RILA & NRF Launch Merger Portal
RILA and NRF have launched a Resource Portal to keep members and stakeholders abreast of the merger process. This portal will serve as a clearinghouse for all information relating to the merger and will allow interested parties to address any questions directly to RILA President Sandy Kennedy. The portal address is www.retailmerger.com.
RILA, Along with Other Freight Stakeholders, Push for Federal Action on Freight
RILA, in its efforts as a member of the Freight Stakeholders Coalition, recently issued a "Surface Transportation Reauthorization Platform" calling for increased federal involvement in freight issues, including the need for increased infrastructure investment and freight connectivity. The coalition is pushing for a focus on freight transportation and is asking Congress to consider creating a national freight program in the next surface transportation reauthorization. The coalition made the recommendations with the expectation that cargo will double over the next 20 years. The coalition recommended the legislation include:
For more information, please contact Kelly Kolb, vice president of global supply chain policy, at kelly.kolb@rila.org.
RILA & American Shipper Host Successful Webinar on Emerging & Alternative Ports
On May 12, RILA and American Shipper jointly hosted a webinar on "Emerging and Alternative Ports". An extension of a very popular session of the same name at RILA’s 2009 Logistics Conference, the webinar featured moderator Dean Tracy, director of international transportation at Lowe’s, and representatives of three alternative North American ports: Raul Alfonso, director of container cargo, Jacksonville Port Authority; Bobby Landry, director of marketing, Port of New Orleans; and Shaun Stevenson, vice president of marketing and business development, Prince Rupert Port Authority.
Panelists shared their strategies for providing more options and advantages for retailers at a time when North America’s busiest ports and conventional gateways are facing through-put, productivity, legislative and infrastructure challenges.
More than 90 people attended the webinar and engaged in an informative Q&A session with panelists on some of the most top-of-mind issues for North American shippers today, including the effects of the economic downturn on port operations and carrier activity, infrastructure capacity expansion and potential of joint public-private development, intermodal connections, the diversion of West Coast traffic from California, the expansion of the Panama Canal and the future opening of a Cuban market. A recording of the webinar can be found in RILA's Supply Chain Resources Library.
Rockefeller and Lautenberg Introduce a National Surface Transportation Policy Bill
Senate Commerce Committee Chairman Rockefeller (D-WV) and Subcommittee Chairman Lautenberg (D-NJ) recently dropped legislation to persuade the policy discussions aimed at creating a 21st century approach to our transportation system. It is said that their goal is to influence Chairman Oberstar’s (D-MN) House Transportation and Infrastructure Committee, which is responsible for drafting the spending plan, but it is also important to note the jurisdictional battles between the Senate Environment and Public Works (EPS) Committee and Senate Commerce Committee. Currently, the Senate Commerce Committee has jurisdiction over the safety issues in the reauthorization bill --- with EPW as the main author of the “highway bill” --- and therefore Commerce has some influence over the final legislation. If a national freight policy is included in the new reauthorization, the Commerce Committee would then oversee it and would become a higher profile player in the passage of the bill. With the EPW Committee currently focused on the climate change bill, it seems the Commerce Committee has decided to be the first one out of the gate to send a clear message that they intend to do more than focus on the safety issues. The legislation has been introduced as The Federal Surface Transportation Policy and Planning Act of 2009. It seeks to reduce 10 percent of freight transport by trucks by 2020 and plans to offer incentives to increase non-truck transport of goods. The measure also targets reducing per-capita motor vehicle miles traveled on an annual basis, reducing motor vehicle-related fatalities by 50 percent by 2030 and reducing surface transportation-generated carbon dioxide levels by 40 percent by 2030. The bill and press release are available for review.The introduction of this legislation does not change the outlook of the possibility of a package being passed before the current reauthorization expires on September 30. It is still fairly slim at this point. RILA will continue to monitor any further developments.
For more information, please contact Kelly Kolb, vice president of supply chain, at kelly.kolb@rila.org.
RILA Members 6 of Top 10 Domestic Importers
According to the annual Journal of Commerce/PIERS report of domestic importers, RILA members are six of the top 10 importers in the United States. Wal-Mart, Target, The Home Depot and Sears Holding Corporation occupy the top four spots, respectively, on this year’s list. Costco and Lowe’s rank sixth and seventh. These six companies are unchanged from last year’s rankings.
The annual rankings are based on data from PIERS Global Intelligence Solutions and industry sources, tracking in TEUs shippers’ cargo entering U.S. ports via ocean vessel. Other RILA members in the top 100 include IKEA (12), Nike (18), J.C. Penney (19), GAP (21), Big Lots (25), Michael’s Stores (40), Rooms To Go (43), Dollar General (45), Best Buy (54), Hanes Brands (57), VF Corporation (61), JoAnn Stores (66), Limited Brands (69), Walgreen (79). Journal of Commerce (subscription required)
Oakland Port Update
On the heels of the 2008 plan adopted by the Port of Los Angeles involving a registry and progressive truck ban, the Port of Oakland failed to gain approval of the Maritime Comprehensive Truck Management Plan (CTMP) component of the Port’s Marine Air Quality Improvement Plan (MAQIP).In April, the Board of Port Commissioners gave preliminary approval of the RILA supported version of the MAQIP that set benchmarks for air quality goals in the region without the imposition of container fees or an employee mandate, and since that time the Coalition for Responsible Transportation, of which RILA is a member, has been active in both Oakland and Sacramento to help the Port of Oakland defend its MAQIP proposal. The commission will now reconsider the bans, and hopefully support the more rational approach of setting effective air quality limits and allowing importers and truckers alike to meet those goals absent of mandatory fees and truck bans at its June 13 meeting.
