Los Angeles Port Police on Monday announced the recovery of more than $10 million in counterfeit electronics, stolen merchandise and bank receipts as part of cargo theft investigation.
The investigation resulted in the closure of a downtown Los Angeles counterfeiting operation and felony charges filed against two suspects.
The recovered goods included fake Apple products resembling iPods and IPhones, which authorities allege were shipped from Asia and falsely labeled and packaged in Los Angeles. Part of the haul included $2.5 million in stolen goods such as electronics, toys and blankets taken from various locations in Los Angeles County and the Inland Empire.
“Our standing as the largest shipping container port in the country is in no small part predicated on the security we can offer our clients,” Los Angeles Mayor Antonio Villaraigosa said. “Counterfeiting takes jobs and revenue away from our city’s coveted creative industries and other legitimate businesses and it will not be tolerated.”
The investigation was part of a multi-agency Cargo Theft Interdiction Program (CTIP), a California Highway Patrol initiative that includes participation from Los Angeles Port Police and the City of Vernon Police Department. Also participating in the investigation were members of Homeland Security Investigations and the Border Enforcement Security Taskforce.
Los Angeles Port Police Chief Ronald Boyd praised the layered, multi-agency approach for the success of the investigation.
The investigation led Los Angeles Port Police to several downtown Los Angeles locations in December and January. During searches of the locations, Port Police uncovered counterfeit goods worth more than $1.4 million on the street, the $2.5 million worth of stolen goods and bank receipts indicating profits from the sale of more than $7 million worth of counterfeit goods.
Two brothers, both from Los Angeles, have been charged in the case. Edward Zahab, 40, was charged with three felony counts of sale of counterfeit goods and Bahram Zahab, 45, was charged with one felony count of sale of counterfeit goods.
Tuesday, February 8, 2011
Seattle Port Attracts New Carrier
The Port of Seattle has added another ocean carrier to its list of lines calling at the Puget Sound port.
Starting with the Dec. 29, 2010 sailing of the MSC Vienna from Gioia Tauro, Mediterranean Shipping Company added the ports of Seattle and Vancouver, British Columbia to the carrier's California Express service.
The MSC Vienna made its first call at Vancouver on Jan. 29 and in Seattle on Jan. 30. The ship, a 3,600-TEU vessel built in 2003, is now in Balboa, Panama nearing the end of its first run on the service.
The new rotation for the California Express service is: Gioia Tauro, Napoli, Civitavecchia, La Spezia, Valencia, Cristobal, Balboa, Long Beach, Oakland, Vancouver, Seattle, Oakland, Long Beach, Balboa, Cristobal, Gioia Tauro.
Starting with the Dec. 29, 2010 sailing of the MSC Vienna from Gioia Tauro, Mediterranean Shipping Company added the ports of Seattle and Vancouver, British Columbia to the carrier's California Express service.
The MSC Vienna made its first call at Vancouver on Jan. 29 and in Seattle on Jan. 30. The ship, a 3,600-TEU vessel built in 2003, is now in Balboa, Panama nearing the end of its first run on the service.
The new rotation for the California Express service is: Gioia Tauro, Napoli, Civitavecchia, La Spezia, Valencia, Cristobal, Balboa, Long Beach, Oakland, Vancouver, Seattle, Oakland, Long Beach, Balboa, Cristobal, Gioia Tauro.
Canadian Dockers' Contract Talks Causing Cargo Diversions to US Says Employers Group
As mediated talks continue between Canadian West Coast dockers and their industry employers, merely the potential of a strike at the ports of Vancouver, Deltaport, Frazierport and Prince Rupert is already beginning to impact import shipping volumes at the Canadian West Coast ports.
Greg Vurdela, spokesman for the BC Maritime Employers Association, which represents the dockworker employers, told The Province newspaper last week that a "significant percentage" of cargo is already being diverted to American West Coast ports.
"The heightened uncertainty in [Canada's] Asia-Pacific Gateway has left customers with no choice," Vurdela told the paper. "Unfortunately, cargo is now being off-loaded at US ports. The diversions started several weeks ago."
