The lack of direct customer relationships between actors in the commercial supply chain, such as shippers and marine terminals, hinders problem solving, and lack of mutual commitment impedes realizing the full potential of customer relationships, according to the Federal Maritime Commission’s final report of its Supply Chain Innovation Initiative. In areas such as service contracting and export container availability, the lack of mutual commitment or “skin in the game,” can stunt customer relationships, FMC Commissioner Rebecca Dye, leader of the initiative, said in a statement. "One of our Export Teams recommended a ‘premium customer’ option that would solve the dual problems of export container availability and carrier booking integrity by increasing mutual customer commitments of carriers and exporters,” Dye said. In developing the report, Dye led six Supply Chain Innovation Teams, which all supported a National Seaport Information Portal to provide supply chain actors with critical and timely supply chain information. She noted she is closely following a Port of Los Angeles pilot to improve visibility of supply chain information.

The Federal Maritime Commission will hold public hearings at 10 a.m. Jan. 16 and 17, 2018, to receive testimony from maritime industry witnesses on a December 2016 petition to issue new rules preventing common carriers and marine terminal operators (MTOs) from charging demurrage, detention and per diem fees during events beyond the control of shippers, the FMC announced. Those events include port congestion or disruption, bad weather and delays spurred by government action. Those interested in testifying should send their requests to the FMC no later than Dec. 8, the agency said. The Coalition of Fair Port Practices filed the petition (see 1612080021).

The General Services Administration (GSA) plans to prepare an environmental impact statement (EIS) to examine the impacts of proposed modernization of the San Luis I Land Port of Entry in Arizona, GSA said. “The [port] needs modernization due to unacceptable building conditions and increasing traffic demand,” GSA said. Plans for modernization include new privately owned vehicle processing facilities, demolition of the existing main building, a new main building, new outbound east and west exits, and a new pedestrian processing venue, GSA said. There are also two modernization alternatives under consideration -- one to demolish then reconstruct a modernized port, and another to renovate, expand and modernize the existing port -- and GSA will also analyze the option of no modernization at all. Comments on the proposed modernization must be received by Dec. 22.

PierPass will "evaluate alternative models for providing the traffic mitigation benefits of extended gates at the Ports of Los Angeles and Long Beach, which are offered through the OffPeak program," it said in a news release. PierPass, a not-for-profit company owned by the ports' marine terminal operators, hired The Tioga Group and its partner World Class Logistics as consultants for the project. "The two alternatives under consideration are appointments to control traffic flow combined with a flat fee on both daytime and nighttime cargo moves; and port-wide peel-off, in which trucks would operate like taxis in an airport queue, each truck picking up the next container in the stack," it said. "Hybrid models may also be considered." Tioga will "analyze the traffic, commercial and operational impacts of two potential alternatives to the current model used by OffPeak, which mitigates traffic congestion caused by port truck operations through encouraging the pickup and delivery of containers on weeknights or Saturdays," PierPass said.

Vessels coming from the Federated States of Micronesia must take additional security measures before entering the U.S. due to "deficient port anti-terrorism measures," the Coast Guard said in a notice. The U.S. notified the country last year of the issues, but "to date, we cannot confirm that the Federated States of Micronesia has corrected the identified deficiencies," the Coast Guard said. As a result, vessels from the country are required to meet additional conditions for entry, it said. Additional countries that lack effective anti-terrorism measures and are subject to the security conditions are: Cambodia, Cameroon, Comoros, Cote d'Ivoire, Equatorial Guinea, the Republic of the Gambia, Guinea-Bissau, Iran, Liberia, Libya, Madagascar, Nauru, Nigeria, Sao Tome and Principe, Syria, Timor-Leste, Venezuela and Yemen.

The Texas Department of Transportation approved $7 million in FASTLANE grant funding last week, in part, to repair the Presidio International Rail Bridge, Rep. Will Hurd, R-Texas, announced. “Cross-border trade is the lifeblood of many communities in my district,” Hurd said in a statement. “These infrastructure improvements will create jobs and facilitate the flow of goods and services through the region.” The Fixing America’s Surface Transportation Act of 2015 instituted the FASTLANE grant program.

The World Trade Bridge at the Laredo Port of Entry in the next few years will garner updates to allow for automated pre-screening and inspection data collection of U.S.-bound cargo earlier in the supply chain, and to integrate scanning and processing technologies, as part of a $100 million plan to enhance the port, Rep. Henry Cuellar, D-Texas announced July 5 (here). The plan will integrate a “robust” Wi-Fi capability, radio frequency identification devices (RFIDs), “drive-through multi-energy truck portal X-ray systems” and other CBP cargo processing systems into a common software package, and install state-of-the-art traffic control systems, according to the announcement. Updates will also include buildout of a cargo traffic control tower with an operations center, X-ray image analysis stations, cameras to monitor compound activities in real time, a modern inspection and technology training center and agricultural laboratory, and bypass lanes, the announcement says. CBP also plans to maximize joint inspections at the port with other U.S. federal and state and Mexican customs partners.

A slew of trade groups applauded the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) for agreeing to discussions that have already resulted in a proposed three-year West Coast port labor contract extension offer, according to a letter the groups sent to ILWU President Robert McEllrath and PMA CEO James McKenna (here). ILWU will consider the offer later this summer, the letter says. “Agreeing to early contract discussions was clearly a difficult and unprecedented step,” the groups said. “However, we believe it is a step that should serve as a model for future negotiations. Uncertainty and supply chain disruptions have caused great economic harm in the past. We strongly believe that early and continuous dialog can strengthen the U.S. economy and the competitive position of West Coast international gateways.” An early contract extension will benefit U.S. labor, terminal operators, cargo owners, transportation providers, and many U.S. workers and consumers, the letter says. The current West Coast port labor contract expires July 1, 2019.

The State Department this week granted final approval for the Presidio, Texas, port of entry project to add one lane in both directions to accommodate 18-wheelers, the office of Rep. Will Hurd, R-Texas, announced (here). State granted a Presidential Permit, which is the last step before construction may begin. “These infrastructure improvements will create jobs, reduce arduous border wait times, and facilitate the flow of goods and services through the region,” Hurd said in a statement.

The Federal Maritime Commission on April 7 voted to allow the East Coast Port Gateway Terminal Agreement to enter into force, the FMC said in a press release (here). The agreement will become effective April 10, and allow the Virginia Port and Georgia Ports authorities to discuss cargo handling practices, terminal operations, service options for ocean carriers, operating systems, equipment and joint marketing, the FMC said. However, the agreement doesn’t allow the two authorities to jointly negotiate, set and approve terminal rates or charges. The port authorities filed their agreement with the FMC on Feb. 24. "The East Coast Gateway Terminal Agreement is the latest example of port authorities and [marine terminal operators] MTOs looking to the Shipping Act and the Commission’s agreement authority as a way to improve service and operations which will ultimately benefit the American shipper and consumer," Acting FMC Chairman Michael Khouri said. "The ocean transportation services sector is a dynamic and competitive business where the marketplace drives innovation. The port authorities in Virginia and Georgia are responding to a changing industry."