Nevada to Have First Autonomous Trucks in America

Daimler Trucks North America is the first to get approval for self-driving commercial vehicles in the United States. The Freightliner Inspiration Truck, and other trucks like it, could have massive implications for the future of transportation. The Inspiration truck features a system called Highway Pilot, which uses stereoscopic cameras and radar sensors to give it an autonomous autopilot mode when cruising on the highway. The truck can steer to stay between lane markers and adjust its speed and braking to maintain a safe following distance behind other cars on the road all while the driver is free to do other things.

It’s considered a “level 3” autonomous vehicle, meaning it enables hands-off highway driving under certain circumstances, but requires a driver to be present, ready to take the helm in an emergency or to pass other vehicles in the truck’s path. The driver is likewise required to assume control of the vehicle when exiting the highway, driving over local roads and pulling up to the loading dock for making or taking deliveries.

For the record, a “level 4″ vehicle would be able to perform all driving functions and monitor roadway conditions for an entire trip, truly freeing up the valuable resource of human time.

Daimler executives are being careful to allay fears of human employment disruption. “We don’t want to get rid of drivers,” says Sven Ennerst, head of Daimler Trucks’ development department. Daimler continues by repeatedly saying the technology won’t can’t change lanes on its own, it won’t be market-ready for a decade, and could never fully replace human drivers.

The reality remains that that it is a big step towards addressing a massive market need: safe and reliable transportation.

Some large freight carriers have already started incorporating innovative new safety features like blind spot monitoring, adaptive cruise control, and lane departure warnings. The economic case for these technologies is clear.

“Commercial vehicles are a safety issue,” says Xavier Mosquet, head of Boston Consulting Group’s North America automotive division. “And therefore anything that can get commercial vehicles out of trouble has a lot of value.”

With America's driver shortage continuing to worsen, good truck drivers cost more these days. Costs are also rising for companies that cut corners and hire unsafe drivers. Liability in a commercial truck accident is increasingly falling on the shipper.

HWP - Highway Pilot

In order to get the autonomous vehicle license plate from the state of Nevada, Daimler needed to prove the system could safely cover 10,000 miles on its own. This was done on test tracks in Germany and on quiet roads in Nevada.

Daimler ran a small study (16 drivers on a test track) to see how this autonomous system affects drivers. EEG readings showed they were 25 percent less tired than they were when they had to steer themselves.

Customers are very much interested in this system, according to Daimler. That’s no surprise: Making driving a job for the computer can reduce accidents, improve fuel efficiency, and maybe keep trucks on the road for longer, says Noël Perry, an economist who specializes in transportation and logistics. “They all love this.”

Additional Reading:

http://www.newscientist.com/article/dn27485-autonomous-truck-cleared-to-drive-on-us-roads-for-the-first-time.html#.VVDGtNNVhBd

http://www.wired.com/2015/05/daimler-built-worlds-first-self-driving-semi/

Volvo Plant in U.S.

State to be chosen in a month; car maker says labor rates are just part of it

Written by John D. Stoll of The Wall Street Journal

After years of losing out to Mexico in the race for new automotive assembly plants, the U.S. is about to notch a victory.

Volvo Car Corp., owned by a Chinese company, will spend $500 million to build a new vehicle plant in the U.S. The decision comes weeks after Daimler AG plans to spend a half-billion dollars to build a Mercedes-Benz van factory in South Carolina, a move that followed a string of auto makers choosing to locate new factories in Mexico instead of the U.S.

In an interview, Chief Executive Håkan Samuelsson said Volvo is making the move to smooth out its international presence. With plants in Europe and China, the executive wants a North American factory to be closer to one of its prime markets, take advantage of attractive labor rates and protect against currency fluctuations.

“This will complete our industrial footprint,” Mr. Samuelsson said. Volvo is also aiming to reiterate its commitment to the U.S., a market it has been in since 1957. In recent years, Volvo has struggled to sell cars in the U.S., forcing the auto maker to adjust its strategy several times.

Mr. Samuelsson said Volvo is still considering a handful of states for its new factory, and will announce its pick in about a month. The plant will build vehicles off the company’s new “SPA” platform, an engineering architecture that will serve as the blueprint for several vehicles, including the new XC90 SUV hitting the market this year.

Volvo, bought by Zhejiang Geely Holding Group Co. in 2010, sold 466,000 vehicles in 2014, a record amount of cars globally. But momentum has come from gains in China and Europe; U.S. sales fell 8% to 56,000—short of the 100,000 vehicles Mr. Samuelsson says the brand needs to prove viability.

Mr. Samuelsson said there is no current plan to share the plant with Geely. Volvo is, however, working with its partner on developing small cars, and the factory could eventually be an avenue for the Chinese auto maker to distribute cars in the U.S.

For now, Mr. Samuelsson is working to freshen the product lineup, boost marketing spending and offer better financing options.

