Industrial action taken by Polish Customs Officers against the government continued today, despite earlier reports of a resolution of the dispute and a return to work by customs officers.

The customs officers have engaged in industrial action in an effort to receive increased pay and better conditions, as a result, much of the eastern border remains clogged with trucks that cannot be processed and proceed into or through Poland. (*)

According to Polish Radio, the talks between the trade union of Polish customs officers and the Finance Ministry representatives proved inconclusive with neither side willing to accept any offer put on the table.

The ongoing consequence of the dispute is that freight moving from Eastern Europe through Poland westward remains stalled at Polish checkpoints, creating massive bottlenecks both inside and out of the country.  Further uncertainty exists as to when and if checkpoints will manned, as some customs officers return to their posts but initiate a “go slow” policy, continuing their industrial action.

Source: Polish Radio and Earthtimes.org

This week two of the largest and well known air cargo operators launched a joint venture partnership to be known by the brand name AeroLogic.

Lufthansa Cargo and DHL have formed the joint venture with each of the the parent companies each holding a fifty per cent stake in the off-shoot.

AeroLogic have successfully leased eight Boeing 777 Long Range Freighter (LRF) aircraft which will wear the new carriers grey and yellow colours and fly to destinations in Europe, Asia and North America from next year.

Management from both DHL and Lufthansa Cargo expressed satisfaction with the new venture, CEO and Chairman of Lufthansa Cargo Carsten Spohr said on the occasion of the announcement “It is the culmination of a successful partnership that has existed for many years between DHL Express and Lufthansa Cargo. The neutral brand symbolises our offer of competent and competitive transport services right across the air cargo sector.” 

Chief Executive Officer DHL Aviation Charles Graham outlining the short to mid-term future of the venture said that “the first four aircraft are scheduled for delivery in 2009. “That will enable us to gradually build up AeroLogic’s route network. Four more freighters will follow in 2010, a further two in 2011. And we plan to add a reserve aircraft to the fleet in 2012.”

Both DHL and Lufthansa Cargo will be responsible for sales and warehouse handling for the new venture with operations being both planned around DHL and Lufthansa Cargo’s requirements as well as having AeroLogic supplement some of the  parent company’s existing services.

Source: Lufthansa Cargo and AeroLogic

Rail company and freight carrier BNSF Railway has announced that it is to invest billions of dollars into its infrastructure announcing an intent to lease additional locomotives and pour a significant amount of the company’s capital into track and facilities.

The announcement from BNSF comes in the wake of much questioning of the capacity of America’s rail networks to cope with the future needs of the nations rail freight.(*)

Indeed BNSF, heeding the warnings about the need for better infrastructure to address coal transport issues intends to continue its installation of double-track in  the coal-producing regions of Nebraska and Wyoming.  Also in line for improvements are Intermodal facilities in Kansas City, Los Angeles, and Memphis as well as investment in additional sidings infrastructure between Houston and Fort Worth.

BNSF Chairman, President and Chief Executive Officer Matthew Rose said on the release of BNSF’s 2007 fourth quarter results that in 2008 the company “expects to spend more than $1.8 billion to keep our infrastructure strong by refreshing track, signal systems, structures, freight cars, and upgrading technologies.”

BNSF Railway Company operates one of the largest railroad networks in North America in 28 states and two Canadian provinces.

Source: BNSF Railway

At an event today to unveil their 2007 fourth quarter results, Canadian rail freight operator Canadian Pacific looked past some significant setbacks in 2007 to unveil a positive outlook for 2008.

Significant weather events from the west to east coast of Canada hampered Canadian Pacific’s 2007 operations with mud slides, flooding and other averse weather, disrupting Canadian Pacific service as rail infrastructure was either damaged or destroyed.

Hardest hit was the operators infrastructure in British Columbia with mudslides closing not only Canadian Pacific’s Trans-Canada railway, but also the Trans-Canada Highway.

