Cross border trucking dispute resolved; produce exporters to reap benefits

NEWARK, Del., Oct. 25, 2011 — Just announced this past Friday the government of Mexico formally suspended 100 percent of retaliatory tariffs on exports from the U.S.  The Produce Marketing Association (PMA) applauds the settlement of the cross border trucking dispute, which since 2009 has hindered the produce industry’s ability to export from the U.S.

Background

On November 1, 2010, the Canada Border Services Agency (CBSA) announced the implementation of the first stage of the eManifest initiative, a major project that will change the way commercial goods moving into Canada are processed. eManifest will enhance the safety and security of international trade and streamline cross-border processes. The initiative will require most highway carriers who transport goods into Canada to provide CBSA with pre-arrival data a minimum of one hour before arriving at the border.

A disputed regulation from the California Air Resources Board is under heavy fire from the produce industry, and an upcoming release of proposed amendments will tell if any of the bullets hit. After controversy over the data used to shape the California Air Resources Board’s regulations for diesel truck emissions, the board is pushing things back a little and drafting revised regulations.

A truck shortage is underway in Washington, Idaho and California. The situation is causing potato packers to scramble for available vehicles to bring their product to market. It's because of stricter emissions standards in California, a federal reduction in hours allowed trucks on the road and the credit crunch, said Matt Harris, the Washington State Potato Commission's trade director.

Leading players in the shipping and smart-grid industries have formed new groups aimed at dealing with environmental and technological challenges in their respective industries. Maersk Line, Gearbulk, BP Shipping, Lloyd’s Register and ABN Amro, together with Forum for the Future and WWF, have launched their Sustainable Shipping Initiative (SSI). The founding members plan to recruit other leading organizations to join SSI including global shipping firms, shippers and financiers.

In a report released Wednesday, the Senate Commerce Committee says higher rates for rail transportation are putting undue pressure on customers who don't have an alternative way to ship their goods. Those customers, called captive shippers, are mostly electric utilities, chemical and agricultural companies. Higher transportation rates for them can mean higher energy and grocery bills for consumers.

When the U.S. Congress wants to go in-depth on a particular topic, it often turns the Government Accountability Office to gather information. One topic under review is detention time for trucks – all trucks, not just produce trucks.

Stricter regulations on cargo shipped by air from the U.S. could give some exporters of fresh produce headaches, though others reported minimal effects so far. As of Aug. 1, the Transportation Security Administration requires that all air cargo originating in the U.S. and shipped on a passenger aircraft must be screened on a piece-by-piece basis, according to a TSA news release.