Some European auto makers have been successful at capping labor costs in the U.S. Volkswagen recently opened a plant in Tennessee, and its hourly labor rate—including benefits—equals $38 an hour, $10 less than Fiat Chrysler Automobiles and $20 less than General Motors Co.

Volvo’s move stems the tide of investment aimed at Mexico, where labor rates are a fraction of the U.S. costs. Auto makers and parts suppliers have earmarked more than $20 billion of new investments, with many executives citing an array of free-trade pacts as the reason for the decisions.

Mr. Samuelsson said Volvo considered Mexico, but the benefits of building cars in the world’s most-profitable market tipped the decision in America’s direction.

Write to John D. Stoll at [email protected]

Business Leaders to Congress: Pass Long-Term Ex-Im Bank Reauthorization

Dear Speaker Boehner, Leader McConnell, Leader Pelosi and Leader Reid:

On behalf of the Business Roundtable, I write urging passage of a multi-year reauthorization of the U.S. Export-Import (Ex-Im) Bank as soon as possible before its short-term extension expires at the end of June.  Such a long-term reauthorization is urgently needed to address growing uncertainty among U.S. companies, of all sizes, that rely on Ex-Im Bank to enable their exports.

In today’s highly competitive global marketplace, there are more than 60 export credit agencies (ECAs) providing their own exporters with aggressive financing packages to compete for and win international sales.  Ex-Im Bank is critical to helping American companies and workers fairly compete for such sales.  It does so by seeking to offset at least some of the financing provided by foreign ECAs to foreign competitors.

Ex-Im Bank has long played an important role in helping support U.S. exports and jobs.  For example, in FY2014, it provided financing for $27.5 billion worth of U.S. exports through its approval of over 3,700 transactions for U.S. companies, including more than 3,300 for small businesses.  These exports supported an estimated 164,000 American jobs at these companies as well as companies in their U.S. supply chains.  Since its founding in 1934, Ex-Im Bank has supported more than $600 billion of U.S. exports.

Ex-Im Bank carries out its mission at very little risk to taxpayers.  Borrowers have defaulted on less than two percent of all Ex-Im Bank loans since its creation and only 0.175% of loans in FY2014  – rates well below those of most commercial banks.  In FY2014, Ex-Im Bank generated more than $674 million for the U.S. Treasury (from fees or interest charged for its services) after covering its expenses.

If Congress fails to reauthorize Ex-Im Bank, it will threaten the ability of thousands of U.S. companies to compete for international sales and put hundreds of thousands of U.S. jobs at risk. With more than 95 percent of the world’s population and 80 percent of the world’s purchasing power outside the United States, Congress should not make it harder for U.S. companies to compete for and win sales around the world.  Failure to reauthorize Ex-Im Bank would unfairly advantage foreign competitors that will continue to get significant financing from their countries’ own export-import banks.

For the above reasons, Business Roundtable urges you to act quickly to pass a multi-year reauthorization of Ex-Im Bank to help support U.S. exports and the American companies of all sizes and workers that depend on them.

Sincerely,

Thomas Linebarger

Chairman and CEO, Cummins Inc.

Chair, International Engagement Committee, Business Roundtable

Letter Of Credit Discrepancy Created A New Market For Greek Candy

Letter Of Credit, Shipment Date, Applicant, Negotiate Documents

---

LETTER OF CREDIT REQUIRED A LATEST SHIPPING DATE

A US importer applied to a New York bank for a letter of credit for candy from a supplier in Greece. The letter of credit stipulated a shipment date which would insure arrival of the candy in time for a particular Greek festival.

LETTER OF CREDIT PAYMENT REFUSED

Unfortunately, the supplier dispatched the candy one day after the latest date allowed for shipment. When the issuing bank noted this discrepancy, they contacted the applicant for approval to pay, but the applicant declined because the late shipment meant missing the festival date. The Greek bank was notified that payment had been refused.

Since the Greek bank had negotiated the documents and already paid the supplier, they were now the sweet owner of the candy and promptly contacted the New York bank for assistance in finding a new buyer for it.

"NEGOTIATING" A LETTER OF CREDIT

Let’s clarify the technical term “negotiate.” According the UCP, “Negotiation means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due to the nominated bank” (Article 2).

In other words, a bank other than the issuing bank may purchase the beneficiary’s documents before the issuing bank receives the documents and consents to payment. This provides an advantage for the beneficiary who receives the money faster. It also provides income to the negotiating bank by collecting fee income plus a fee to compensate them for the cost of “float,” or interest on the money, which they paid but have not yet collected from the issuing bank.

The negotiating bank, however, takes the risk of the issuing bank not paying. In this story, why the negotiating bank chose to purchase discrepant documents remains unclear. Apparently, unable or unwilling to recover the payment from the beneficiary, they solicited the issuing bank’s assistance in the matter.

