Green Gains

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The Port of Long Beach is one green machine.  In March the Port of Long Beach voted on stricter regulations that require ships within 40 miles of either Los Angeles and Long Beach ports must operate on less pollutant fuel.  In addition, the Port enforces a Green Port Policy that positions itself to:
·  Protect the community from harmful environmental impacts of Port operations.
· Distinguish the Port as a leader in environmental stewardship and compliance.
· Promote sustainability.
· Employ best available technology to avoid or reduce environmental impacts.
· Engage and educate the community.*

And the Port wants more.
 
According to the Los Angeles Times, the Port of Long Beach wants to cut Middle Harbor pollutants in half.   The reason?  Middle Port is old, inefficient and just plain dirty.  The Ports Green Plan Version 2.0 would cost $750 million and take ten years to complete.  By 2018 thought, Middle Harbor be clean and more productive. 
 
What’s next?  The proposal faces fifty days of public commentary.  On the chopping block are mandates to utilize cleaner tugboats, maintain low emissions, and provide electronic alternatives. 

*From the POLB.com


California Workers Comp Aid on the Rise?

California’s workers compensation system has seen its ups and downs.  After all, it was one of the first states to adopt such a plan.  A plan that’s taken its hits, home runs, and constant criticisms. 
 A quick background on the state’s workers comp system: Under California Labor Code 3700, each and every employer in California employers must provide workers’ compensation benefits to their employees.   This code recognizes five types of workers comp aid including medical care, temporary disability, vocational rehabilitation benefits, death benefits, and permanent disability benefits. (http://igs.berkeley.edu/library/htWorkersCompensation.htm.) 
Where do employers get workers compensation insurance for their employees?  The answer is one of two choices: through the State’s Compensation Insurance Fund or a licensed insurance company.   Those employers who do purchase workers compensation insurance at all are in violation of California code and subject to serious fines and according to the state’s Department of Industrial Relations, “Failing to have workers’ compensation coverage is a criminal offense. Section 3700.5 of the California Labor Code makes it a misdemeanor punishable by either a fine of up to $10,000 or imprisonment in the county jail for up to one year, or both. Additionally, the state issues penalties of up to $100,000 against illegally uninsured employers.” (http://www.dir.ca.gov/dwc/faqs.html.) 
In the 1990’s, before Governor Arnold Schwarzenegger’s term, the state’s system tackled fraudulent lawyers and doctors, capping rehabilitation at $16,000.  Employer rates were still considerably high however. 
 Since 2004, Schwarzenegger has been able to decrease employer’s premiums by as much as 60% while payments to injured workers were cut half. 
Persistent labor unions and attorneys have dogged state legislatures, and their persistence may have paid off.  According to a report in the Los Angeles Times, Schwarzenegger may increase workers comp benefits by 16%.   Workers comp advocates site injured workers would’ve received almost ten times the amount in benefits prior to Schwarzenegger’s term.  

While Schwarzenegger appears to be onboard with slight increases in workers comp benefits, the state is still well below national averages in terms of payments to injured employees.


Precious Cargo

Expensive stuff on board!  Actually - it’s not a smart practice to advertise what’s being hauled around in a trailer.  Produce?  Ok.  But most short and long haul trucks carry cargo worth hundreds of thousands of dollars.  Regardless of the length of the drive, what’s the best way to guard against vandalism and theft? 
 

Surprisingly, simply keeping cargo locked at all times can prevent most types of theft.  Industry reports estimate only thirty percent of trailers are regularly locked.  Beyond the deadbolt though, communication can have the most impact on keeping cargo secure.  Several processes are involved with transporting goods from point A to point B, with each process requiring clear communication.  Truck drivers have been among those criticized for dropping the ball when it comes to what’s required of keeping cargo safe. 

According to eTrucker.com’s interview with Lt. Ed Petow, commander of the Miami-based TOMCATS, “We hear of a lot of thefts on Monday morning. Drivers are passing near their homes, they drop a trailer at somewhere like a big department store and leave it there for the weekend. The thieves are out looking for them. Let me ask you: If you had a car with $200,000 in the trunk would you leave it unattended at a Wal-Mart parking lot over the weekend?”
 

Hi-tech security devices are available, but cost much more than a deadbolt lock.  Global Positioning Devices that can detect stolen cargo from thousands of miles away are becoming more popular, but are generally effective in the recovery process, and not preventative. 

