Newsletter: Issue 8

OREGON SHIPPING GROUP NEWSLETTER
THE LATEST NEWS FROM THE OREGON SHIPPING GROUP
 
nOVEMBER 8, 2016
ISSUE 8

Message from the Project Director
 
The rest of this newsletter will present you with specific pieces about our work and shipping issues in Oregon. But much of our work, on a daily basis, involves research and outreach.
 
On the research side, we have been studying:
Land use issues relating to existing ports and possible port development
Deepwater port development relating to areas in the Columbia River and Coos Bay
Land use issues relating to a potential intermodal facility in the Willamette Valley
Anti-Trust issues relating to cooperation among shipping services
Port of Portland tax revenue sources
Requirements for establishment of foreign trade zones and ports of entry
U.S. government requirements and restrictions as to foreign investment in U.S. port          facilities and shipping companies
The impact of the Jones Act on transshipment of containers through Hawaii or Guam
Studies as to approaches taken by smaller, and effective, East Coast ports.
 
We have engaged in discussions with a small shipping line in regard to customized container shipping from a smaller Oregon port to single specific destinations in Asia or the Pacific. This is limited because the only existing facility which has the necessary X-Ray and radiation equipment is Terminal 6 at the Port of Portland.
 
I often give speeches to civic groups regarding the lack of use of container Terminal 6 and its impact on the Oregon economy, as well as our proposed solutions.
 
We are routinely reaching out to businesses which want to support reliable, predictable, and cost efficient shipping facilities and programs, especially for containers.
 
We are continuing our work with legislators and other political leaders to develop support for the Oregon Trade and Shipping Development Act.
 
We appreciate all of the support we have received since this project began in December 2015.
 
Sincerely,
Kevin L. Mannix
Project Director

Business Oregon Report Awaited
 
Business Oregon is conducting a major marketing study to determine the business prospects for establishing an intermodal transfer facility in the Southern Willamette Valley. That report should be issued by the end of this month. If it is favorable in terms of market potential there will be a major push to establish an intermodal transfer facility. Our field work has shown that a site in the city of Lebanon is the best site for such a facility. We continue to work on  support for that project.

Don’t Be Misled 
As To The International 
Container Shipping Situation
 
Media accounts have emphasized that the international shipping lines are economically distressed. These lines have acquired so many new ships, especially super-size ships, that container cargo capacity internationally is 30% above the need. So the shipping lines are fighting for market share. Many of them are looking to mergers to survive in this environment.
 
But this does not mean that the actual volume of containers shipped has gone down. The opposite is true. The actual volume of containers that ships moved across the oceans this year will be 2-3% higher than last year. The problem is that the capacity of the system is presently 30% higher than needed to meet existing shipping needs.
 
With this in mind, it is almost incredible that the Port of Portland has no container ships calling at Terminal 6. The shipping lines are desperate for cargo – but they are unwilling to come to a port where the turn-around on a ship may take six days instead of 12 hours.
 

In Case You Did Not See It
 
22 Members of Congress have written to the President of the ILWU and to the Chairman of the Pacific Maritime Association. They have urged these two organizations to expedite contract extension discussions even though the current longshore contract does not expire until July 2019. The members of Congress also encouraged resolving the “long simmering dispute” that has led to the closure of container shipping at the Port of Portland. 
 
For the full text of this letter click here: 

Congressional Letter

Support Our Efforts
 
If you are reading this newsletter and you have not contributed to support our work, but would like to do so, please contact Kevin Mannix at 
kevin@oregonshippinggroup.com or 503-364-1913. 

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