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September 30 2019

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Spotlight 6 The Journal of Commerce | September 30 2019 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shipping through the International Transport Forum and has lobbied for the consortia block exemption regulation to be repealed, said a ruling by the European Commission's college of commissioners was expected by the end of September.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 The Journal of Commerce Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, Executive Editor, The Journal of Commerce and Mark Szakonyi 202 872 1234, Managing Editor: Benjamin Meyer 916 716 6272, Associate Managing Editor: Kevin Saville, 212 488 4282, Senior Editors: William B. Cassidy Trucking and Domestic Transportation 202 872 1228, Bill Mongelluzzo West Coast 562 428 5999, Hugh Morley Northeast, Mexico 646 679 3475, Eric Johnson Technology 213 444 9326, Janet Nodar Breakbulk and Heavy Li 251 473 2742, Greg Knowler Europe +44 7976798770, Turloch Mooney Global Ports +852 9011 9109, Associate Editor: Ari Ashe Southeast Ports, Intermodal Rail 202 548 7895, Data Analyst: Marcin Lejk +44 587416270, Shipper Engagement Manager: Dustin Braden 646 679 3450, Senior Content Editor: Alessandra Gregory Barrett, 860 248 5238 Senior Designer: Sue Abt, 862 371 3534, Designer: Bryan Boyd, 908 910 7849, Publisher: Tony Stein, 770 295 8809, Sales: Cindy Cronin, Senior Strategic Account Manager Southeast, Gulf, Canada sales, 954 260 6061 Jean Gibbons, Senior Sales Executive West Coast, Midwest sales, 706 469 7160 John Knowles, Senior Sales Executive Europe sales, +44 7779974677 Allyson Marek, Senior Sales Executive Northeast sales, 862 754 8012 Alex Remstein, Associate Sales Specialist Reprints/Classifieds/Copyrights, 646 679 3418 Mehdi Smaili, Senior Sales Executive, Asia sales, +44 7581406491 For Magazine Subscription Customer Service: 450 West 33rd St., 5th Floor, New York, N.Y. 10001 800 952 3839 Vice President, Maritime & Trade, IHS Markit, Peter Tirschwell Executive Director, Media & Events, Maritime & Trade, IHS Markit, Amy Middlebrook Manager, Production, Carmen Verenna Product Manager, JOC, Jesse Case ©2019 The Journal of Commerce — All Rights Reserved For more information, visit our website,

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