CREATING A NEW MARKET FOR THE CANDY

Fortunately, the story ends well. The New York bank discovered an agent who was willing to sell the candy for a 20% commission. He traveled the country and successfully established ecstatic buyers for the candy. After he kept 20%, the New York bank remitted over $143,000 more than the draft amount to the Greek bank and the agent launched a new market for the candy.

Thank you to Jim Harrington for another entertaining story.

Self-Driving Cars in 30 U.S. Cities by 2017

There will be driverless buses and pods as well.

By Sage Lazzaro | 03/05/15 10:47am

Originally appearing in the Observer

Finally, we can put up our feet and let computers take the wheel.

Automated vehicle pilot projects will roll out in the U.K. and in six to 10 U.S. cities this year, with the first unveiling projected to be in Tampa, Florida as soon as late spring. The following year, trial programs will launch in 12 to 20 more U.S. locations, which means driverless cars will be on roads in up to 30 U.S. cities by the end of 2016. The trials will be run by Comet LLC, a consulting firm focused on automated vehicle commercialization.

“We’re looking at college campuses, theme parks, airports, downtown areas—places like that,” Corey Clothier, a strategist for automated transportation systems who runs the firm told, The Observer.

He explained that they’re focusing on semi-controlled areas and that the driverless vehicles will serve a number of different purposes—both public and private. The vehicles themselves—which are all developed by Veeo Systems—will even vary from two-seaters to full-size buses that can transport 70 people. At some locations, the vehicles will drive on their own paths, occasionally crossing vehicle and pedestrian traffic, while at others, the vehicles will be completely integrated with existing cars.

What would happen if you combine driverless cars with an on-demand service like Uber? One study says it would make nine out of ten cars on every road totally obsolete.

One of the early test sites will be the U.S. Army’s Fort Bragg in North Carolina. There, small pod-like vehicles will transport wounded troops from their barracks to the nearby hospital for treatment and check-ups. The Comet team is also planning a pilot project at The United States Military Academy at West Point, although Mr. Clothier said this site has not been finalized.

An automated vehicle system will also be implemented at Stanford with its first purpose being to provide transportation around their SLAC National Accelerator Laboratory campus. Scientists and academics travel from all over the world to visit the center, and the first application of the automated vehicle system will be to transport visiting scientists to the accelerator.

At the first test site in Tampa, the plan is to start with public transit around the Museum of Science and Industry and eventually expand to the University of Southern Florida campus and the neighboring City of Temple Terrace. The Comet team is also planning trials in two other cities in Florida; Greenville, South Carolina and Seattle, Washington, where the 70-person buses will be used in public transit.

At 25 to 40 percent cheaper, the cost to ride the driverless public transit vehicles will be significantly less expensive than traditional buses and trains, according to Mr. Clothier. They’ll also be far less expensive to operate. The vehicles are electric, rechargeable and could cost as low as $1 to $3 to run per day.

In addition to these first trials of automated vehicles for commercial use in the U.S., the U.K. will begin running tests this year in Greenwich, London as well. The $9 million project called GATEway will consist of public self-driving shuttles that will link residents to transport hubs, The O2 Arena and other destinations in northern Greenwich, carrying eight to ten passengers at a time.

Greenwich was chosen for the Project—which is being led by the U.K.’s Transport Research Laboratory (TRL)—because, since it’s home to the Prime Meridian.

“It is the global reference point for time and links to navigation,” Nick Reed, the TRL academy director, said. “It also has a massively growing population, so we’re trying to meet the needs of that with the technology.”

Upon entering the shuttles, each passenger chooses from the pre-determined destinations on the touch screen, and then the computer determines and readjusts the route as riders hop on and off. Each vehicle uses lasers to build up an image of the route and determine where it is and where it needs to go.

These shuttles will drive along their own route but must cross pedestrian and vehicle traffic at times. The lasers will also enable the cars to determine when it’s safe to cross and also to spot obstructions. At a recent launch event, the vehicles proved how safe they are and how well they can sense obstructions and the world around them.

“You can image a lot of the journalists wanted to see this thing run into pedestrians, so they were almost jumping in front of it,” Mr. Reed said laughing. “But it was doing what it was supposed to do and stopping.”

He also explained that these shuttles are only the first part of the trials. They’re also working on autonomous valet parking that would enable drivers with ordinary cars to pull up to their destination, send their car to park itself and then summon it later. Additionally, they’re beginning to research how automated vehicles can be used for grocery delivery and other urban services.

Mr. Reed feels that this technology won’t completely replace today’s cars and trains, but that it is disruptive and will be the norm soon.

He described his first experience in a driverless vehicle as feeling “vulnerable at first,” but said that it quickly became very comfortable.

“It’s a bit unnerving to begin with because you realize the system is in control and you’re relying on the sensors and brakes to keep you safe, but very quickly after seeing it respond to pedestrians and such, you see it work and become very comfortable. I became relaxed even,” he said, adding how happy we’ll all be to be able to just watch Netflix while our cars drive us around.

