Border Lines

A roundup of North American news:

Should there be a single, unrestricted U.S.-Canada aviation market? Air Canada President Robert Milton lobbied DOT Secretary Norman Mineta and Transport Minister David Collenette to support an agreement he calls "Canada-U.S. Open Skies Plus." Air Canada's proposal builds on the 1995 Canada-U.S. Open Skies agreement, which did not completely deregulate cross-border flights. The new proposal includes "modified sixth freedom" flights, which would allow U.S. and Canadian airlines to carry domestic traffic in both countries over their own hubs. Under such a plan, a Canadian airline could, for example, carry passengers from Boston to St. Louis over Toronto, or a U.S. airline could offer service between Quebec and Calgary via Detroit. Doing so would increase competition in the consolidating Canadian and U.S. markets while alleviating congestion at some U.S. hubs, Milton said. Milton's plan came in response to a proposed amendment to Canada's Competition Act that would restrict Air Canada's pricing and operations. That amendment, which Milton termed "a form of selective regulation of one private-sector company," was sparked by concerns over Air Canada's market dominance since the demise of Canadian Airlines. The full text of Air Canada's proposal is available at www.aircanada.ca.

The U.S. Supreme Court refused to hear the United Steelworkers of America's challenge to NAFTA. The union originally filed suit against the United States in 1998, charging that NAFTA was unconstitutional because it was a treaty and therefore required a two-thirds vote by the Senate. (NAFTA passed by simple majorities in both House and Senate.) The suit traveled through the appeals court system and finally reached the Supreme Court in July of last year. In late November, the high court declined to hear the case without giving any reason.

New toll-collection procedures may ease congestion in the Buffalo, N.Y.—Fort Erie, Ont., area. Later this month, commercial and private vehicles will be able to use New York State's E-Z Pass electronic toll system at the Peace Bridge. This will be the first application of E-Z Pass at the northern border. At the same time, bridge operators will begin charging one-way, axle-based commercial tolls at both the Peace Bridge and the Queenston-Lewiston Bridge. Tolls will be assessed westbound into Canada, and axle-based fees will replace the current weight-based system, which was not compatible with E-Z Pass.

NAFTA Notes: Freightquote.com, an online transportation service company, now offers truck transportation, documentation and insurance for shipments to Mexico through partnersWatkins Motor Lines, Roadway Express andCentral Transport International. Canadian Pacific Railway andConsolidated Fastfrate have signed a 10-year agreement to be the exclusive providers of LTL and intermodal service for each other. Customers of both carriers can now arrange dock-to-dock combined LTL/rail service with a single invoice and waybill.Lydia Morrow has joined third-party logistics companyMegasys as manager of the company's operations in Mexico.TMM Lines' customers in Mexico can download bills of lading from the Internet. The carrier notifies customers when B/Ls are ready and offers step-by-step instructions in both English and Spanish.