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May 26, 2014

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Page 2 of 99 THE JOURNAL OF COMMERCE 1 2014 V.15 N.11 May26 16 Shippers Prepare for 'What If' Benefi cial cargo owners implement contingency plans as ILWU negotiations begin. 20 Survey: BCOs Won't Wait A JOC survey suggests widespread diversions from the U.S. West Coast because of ILWU contract talks. 22 Getting the Most From Mega-Ships Yes, ports face challenges, but economies of scale will yield benefi ts and offset the risks, some shippers say. 23 E-Commerce Boom Taxes China's Warehouse Space New facilities are coming, but their location near primary hubs exposes a big logistics challenge: a population on the move. 26 Riding Shotgun in Barcelona With a distribution network that spans three continents, automobile logistics takes a front seat in the Spanish port city. 32 Virginia's Mr. Fix-It With a new leader at the helm, the Port of Virginia is adjusting to growth in volumes and bigger ships. 56 Shippers Riding High A Wolfe Research survey fi nds shipper optimism to be the highest in four years. 58 Working on the Railroad North American intermodal operators will have to bounce back quickly from winter to reclaim and increase business. 62 Truckload Capacity Loosens Slightly A slight fi rst quarter uptick isn't likely to be enough to ease pressure on rates. 64 LTL Outlook Brightens U.S. domestic freight volumes rose in April with growth in consumer spending and industrial demand. 70 US Footwear Imports Stumble U.S. containerized footwear imports plunged 22.4 percent year-over-year in the fi rst quarter of 2014, PIERS reports. 71 Kerlikowske Up at Bat Facing an agenda steeped with economic and bureaucratic challenges, trade advocates hope for a home run from Customs' new chief. 76 NAFTA 2.0 — or Not An upcoming safety report on Mexican trucks is just one obstacle to taking the free trade pact to the next level. 82 Invoicing Goes Electronic Ocean carriers and logistics providers look to save billions of dollars a year by eliminating manual billing. 84 Let's Make a Peel New Orleans dangles fi nancial incentives to lure Chiquita's Central American services away from Gulfport. 86 Rx for Air Freight With much of the air cargo sector on life support, pharmaceuticals trade is giving carriers and forwarders a boost. DEPARTMENTS 4 Spotlight 90 By the Numbers 91 Index 94 Q&A 95 Classifi ed Ads COLUMNS 2 Chris Brooks 30 Susan Kohn Ross 68 Jerry Peck 80 Lawrence J. Gross 96 Peter Tirschwell Source: JOC Survey 42% 25% 8% 26% JOC SURVEY RESULTS: SHIPPERS' PLANS FOR CARGO DIVERSION YES 66% NO 34% Do you plan to divert freight away from the U.S. West Coast due to the ILWU negotiations? YES 19% NO 81% Less than 10% 29% 10-25% 31% More than 25% 40% U.S. East or Gulf Coast 73% Canada 25% Mexico 2% OTHER TOO LATE TO DIVERT TOO COSTLY LACK OF ALTERNATIVES If you do not plan to divert your freight, why not? In your opinion, are shippers' needs adequately being addressed in these negotiations? If so, approximately what percentage of your freight will be diverted? If so, where will you divert to? 10 Carriers MISS THE MARK With trans-Pacifi c contracts falling short of the break-even price point, carriers' long climb back to profi tability is only getting longer JOC TOP 100 IMPORTERS .................. 46 &EXPORTERS .......36

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