Mr. Clothier, who has been riding in automated vehicles since their military-only days and has even been passenger to a computer among semis driving at 65mph on a Michigan highway, feels similarly.

“It’s a whole new thing, but it will be comfortable,” he said. “People are very comfortable riding in [them]. It’s kind of like an elevator: you go in, put in your destination, the doors close and you’re off.”

SEE: Mercedes-Benz’s New Car Is Driverless

Correction: The SLAC National Accelerator Laboratory participated in the Smart America Challenge as a possible future pilot site but a trial is not set to run there at this time.

Draft Drone Rules Rule Out Long Distances

The technological advances of unmanned aerial vehicles (UAVs) have been remarkable over the last couple of years. Their increasing capabilities and affordability promise many opportunities for commercial applications, ranging from farming to logistics. Despite the immense potential, the Federal Aviation Administration (FAA) has long been quiet about the upcoming regulatory framework. Until now.

The FAA has just released proposed rules for commercial drones within the United States.

Although the rules are not as draconian as some people feared, commercial applications for UAVs are still facing limitations compared to other countries.

The FAA isn't requiring commercial drones to undergo a lengthy and costly certification process. UAVs under 55 lbs can be flown as long as the operators have passed a basic aeronautical test.

They must, however, be flown below 500 feet, only in daylight, and remain within view of their operators at all time. They also can not be flown over people, such as at concerts and sporting events.

This is a “good first step”, says the Association for Unmanned Vehicle Systems. It would easily allow, for example, a real estate agent to take aerial photographs of a house being put up for sale. It would also allow for farmers looking to survey crop conditions.

Not being allowed to fly over crowds might prevent television companies from filming sporting events with drones. Perhaps further certifications would allow such maneuvers in the future.

The requirement that the UAVs stay within line of sight is also a big limitation, preventing long-distance flights (inspecting forests and monitoring pipelines, for example). This would also rule out Amazon's plan of using drones to deliver goods ordered online.

Michael Huerta, head of the FAA, says that as drones develop the rules will continue to "evolve."

As the technology improves and operators build experience, perhaps the agency will eventually permit longer-range, out-of-sight flights.

In the meantime, the current proposals will undergo a lengthy period of public comment before being finalized- possibly in 2017.

Drone operations in other countries are already getting airborne with pilot projects. In China, Alibaba has launched a drone delivery service for tea orders. In Europe, the logistics firm DHL has begun delivering medicine and other urgent supplies to a small island off the coast of Germany.

To see some of these pilot programs in action, check out this video from the Wall Street Journal:

Apple's Auto Ambition

Reports over the last couple weeks show growing evidence that Apple is gearing up to create an electric vehicle. Apple has already hired more than 60 former Tesla employees. Tesla Motors CEO Elon Musk says Apple has been offering his engineers a 60% salary increase and $250k signing bonuses.

Apple has also recruited Johann Jungwirth away from his position as head of Mercedes-Benz’s Silicon Valley R&D unit.

According to a new report from Tim Higgins of Bloomberg, the company’s car team is planning to launch the electric vehicle by 2020.

Higgins adds that the company has additionally hired former engineers of Panasonic Corporation, Johnson Controls Inc, LG Electronics Inc., A123 Systems and others.

The Bloomberg report speculates Apple is speedily designing an electric vehicle that can be marketed to the masses - a car with a range of over 200 miles on a single charge and a price tag of less than $40,000.

Barclays said in a research note that the electric car market is worth $16 billion a year, and will grow to $71 billion by 2021.

Apple has plenty of cash on hand after several consecutive quarters of very high profits. They would be wise in diversifying and investing in the future. While some analysts deride this strategy by pointing to low margins in electric vehicles, Apple's bigger play could be the use of connected cars as a platform, similar to the iPhone and the Appstore.

Though connected cars make up less than 10% of auto sales today, their share is expected to skyrocket to 80% by 2020.

A even larger opportunity exists with the advent of self-driving technology. Think about all the hours people spend driving their cars. What is that time worth? What else could people be doing with that time? The answers to these questions could be worth trillions of dollars.

With Google, Uber, and traditional car manufacturers working on autonomous driving vehicles, it could very well become a reality by as soon as 2020. Reuters says it has learned from industry sources that Apple’s secret project involves self-driving electric cars.

In 2021, will people be listening to Tesla's Slacker Radio, Google Play Music, or Apple's iTunes Radio?

McDonald's Explores Net Zero Energy

Net Zero Energy

A zero-energy building, also known as a zero net energy (ZNE) building, net-zero energy building (NZEB), or net zero building, is a building with zero net energy consumption, meaning the total amount of energy used by the building on an annual basis is roughly equal to the amount of renewable energy created on the site. These buildings consequently do not increase the amount of greenhouse gases in the atmosphere. They do at times consume non-renewable energy and produce greenhouse gases, but at other times reduce energy consumption and greenhouse gas production elsewhere by the same amount.

