Empty Hanjin Containers Pile Up, Causing Headaches at Southern California’s Ports

As Hanjin Shipping Co. vessels drop off containers after weeks stranded at sea following the company’s bankruptcy, ports are dealing with a new problem: what to do with the empty boxes they leave behind.

Since the South Korean ocean carrier filed for bankruptcy five weeks ago, roughly 15,000 Hanjin containers have trickled in through the Ports of Los Angeles and Long Beach, often weeks after they were due to arrive. Now emptied of their goods, many are cluttering warehouse yards and parking lots across Southern California. With Hanjin’s ships no longer making the trans-Pacific trip, the company’s containers aren’t needed to carry goods back and forth.

While the stranded containers themselves are a nuisance, logistics companies say the bigger issue is that many are still attached to the wheeled trailers that trucks used to get them off the docks. These pieces of equipment, known as chassis, are vital to port operations, and putting thousands out of commission can delay the container deliveries for all shipping companies—not just Hanjin—people in the industry say.

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Source: Wall Street Journal

ATA panel: the future of trucking is ‘liquidity and automation’

On the morning of Tuesday, Oct. 4, a panel of experts discussed autonomous and platooning trucks during the American Trucking Associations annual Management Conference and Exhibition (MC&E) in Las Vegas.

In contrast to other presenters in suits and ties, Anthony Levandowski had bright orange sneakers, jeans and a quarter-zip pullover. But make no mistake about it, he is serious about the future of trucking.

“I love robots,” said the former Google executive and co-founder of Otto, a startup that began building self-driving trucks from his garage in Palo Alto, Calif., in early 2016. Otto was recently acquired by Uber and he now lead’s Uber’s self-driving efforts for cars and trucks.

The future of transportation and trucking is liquidity and automation, he said. By liquidity he means the ability to match carriers and shippers efficiently to reduce empty loads and emissions. By automation, he means having self-driving trucks everywhere, all the time.

Just as passenger ride service Uber now offers last-mile delivery of take-out food and groceries, Uber Freight will eventually be delivering truckload-size quantities without driver assistance, he said.

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Source: www.CCJDigital.com

PMA and ILWU set to discuss contract extensions in November

Following respective statements made in August proposing talks on contract extensions, the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) said this week they are ready to get the ball rolling.

The organizations said in a joint statement that talks have been tentatively scheduled for November 1-2. The current contract between the parties runs through June 30, 2019.

In August, the PMA, whom represents shipping lines and terminal operators at 29 West Coast ports, said that earlier this year “in an effort to provide stability on the West Coast waterfront,” it proposed talks on a contract extension with the ILWU.

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Source: Logistics Management

Uber sets its sights on long-haul trucking

For shippers, carriers, brokerages and really all other industry stakeholders that have not given much thought to the possibility of Uber becoming a truckload carrier, it appears it may be time to change that mindset.

That is due to a couple of different reasons. One is the ride sharing service’s recent acquisition of self-driving truck startup company Otto for roughly $680 million. Upon completion of this deal in August, an Otto blog posting noted that “with Uber, we will create the future of commercial transportation: first, self-driving trucks that provide drivers unprecedented levels of safety; and second, a platform that matches truck drivers with the right load wherever they are,” en route to building the backbone of what it called the “rapidly-approaching self-driving freight system.”

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Source: www.LogisticsMGMT.com

Port of Long Beach selects Duane Kenagy as interim CEO

Less than two weeks after the CEO of the Port of Long Beach announced his resignation, harbor commissioners have moved swiftly to appoint an interim replacement.

Duane Kenagy, who currently heads the port’s nearly $4.5 billion capital projects, was named to the position Wednesday. He will assume his duties next week, succeeding Jon Slangerup.

Kenagy told the board during a special meeting he was humbled and pledged to fill in while the harbor commission conducts a search for a new CEO. “I am an engineer so I usually try to stay in the background,” he said.

Before arriving at the port in 2014, Kenagy, worked for Moffatt & Nichol, an engineering consulting firm and played a crucial role in the $2.4 billion Alameda Corridor project that connects the ports of Los Angles and Long Beach to the national railroad systems close to downtown Los Angeles.

A bid to find a recruitment firm already has gone out.

The port is undergoing a massive infrastructure project as well as dealing with a shipping industry in financial turmoil.

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Source: www.DailyBreeze.com

Heavy haul trucking companies combine, expand US network

Two US specialists in heavy freight hauling and rigging merged Tuesday to create a specialized trucking and logistics business with an expanded service area in North America.

EZE Truck Holdings, the parent of several flatbed and heavy-haul trucking firms, merged with Farran International, a global transportation and rigging business in Randolph, New Jersey.