For more information, please contact Kelly Kolb, vice president of supply chain, at kelly.kolb@rila.org or Joe Rinzel, vice president of state affairs, at joe.rinzel@rila.org.
Senate Holds Hearing on Panama FTA; Administration Postpones Consideration of the Agreement
The Senate Finance Committee held a hearing on May 21 on the pending U.S.-Panama Free Trade Agreement, and Committee Chairman Max Baucus (D-MT) and Ranking Member Charles Grassley (R-IA) both indicated their strong support for timely congressional action on the agreement.
The Obama Administration had been sending signals that it was preparing to submit the Panama FTA to Congress for its approval this summer, but it now appears that any further consideration of the agreement is postponed until action is completed on issues of higher priority to the Administration, such as legislation on healthcare and climate change. At the Senate hearing, Assistant United States Trade Representative for the Americas Everett Eissenstat said that President Obama would soon lay out a comprehensive domestic agenda, and that Obama “believes that it is very important that Panama be considered in the context of a broader domestic agenda.” A representative of the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) testified at the hearing that the labor union opposes the free trade agreement with Panama.
RILA issued a press release praising the Senate Finance Committee’s hearing in which Stephanie Lester, vice president for international trade, stated that, “Progress on the Panama trade agreement, as well as agreements with Colombia and South Korea, is critical to maintaining America’s leadership position in the global economy. Progress on trade now sends a powerful message to our trading partners that even during difficult economic times, we must create new opportunities for trade rather than retreat to isolationist and defensive policies that are detrimental to our businesses and consumers.” Passage of the agreement would provide significant and direct benefits for U.S. retailers. An existing constitutional ban in Panama prevents U.S. retailers from establishing stores within the country. The agreement would remove that barrier, give retail companies strong investment protections, and expand product sourcing options.
For more information, please contact Stephanie Lester, vice president of international trade, at stephanie.lester@rila.org or Andrew Szente, director of government affairs, at andrew.szente@rila.org.
House Passes Pakistan-Afghanistan ROZ Bill Over Strong Objections by Republicans, as well as Retail and Apparel Industry Groups
The House of Representatives last week passed the Pakistan Enduring Assistance and Cooperation Enhancement Act of 2009 (H.R. 1886), which provides foreign assistance to Pakistan and Afghanistan. Through a procedural maneuver, the legislation also incorporated a bill to grant limited duty-free treatment for certain products from Afghanistan and Pakistan. The trade bill, H.R. 1318, the Afghanistan-Pakistan Security and Prosperity Enhancement Act, or ‘Pakistan-Afghanistan ROZ bill,’ is sponsored by Rep. Chris Van Hollen (D-MD) and would establish reconstruction opportunity zones (ROZs) in certain regions of Afghanistan and Pakistan where a limited number of good exported to the United States would received duty-free treatment. In a strongly worded letter issued just before the floor vote on the underlying bill, the heads of RILA, the American Apparel & Footwear Association (AAFA), the National Retail Federation (NRF) and the United States Association of Importers of Textiles and Apparel (USA-ITA) raised serious concerns with the narrow scope of products eligible for duty-free treatment under the new preference program, as well as the limited geographic coverage in Pakistan, the overly prescriptive labor requirements, and the increase in customs duties on other regions of Pakistan to pay for duty-free exports from the ROZ regions. The legislation passed the House largely along a party line vote of 234-185, with several Republicans giving stinging floor speeches echoing concerns outlined in the joint association letter. Companion legislation (S. 496) has been introduced in the Senate by Sen. Maria Cantwell (D-WA), Orin Hatch (R-UT) and Robert Casey (D-PA) that contains less prescriptive labor provisions, although the product mix of eligible categories and geographic coverage remains similarly narrow.The Senate is now expected to consider its version of ROZ legislation in the coming weeks and RILA is advocating changes to make the program more meaningful for Pakistan and Afghanistan.
For more information, please contact Stephanie Lester, vice president of international trade, at stephanie.lester@rila.org.
Health Subcommittee Approves Food Safety Bill By Voice Vote; Full Committee Action Scheduled for This Week
Last Wednesday the House Energy and Commerce Health subcommittee favorably reported food safety legislation (H.R. 2749, the Food Safety Enhancement Act of 2009) by voice-vote, sending the bill to the full committee for consideration this week. The tone of the markup was decidedly more bipartisan than the legislative hearing held the previous week, as Republicans offered but then withdrew a number of amendments, pledging to work with the majority to incorporate their changes to the bill as it progresses through the legislative process.The bill that was considered by the Subcommittee included several important changes for which Republicans and business groups have been advocating. For example, the substitute amendment cut in half the proposed registration fees for each food facility to $500, and capped the cumulative amount at $175,000 per company. The substitute amendment also relaxed country of origin labeling requirements that had initially required each ingredient’s country of origin to be listed on the company’s website. That provision now requires the country of origin of the final processing to be listed on the label of the product.
Full committee Ranking Member Joe Barton (R-TX) praised Democrats for working with him and others to address concerns raised by the minority; however, he highlighted three changes that he would like to see incorporated before the legislation advances, including a decrease in the level of user fees, a per-violation cap on civil penalties, and more flexibility in the facility inspection frequencies included in the bill. The FDA has also indicated that it would like more flexibility to determine inspection frequency based on risk and FDA resources. The full committee is expected to mark-up the substitute amendment on Wednesday, June 17, with House floor action to follow shortly thereafter (before health care and cap-and-trade legislation dominate the agenda). In the Senate, several food safety bills have been introduced; however, the Senate Health, Education, Labor and Pensions Committee is not expected to move food safety legislation anytime soon.View a copy of the amended Food Safety Enhancement Act. View a brief summary of the bill compiled by Hogan & Hartson.For more information, please contact Andrew Szente, director of government affairs, at andrew.szente@rila.org.