The contract between the BC Maritime Employers Association and two ILWU units representing about 4,800 Canadian dockers expired March 31, 2010. A 21-day cooling off period is scheduled to expire on Feb. 6 with new negotiations set to start on Feb. 7. The mediated talks are set to last until Feb. 12.
Shippers, however, have a long memory. It is hard to forget the more than a dozen labor-related disruption at the Port of Vancouver, BC, alone over the past 50 years, including strikes in 1995 and 1998, a lockout in 1999, and a truckers strike in 2005 that saw unionized truck drivers walk off the job for six weeks.
Vurdela said that cargo imports into Canadian West Coast ports is down 30 to 40 percent due to the industry's anxiety.
And this anxiety may be well placed. While the union has remained mum on the status of the contract talks, the BC Maritime Employers Association reports that the two sides are not close.
Greg Vurdela, spokesman for the BC Maritime Employers Association, which represents the dockworker employers, told The Province newspaper last week that a "significant percentage" of cargo is already being diverted to American West Coast ports.
"The heightened uncertainty in [Canada's] Asia-Pacific Gateway has left customers with no choice," Vurdela told the paper. "Unfortunately, cargo is now being off-loaded at US ports. The diversions started several weeks ago."
The contract between the BC Maritime Employers Association and two ILWU units representing about 4,800 Canadian dockers expired March 31, 2010. A 21-day cooling off period is scheduled to expire on Feb. 6 with new negotiations set to start on Feb. 7. The mediated talks are set to last until Feb. 12.
Shippers, however, have a long memory. It is hard to forget the more than a dozen labor-related disruption at the Port of Vancouver, BC, alone over the past 50 years, including strikes in 1995 and 1998, a lockout in 1999, and a truckers strike in 2005 that saw unionized truck drivers walk off the job for six weeks.
Vurdela said that cargo imports into Canadian West Coast ports is down 30 to 40 percent due to the industry's anxiety.
And this anxiety may be well placed. While the union has remained mum on the status of the contract talks, the BC Maritime Employers Association reports that the two sides are not close.
Farwest Steel Opts for Extension on Port of Vancouver USA Land Purchase
The Eugene, Oregon-based firm seeking to build a steel fabrication on a 20-acre parcel at the Washington State Port of Vancouver is now asking port officials for more time to finalize the purchase of the property.
Under the terms of an agreement with the port signed back in June 2010, Farwest Steel Corp. agreed to close on the property by Feb. 6. The agreement allowed for an additional 98-day window to complete the $5 million transaction, albeit at an added cost of $500 per day in non-refundable penalties. The added fees, however, will be applied to the sale price of the property. If Farwest fails to close on the deal, the port would keep any penalties accrued.
Port officials said they were not surprised by the request and they still expect Farwest to complete the transaction no later than early April.
The sale of surplus port property to Farwest ran counter to normal port policy to lease port parcels, but commissioners said at the time that the economy outweighed such concerns. Farwest has said that the proposed plant would initially employ 100 workers with the potential to employ as many as 228 workers with an average salary of just over $40,000, plus benefits.
Farwest plans to spend between $20 million and $30 million to develop the plant. Farwest officials said the firm plans to take advantage of the port's rail access and the new facility, when completed, is expected to receive 200 to 300 rail cars a year. The proposed 300,000 square foot facility, which in addition to manufacturing would also include distribution and office space, could be built and operational by late 2011 or early 2012.
Under the terms of the deal, the port can purchase back the 20-acre parcel is Farwest does not begin construction of the plant within 12 months, maintain 100 workers at the facility, keep the property in industrial use, or halts activity on the site.
Under the terms of an agreement with the port signed back in June 2010, Farwest Steel Corp. agreed to close on the property by Feb. 6. The agreement allowed for an additional 98-day window to complete the $5 million transaction, albeit at an added cost of $500 per day in non-refundable penalties. The added fees, however, will be applied to the sale price of the property. If Farwest fails to close on the deal, the port would keep any penalties accrued.