_________________________________________

Rocky Mountain Institute, Fisher Nickel Inc. and New Buildings Institute

A study prepared by Rocky Mountain Institute, Fisher Nickel Inc. and New Buildings Institute examines the technical and financial feasibility of achieving new net zero energy restaurants in Chicago, Orlando and Washington, D.C.

Through a recent study, McDonald's Corp. seeks to better understand whether it would be feasible to develop a net zero energy quick service restaurant. Exploring net zero energy continues McDonald's tradition of energy efficiency efforts and helps to prepare McDonald's for future energy codes. The study's findings, including research, technical analyses and detailed recommendations, form a road map for McDonald's to pursue future net zero energy restaurants, as well as select energy efficiency solutions for existing restaurants.

"Our Global Energy Leadership board sees net zero energy as an opportunity for McDonald's as we work to advance the energy performance of the restaurants and proactively pursue opportunities for integrating emerging technologies," said Roy Buchert, global energy director at McDonald's. "We are working with the study team and our suppliers to improve the efficiency of the restaurants. This net zero energy concept could change our approach from incremental improvements to substantial advances in energy efficiency and renewable energy integration where it makes sense."

While this study is intended to benefit restaurants globally, three potential U.S. locations were assessed in the study: Chicago, Orlando and Washington, D.C. For each location, multiple scenarios were examined to determine the most practical and cost-effective pathway to net zero energy.

This high-level analysis, completed together with McDonald's internal experts and equipment suppliers, generated a set of conceptual energy conservation strategies in addition to potential savings and cost estimates for prioritization. Further work will be required to generate detailed designs and accurate costs for the high-priority solutions. All aspects of the site and building were included in the study, but emphasis was placed on kitchen and HVAC equipment, which represent the predominant energy use in a typical restaurant.

Click here for report

Article as posted on Electric Light & Power

Vital for Colorado Chairman: "Don’t Let Anti-Science Extremists Destroy Denver’s Economy"

This week, the competing campaigns of environmental activists and industry advocates have been heating up surrounding issues of natural gas development.

Activists are pushing for a moratorium on fracking in the city of Denver, even though most of the state's development projects are well outside of Denver's city limits. The area around the Denver International Airport is one of the few areas in the city limits with any active wells leased out to oil and gas companies.

"Don't Frack Denver" activists say they want to stop the threat of expanding fracking within the city where it could affect their quality of life. They launched their effort on Tuesday by delivering a letter to Mayor Hancock and holding a news conference outside the City and County Building.

Industry advocates say this environmental effort is misguided and is essentially equivalent to "declaring war on Denver's economy."

Vital for Colorado, a leading pro-industry business advocacy group, has issued a news release statement in response, referring to the activists as "anti-science extremists."

"Groups that peddle fear, instead of facts, are out to hurt Colorado's economy and out to reduce the tax base that supports our schools, parks and libraries," said Peter Moore, the group's board chairman.

The oil and gas industry has been a boon for Denver’s economy in recent years. The industry makes up about 20 percent of downtown Denver’s office space, or about 4.5 million of the 22.3 million square feet of available space, according to the Denver Business Journal.

A Hancock spokeswoman said he understood the activist coalition's concerns, but she said he wouldn't consider backing any local action until a state oil and gas task force looking at regulatory issues publishes its recommendations. Those are due Feb. 27.

“Mayor Hancock hears their concerns loud and clear and will continue to work toward a shared goal of preserving our environment and quality of life here in Denver. The Mayor is keeping a keen eye on this issue, and eagerly anticipates the recommendations from the Governor’s Oil and Gas Task Force before any action would be considered on a municipal level. Understanding the Task Force is working on a responsible balance, the Mayor asks for the community and stakeholders to remain patient and allow a thoughtful process to take place.”

Councilman Chris Herndon, who represents northeast Denver, echoed Hancock's comments.

A moratorium effort may be lacking an actual legal footing given that recent state court rulings have overturned other cities' fracking bans.

Fracking, or hydraulic fracturing, involves injecting water, sand and chemicals under high pressure to break up rocks deep underground, thereby releasing oil and gas. The industry says it has been safe for six decades and is subject to intense federal and state regulations that keep it from harming the environment.

Logo

Overall, the oil and gas industry recently contributed $29 billion to Colorado’s economy and helped support more than 100,000 good-paying jobs.

“The oil and gas industry, like any industry, is not perfect, but it operates under some of the most stringent regulations in the country,” Moore said. “It’s been one of the brightest spots in our economy. The facts — and science – are on the side of industry.”

Vital for Colorado is a broad coalition of business and civic leaders formed to support responsible energy development.  More than 35,000 Coloradans, businesses, civic leaders and trade organizations have signed its pro-energy pledge. For more information, go to www.vitalforcolorado.com

U.S. & China Cooperating on Trade Issues (Mostly)

Cooperation on export controls tops a long list of recent outcomes achieved at the 25th U.S.-China Joint Commission on Commerce and Trade (JCCT). While encouraging overall, this and other reports also highlight areas in need of improvement.

