Bullish on cross-border trade, FedEx Freight is expanding the size of its operations in Laredo, Texas.  FedEx Freight’s new, 166-door service center will be more than 142,000 square feet, located on 61 acres, said FedEx spokesman Ron Mears.  “The new service center is larger and allows us to better serve our customers in the region now and in the future,” Mears said. “The site was chosen because of its ease of access to major highways, proximity to customers and a strong local community workforce.”  Mears did not disclose the cost of the new FedEx Freight center. 

FedEx Freight expanding cross-border operation in Laredo, August 5, 2020, www.americanshipper.com

CN announced on July 27, 2020 that, as part of its strategic investments to support growing demand and enable supply chains, it plans to invest approximately $60 million (USD) across Louisiana in 2020. The investments includes a multi-year project to rebuild the McComb Spillway Bridge, replacement of rail and ties, as well as maintenance of bridges, level crossings, culverts, signal systems and other track infrastructure.

CN Investing $60 Million in Louisiana, July 27, 2020, www.cn.ca

CN announced on July 27, 2020 that, as part of its strategic investments to support growing demand and enable supply chains, it plans to invest approximately $50 million (USD) across Mississippi in 2020. The investments will focus on continued investment in Positive Train Control, the replacement of rail and ties, as well as maintenance of bridges, level crossings, culverts, signal systems and other track infrastructure.

CN Investing $50 Million in Mississippi, July 27, 2020, www.cn.ca

U.S. Secretary of Transportation Elaine L. Chao on July 27, 2020 announced the Applicant Toolkit (Toolkit) for the Rural Opportunities to Use Transportation for Economic Success (ROUTES) Initiative at the U.S. Department of Transportation. It is the latest effort by the Department and the Trump Administration to improve rural access to federal grant funds. The Toolkit provides user-friendly information and resources to enhance rural applicants’ familiarity with the Department’s discretionary grant programs and the funding process.

U.S. Transportation Secretary Elaine L. Chao Announces Key Resource for Rural Communities, July 27, www.dot.gov

Rep. Suzan DelBene (D-WA) and others inside the Beltway are calling for more coordination of legislative proposals and other efforts to address supply chain concerns spurred by the coronavirus pandemic.

DelBene, during a June 10 webinar hosted by the Washington International Trade Association, noted that trade measures have been considered in debates over coronavirus relief packages and have “come up in a few ways with respect to personal protective equipment and other things that have been critical for the COVID response.” DelBene is a senior member of the House Ways & Means trade subcommittee.

 Lawmakers from both parties and in both chambers of Congress have introduced a slew of bills designed to address supply chain vulnerabilities exposed by COVID-19.

“Both in terms of making sure we address the issue of tariffs and basic supply chains but even looking at regulations China was putting in place to make it harder to folks to export those goods back to the United States,” DelBene said, “we need to comprehensively look at this and address these issues because we have a shortage across the country still on PPE.”

 “It’s pretty astounding with all of this time and we haven’t really had — I don’t think — a coordinated federal response,” she added.

U.S. Trade Representative Robert Lighthizer is slated to testify before the House Ways & Means and Senate Finance committees this week on the 2020 trade agenda. DelBene said she expected such “critical issues” to be raised at the hearings.

A former congressional staffer close to Republican leadership said while a lot of bills had been introduced, lawmakers had not made “any efforts to package them together or do anything comprehensive yet.”

 “I think in many ways we are waiting for the administration to determine how to proceed, since these proposals will probably need administration support in order to move,” the former staffer said.

Another source lamented a lot of “debate with no vehicle.”

“Right now, there needs to be an organizing force around what should happen or some vehicle starting to move,” the source told Inside U.S. Trade. “So, everyone is still concerned about pharmaceutical supply chains, medical equipment etc. There are a lot of different bills out there, a lot of really good bills but no one of them has become the vehicle for action.”

The source noted the 2020 legislative calendar was tight and called on the administration and congressional leaders “on both sides of the aisle to help identify what the vehicle is and support some momentum.”

