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Signals™ Headlines - June 4, 2008

Commissioner Anderson Leaves the Federal Maritime Commission

A. Paul Anderson
has left the Federal Maritime
.  Anderson served as Commissioner since August 2003.  In August 2007, he was nominated by
President Bush to serve a new five year term as FMC Commissioner and Chairman, but the United States Senate did not complete the process to confirm this
nomination.  Anderson announced his decision to leave the Commission May 21, 2008, and President Bush withdrew
Anderson’s nomination the same day.  His last official day at the Commission was May 31, 2008.

While serving at the FMC Anderson worked to maintain licensing requirements for Ocean Transportation Intermediaries
(OTIs). He was a member of the Committee on Marine Transportation System (CMTS), a Cabinet-level commission
coordinating maritime activities of various federal agencies.  Anderson remarked, “in less than five
years, we’ve taken aggressive steps to make our maritime sector safer, more secure and more prosperous than ever
before.”  He went on to say, “serving the American people has been a rewarding experience and a
tremendous honor.”  Anderson plans to continue serving the U.S. maritime sector after leaving public
service.  Before joining the FMC Anderson served as Vice President at JM Family Enterprises, a Florida based automobile company and the owner of
Southeast Toyota Distributors, LLC.

The FMC now has only three sitting Commissioners, one President Bush-appointee, Rebecca Dye of North
Carolina serving since 2002, and two originally appointed by President Clinton, former FMC Chairman Harold
of South Carolina, serving since 1994, and Joseph Brennan the former
Governor of Maine, serving since 1999.  Carl Kress, who was also nominated in August 2007 to serve
as an FMC Commissioner, has not taken up his post at the FMC because his nomination remains pending in the US
Senate.  The FMC has been without a Chairman since Steven Blust left in November 2006.  The U.S. House of
Representatives Subcommittee on Coast Guard and Maritime Transportation recently criticized the performance of the
FMC Commissioners, including Anderson, at a budget hearing. 

Clean Truck Programs: FMC to Review Ports of LA/Long Beach and MTO Agreement

The Federal Maritime Commission has scheduled another closed session to discuss the
agreement filed by the Ports of Los Angeles and Long Beach that will allow the ports to coordinate their Clean Truck
.  The Clean Truck Programs are a part of the ports’ Clean Air Action Plan to reduce air pollution by progressively
banning older trucks from hauling cargo to and from the ports.  This discussion agreement, titled Los
Angeles/Long Beach Port/Terminal Operator Administration and Implementation Agreement
(FMC Agreement No. 201178), was filed with the FMC
in February 2008.  The Agreement was set to go into effect April 1, but the FMC made a request for extensive
additional information, and this has set back the effective date.  

The FMC’s request for
additional information
, issued April 3, asked the ports and marine terminal operators to provide a detailed
overview of joint programs to be implemented and the impact these programs will have on the local economy.  The
FMC must review the agreement to ensure that it does not violate the Shipping Act of 1984Speaking on the issue at the South Carolina International Trade Conference
Commissioner Creel said, “The Commission has a statutory responsibility to review agreements filed with us to
ensure that they will not likely give rise to significantly anticompetitive conduct – that is, produce an
unreasonable increase in transportation costs or reduction in service.  We also have a responsibility to ensure
that common carriers, intermediaries, and marine terminal operators – including public ports – do not
establish unreasonable regulations and practices.”

If approved, the agreement would allow the parties to discuss and agree on implementation and administration of
joint environmental and security programs.  The Commission has stressed that it does not intend to prevent
timely implementation of the ports’ programs, and it is expected to act quickly on the matter. However, the
FMC has the power to issue an injunction against the agreement in federal court if Shipping Act violations are
found.  The first phase of both ports’ Clean Truck Programs’ progressive ban on older trucks is set
to go into effect October 1, 2008.

