What's happening in U.S.

 

U.S. Trade Specialists 

 

China Container Line
(Shanghai) Ltd.

Better Logistics, Better Life
More....

 

Shanghai Rain Logistics Co., Ltd.

RAIN, a complete, seamless and
integrated solution
More....

 

CASA China Limited Shenzhen

Call Anytime, Service Anywhere.
More....

 

S.F. Systems (Qingdao) Ltd

Global Vision Local Focus - "We're
here for you and we're there for
you.
More....


Matson Navigation Company

Fast & Reliable
More....

 

Headway Speed Transportation Co., Ltd.

Make perfect logistic service! H.S.T
create with you!
More....

 

Shenzhen Shining Ocean Int'l
Logistics Co.,Ltd

We Carry to Wherever the Purple
Light Rises.
More....

 

RS Logistics Limited

We provide a full scope of logistics
services and act as a trouble-
shooter for you in all logistics-
related issues.
More....

 

Bon Voyage Logistics Limited

Little seeds can give birth to great
forest.
More....


 


Preparing for conflict: Life of US west coast ports threatened by longshore-
  men's greed  
More....

US east coast planners expect smaller vessels rather than the mega ships
  to come   
More....

Outcome of Panama versus Suez rivalry for US east coast Asia cargo yet
  to play out
More....

Transpacific trade prospects remain uncertain but TSA carriers endeavour
  to hike rates  
 
More....

 

US Hours of Service rules for truckers add another burden that
slows global recovery

 


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Of course, the Teamsters union backs this idea. The union is at war with independent owner-operators who are not susceptible to the blandishments of union organisers, and thus have supported environmentalists in their quest to ban them from harbour drayage on the grounds that they are less able to keep up with rocketing compliance costs and ever-more stringent regulations.

It has also been pointed out that because the Federal Motor Carrier Safety Administration has shortened the hours of work, there will be tens of thousands of new drivers required. At the same time, the qualifications of the new drivers have increased, requiring more training, resulting in the more costs in hiring trainers and drivers which all get put on to the cost of goods shipped.

Serious social crazes with political impact were seen in the 1970s compared with crazed teenage bobby sobers swooning over Frank Sumatra in the 1940s or rioting Elvis fans of the '50s or the Beatle maniacs of the '60s. Social crazes have political impact and regulations with fines and jail time attached for things that people did not do rather than what they did do.

A popular book that accompanied the global cooling scare, or the New Ice Age craze, was "Famine 1975". Its big idea was that polar regions would advance towards the equator depriving northerners of arable land, leading Russians, Mongolians and northern Chinese to pour southward to take over the food producing lands. Starving Canadians would be banging on the gates of the United States desperate for food.

This was a time when oil shock was the craze du jour, and Arab-Israeli conflict closed the Suez Canal and the megaships of the day carried the oil around the Cape of Good Hope to America and Europe.

And in the Excited States of America, a panicky federal government, decided to reduce speed limits to 55 miles per hour. No one had to move at a high speed, they reasoned and we would all slow down and save on oil consumption.

Europe came under some pressure to do the same, but the head of Michelin dissuaded governments from following the American way by providing a cost benefit analysis, arguing that if speeds were reduced, so would deliveries and this would flow negatively through the entire economy.

One can say the same for the new hours of work rules. People buy things because the price is right. Some are rich enough that it does not matter, but they do not outnumber those for whom price does matter. If it costs more to deliver the goods, and fewer people buy them, it will cost even more to make those are made because unit cost goes up. So there will be fewer deliveries and fewer sales and fewer factory jobs because less will be made in response to diminishing demand.

Environmentalists were filled with dire predictions in those days in the '70s. For completely opposite reasons they are filled with dire predictions today. Back then they were backed by the Club of Rome's computer model, suggesting that if we did not drastically limit oil consumption we would all be in a horse-drawn world by the year 2000.

Of course, all this proved to be nonsense. But yet it was the wisdom of yesteryear as widely accepted by the good and the great as global warming is today. While the 55 mph speed limit was still on the books, it faded from use a few years later when an oil shortage was followed by an oil glut. Motorists - even the police - found it hard to go slowly on roads built for higher speed for reasons that no longer existed if it ever did. In 1987, it was quietly repealed.

It is good to keep in mind that if yesterday's wisdom is today's foolishness, then today's wisdom is likely to be the idiocy of tomorrow. In any event, let us see our transport lobbies join together and demand a cost benefit analysis on whatever fashionable enthusiasm is coming down the regulatory pike.

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