Despite the weather setbacks, fuel and foreign exchange exposure issues as well as labour disputes, Canadian Pacific still sees 2008 as a year of opportunity, a time to continue to recover from 2007 setbacks and to capitalise on new and existing markets.  Indeed the company reports that 2008 has already reported improvements in train speed, car miles per day and total cars on-line.

Forward looking statements from the company further indicate positivity with a target freight revenue growth between four and six percent.

Source: Canadian Pacific and the CNW Group

The islands of Hawaii are set to benefit from a new cargo service launched through an agreement between Aloha Airlines and  Mokulele Airlines.

The service, to be operated by Mokulele Airlines but known as Aloha Air Cargo Express, will see Molokai, Lanai and Kapalua, West Maui all being serviced as of April.  Mokulele will operate a Cessna C208 Cargomaster, the dedicated freight version of Cessna’s single-engine turboprop Caravan.

President and chief executive of Aloha Airlines, David Banmiller hailed the deal between the two airlines saying that “the agreement with Mokulele will allow Aloha to offer daily service to three areas it doesn’t serve.  “This partnership will bring tangible benefits to shippers and customers  awaiting shipments from all points in the islands.”

The first of two Aloha Air Cargo Express Cargomaster’s will be delivered to Mokulele Airlines within two months with the second aircraft arriving later in the year. President and CEO  of Mokulele Airlines Bill Boyer commenting on the impending service remarked that “By teaming with Aloha, Mokulele Airlines can provide these smaller communities with fast delivery of air freight and air cargo, everything from fresh bread and fresh meat to construction material and refrigerators.

According to the Cessna Aircraft Company, with a cargo load of 1500 kilograms, the Cargomaster has an effective range of 100 nautical miles, a range that increases to over 800 nautical miles with lighter cargo loads.

Source: Honolulu Star-Bulletin and the Cessna Aircraft Company

Leading Canadian air cargo operator Cargojet has announced enhancements to its Live Animal transport operations.

Specializing in the handling and transportation of a variety of live
animals including cattle, horses and a variety of other agricultural and zoological animals, Cargojet, in line with the worldwide standard  for transporting live animals, the IATA Live Animal Regulations, moves animals safely and humanely by air throughout its North American network.

Cargojet tells Freightscene.com that the enhancements to it’s live animal program will consist of moving to a specialized animal handling facility.  The facility, to come online in May will also serve as the carriers hub. 

In addition, all Cargojet stations have been provided with live animal training equipment and all necessary tools for handling live animals.  Cargojet also intends to initiate a specialized booking/customer service desk to cater for the enhanced live animal cargo program.

Cargojet utilizes a fleet of 20 all-cargo aircraft to move its time-sensitive cargo including live animal cargo and sees the live animal transport business as an important part of its overall response to the demand for additional specialized air cargo services.

According to the IATA, Animals have been transported by air since the early 1930’s and that carriage of live animals by air is thought to be the most humane and expedient method of transporting animals over long distances.

Source: Cargojet, CNW Group and the IATA

To many, the idea of an inland port is facility where multiple methods of freight logistics meet to provide a central point for the efficient management and distribution of freight.

Contradicting this though, is the proposed “inland port” initiative in Tucson Arizona.  The long planned project now being overseen by Tucson Regional Economic Opportunities  is raising eyebrows by planning to exist not as a physical facility but rather as a information portal with comprehensive information on logistics providers and freight facilities in the region.

The revised plan seeks to take advantage of Tucson’s position as a natural freight corridor and junction point, yet not at the expense of established private operators.

John Brown, Manager of Business Development with the Southern Arizona Logistics Education Organization writing on a blog in support of the project said that” currently there are companies moving goods that arrived from offshore via ocean container at the Port of LA and are moved to Laredo, TX; south into Mexico and back west to the Mexican West coast. Obviously using Tucson to handle this traffic will save both time and money which are commodities the business community is seeking”.