Speaker Pelosi Urges FMC to Approve Los Angeles Clean Truck Program

The Clean Truck Program of the
Port of Los Angeles has received a strong letter of support from Congresswoman Nancy Pelosi (D-California) Speaker of the United
States House of Representatives
.  In a letter to the Federal Maritime
, Speaker Pelosi urged the Commissioners to allow the Port of Los Angeles to go forward with
its Clean Truck Program despite the threat of lawsuits from industry groups.  The FMC is currently reviewing an
agreement, the Los Angeles/Long Beach Port/Terminal Operator Administration and Implementation Agreement (FMC
Agreement No. 201178), that will allow the Port of Los Angeles to move ahead with its program.

The Clean Truck Program of Port of Los Angeles will require all port truckers to be employees of trucking
companies.  Currently, 80 percent of port truckers are independent contractors.  Trucking groups,
including the American Trucking Association claim the
employee-only provision violates the Motor Carrier Act of 1980.  The Port of Long Beach, which developed the Clean Truck Program together with the
Port of Los Angeles, chose not to include this employee-only requirement in its program.  Pelosi, indicating
her support for the employee-only provision, wrote “(Los Angeles’) innovative program places the financial
responsibility for operating and maintaining a cleaner fleet of trucks on the trucking companies that negotiate haul
rates, instead of on drivers, who earn meager incomes as independent contractors.”  The Port of Los
Angeles officially approved the employee-only provision May 15, 2008.

WTSA Carrier Group Increases BAF and IFC, Phase-Out Discounted and Fixed BAF

The Westbound Transpacific Stabilization Agreement (WTSA), FMC Agreement No. 011325, whose member
lines serve the US export trades from the USA to East Asia, increased their Bunker Adjustment Factors (BAF) and
Inland Fuel Charges (IFC) for the month of July.  BAF will increase on July 1 to US$ 904 per 20ft container,
US$ 1130 per 40ft/45ft container and US$ 54 per WM.  IFC for the same period will be increased to US$ 433 per
container for rail and intermodal rail/truck shipments, and US$ 125 per container for local/regional truck

Also, effective July 1, 2008, the WTSA lines intend to take action to ensure their bunker adjustment factors for
all shipments are at least US$ 600 per FEU, or the full BAF in effect at that time, whichever is lower.  This
increase is only for customers whose rates or contracts are still not subject to the full BAF.  It is part of
the WTSA’s plan to phase out rates and contracts with discounted and/or fixed bunker surcharges.  The
WTSA announced this bunker cost recovery
in March 2008 and expects that all tariff and contract cargo will be subject to full monthly-adjusted
floating bunker surcharges by January 2009.  Minimum BAF levels will be increased again to US$ 900 per FEU or
the full BAF level, whichever is lower, on October 1, 2008.

WTSA member carriers are American President Lines, COSCO Container Lines, Evergreen Marine Corp., Hanjin
Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, “K” Line, NYK Line, OOCL
and Yang Ming Marine.   For more info visit www.wtsacarriers.org.

TSA Carriers Increase BAF and IFC, Peak Season Surcharge Takes Effect

The carrier members of the Transpacific Stabilization Agreement (TSA), serving the East Asia/USA
trade lane announced increases to Bunker Adjustment Factors (BAF) and Inland Fuel Charges (IFC) for July 2008.
 TSA Carriers’ Peak Season Surcharges PSS of US$ 400 per FEU also became effective on June 1, 2008.

For the month of July 2008 the BAF will be US$ 904 per 20ft container, US$ 1130 per 40ft container, US$ 1271 per
40ft hi-cube container, US$ 1431 per 45ft container and US$ 25 per WM.  The IFC for July will be US$ 433 per
container for MLB and IPI shipments moving via rail, and to US$ 125 per container for truck transport to Group 4
points in California, Oregon and Washington, and for East Coast local store-door truck moves.

The 15 members of the TSA are American President Lines, CSCL, CMA-CGM, COSCO Container Lines, Evergreen
Marine, Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, “K” Line, Mediterranean
Shipping, Mitsui O.S.K. Lines, NYK Line, OOCL, Yang Ming Marine,
and Zim Integrated Shipping
Visit www.tsacarriers.org for
additional information.

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Vol. 12 No. 6, June 4, 2008

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