Port officials said they were not surprised by the request and they still expect Farwest to complete the transaction no later than early April.
The sale of surplus port property to Farwest ran counter to normal port policy to lease port parcels, but commissioners said at the time that the economy outweighed such concerns. Farwest has said that the proposed plant would initially employ 100 workers with the potential to employ as many as 228 workers with an average salary of just over $40,000, plus benefits.
Farwest plans to spend between $20 million and $30 million to develop the plant. Farwest officials said the firm plans to take advantage of the port's rail access and the new facility, when completed, is expected to receive 200 to 300 rail cars a year. The proposed 300,000 square foot facility, which in addition to manufacturing would also include distribution and office space, could be built and operational by late 2011 or early 2012.
Under the terms of the deal, the port can purchase back the 20-acre parcel is Farwest does not begin construction of the plant within 12 months, maintain 100 workers at the facility, keep the property in industrial use, or halts activity on the site.
Thursday, February 3, 2011
FMC Commissioner Hopefuls Renominated by Obama
President Barack Obama has resubmitted to the US Senate the nomination of Port of Long Beach Harbor Commissioner Mario Cordero and the renomination of current FMC Commissioner Rebecca Dye as Commissioners at the Federal Maritime Commission.
President Obama included the two FMC nominations along with 80 other potential administration nominees for various positions in the government. The president first renominated Commissioner Dye for a third term as a Federal Maritime Commissioner, and announced the nomination of Cordero, in September 2010. This submission lapsed with the end of the previous Congressional session.
The FMC is an independent regulatory agency of the United States government charged with the administration of the regulatory provisions of federal shipping laws and responsible for the regulation of ocean-borne transportation in the foreign commerce of the US.
Commissioner Dye was first nominated to the five-seat FMC board in 2002 by President George W. Bush and confirmed by the United States Senate in November 2002. She was nominated to her second term, which expired on June 30, 2010, by President Bush in July 2005, and confirmed by the Senate later the same month.
Prior to joining the FMC, Commissioner Dye was Counsel to the Transportation and Infrastructure Committee of the US House of Representatives from 1995 until 2002.
“If confirmed by the Senate, I will be fair-minded and objective in executing the Commission’s statutory directives," Commissioner Dye said during confirmation testimony to the US Senate Committee on Commerce, Science, and Transportation in November 2010. "I will do all I can to guarantee that all entities regulated by the Commission are provided with a fair market environment in which to operate. I will also work to eliminate unfair shipping practices by foreign governments, and protect cruise ship passengers against undue financial risk.”
First time FMC nominee Cordero is an attorney currently serving his second six-year term as a Port of Long Beach harbor commissioner. The harbor commission sets policy and provides oversight for the operation and maintenance of the port. During his tenure on the port board, Cordero has been involved in the harbor commission's approval of numerous environmental remediation programs designed by port staff to cut harmful pollution generated by port activities.
“I am eager to put my experience to work on behalf of the Federal Maritime Commission," Cordero told the Senate Committee in November. "The Commission’s work is vital in assisting the economic recovery by facilitating international trade through the nation’s ports, as well as supporting increases in the efficiency and sustainability of shipping and port operations.”
Ironically, Cordero now faces appointment to a position setting national maritime policy while he has spent much of his tenure on the Long Beach port board as a staunch defender of local government rights superseding federal interstate commerce laws such as those administered by the FMC.
Dye and Cordero will have to testify again before the now Republican-led Senate Committee and if approved, then be approved by a vote of the full Senate.
President Obama included the two FMC nominations along with 80 other potential administration nominees for various positions in the government. The president first renominated Commissioner Dye for a third term as a Federal Maritime Commissioner, and announced the nomination of Cordero, in September 2010. This submission lapsed with the end of the previous Congressional session.
The FMC is an independent regulatory agency of the United States government charged with the administration of the regulatory provisions of federal shipping laws and responsible for the regulation of ocean-borne transportation in the foreign commerce of the US.
