BC wants to put one individual in charge of bringing stability back to trucking operations at Port Metro Vancouver.
The provincial government tabled legislation that will not just enforce the previously promised rate regulations and other recommendations, but also establish an “independent container trucking commissioner, who will assume responsibility for all Truck Licensing System licenses in place following planned licence reforms by Port Metro Vancouver, and will administer future truck licences.”
As part of his or her duties, the commissioner’s will be responsibility for rates, wait time charges and fuel surcharges, on-dock and off-dock truck licensing, overseeing the whistleblower line, and enhancing auditing and enforcement capabilities. Read more here.
Ford Motor Co. has decided to not invest in Windsor, according to the union representing employees there.
“Diassappointing [sic] news from Ford this morning that it will produce engines in Mexico instead of Windsor. Would have meant 1,000+ #goodjobs,” the union tweeted.
Unifor later issued a news release. In it, Unifor said it had hoped that months of discussions between Ford, two levels of government and the union would result in “significant investment which would have secured the production of a global engine at the Windsor facility.” Read more here.
(Bree Feng – NYT)
China and 20 other countries signed a memorandum Friday agreeing to start an international development bank that Beijing hopes will rival organizations like the World Bank. But some important Asian economies refrained from joining the project, which the United States has been quietly lobbying against.
Japan, Australia, South Korea and Indonesia were not represented at the signing ceremony in Beijing for the bank, the Asian Infrastructure Investment Bank. India did join the bank, as did Malaysia, Thailand, Vietnam and the Philippines, news agencies reported.
The development bank, proposed a year ago by President Xi Jinping of China, is to offer financing for infrastructure projects in underdeveloped countries across Asia. China, which has promised to contribute much of the initial $50 billion in capital, sees it as a way to increase its influence in the region after years of fruitless lobbying for more say in other multinational lending organizations. Read more here.
The EU has set a goal of reducing greenhouse gas emissions by 40% by 2030 (as compared to 1990) and increase renewable energy level up to 27% of total EU energy consumption, the outgoing European Council president Herman Van Rompuy reported after the first day of the EU summit.
According to Van Rompuy, the EU has set a goal to improve energy efficiency by 27%. Herman Van Rompuy said that one of the key priorities of EU development is achievement of energy independence.
Earlier on October 24, European Commission issued a statement, which said that EU would spend €180 billion on the fight against climate change. Read more here.
(STR Trade Report)
Monthly freight flows between the U.S. and its NAFTA partners slipped 0.4% to $100.6 billion from July to August, according to statistics released Oct. 23 by the Department of Transportation. However, the value of total U.S. trade with Canada and Mexico rose 4.4% from August 2013, including increases of 3.3% for truck, 3.4% for rail (where an 11.0% gain in exports offset a 0.6% fall in imports), 6.8% for pipeline, 11.7% for vessel (including a 32.7% increase in exports) and 2.3% for air (including a 14.1% jump in imports that offset a 5.6% drop in exports). Read more here.
A shortage of transportation equipment and possible labor disruptions at the Los Angeles/Long Beach port complex, the nation’s busiest, is delaying shipping containers for up to three weeks, threatening timely delivery to retailers for the holiday season.
The delays are affecting retailers including JC Penney Co, Macy’s Inc, Kohl’s Corp, Nordstrom Inc, American Eagle, Ralph Lauren and Carter’s, according to three people with direct knowledge of the situation. Retail giant Wal-mart Stores Inc, recently diverted 300 shipment containers to Oakland to avoid the congestion, one person said. Wal-Mart declined comment. Read more here.
(Adrienne Selko – IndustryWeek)
The numbers are growing.
More U.S. companies are moving production back from China, according to a new survey from The Boston Consulting Group (BCG).
This year 20% of the senior manufacturing executives at companies with sales of $1 billion said they are heading home from China. That compares to last year’s number of 13% to 16%. And these plans are already in the works as 24%, compared to 17% -20% last year, said they will take action within the near future. Furthermore, a majority (54%) expressed interest in reshoring, validating last year’s result (also 54%.)
“These findings show that not only does interest in repatriating production to the U.S. and creating American jobs remain strong but also that companies are acting on those intentions,” said Harold L. Sirkin, a BCG senior partner. Read more here.
Suggesting moderate growth in the short-term, the Conference Board released a report on Thursday showing that its index of leading U.S. economic indicators rose by more than economists had anticipated in the month of September.
