Ocean carriers: Keep rail storage fee disputes at STB

A coalition of 75 shipper groups — led by the National Customs Brokers & Forwarders Association of America, the National Industrial Transportation League, and the National Retail Federation — appealed this week to lawmakers to clarify that railroads should be billing ocean carriers, not shippers, for overseas import containers that the railroads pick up at the ports and transport to and store at rail yards throughout the country.

Regulations should also be amended to make clear that the storage fees be subject to the demurrage and detention invoicing requirements of the Ocean Shipping Reform Act of 2022 (OSRA), the groups maintain, which is under the jurisdiction of the Federal Maritime Commission.

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UPS cuts air network as demand moves towards ground transport

UPS is cutting costs in its air network as more shippers shift to the company’s ground transportation services, CFO Brian Newman said on the company’s April 25 earnings call.

In UPS’ U.S. domestic segment, average daily air volume declined 16.7% YoY in Q1, while average daily ground volume declined just 3%, Newman said.

With demand falling, the delivery giant worked to trim operating expenses in its air network. It reduced aircraft block hours within its two-day shipping operations by “adjusting package flows to maximize utilization on our next day flights,” Newman said.

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Second oil tanker seized in Iran

Iran seized a second oil tanker in less than a week, ratcheting up tensions for shipping in one of the world’s most vital trade corridors.

Iran’s Islamic Revolutionary Guard Corps Navy intercepted the Panama-flagged oil tanker Niovi at around 6:20 a.m. local time May 3 as it was transiting the Strait of Hormuz, according to a statement from the U.S. Navy. The first tanker had been seized in the Gulf of Oman on April 27.

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