“This dialogue comes at an important time for the two largest economies in the world who share an enormous stake in the global trade and investment system,” says U.S. Trade Representative Michael Froman.

Having recently taken place in Chicago, both sides are speaking highly of the outcomes of the JCCT, such as those on medical devices, pharmaceutical access and agricultural biotechnology. The newly released fact sheet (embedded below) also offers greater detail into the Chinese efforts to import deep-water oil & gas exploration equipment from the U.S.

While potentially under export controls, the U.S. side of the High Technology and Strategic Trade Working Group (HTWG) says it will “actively review” individual cases for civilian high-technology items, such as deep-water oil and gas exploration equipment, an issue which the Chinese side raised in the HTWG meeting. The U.S. side committed to provide “timely feedback upon receipt of necessary and sufficient information.”

Remaining disagreement often revolve around intellectual property. While the majority of IP issues pertain to U.S. concerns about China's intellectual property rights regime, China was concerned that the U.S. fairly take into account information it receives from China about its efforts.

U.S. trade officials, congressional researchers and industry stakeholders have described Chinese progress on IPR issues as incremental, invariably adding that much more needs to be done. The U.S. committed “to consider and pursue additional steps as appropriate to enhance the transparency, objectivity, and fairness” of the reports, pledging to “recognize the efforts made and results achieved by foreign governments and entities.”

Other Outcome Areas Include:

•  U.S. transport aircraft bilateral airworthiness expansion;
•  Chinese enterprises participation in U.S. public-private partnership projects;
•  competition policy;
•  visas;
•  cargo airlines co-terminalization;
•  data on trade in fish products;
•  trade related to illegal logging;
•  railway locomotive vehicle import certification;
•  government procurement;
•  access to the Chinese legal services market;
•  Chinese investment in U.S. legal services market;
•  cooperation in promotion of trade in services;
•  cooperation on climate change and clean energy;
•  criminal law enforcement cooperation on intellectual property;
•  food and drug safety inspections;
•  legal exchanges;
•  administrative law issues; and
•  engagement on judicial best practices.

Click here to see the full U.S. fact sheet

CRS Report

In related news, the Congressional Research Service Dec. 19 released a report on “China-U.S. Trade Issues” by Wayne Morrison, a specialist in Asian trade and finance.

The report updates previous reports to include the outcomes of the latest JCCT as reflected in a Dec. 19 Commerce Department fact sheet.

It highlights that China stated that it would approve the importation of new biotechnology varieties of U.S. soybeans and corn and improve trademark protection for certain agricultural products; amend its trade secrets law and increase cooperation with the U.S. on enhancing sales of legitimate U.S. intellectual property-intensive goods and services in China; streamline China's processes and cut red tape for imports of pharmaceuticals and medical devices; and make improvements to its competition enforcement policies by improving transparency and ensuring equal treatment for foreign firms in anti-monopoly investigations with Chinese firms.

USTR Report

Also just released is the U.S. Trade Representative's final report to congress on China's compliance with its World Trade Organization commitments.

The USTR finds several areas where China is lagging in its commitments: intellectual property rights (IPR) enforcement, supporting state-owned enterprises, homegrown innovation policies, technology transfer initiatives, export restraints, investment restrictions and agricultural policies blocking U.S. market access.

The USTR also found China to be inappropriately using antimonopoly and trade remedy laws. Additionally they say there remains transparency issues and “slow movement” toward accession to the WTO Government Procurement Agreement.

“Going forward,” the report said, “the United States looks to China to reduce market access barriers, uniformly follow the fundamental principles of non-discrimination and transparency, significantly reduce the level of government intervention in the economy, fully institutionalize market mechanisms, require state-owned enterprises to compete with other enterprises on fair and non-discriminatory terms, and fully embrace the rule of law.”

These steps are considered “critical to realizing the tremendous potential presented by China's WTO membership.”

Oil Rises After Reaching 5-Year Low

Oil prices rose to reach levels above $72 a barrel, recovering from a five-year low reached last week. After a surprising decision from the Organization of Petroleum Exporting Countries (OPEC) to not cut production despite a global excess of supply, investors have been looking for a new price floor. Oil lost more than 12 percent since OPEC's decision last Thursday.

U.S. crude and Brent have also been falling over a wider period of time (five months in a row) marking oil's longest downward streak since 2008.

Brent hit a low of $67.53 a barrel, the lowest since October 2009, before rising to $72.98 a barrel Monday.

According to Reuters, "The market is still very much in panic mode," said Energy Aspects' chief oil analyst Amrita Sen. "Once we get over the panic, Brent prices will probably stabilise at around $65-80 a barrel in the short term."

