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Volume 1, Issue 7 - 11/24/2008

RILA Prepares for Logistics Conference
The results of RILA and Auburn University's inaugural State of the Retail Supply Chain research study will be presented at our annual Logistics Conference in February. A wealth of great speakers will be presenting, including Randy Lewis, senior vice president of supply chain at Walgreen’s, ESPN sportscaster Chris “Boomer”, financial analyst Ron Insana, and CEO of the Panama Canal Alberto Aleman Zubieta. Registration for the conference is now open.

RILA Transportation and Infrastructure Committee Meets To Set Strategy, Priorities

RILA hosted the first meeting of the new Transportation and Infrastructure Committee in Washington D.C. on October 22. Member companies who participated at the meeting included chief transportation executives from Best Buy, Lowe’s Companies, Giant Eagle, Meijer, Target Corporation, and Wal-Mart Stores.

At the meeting, staff members from the House and Senate met with the group and provided an informational discussion on the reauthorization of the Transportation Equity Act (TEA-21), also known as the “Highway Bill”. The congressional staff provided insight on the type of programs that will likely be included as well as the potential funding mechanisms for the bill.

Participants also met with members from EPA SmartWay, Tompkins Associates and Kurt Salmon Associates to discuss important green strategies, benchmarking and data collection necessary for effective lobbying.

In addition to congressional staff and research presentations, the committee outlined its strategy frameowrk and set forth priorities for 2009. The next Transportation and Infrastructure Committee meeting will be held in the spring of 2009.

For more information on the committee, please contact Casey Chroust, senior vice president of retail operations at casey.chroust@rila.org.

RILA Supply Chain Security Committee Holds Bi-Annual Meeting
On October 28, RILA hosted its bi-annual Supply Chain Security Committee meeting in Washington D.C. Member companies who participated at the meeting included supply chain executives from Lowe’s Companies, Inc., J.C. Penney Co., The Home Depot, Inc., Target Corporation, Nike Inc. and more.

At the meeting, participants were able to meet with a number of executives from the current administration, including representatives from the Overseas Security Advisory Council and representatives from the Transportation Security. In addition, representatives from U.S. Customs and Border Protection briefed participants on their current efforts with the Maritime Transportation System Recovery Program.

In addition to presentations by administration officials, the committee also set forth priorities for 2009 and the incoming administration. The next Supply Chain Security Committee meeting will be held in the spring of 2009.

For more information on the committee, please contact Casey Chroust, senior vice president of retail operations at casey.chroust@rila.org.

FMC Issues Preliminary Injunction on California Port's Clean Truck Program, Fee Collection Delayed
On Monday of this week, the Federal Maritime Commission (FMC) issued a preliminary injunction against the Ports of Los Angeles and Long Beach clean-truck program (CTP). Under the federal Shipping Act of 1984, the FMC has the right to intervene when it thinks unfair competitive restrictions or unduly expensive mandates have been placed on international commerce. The FMC believes elements of the CTP will restrict competition and carelessly increase fees at the nation’s busiest ports.

The filling seeks an injunction against elements of the CTP including the following:
• Restrain the Port of Los Angeles from taking further action on its requirements that only licensed motor carriers (LMCs) with employee drivers be allowed to operate at the port.
• Restrain both ports from establishing truck purchase incentives and subsidies for some motor carriers but not for other motor carriers.
• Prevent the ports from charging clean-truck fees for some motor carriers but establishing exemptions from those fees for other motor carriers.

The U.S. District Court in Washington announced on Tuesday that it will hear arguments from the FMC and Ports of Los Angeles and Long Beach on December 5.

Collection of the Clean Truck Fee (CTF) at the Ports of Los Angeles and Long Beach, which was scheduled to have begun on Nov. 17, have been delayed due to outstanding regulatory issues.

The ports are planning to use PortCheck Inc., a non-profit company similar to Pier Pass to collect the fee. The ports’ agreement with PortCheck and marine terminal operators must be approved by the Federal Maritime Commission (FMC). Therefore, fee collection will be delayed until the agreement is approved. At this time the FMC’s timeline for approval is unknown.

In the meantime, the ports are continuing to move forward with the technical preparations for the fee collection. Once fee collection begins, non-exempt cargo will not be allowed to enter or exit from a marine container terminal unless the cargo has been claimed by a credit account or the CTF has been paid. Under the ports’ program, the cargo owner (the party named on the ocean bill of lading or their legal representative) is responsible for paying the CTF.

RILA will continue to monitor the situation. For more information, contact Casey Chroust at casey.chroust@rila.org or 703-600-2014.

Napolitano, Clinton, Richardson Leading Candidates for Obama Cabinet Posts
Arizona Governor Janet Napolitano is widely accepted as the leading candidate for President-Elect Obama’s Secretary of Homeland Security position. New York Senator Hillary Clinton is believed to be Obama’s first choice for Secretary of State and is expected to accept the appointment if offered. New Mexico Governor Bill Richardson has been frequently mentioned among the frontrunners for the post of Commerce Secretary.

U.S. Representative Rahm Emanuel (D-IL) has accepted the post of Chief of Staff for the President-Elect. Emanuel also served as a senior advisor during the Clinton administration. Timothy Geithner, current president of the New York Federal Reserve Bank, has been confirmed as the Secretary of the Treasury for the new administration. Read more about the confirmed and prospective Cabinet members here.

RILA will continue to monitor the transition process. For more information, contact Katherine Lugar at katherine.lugar@rila.org or 703-600-2098.