Tucson Regional Economic Opportunities hopes that an inland port would build on Tucson’s already impressive business credentials.  Companies such as Target have already pinpointed Tucson for major business investment including the establishment of a fulfillment centre for their online business.

Source: Arizona Inland Port & TREO

The question of where to source America’s power from has been raised again, but this time is not only the environmental concerns that need addressing.

Reports in the United States say that the viability of present and future coal-fired power stations is being threatened by inadequate means  of getting the coal from mines to where it is needed in the power stations.

Most of these issues rest with the rail transport of coal as limited opportunities exist for increasing rail movements without a substantial increase in infrastructure. 

The Powder River Basin in Wyoming and Montana, source of the majority of America’s low-sulphur content coal, has only two two rail companies serving the basin with those companies having to share just one set of tracks for some one-hundred miles of the network.  And while there has been some expansion of infrastructure coming out of the Powder River Basin, it is believed to be already nearing inadequacy.

The Association of American Railroads believes that $148 billion needs to be invested in freight infrastructure nationwide over the next three decades and will be seeking Federal Government assistance to cover over a quarter of the total cost.

Aside from rail, coal transport issues also exist with moving coal by ship or barge.  Restricted waterways in the Great Lakes region and issues with port capacity have seen loads reduced and the movement of coal by water made increasingly difficult.

US Coal production capacity is estimated to be at around two million tonnes per year, with half of America’s energy requirements satisfied by coal.

Source: WCFCourier.com, GlobalEnergy.com & America’s Power

Dubai Customs have announced that they have entered into agreements with several major air cargo providers and handlers to cooperate and coordinate their activities in a major effort to simplify customs procedures.

Emirates Sky Cargo, Danzas AEI Emirates LLC, Dnata, Al Tayer Logistics and Gargash Enterprises have all signed memoranda of understanding with Dubai customs, the group being representative of the majority of cargo flow into and out of Dubai.

The main purpose behind the agreements is to implement an e-commerce type of environment with regard to information exchange between Dubai Customs and clients. It is understood that the agreements will enable over fifty customs transactions that previously needed to be handled onsite, to be carried out remotely.

Additional benefits derived from the agreements include being able to monitor and track shipments from the departure point within the country of origin, through all destinations on their way to final delivery in Dubai.

Dubai Customs in activating e-commerce principles expects that not only will it make for a more efficient and streamlined  cargo handling environment in Dubai, but also see Dubai Customs become a world-leading customs authority.

Source: Dubai Customs

Just over three weeks into 2008 and the freight industry is seemingly stalked by threats of industrial action.

Most disruptive at present is striking customs workers in Poland, creating massive waits and bottlenecks at Poland’s borders.  Particularly affected is the nations eastern borders with reports of five-hundred trucks lined up and waiting for the strike to conclude.  There are also some six-hundred trucks waiting inside Poland

The customs workers intensified their industrial dispute this week after beginning the action back in October of 2007.  Customs workers want to procure better pay, earlier retirement and better protection from attacks.

Earlier this month, rail giant Deutsche Bahn avoided industrial  action by German train drivers Union GDL.  The drivers have threatened to strike over long-standing demands for more pay and revised contracts, however intervention by Germany’s Federal Ministry of Transport averted, for the time being, the threatened strikes, strikes that no doubt would have severely disrupted Deutsche Bahn’s freight operations.

It is believed that the compromise reached between GDL, Deutsche Bahn and the Federal Ministry of Transport includes a one-off payment of 800 Euro’s per driver to cover a contract period up to February  29.  A new contract between parties to commence in March also lessens the work week by one hour from forty-one hours to forty.

Further industrial action on the horizon includes possible strikes by British Airway (BA) pilots whose opposition to planned BA subsidiary Open Skies would disrupt BA’s cargo arm, British Airlines World Cargo.

Source: Earthtimes.org and CNN International

Update: 30 January 2008 (AWDT) - It is being reported that Polish Customs Officers have returned to work. Delays in the short-term still expected. (*)