 “The points of contact in the legislative arena are pretty limited right now because of virtual legislating and a lot of other things,” the source continued. “It’s not a partisan issue. It’s just, the question is ‘Is the leadership going to identify that this is a priority and are they going to indicate that floor time is going to be allocated?’… If that doesn’t happen it’s uncertain whether we are going to get something.”

 Last month Sen. Gary Peters (D-MI), ranking member of the Homeland Security and Governmental Affairs Committee, introduced legislation to address vulnerabilities in the medical supply chain and boost domestic capacity for advanced manufacturing of critical drugs and medical devices in the U.S.

In March Sen. Marco Rubio (R-FL) introduced the “Strengthening America’s Supply Chain and National Security Act,” which is aimed at reducing supply chain risk and easing U.S. dependence on countries like China for pharmaceutical goods. Sens. Elizabeth Warren (D-MA), Kevin Cramer (R-ND), Chris Murphy (D-CT) and Tim Kaine (D-VA) joined Rubio in introducing the bill. The proposal also garnered support from GOP Sens. Jerry Moran (R-KS) and Mike Rounds (R-SD). Rep. Michael Waltz (R-FL) introduced companion legislation in the House, which had 14 co-sponsors at the time of publication.

Sen. Josh Hawley (R-MO) in late February introduced the “Medical Supply Chain Security Act.” The bill would bolster medical supply chains by directing the Food and Drug Administration to analyze sourcing locations for medical products. A week later Wisconsin Reps. Mike Gallagher (R) and Mark Pocan (D) introduced companion legislation. The House bill has a total of four co-sponsors. The upper chamber’s bill has support from Sen. Jerry Moran (R-KS).

In March, the “Preventing Drug Shortages Act” was introduced by Reps. Anna Eshoo (D-CA), Scott Peters (D-CA), Eliot Engel (D-NY), Brett Guthrie (R-KY), Richard Hudson (R-NC), Michael McCaul (R-TX), Kurt Schrader (D-OR) and Gus Bilirakis (R-FL). The bill was crafted to help alleviate drug shortages by enhancing transparency throughout the supply chain process and improving FDA efforts to avert such scarcities.

A similar bill — the “Preventing Essential Medical Device Shortages Act of 2020” — was introduced weeks later in the Senate by Kelly Loeffler (R-GA). Sen. Bob Casey (D-PA) is the only co-sponsor.

 Additionally, the fiscal year 2021 National Defense Authorization Act, which passed in the Senate Armed Services Committee 25-2 last week, calls for “numerous steps to secure the supply chain — both from the overreliance on foreign nations and from infiltration by our adversaries,” according to a summary of the bill. COVID-19, it adds, “exposed and exacerbated supply chain deficiencies across the government.” The NDAA makes several mentions of China, especially as it relates to the protection of the defense industrial base and supply chain “as well as intellectual property and technology.”

In another move aimed at China, Senate Foreign Affairs Committee Chairman Jim Risch (R-ID) and Sens. John Cornyn (R-TX) and Mark Warner (D-VA) last week introduced a bill aimed at encouraging companies to produce semiconductors in the U.S. via incentives and federal research opportunities. The “Creating Helpful Incentives to Produce Semiconductors for America Act” also directs the Commerce Department to produce a report assessing the U.S. industrial base’s capabilities “to support the national defense in light of the global nature of the supply chain and significant interdependencies between the U.S. industrial base and that of foreign countries as it relates to microelectronics,” according to a summary of the legislation.

 House Foreign Affairs Committee ranking member Michael McCaul (R-TX) and Rep. Doris Matsui (D-CA) introduced a companion bill in the House on June 11.

“As the Chinese Communist Party aims to dominate the entire semiconductor supply chain, it is critical that we supercharge our industry here at home,” McCaul said in a June 11 statement.

 A private-sector source lauded the CHIPS Act as a good step toward addressing supply-chain vulnerabilities in that sector but said legislative efforts were a “little bit scattered right now” and called for a more coordinated approach.