The Conference Board said its leading economic index climbed by 0.8% in September, while revised data showed that the index was unchanged in August. Economists had been expecting the index to rise by 0.6% compared to the 0.2% uptick originally reported for the previous month. Read more here.
(Ari Altstedter – Bloomberg)
The oil boom that powered Canada’s recovery from its 2009 recession is turning into a bust for the nation’s dollar.
Canada’s currency tumbled this month to a five-year low of C$1.1385 per U.S. dollar as the price of oil, the country’s biggest export, fell 30% from a June peak. Without a sustained increase in crude, the local dollar will weaken at least another 4% to C$1.18, according to Toronto-Dominion Bank and Royal Bank of Canada, the nation’s two biggest lenders. Read more here.
Unionized employees at U.S. Steel Canada’s plant in Hamilton have ratified a collective agreement that the company says sends a positive message to its suppliers and customers during a court-supervised restructuring.
The agreement covers about 600 employees represented by the United Steelworkers union.
USW Local 1005 reached a tentative agreement with the company last week. It says the contract was accepted by 86 per cent of the votes cast, with 77 per cent of the membership represented. Read more here.
(Mike Wackett – The Loadstar)
Hong Kong shippers have demanded that intra-Asian shipping lines cancel a port congestion charge imposed this week on containers moving in and out of the hub port.
In a strongly worded statement, the Hong Kong Shippers’ Council (HKSC) said it “fails to see any justification for the charge”, and claims that shippers should instead be compensated by carriers for a “failure to provide a basic service”.
Congestion at terminals in North Europe and the U.S. as well as Asia has been a hot agenda item recently, causing a further deterioration in carrier schedule reliability and major delays to shippers’ supply chains. Read more here.
Euro zone businesses performed much better than forecasters expected this month and China’s vast factory sector grew a shade faster but there were worrying signs that the upturn could be short-lived.
The improvement in purchasing managers’ surveys, released on Thursday, will ease some worries about the outlook for the global economy, but news that companies in the euro zone cut prices at the steepest rate in almost five years will be of concern to the European Central Bank, which is striving to ward off the risk of deflation in the region. Read more here.
(Mark. B. Solomon – DC Velocity)
The CEO of Canadian Pacific Railway (CP), E. Hunter Harrison, took to the Internet yesterday in a one-man dissection of the state of an industry that he warned faces a difficult future unless it can conduct business free of excessive government involvement.
Harrison, who held an extraordinary solo conference call with all interested parties just hours after Calgary, Alberta-based CP posted record third-quarter results, said rail consolidation appears to be the only logical path to alleviating network congestion, which will only get worse as volumes continue to grow. Harrison said he was receptive to alternate remedies to the bottlenecks that have plagued North American railroads for more than a year. However, in affirming his support of rail mergers, he asked rhetorically, “If service isn’t good right now, what’s out there to improve it?” Read more here.
(International Business Times)
At least 11 banks from six European countries are set to fail a region-wide financial health check this weekend, Spanish news agency Efe reported, citing several unidentified financial sources. The results of the stress tests on 130 banks by the European Central Bank are due to be unveiled on Sunday.
Three banks in Greece, three Italian lenders and two Austrian ones are among those that preliminary data showed had failed the tests, Efe said. It gave no details of how much capital the banks would have to raise and said this could yet change as numbers could be revised at the last minute. Read more here.
(Christian Oliver – Financial Times)
Jean-Claude Juncker, incoming president of the European Commission, has stripped his trade commissioner of the exclusive mandate to handle the most sensitive element of a deal with the US, potentially the world’s biggest trade accord.
Even before Sweden’s Cecilia Malmström takes office at the beginning of next month, the new commission has shown that it is divided about how to handle the Transatlantic Trade and Investment Partnership. Read more here.
Related: EU Parliament Approves New Juncker Commission (Deutsche Welle)
The CEO of Canada Pacific Railway said he wouldn’t rule the Calgary based company out as a takeover candidate.
Hunter Harrison tells The Globe and Mail North America is headed to gridlock unless mergers between train companies occur.
He says the number of cars on the tracks is increasing but new infrastructure is being stifled by public resistance. Read more here.
The Bank of Canada dropped any reference to taking a neutral stance on interest rates on Wednesday after having already signaled that it would generally not give forward guidance on its rate moves.
The bank kept its key overnight rate at 1 percent, where it has been for more than four years, but this had been universally expected and markets were looking more for its overall outlook and analysis. In September it had said it was neutral on the timing and direction of rate changes. Read more here.