Commissioner Dye was first nominated to the five-seat FMC board in 2002 by President George W. Bush and confirmed by the United States Senate in November 2002. She was nominated to her second term, which expired on June 30, 2010, by President Bush in July 2005, and confirmed by the Senate later the same month.
Prior to joining the FMC, Commissioner Dye was Counsel to the Transportation and Infrastructure Committee of the US House of Representatives from 1995 until 2002.
“If confirmed by the Senate, I will be fair-minded and objective in executing the Commission’s statutory directives," Commissioner Dye said during confirmation testimony to the US Senate Committee on Commerce, Science, and Transportation in November 2010. "I will do all I can to guarantee that all entities regulated by the Commission are provided with a fair market environment in which to operate. I will also work to eliminate unfair shipping practices by foreign governments, and protect cruise ship passengers against undue financial risk.”
First time FMC nominee Cordero is an attorney currently serving his second six-year term as a Port of Long Beach harbor commissioner. The harbor commission sets policy and provides oversight for the operation and maintenance of the port. During his tenure on the port board, Cordero has been involved in the harbor commission's approval of numerous environmental remediation programs designed by port staff to cut harmful pollution generated by port activities.
“I am eager to put my experience to work on behalf of the Federal Maritime Commission," Cordero told the Senate Committee in November. "The Commission’s work is vital in assisting the economic recovery by facilitating international trade through the nation’s ports, as well as supporting increases in the efficiency and sustainability of shipping and port operations.”
Ironically, Cordero now faces appointment to a position setting national maritime policy while he has spent much of his tenure on the Long Beach port board as a staunch defender of local government rights superseding federal interstate commerce laws such as those administered by the FMC.
Dye and Cordero will have to testify again before the now Republican-led Senate Committee and if approved, then be approved by a vote of the full Senate.
Vigor Extends Tender Deadline for Todd Shipyards
A proposed $130 million purchase of Seattle's Todd Shipyards by Oregon-based Vigor Industries has hit some minor turbulence.
Shareholders of Todd had until January 28 to tender shares to Vigor for purchase at $22.27 each. However, under the terms of the agreement approved by the Todd board, Vigor needed to obtain a minimum of 67 percent of the outstanding shares before moving forward with the purchase.
By the expiration of the tender offer on Jan. 28, Vigor had amassed 2.9 million shares, or 50.7 percent of the outstanding shares. The firm has now extended the tender offer until February 4.
Vigor officials downplayed the situation as a show of reluctance on shareholders' part, saying instead that it was likely due to several large block shareholders hoping to get more money per share by waiting. However, as of Feb. 3, the Todd price per share was still slightly below the Vigor tender offer and has not risen above the $22.27 offered since Jan. 25.
If Vigor fails to reach the 67 percent minimum, the firm plans to call a vote of the shareholders.
Vigor plans to take Todd private if the deal is approved and combine the two firms.
The Todd board of directors unanimously approved the Vigor agreement in December 2010. Todd’s directors and officers and certain other stockholders who own an aggregate of approximately 15.3 percent of Todd’s outstanding stock also entered into agreements at the time pursuant to which they agreed to transfer their Todd shares to Vigor and to vote their shares in favor of a merger if a vote is taken.
Last month, Vigor obtained antitrust approval from the federal government to move forward with the Todd purchase.
Shareholders of Todd had until January 28 to tender shares to Vigor for purchase at $22.27 each. However, under the terms of the agreement approved by the Todd board, Vigor needed to obtain a minimum of 67 percent of the outstanding shares before moving forward with the purchase.
By the expiration of the tender offer on Jan. 28, Vigor had amassed 2.9 million shares, or 50.7 percent of the outstanding shares. The firm has now extended the tender offer until February 4.
Vigor officials downplayed the situation as a show of reluctance on shareholders' part, saying instead that it was likely due to several large block shareholders hoping to get more money per share by waiting. However, as of Feb. 3, the Todd price per share was still slightly below the Vigor tender offer and has not risen above the $22.27 offered since Jan. 25.