"We can expect such volatility in the near future given the market had overshot to the downside," Sen said.

The supply growth has been mainly fueled by America's shale oil revolution, though other projects worldwide have also contributed to production growth.  Many of these projects were launched with high-oil prices in mind, so the important shakeout happening will have different impacts depending on producers' operating costs per barrel.

Bloomberg says Russia, the world's largest producer, can no longer rely on the same oil revenues to rescue an economy suffering from European and U.S. sanctions. Iran, also reeling from similar sanctions, will need to reduce subsidies that have partly insulated its growing population. Nigeria, fighting an Islamic insurgency, and Venezuela, crippled by failing political and economic policies, also rank among the biggest losers from the OPEC decision last week to let the force of the market determine what some experts say will be the first free-fall in decades.

Oil has dropped 37 percent this year and, in theory, production can continue to flow until prices fall below the day-to-day costs at existing wells. Stevens said some U.S. shale producers may break even at $40 a barrel or less. The International Energy Agency estimates most drilling in the Bakken formation -- the shale producers that OPEC seeks to drive out of business -- return cash at $42 a barrel.

"Right now we're seeing a price shock coming out of the meeting and it will be a couple of weeks until we see where the price really falls," said Yergin. Officials "have to figure out where the new price range is, and that's the drama that's going to play out in the weeks ahead."

To be sure, not all oil producers are suffering. The International Monetary Fund in October assessed the oil price different governments needed to balance their budgets. At one end were Kuwait, Qatar and the United Arab Emirates, which can break even with oil at about $70 a barrel. At the other extreme: Iran needs $136, and Venezuela and Nigeria $120. Russia can manage at $101 a barrel, the IMF said.

Only time will tell if today's rebound marks the reaching of a new price floor, or if it is merely a temporary stop on the way further down.

For some further reading that some technical traders are reading this week: http://www.zerohedge.com/news/2014-12-01/oil-price-decline-pictures

State Heads Meeting on Opening Up Global Trade

UPDATE: U.S. & China Reach Trade "Understanding." After a lengthy private meeting, presidents Barack Obama and Xi Jingping have found common ground on reducing tariffs on high-tech goods which backers say could cover $1 trillion in trade. The breakthrough will help bring talks on expansion of the global Information Technology Agreement to a "rapid conclusion."  U.S. officials told the Associated Press that the progress with China includes an agreement to eliminate tariffs on goods like medical devices, global positioning systems, and video game consoles.

Additional updates: Beijing has also announced a free-trade agreement with South Korea. The Chinese stock markets will become open wider to foreign investors following new regulatory approval of linking the exchanges in Hong Kong and Shanghai. All this is following an announcement over the weekend of a $40 billion fund to improve trade links between Asian economies, financed by China.

---

John Engler, President of the Business Round Table:

“I believe Congress has an immediate opportunity in the lame-duck session to pass Trade Promotion Authority legislation to give the President and U.S. negotiators the tools they need to conclude promising trade agreements with Asia-Pacific countries and the European Union."

Heads of State Meeting in Beijing for APEC Summit 

The leaders of the Trans-Pacific Partnership (TPP) member countries will be meeting around the Nov. 10-11 Asia-Pacific Economic Cooperation (APEC) summit in Beijing, U.S. National Security Adviser Susan Rice confirmed. APEC is hosting the Economic Leaders' Meeting in the capital city of China.

The TPP leaders meeting will be Nov. 10, following a planned Nov. 8 negotiating session of the 12 TPP trade ministers from Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam.

“We're working with our Asian partners to deepen our trade and investment ties through progress on agreements such as the WTO Information Technology Agreement and the environmental goods and services agreement[s], and we're working to bring China into the rules-based institutional structures in Asia,” Rice said, referring to the ongoing negotiations toward an Environmental Goods Agreement and toward a Trade in Services Agreement.

Regarding the president's Nov. 11-12 meetings with Chinese President Xi Jinping over the final day-and-a-half of the visit, Rice said that the meeting will present an opportunity to identify a forward-looking agenda for the next two years of the bilateral relationship.

She said that the president will seek to build a relationship with China that advances American economic and security interests and solves global problems in ways that reflect American values. She noted that the issue of cybersecurity will be prominent on the U.S.'s bilateral agenda.

“This is a source of grave concern to the United States,” Rice said. “We have reiterated on every occasion the fact that we oppose any efforts, official or unofficial, to engage in cyber-espionage for commercial gain or other purposes—and this has been and will remain a topic of discussion.”

UN Trade Urging G-20 to Resist New Restrictive Trade Actions

Group of 20 members should reduce restrictive trade measures as a means of stemming the world's stagnant growth trend, United Nations trade leaders said in a report released a week ahead of the G-20 conference in Brisbane, Australia.

“Prevailing global economic conditions mean that this is not a time for complacency in the international trading system,” according to a joint statement from the leaders of the World Trade Organization, the Organization for Economic Cooperation and Development and the UN Conference on Trade and Development.

