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February 3 2020

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Spotlight 6 The Journal of Commerce | Februar y 3 2020 The cost of decarbonization The price tag for cutting shipping's greenhouse gas emissions 50 percent from 2008 levels by 2050 will be $1.4 trillion, or an average of $50 billion to $70 billion annu- ally for 20 years, according to the Global Maritime Forum (GMF). The international not-for-profit maritime lobby group said in late January its research showed that if shipping was to fully decarbonize by 2050, it would require further investments of $400 billion over 20 years, bringing the total to between $1.4 trillion and $1.9 trillion. Fortunately for vessel owners and operators, the vast majority of the expenses will be landside infrastruc - ture investment in new fuel production and supply Classification fight takes a turn The truck driver classification push received a blow on the California front but advanced somewhat in New Jersey. In granting a preliminary injunction in its lawsuit over Assembly Bill 5, a US District Court judge on Jan. 16 dealt a sharp blow to California's attempt to restructure the worker classification process for truck drivers. Judge Roger Benitez in the Southern District of California ruled that AB5 is preempted by existing federal statutes, namely the Federal Aviation Administration Authorization Act (FAAAA). "FAAAA preemption is broad but not so broad that the sky is the limit: states retain the ability to execute their police power with laws that do not significantly impact rates, routes, or ser- vices," Benitez wrote in his ruling. AB5, a controversial landmark bill with significant implications for how trucking companies classify drivers, especially in harbor haulage, was scheduled to take effect on Jan. 1. Benitez on Dec. 31 issued a temporary restraining order (TRO) carving trucking out of AB5, so drayage operators in the ports of Los Angeles, Long Beach, and Oakland have not been affected by the law. In another case involving AB5, People of the State of California v. California Cartage, Superior Court Judge William F. Highberger in late January ruled in favor of Cal Cartage, saying truck drivers cannot be bound by the standards codified in AB5 because the state legislation is preempted by federal law. In New Jersey, a half-dozen bills that could make it more difficult for owner-operator truckers and other independent contractors to retain their classification status were signed into law on Jan. 21. The laws will levy new penalties and even stop-work orders if the state rules a worker is not independent, but an actual employee. chains, with only 13 percent of the investment related to the ships themselves. The GMF said these investments include the machinery and onboard storage required for a ship to run on low-carbon fuels in new ships and in retrofits. "We need to understand the scale of the challenge to solve it. Shipping's shift to zero-carbon energy sources calls for significant infrastructure investments," Johannah Christensen, manag - ing director, head of projects and programs at the GMF, said in a statement. At the forum's recent annual summit in Singapore, maritime leaders proposed a global carbon levy to accelerate shipping's decarbonization, with the starting level for a carbon levy of $10 per ton of carbon dioxide (CO2) escalating to $50 to $75 per ton of CO2 by 2030. A price of $10 per ton of CO2 would correspond to an annual fund of $8 billion. A price of $75 per ton of CO2 would correspond 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, 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 ©2020 The Journal of Commerce — All Rights Reserved For more information, visit our website,

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