If Vigor fails to reach the 67 percent minimum, the firm plans to call a vote of the shareholders.
Vigor plans to take Todd private if the deal is approved and combine the two firms.
The Todd board of directors unanimously approved the Vigor agreement in December 2010. Todd’s directors and officers and certain other stockholders who own an aggregate of approximately 15.3 percent of Todd’s outstanding stock also entered into agreements at the time pursuant to which they agreed to transfer their Todd shares to Vigor and to vote their shares in favor of a merger if a vote is taken.
Last month, Vigor obtained antitrust approval from the federal government to move forward with the Todd purchase.
Oakland Port Gets $5M to Electrify Three Busy Berths
The Port of Oakland has received $5 million from Bay Area air quality regulators to install ship-to-shore power systems at three frequently used berths.
Officials from the Bay Area Air Quality Management District hope that the funds, along with $3.9 million also handed out to four technology firms to provide electric vehicle charging infrastructure, will spur other metropolitan areas nationwide to move in a similar direction.
“Shore power is one of the most effective ways to reduce emissions from vessels at the Port of Oakland,” BAAQMD Executive Officer Jack Broadbent said. “These projects will significantly reduce pollution and improve air quality.”
Ship-to-shore power systems allow vessels calling at the port to plug into the landside power grid for electricity needed to keep ship systems operating while at berth. This allows the ships to turn off their diesel auxiliary engines that normally provide maintenance power while at dock. Running these auxiliary creates up to half of all the pollution that vessels generate per port visit.
Installation of the ship-to-shore systems will occur at three of the port's most frequented berths – one at the Hanjin Terminal and two at the Oakland International Container Terminal – which collectively see visits from around 500 vessels per year.
Officials at BAAQMD estimate that the ship-to-shore systems will eliminate 33 tons of ozone forming pollutants and particulate matter from Bay Area skies per year.
The ship-to-shore projects are being funded through the Air District’s Mobile Source Incentive Fund, which is collected from a $2 registration surcharge fee on vehicles registered with the Department of Motor Vehicles in the District’s jurisdiction.
According to the BAAQMD, an additional $20 million in funding is now available for shore power systems and cargo handling equipment projects through the BAAQMD Goods Movement Program. Applications are available online at: http://www.baaqmd.gov/ goods. Applications are due by March 15, and will be reviewed, evaluated and ranked by Air District staff.
Officials from the Bay Area Air Quality Management District hope that the funds, along with $3.9 million also handed out to four technology firms to provide electric vehicle charging infrastructure, will spur other metropolitan areas nationwide to move in a similar direction.
“Shore power is one of the most effective ways to reduce emissions from vessels at the Port of Oakland,” BAAQMD Executive Officer Jack Broadbent said. “These projects will significantly reduce pollution and improve air quality.”
Ship-to-shore power systems allow vessels calling at the port to plug into the landside power grid for electricity needed to keep ship systems operating while at berth. This allows the ships to turn off their diesel auxiliary engines that normally provide maintenance power while at dock. Running these auxiliary creates up to half of all the pollution that vessels generate per port visit.
Installation of the ship-to-shore systems will occur at three of the port's most frequented berths – one at the Hanjin Terminal and two at the Oakland International Container Terminal – which collectively see visits from around 500 vessels per year.
Officials at BAAQMD estimate that the ship-to-shore systems will eliminate 33 tons of ozone forming pollutants and particulate matter from Bay Area skies per year.
The ship-to-shore projects are being funded through the Air District’s Mobile Source Incentive Fund, which is collected from a $2 registration surcharge fee on vehicles registered with the Department of Motor Vehicles in the District’s jurisdiction.
According to the BAAQMD, an additional $20 million in funding is now available for shore power systems and cargo handling equipment projects through the BAAQMD Goods Movement Program. Applications are available online at: http://www.baaqmd.gov/ goods. Applications are due by March 15, and will be reviewed, evaluated and ranked by Air District staff.