While the trucking industry and manufacturers can’t curb theft, they can streamline routes, enforce best practices, and maintain discerning hiring practices.   These are internal functions that can be controlled from within and have a positive outcome, which is protecting that precious cargo. 


The Details on Retail’s Impact

The retail and trucking industries are like peas in a pod.  Products need to be delivered - it’s that simple.  The transportation industry provides the vessels, the retailers provide the goods.  It’s supply and demand theory factoring in the means to make supplying actionable.  In recent year’s the retail industry has experienced a boon - reaping the rewards of consistent consumer spending.  Credit crunches and mortgage meltdowns have put a quick and somber end to uninhibited spending, causing retail margins to shrink and leaving trucks with reduced opportunities to deliver. 

The National Retail Federation (NRF) most recently reported sales in March dropped by almost 1 percent, siting economic, gas, and weather issues as influencing factors.  According to an NRF press release on April 14th, “Many retailers felt the brunt of the troubled economy as well. Clothing and clothing accessories stores sales decreased 0.5 percent seasonally adjusted from last month and 2.0 percent unadjusted year-over-year. Sales at electronics and appliance stores decreased 0.4 percent seasonally adjusted month-to-month and 1.0 percent unadjusted year-over-year. ” 

To offset the rising price of fuel, fleet owners have increased the cost of transporting goods.  Consequently, the purveyors of these goods must increase their price point in order to pay for higher shipping costs.   According to a CNBC Nightly News Report, “The trucking industry, which delivers 100 percent of the nation’s
consumer goods, is experiencing the highest prolonged fuel prices in
history. This ultimately will increase the cost of everything that is
delivered by truck.”

Retail and trucking are co-dependent, with prices structured around both industries’ ability to grow profits. 


Veggies Getting a Bad Rap

Biodiesel fuels have had a huge impact on the trucking industry.  Big rig diesel engines have been equipped with engines installed or retrofitted to run on vegetable oils such as corn oil, and animal fats.  The results - cleaner burning engines that have reduced carbon dioxide emissions by as much as four million metric tons.  So what’s the problem exactly?
 
According to a report in the Los Angeles Times, the state of California has been ticketing biodiesel users.  Since when is it a crime to improve the environment?  Since it was realized that the gallons and gallons of biodiesel fuel were missing one green detail.  Not Earth Day ‘green’, but Uncle Sam ‘green’. 
 
The federal government requires that diesel fuel is taxed at a rate of 24.4 cents per gallon.  Each state governs its version of a “diesel fuel suppliers license.”  In California fleet owners are just one of several groups required to provide quarterly reports of the amounts of oil burned in addition to furnishing liability insurance somewhere in the area of a million dollars (hot oil is…hot!)  These rules have come as a surprise to many, especially fleet owners who have wholeheartedly supported the biodiesel movement. 
 
Passenger cars aren’t exempt - or California’s governor.  According to the article, Arnold Schwarzenegger’ was required to pay 18 cents per gallon of biodiesel fuel burned in his Hummer to the state. 
 
Unlike regular diesel fuel, which is well in the four dollar range, biodiesel fuel can cost as little as one dollar a gallon. 
 
Currently, most biodiesel fuel suppliers supply covertly.  It’s a state by state movement that is likely to slippery. 


Port of Long Beach at a Standstill in Protest

May 1st was not business as usual.  Actually, for 29 West Coast ports there was no business at all.  Dockworkers said the daylong work stoppage was in protet to the war in Iraq.  There’s worry however that employees are unsatisifed and preparing to show for it. 

The Los Angeles Times reported that thousands of big rigs were stopped in their tracks, unable to load or offload their cargo.  Overall, more than 10,000 containers were left untouched during the strike. 

Why May 1st?  All over the world, countries view May Day as a day to honor workers and laborers.  It is often perceived that unions are the leaders of the working class.  The striking dockworkers in large represented the International Longshore and Warehouse Union - a union whose contract with the  Pacific Maritime Association ends in July. 

The union released a press release with a headline that read, “We’re standing up for America, we’re supporting the troops, and we’re telling politicians that it’s time to end the Iraq war now!”  The release represented the voices of the union’s 25,000 members, proclaiming their loyalty to America and disastisfaction of the war in Iraq.

The International Longshore and Warehouse Union ended the strike Thursday evening.  Contract negotations continue between the union and the Pacific Maritime Association.  While reports indicated retailers were not affected by the work stoppage, it was short-haul driver that lost out on a day’s worth of pay.