b'oCTobEr 12 - 25, 2020NOrth AmericAs trANsPOrtAtiON & LOGisticsNewsPAPer 13PMA report warns US West Coast portsCongressman Garamendi advances could lose up to 45% of intermodalJones Act requirement for offshore windimports to BC ports by 2030 OnSeptember25th,Congressmanavoid compliance with the Jones Act and John Garamendi (D-CA) applauded pas- environmental laws. So, we said thats not sageofhisamendmenttotheCleangood and so my amendment brings U.S. By Stas Margonanis, AJOT Economy Jobs and Innovation Act (H.R.jurisdiction of wind turbines under U.S. 4447) by the U.S House of Representa- law for the Jones Act and all others. If its A Mercator study commissioned byof Port Metro Vancouvers Roberts Banktives.Garamendisamendmentclarifiesgood enough for the offshore oil and gas the Pacific Maritime Association (PMA)Terminal2laterthisdecade,capacitythattheOuterContinentalShelfLandsindustry, then it should be good enough warns that high U.S. rail costs and otherexpansion projects already underway inAct, a 1953 law governing offshore min- for the offshore wind industry.factorscouldcauseU.S.WestCoastcontainer terminals in Prince Rupert anderalandenergydevel-(USWC)portstolosebetween15%toVancouver could provide those two portsopment, applies to lease 45%ofintermodalimportbusinesstowith the physical ability by 2022 to divertsales for non-fossil fuel British Columbia (BC) ports by 2030. approximately 15% of the Intact Intermo- energysourcessuchas The report says 15% of Intact Inter- dal import volumes now moving throughwindpower,hydroki-modal import volumes could be lost bySan Pedro Bay and the Puget Sound. netic,oroceanthermal 2022 and over 45% of the USWCs cur- The Mercator report notes that invest- energyconversion.The rent intact intermodal import traffic is atmentsinVancouverandPrinceRupertGaramendiamendment risk of diversion to BC ports over the bal- terminalscanspelllossofmarketsforwillenforceJonesAct ance of this decade. US West Coast ports: Of the roughly 1.2requirements for all off-ThereportfoundthattheSouthernmillion TEUs/year of new capacity beingshorerenewableenergy California ports of Los Angeles and Longadded to these two terminals by or beforeproduction.Beach, which utilize the Burlington North- 2023, at least 630,000 TEUs should beHowever,itmust ern Santa Fe (BNSF) and Union Pacificavailable for import flows. still pass the U.S. Senate.Railroads (UP), face higher costs deliver- Thismeans:TakingintoaccountInaninterview ingcontainerstoMidwestdestinations.the capacity required to support organicwithAJOT,Garamendi This contrasts with lower rail and termi- growth of Canadian imports from Asia,said, We discovered that nal handling costs via the ports of PrinceMercator estimates that at least 400,000windplatformsunder Rupert and Vancouver, British ColumbiaTEUsofthenewcapacityshouldbethe Act are not coveredCongressman John Garamendi (D-CA)utilizing Canadian National (CN) trains. available to handle diverted Intact Inter- under the Jones Act as is the case withHeexplainedthat:Offshorewind So, ports of Los Angeles and Longmodal import flows from USWC ports. the off-shore oil and gas industry wheredevelopment will play a critical role in Beachintermodalcontainerrailship- At the same time, the San Pedro Baythe Jones Act applies. So, unlike in the oilour nations transition to a clean energy ments are higher than from ports of Princegateway does not compete with the two BCand gas industry you were not requiredeconomyDemand for offshore wind Rupert and Vancouver rail shipments toports for imports into Texas, as well as forto use Jones Act vessels, which are U.S.development in federal waters is strong, the following destinations: imports to several secondary Midwest mar- builtandU.S.crewed,tomaintainandand Congress must act to ensure this bur-$640 higher to Chicagokets (Kansas City, St. Louis, Omaha) support offshore wind farms. Instead, thegeoning industry abides by federal laws $625 higher to DetroitTerminalcostsatU.S.WestCoastActallowsoffshorewindplatformsto(ADVANCEScontinued on page 15)$325 higher to Memphisportswereresponsiblefor$200-$260 The report cites the Canadian invest- of the cost differential in ship to trains mentinportandrail-handlinginfra- charges compared to the British Colum-structure at the two Canadian ports andbia ports. See chart below:warns:Evenwithoutthedevelopment(WARNScontinued on page 15)A vErAgES hiPt ot rAinC hArgESb yr EgionP ErFEuShip-Train Handling Surcharges Total CostSan Pedro Bay (SPB) $520 $140 $660Other USWC $510 $90 $600BC $400 $1 $40Source: Mercator SAVE SAVETIME & MONEYSeroka reports Port of LA August imports are up as holiday season kicks inBy Stas Margonanis, AJOTDIRECT ACCESSTRADING INBULK, BREAK BULK,SEAMLESS SUPPLY AtaSeptembervirtualpresscon- in terms of loaded twenty-foot unit con- INTO ALL OF NORTHOVER 50 GLOBALLIQUID & CHAIN WITH A ference, Port of Los Angeles Executivetainers (teus) were up 516,286 teus com- AMERICA MARKETS SPECIAL CARGO CONNECTED NETWORKDirectorGeneSerokaannouncedthatpared to 437, 613 teus for August 2019.imports rose in August and the Port seesHowever,importsfortheyeartoSIMPLE. trends indicating volumes will continue todate in 2020 are at 2,922,948 teus com-improve in September and October. aboutpared to 2019 when year to date importsCOMPETITIVE. Serokasaysheishopefulwere3,174,317reflectingadeclineof the rest of the year, despite the downturn7.9% in 2020. were131,429teusCONNECTED.related to the Covid pandemic. ConsumersLoadedexports have saved money that they would haveinAugust2020comparedto146,284in been spending travelling and going out toAugust, 2019.restaurants.TheresultisconsumersareExports for the year to date in 2020 accumulating more disposable income. are 1,005,892 teus compared to 1,216,304EUROPE U.S. MID-WESTNational Retail Federation (NRF) Viceteus in 2019 resulting in a decline in 2020TO SPECIAL CARGOTOPresident Jonathan Gold joined Seroka atof 17.3%. U.S. MID-WEST ICON/BADGE NORTH AFRICAthe press conference and agreed that thereSerokasaidthatthewideninggap was reason for optimism for improvementsbetween imports and exports is creating in retail spending for the rest of 2020. animbalanceandcausingshortagesof Gold also welcomed the Septemberchassis and containers and impacting rail 15thWorldTradeOrganization(WTO)service. SHIP WITH US TODAYfindingthattheU.S.brokeglobalregu- Heputparticularemphasisonthe lationswhentheTrumpadministrationfact that there are 18,000 chassis sitting imposed $400 billion in tariffs on Chineseat marine terminals at the Port that would exports to the United States. Gold calledbe better deployed at a near dock chassis the tariffs taxes on American business. terminal and added the time for action Seroka reported that August imports(REPORTScontinued on page 15)'