 Another source said many of the proposals “have a lot of merit” but called on congressional leaders to “find some way of energizing the process and indicating that floor time is going to be provided in a timely way that will allow for both the other body to act and potential for conference.” — Isabelle Icso (iicso@iwpnews.com)

CILTNA member, Jennifer Coutts Clay, Author, JETLINER CABINS e-book app will moderate the upcoming webinar on July 1, 2020 at 10 AM EST (7 AM PST).

In this webinar, Johannes Lampela, Director of Design, Los Angeles, Designworks (A BMW Group Company), will draw on learnings from disruptions in the automotive space to explore how they relate to aviation. The session will review a “post-COVID design brief for a better cabin experience and a focus on what matters to the customer.”

This session poses key questions about the challenge ahead for aviation, rethinking the “what next” to address key questions: How do we best reassure customers? How do we create comfort in feeling safe, cared for, and in control? Lampela proposes an “experience first — inside out approach” to cabin design, to design experiences which rebuild trust, moment by moment.  

Participants in this webinar will also have an opportunity to download the new case study 2020 CABIN HEALTH ALERTS which is being added to Jetliner Cabins Chapter 9 ‘Look Smart: Keep Clean’ and examines the latest trends in managing the outbreak while taking care of passenger well-being and preserving the airline brand. Featuring insights from medical and industry experts, Jetliner Cabins author Jetliner Coutts Clay explores key considerations for healthy flight: Cabin Air Filters, Air Travel Hygiene, Rethinking the Aircraft Seat, Sanitizing the Cabin, Communicating Covid-19 Cabin Concepts, Airport Hygiene, Passenger Care in the Cabin and Future Flying Healthy. As Jetliner Cabins readers have come to expect from this unique E-Book app, the informative content is supplemented by rich images of flying healthy solutions, and a listing of companies and experts.  

To register for this webinar, please visit: https://www.passengerexperienceconference.com/en-gb/conference-programme.html#/sessions/day/2

Travel between Canada and the United States is still restricted but businesses, diplomats and communities that depend on cross-border traffic are urging the two countries to join forces in a co-operative approach to thriving in the new post-pandemic global economy. The Washington-based Canadian American Business Council launched a new online campaign May 21, 2020 to convince states, provinces and federal officials on both sides of the border to team up in their battle back from the impact of COVID-19. The primary goals of the council’s “North American Rebound” campaign are to encourage Canada and the U.S. to work together to secure personal protective equipment, replenish and maintain each other’s medical stockpiles and defend critical cross-border supply chains.  May 22, 2020.   (www.insidelogistics.ca)

The Class I railroads are closely watching the restart of North American automotive production, hoping that the slow ramp up will not only grow auto volumes but also improve demand for supplies such as steel and plastics, according to executives at recent investor conferences. However, a key unknown variable is whether consumer demand will lift volumes for automobiles and other goods, executives said. “Our auto plants reopened this week with very limited production. The sustainability of that production is going to be highly dependent on consumer demand and consumer confidence to go out there and buy automobiles,” said Norfolk Southern Chief Marketing Officer Alan Shaw during Wolfe Research’s virtual conference for investors on Wednesday, May 20.

Rail pins hopes on auto manufacturing as US carloads sustain record decline, May 21, 20202, www.americanshipper.com

The U.S. Senate Commerce Committee has approved a bill that would allow the formation of a committee of American shippers to advise the Federal Maritime Commission on policies related to competitiveness, reliability, integrity and fairness in ocean shipping. FMC Commissioner Rebecca Dye proposed the FMC National Shipper Advisory Committee two years ago when the agency was analyzing persistent ocean shipping bottlenecks due to systemic port congestion throughout the U.S.

National Shipper Advisory Committee for FMC gets Senate push, May 21, 2020, www.americanshipper.com

U.S. airlines carried 1.4% less cargo (1,455 thousand tons for 15 carriers) by weight in March 2020 than in March 2019, according to preliminary data filed with the Bureau of Transportation Statistics (BTS) by 15 of the leading cargo airlines. The 15 airlines carry more than 95% of the total cargo by weight on U.S. airlines. Cargo data consists of freight and mail carried within the U.S. and between the U.S. and foreign points.