The EZE-Farran transaction is the latest in a series of acquisitions and mergers rippling across the transportation landscape in 2016, from the largest operators, such as FedEx and TNT Express, to small companies such as Kottke Trucking and Walbon & Company.

The deal creates a specialized trucking operation with several subsidiaries, including EZE Trucking, Patterson Motor Freight, Rig Runners at EZE and H.W. Farren, Fastway Trucking, and NTL at Farren International. It also expands the business nationwide.

There’s plenty of room for consolidation in the highly fragmented heavy-haul business. Companies in this trucking sector handle over-dimensional and extremely heavy loads such as aerospace parts, wind turbines and blades, building materials, and oil and gas drilling equipment — not your average truckload or even flatbed shipment.

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Source: www.JOC.com

Hanjin Shipping bankruptcy leaves cargo ships stranded along SoCal coast

he bankruptcy of the Hanjin shipping line has thrown ports and retailers around the world into confusion, with giant container ships marooned and merchants worrying whether tons of goods will reach their shelves.

The South Korean giant filed for bankruptcy protection on Wednesday and stopped accepting new cargo. With its assets being frozen, ships from China to Canada found themselves refused permission to offload or take aboard containers because there were no guarantees that tugboat pilots or stevedores would be paid.

“Hanjin called us and said: ‘We’re going bankrupt and we can’t pay any bills — so don’t bother asking,’ ” said J. Kip Louttit, executive director of the Marine Exchange of Southern California, which provides traffic control for the ports of Los Angeles and Long Beach, the nation’s busiest port complex.

Three Hanjin container ships, ranging from about 700 feet to 1,100 feet (213 meters to 304 meters) long, were either drifting offshore or anchored away from terminals on Thursday. A fourth vessel that was supposed to leave Long Beach on Thursday morning remained anchored inside the breakwater.

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Source: FOX LA

Hanjin ship begins unloading cargo at Port of Long Beach

A vessel stuck off the Southern California coast was the first Hanjin ship in the U.S. to start unloading since the company’s financial collapse last week.

The Hanjin Greece, which had recently been parked near the Mexican border, docked early Saturday at the Port of Long Beach’s Total Terminals International, where Hanjin owns a majority stake.

The movement came after a U.S. bankruptcy judgeissued an order allowing the financially ailing Hanjin Shipping Co. provisional protection from creditors so vessels could dock and unload products, and retailers could begin selling those products in stores.

It’s the first visible sign the standstill from the of the seventh largest shipping company could be easing.

“This is a big relief for cargo owners and good news for the American consumer just in time for the holiday shopping season,” said Noel Hacegaba, the Port of Long Beach’s chief commercial officer and director of operations.

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Source: Press Telegram

Port of Los Angeles Issues $35.2 Million in ‘Green’ Bonds

The Port of Los Angeles has expanded its commitment to sustainability by issuing $35.2 million in green bonds as part of a larger debt refinancing successfully completed this week. The move marks the first time a U.S. port has entered the growing sustainability bond market where investors support projects and companies making positive social and environmental change.

“Running a competitive and environmentally responsible port permeates every facet of our operations,’’ said Marla Bleavins, the Port’s Deputy Executive Director and Chief Financial Officer. “This bond offering and the unprecedented savings it yields speak volumes about the value of this approach.”

The green bonds are part of an overall $201.6 million bond issue that will net the Port a record present value savings of $32.5 million, an average of $1.9 million annually through 2040. During the process, all three top credit rating agencies – Standard & Poor’s (S&P), Moody’s Investor Services and Fitch Ratings – reaffirmed the Port’s “AA” and “Aa2” investment rankings, the highest ratings given to a port without taxing authority.

The Port’s top credit ratings reflect its strong market position, resilient revenue stream, strong financial management, superior infrastructure, cash reserves and manageable debt.

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Source: Business Wire

Port of Long Beach top executive Jon Slangerup announces he is leaving

After two years on the job, Port of Long Beach’s CEO Jon Slangerup abruptly announced late Thursday he would step down effective Oct. 31.

Slangerup, who earns $350,000 a year as head of the nation’s second largest port, will accept a job as chairman and CEO of “a leading aviation technology company,” according to a statement from the Port of Long Beach that offered no further specifics.

“I leave my post content in the knowledge that the Port’s greatest years lie ahead,” Slangerup said in a statement. “The experience of helping guide the Port through our industry’s swiftly changing and often uncharted waters has been both an exciting challenge and a great honor.”

His announcement comes as one of the nation’s busiest seaports faces a crisis after the seventh largest carrier company Hanjin Shipping Co.’collapsed last week, leaving the future of its assets, including a stake in the port’s largest terminal, unclear.

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Source: Press Telegram