Subscribe to our free, weekly email newsletter!



Ports dredging for dollars

By Patrick Burnson, Executive Editor
February 14, 2012

There was some good news and bad news coming for U.S. port authorities today. President Obama’s fiscal 2013 budget contained a bit of both.

Even though the Administration’s budget includes cuts in order to meet the Budget Control Act passed by Congress last year, there are bright spots for seaports, noted American Association of Port Authorities (AAPA).
For example, there is a much-needed increase in the portion of the U.S. Army Corps of Engineers’ funding pertaining to deep-draft navigation maintenance, and funding for the Department of Transportation’s budget that pertains to enhancing America’s freight mobility.?

The president’s 2013 budget proposal includes a request for reimbursement from the federal Harbor Maintenance Trust Fund (HMTF) of $848 million. This represents a nearly 12 percent increase ($90 million) over the fiscal 2012 request of $758 million and would be $28 million more than the $830 million Congress appropriated for maintenance dredging in fiscal 2012.
 
At the same time, the AAPA is not entirely satisfied with the president’s 2013 budget request for reimbursement from the federal Harbor Maintenance Trust Fund (HMTF) of $848 million. This is a significant shortfall from the AAPA’s estimation that $1.4 billion collected annually from importers and domestic shippers for deep-draft navigation maintenance dredging.

Since the Harbor Maintenance Tax’s inception in 1986, AAPA has advocated for full use of its collections for their intended purpose of dredging America’s deep-draft navigation channels to their authorized and required depths and widths.

As we have pointed out in the past, importers and domestic shippers pay approximately double the annual amount that is drawn from the HMTF for maintenance dredging, leaving a surplus that exceeds $6.3 billion today. 

We agree with the AAPA, which maintains that because this surplus has been used for other programs, there are serious dredging needs that have gone unheeded.??

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

A number of key topics impacting the freight transportation and logistics marketplace were front and center at a panel at the Council of Supply Chain Management Annual Conference in San Antonio last week.

The relationships between third-party logistics (3PL) service providers and shippers are seeing ongoing developments due in large part to the continuing emergence and sophistication of omni-channel retailing. That was one of the key findings of The 19th Annual Third-Party Logistics Study, which was released by consultancy Capgemini Group, Penn State University, and Korn/Ferry International, a global talent advisory firm.

Optimism in the form of increasing profits was a key takeaway in the Annual Survey of Third-Party Logistics (3PL) CEOs, released earlier this week at the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio.

Article Topics

Blogs · Ocean Freight · Ocean Cargo · Trade · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA