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◆ Udderfest 2012 to feature eight productions... PAGE 20 WEDNESDAY, AUGUST 1, 2012 Proudly serving the North Coast - The eNVy of the North www.thenorthernview.com 250-624-8088 VOL. 7 NO. 31
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US government report challenges Rupert port claims By Shaun Thomas The Northern View
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On Friday the US Federal Maritime Commission released its report into the movement of containers into the US through Canadian ports, and the report is a comprehensive look at the issue. The largest issue being discussed during the investigation was the Harbour Maintenance Tax (HMT), which is charged at US ports to help with dredging and other maintenance. The report says this may be a reason shippers are going to through Canada instead of the US. “We believe that $109 is a reasonable approximation of the average weighted HMT charged per FEU [forty foot equivalent] at U.S. ports. If U.S. importers were relieved from paying this tax or, equivalently, if a fee of this magnitude was imposed at the border on U.S. bound containers having used Canada’s west coast ports, a portion of the U.S. cargo that comes through the ports of Vancouver and Prince Rupert likely would revert to using U.S. west coast ports,” reads the report, while noting that only 2.6 per cent of west coast US bound imports were coming through Canada. “The FMC has an interest in ensuring that U.S. ports remain competitive in the waterborne commerce arena. This task is not simple, as there are many factors involved. U.S. ports are competitive internationally; however, it would appear that
the HMT makes the challenge more difficult...It is clear that HMT is one of many factors affecting the increased use of foreign ports for cargo bound for U.S. inland destinations. While a user fee is necessary for U.S. ports to grow, the number of proposals in both the House and Senate, as well as from other sources, suggest that amendment to the current HMT structure should be given consideration.” The report states some shippers choose Martina Perry photo to use Prince Rupert Giselle Liu, a former Spectrum City dancer, was in the community and Vancouver to last week acting as one of the three dance teachers for the Chance diversify access to the to Dance summer intensive workshop. For more on this story, see US markets to avoid page 11. issues with natural disasters and work stoppages along one Prince Rupert are lower to offset Prince Rupert as their seaport of corridor. In terms of the cost of higher transportation costs at choice.” shipping the committee found that other places in the supply chain. Another area the report Prince Rupert is less costly than For example, many shippers have questions Prince Rupert is in all other west coast ports, in part made infrastructure investments the time saved in getting to US due to the harbour maintenance closer to rail facilities operated destinations. tax, but those savings may by U.S. Railroads. In order to “COSCO and Hanjin Lines be cancelled out by other utilize Prince Rupert, the cargo both have ten day transits out of factors. must travel by rail on CN; the Shanghai to the Port of Prince “While [the figures] would lower ocean rates are offered Rupert. This beats the best transit seem to suggest that Prince to account for the increased times offered by APL, Maersk, Rupert is simply a less expensive trucking cost to move containers and Hanjin Lines into the ports corridor for cargo heading from the CN railhead to the of LA/Long Beach by two days to the Midwest, even prior ultimate destination,” reads the (10 vs.12 days), but COSCO to the inclusion of the HMT, report. and Hanjin’s faster transit times discussions with importers “As such, it is difficult to into Prince Rupert do not always suggest that this may not be conclude that transportation translate into faster delivery to the case. In fact, it has been costs are significantly lower U.S. inland points,” it says. See Investment, page 8 suggested that rates through when importers opt to use
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