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September 30 2019

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Spotlight 6 The Journal of Commerce | September 30 2019 www.joc.com LA air cargo expansion grounded A planned new air cargo terminal at Los Angeles International Airport (LAX), designed to streamline the transit of air shipments at the busy gateway, has been quietly shelved. The terminal was meant to be part of LAX's massive and heavily touted $16 billion passenger terminal expansion and modernization program. Los Angeles World Airports (LAWA), the city department operating LAX, has not officially announced the decision, but an airport spokesperson confirmed to The Journal of Commerce the project is on hold. "LAWA has decided not to pursue the cargo project at this time," the spokesperson said in an email. "LAWA will let you know if and when that changes." She did not provide an explanation for the decision. Several members of the Los Angeles cargo community said they were surprised to hear about the project being shelved. They surmised the city was either experiencing or projecting cost overruns on the passenger terminal expansion and would need to redirect capital earmarked for the air cargo center. A terminal design consultant, on the other hand, believes funding is not an issue, but rather that LAX wants to "take a breather in its long running dealings" with environmental activists and regulators. The news broke about a week before a Sept. 24 joint meeting of the Airforwarders Association (AfA) and the Los Angeles Air Cargo Association. More than 140 members of the Los Angeles air cargo community met for the second time in three years to hammer out an answer to the truck congestion and delays of up to six hours plaguing shippers, consignees, and forwarders in dropping off and recovering freight at LAX. Block exemption renewal set to sail The block exemption regulation (BER) that excludes container shipping from competition laws was likely to be amended in late September and renewed for another five years, said Olaf Merk of the Organization for Economic Co-operation and Development (OECD). Merk, who leads the OECD's work on ports and shipping through the International Transport Forum and has lobbied for the consortia block exemption regulation to be repealed, said a ruling by the European Commission's college of commissioners was expected by the end of September. The BER expires on April 25, 2020. Speaking at the JOC Container Trade Europe Conference, Merk on Sept. 17 said that of the three possible outcomes being considered by the EC — scrap, renew, or amend and renew — an amended BER was the most likely option. "One option is to continue the current consortia block exemption that exists, the second option would Shutterstock.com Shutterstock.com www.joc.com The Journal of Commerce Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, chris.brooks@ihsmarkit.com Executive Editor, The Journal of Commerce and JOC.com: Mark Szakonyi 202 872 1234, mark.szakonyi@ihsmarkit.com Managing Editor: Benjamin Meyer 916 716 6272, benjamin.meyer@ihsmarkit.com Associate Managing Editor: Kevin Saville, 212 488 4282, kevin.saville@ihsmarkit.com. Senior Editors: William B. 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