March 2020 U.S. Airline Cargo Data (Preliminary): International Cargo Weight Down 14%, May 20, 2020, www.bts.gov

Since March 2020, Chinese government policy had blocked U.S. air carriers from resuming passenger service between the United States and China. Chinese air carriers continued to fly between the two countries. The United States responded with an order, effective June 16th, that would limit Chinese air carriers to the total number of flights U.S. air carriers were allowed to fly. On June 15th, the U.S. Department of Transportation was notified that U.S. carriers have been approved to fly 4 weekly flights to China. The affected U.S. airlines have confirmed this. This action by the Chinese government, as an important first step to fully restore air travel was welcomed. Consequently, the Department is amending its order to allow the Chinese air carriers to continue to fly 4 weekly flights between China and the United States.

U.S. Department of Transportation Further Modifies June 3 Order Regarding Chinese Carriers, June 15, 2020, www.bts.gov

With global lock-downs beginning to ease, the airline industry is anticipating an uplift in passenger traffic in the coming months. However, with COVID-19 infection rates still rising, passenger anxiety will be at an all-time high.

RedCabin is back with episode 2 of its webinar series. The theme for episode 2 is “Sustainable Cabin Innovations in the face of COVID-19“

The airlines that provide the highest levels of comfort and reassurance to their passengers stand to capture the all-important share of a very cautious market. With revenues at an all-time low, airlines must insure that any money spent on solutions to this problem are not just short-term fixes, but that they also serve as investments in a sustainable future.

Our panelists for this episode include: 

• Anthony Harcup, Senior Director, Teague
• Mariya Stoyanova, Director, Product Development, JetBlue
• Christopher Dela Rosa, Cabin Product & Experience Manager, Alaska Airlines
• Boeing, (name and job title to be announced) 

Register here. Contact andreas.wibowo@redcabin.de for lead generation and business partnership opportunities for RedCabin digital series and events . We would like to thank our media partner Northwest Aerospace News Magazine for their support. 

UPS drone delivery subsidiary UPS Flight Forward will collaborate with German drone-maker Wingcopter to develop the next generation of package delivery drones for multiple uses in the United States and internationally. Both companies will work toward earning regulatory certification for a Wingcopter unmanned aircraft to make commercial delivery flights in the United States and build a fleet of drones with diverse capabilities. The Wingcopter drones execute vertical takeoffs and landings in tight spaces. Their main function is the patented tilt-rotor mechanism, which enables a seamless transition between hovering and high-speed forward flight.

UPS Upgrades Unmanned Drone Fleet, May 7, 2020, www.inboundlogistics.com

U.S. railroads originated 980,535 carloads in April 2020, down 25.2%, or 329,693 carloads, from April 2019. U.S. railroads also originated 1,095,423 containers and trailers in April 2020, down 17.2%, or 227,165 units, from the same month last year. Combined U.S. carload and intermodal originations in April 2020 were 2,075,958, down 21.2%, or 556,858 carloads and intermodal units from April 2019. Canadian railroads reported 67,952 carloads for the week, ending May 2, 2020 down 23.8%, and 69,551 intermodal units, down 6.2% compared with the same week in 2019. For the first 18 weeks of 2020, Canadian railroads reported cumulative rail traffic volume of 2,532,358 carloads, containers and trailers, down 5.8%.

Warning: Disturbing Images, May 6, 2020, www.railwayage.com

U.S. ports should see sharply lower container imports in the 2020 second quarter, but throughput could pick up in the second half—assuming there is not a major resurgence of coronavirus cases. “The container shipping industry has spent the past month in the eye of the storm [and will] now face the full impact of the international spread of COVID-19,” said U.K.-based consultancy Maritime Strategies International (MSI) in its latest monthly outlook. Then, after a “disastrous” second quarter, MSI expects “an uneven recovery in mainline volumes in the third quarter.” “Attention is turning to how soon container trade will get back to normal,” the consultancy explained. “In reality, there will be a high degree of differentiation by region and by industry. Consumer retail goods are of course a huge driver of containerized trade, but their share of overall volume is sometimes overstated.

Container Import Weakness Could Peak in 2Q2020, May 6, 2020, www.railwayage.com