results and impact on trade vate express delivery companies. Lenny Feldman, Partner,Package rate increases byBCOs and trade attorneys on complianceSandler, Travis & Rosenbergas much as 50% would devastatechallenges and interpretations PLUS:the ability of the postal service tooffercompetitivepackageTRANSPORTATION DAYVirtual networking opportunitiesdeliveryservices,whichareaTUESDAY, NOV. 10, 1:003:30 PMcriticallifelineforAmericanCONECT Partner and Sponsor virtual exhibitsmall businesses and consumers,Rebecca Dye, Federal Maritime Commission, and display opportunitiesparticularly those in rural areas,on detention, demurrage, and more Total CCS/CES/MES/MCS points: 5saidPackageCoalitionChair-man John McHugh. This paperCONECT Counsel Peter Friedmann on presidential Chafee Scholarship raffledemonstrates why these radicalelection results and impact on transportation proposals would be harmful toHot topics in ocean shipping for BCOs, REGISTER smallandmidsizebusinesses, carriers, and ports consumersandthePostalSer- COVID-19: Best practices for BCOs, NOW!vice. Now more than ever, our economy depends on the contin- FFs/CHBs, and carriersued access to the affordable and at CONECT.orgreliableservicesoftheUnited States Postal Service. PARTNERSHIPS, SPONSORSHIPS AND BOOKLET ADS ARE AVAILABLE!In summary: There is onlyCall Coalition of New England Companies for Trade at 508-481-0424 or go to CONECT.org for details.oneconstituencythatwould AJOT_FP_100220.indd 1 10/2/20 4:35 PM'