West Coast Stays on Track with Ocean Cargo Industry Events

June will feature AgTC annual conference in San Francisco
By Patrick Burnson, Executive Editor
May 20, 2013 - SCMR Editorial

While the Port of Tacoma is aiming to be a gateway for 3 million twenty-foot equivalent units (TEUs) over the next ten years, it also has ambitious goals set for its bulk and breakbulk facilities. John Wolfe, the port’s executive director, gave a presentation earlier this month at the International Association of Ports and Harbors (IAPH) conference in Los Angeles, that indicated that Tacoma is making a bold move to attract these cargoes.

Over the next decade, he said, the Port of Tacoma hopes to be the transit point for 12 million metric tons of bulk commodities and 200,000 short tons for breakbulk, while boosting it operating margin by 30% and its net income by 50%.

At the IAPH event, Wolfe also outlined plans for the port’s future bulk terminal. The panel, titled “Port Project Decision Criteria: ROI and Beyond,” proved to be a good platform for Tacoma’s value proposition.  He stated that in the first full year of operation, his port’s investment would return $8.6 million in annual revenue.

***

A major upcoming industry conference San Francisco will provide yet more information on West Coast opportunities for bulk and breakbulk shippers, as well as those moving goods by containerload when the Agriculture Transportation Coalition convenes its 25th annual meeting June 13-14 at the Hotel Nikko.

One of the most anticipated sessions is certain to be “U.S. Ag Export Outlook — What Comes Next?” by Walter Kemmsies, chief economist with Moffatt & Nichol. Kemmsies, too gave a compelling talk at the IAPH where he outlined the opportunities and challenges for shippers seeking to break into the South American market.

***
The AgTC event is also likely to showcase the “niche” advantages of the Port of San Francisco, which recently announced the expansion of its Foreign Trade Zone (FTZ) No. 3 service area to include Contra Costa, Marin and Solano Counties, as well as portions of Sonoma and Napa Counties.  The previous service area included San Francisco and San Mateo Counties.  This action will support efforts to strengthen the local economy and attract new businesses to the area.

The FTZ program has allowed American companies to obtain a more competitive position with respect to their counterparts overseas, and subsidizes job growth by deferring, reducing, or eliminating customs duties paid on imported goods by importers, distributors, manufacturers and processors.

“Foreign Trade Zones are one tool to reduce logistics costs, which translates into savings to a company’s bottom line,” said Jim Maloney, Maritime Marketing Manager at the Port of San Francisco, grantee of FTZ No. 3.  “The FTZ program provides an excellent opportunity for Bay Area businesses to enhance their competitiveness in the global economy.”

The program allows existing and new companies in these counties to secure FTZ site status under the streamlined Alternative Site Framework program within approximately 30 days from when an application is accepted.  Without the program the process can take 8-12 months.

A Foreign Trade Zone site is a secured area near a designated customs “port of entry,” and while physically located within the U.S. it is considered outside the U.S. Customs territory.  This allows for foreign goods to be brought into FTZs without formal customs entry for manufacturing, testing, assembly, processing, storage, and distribution.

Maloney told SCMR that the port hopes the development may also lead to a few more ocean cargo vessel calls for San Francisco, and its much larger neighboring port – Oakland.



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

Intermodal units, at 278,767 containers and trailers were up 6.7 percent compared to the same week last year and marks the third best week for intermodal ever recorded based on AAR’s data.

LM Group News Editor Jeff Berman recently conducted a wide-ranging interview with Bobby Harris, President and CEO of non asset-based 3PL BlueGrace Logistics about various aspects of the freight transportation market.

It’s small, but senior brass at YRC Worldwide will take it. After nearly seven years of continuing losses in excess of $2.6 billion, the parent of the nation’s second-largest LTL carrier posted a narrow net profit in the third quarter ended Sept. 30.

As was the case for the second quarter, third quarter earnings results for publicly-traded less-than-truckload (LTL) carriers are again strong. Signs of solid earnings results from carriers that have posted earnings to date include tonnage increases, gains in weight per shipment and average daily shipments, higher yield, and revenue per hundredweight.

While the holiday season is known to bring good tidings and cheer to all, it may also come with another thing that is not so pleasant: higher rate freights. That was the thesis of a commentary written by Mark Montague, industry pricing analyst and chief market-watcher for DAT, a Portland, Ore.-based subsidiary of TransCore.

Article Topics

Blogs · Global · Ocean Cargo · Economy · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

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