The report, which evaluated trade and investment measures implemented from mid-May to mid-October 2014, noted that G-20 members have applied 93 new trade-restrictive measures during the last five months, which account for an estimated $118 billion in global merchandise value.

G-20 members have implemented 1,244 trade restrictions since the 2008 economic crisis and have removed 282 in the following years.

“The G-20 economies must take decisive action to reduce this stock of trade restrictions by showing restraint in the imposition of new measures and by effectively eliminating existing ones,” the report's authors wrote.

The report concluded that the overall trade policy response to the 2008 crisis was “significantly more muted” than had been expected.

“This shows that the multilateral trading system has acted as an effective backstop against protectionism,” the report said. “However, it is clear that the system can do more to drive economic growth, sustainable recovery and development.”

(See the full WTO news item)

U.S. Investing in Advanced Manufacturing

Launching this week, several executive actions are aiming to strengthen the economy through advanced manufacturing.  The Departments of Defense, Energy, Agriculture and NASA are announcing more than $300 million in new investments into three key technologies that are being called crucial to the industrial competitiveness of the United States: 1.) advanced materials including composites and bio-based materials, 2.) advanced sensors for manufacturing, and 3.) digital manufacturing.

The executive actions are building upon the recently-published report by the Advanced Manufacturing Partnership -- a national council of 19 leading CEOs, labor leaders, and university presidents co-chaired by Andrew Liveris, CEO of Dow, and Dr. Rafael Reif, President of MIT, collaborating with more than 100 industry and academic experts.

The final report is recommending measures that are encouraging innovation,  securing the talent pipeline, and improving the business climate. Click here to see the full .pdf, or view embedded below.

Chaired by Andrew Liveris, President, Chairman, and CEO of the Dow Chemical Company, and Rafael Reif, President of the Massachusetts Institute of Technology, the AMP Steering Committee includes:

• Wes Bush, Chairman, CEO and President, Northrop Grumman Corp.
• Mark Schlissel,  President, The University of Michigan
• David Cote, Chairman and CEO, Honeywell
• Nicholas Dirks, Chancellor, University of California, Berkeley
• Kenneth Ender, President, Harper College
• Leo Gerard, International President, United Steelworkers
• Hon. Shirley Ann Jackson, President, Rensselaer Polytechnic Institute
• Eric Kelly, President and CEO, Overland Storage
• Klaus Kleinfeld, Chairman and CEO, Alcoa Inc.
• Andrew Liveris, President, Chairman, and CEO, The Dow Chemical Company
• Ajit Manocha, Senior Advisor, GLOBALFOUNDRIES
• Douglas Oberhelman, Chairman and CEO, Caterpillar Inc.
• Annette Parker, President, South Central College
• G.P. “Bud” Peterson, President, Georgia Tech
• Luis Proenza, President, The University of Akron
• Rafael Reif, President, Massachusetts Institute of Technology
• Eric Spiegel, President and CEO, Siemens Corp.
• Mike Splinter, Executive Chairman of the Board, Applied Materials Inc.
• Christie Wong Barrett, CEO, Mac Arthur Corp.

For more information about the Advanced Manufacturing Partnership, please visit:http://www.manufacturing.gov/amp.html

Mexico is Reforming its Energy Industry

Next to the United States and Canada, Mexico is the largest oil-producing country in the Western Hemisphere.  Mexican President Enrique Peña Nieto recently enacted energy reforms granting companies access to large, untapped reserves in Mexico - estimated to be greater than 110 billion barrels. This is the first time since 1938 that Mexico's energy sector is inviting increased local competition and opening opportunities in foreign direct investment, ending the 75-year monopoly held by Pemex, the national oil company. Energy industry experts believe Mexico will be bringing in more than $1 trillion in new investments because of this action.

Adding international experience and expertise will boost energy production within the country. While other countries are expressing interest, U.S. firms are seeing opportunity because of close proximity and growing relationships between the two countries.

According to the U.S. Congressional Research Service,

"The United States, Mexico, and Canada have made efforts since 2005 to increase cooperation on economic and security issues through various endeavors, most notably by participating in the North American Leaders Summits. The most recent Summit was hosted by President Enrique Peña Nieto in Mexico on February 19, 2014. The three leaders discussed issues on the economic well-being, safety, and security of North America and issued a joint statement renewing their commitment to regulatory cooperation in key areas or interest."

Lockheed Continues Developing Compact Fusion

Lockheed Martin is developing a compact fusion reactor (CFR). First announced last year, Lockheed Martin recently reaffirmed that they believe small and scalable fusion systems are both possible and can be practical enough to power interplanetary space travel, commercial shipping vessels, and electrical generating stations for entire cities. They're aiming to have a prototype in five years and a production unit in ten. Fusion, the nuclear process by which the sun operates, is an attractive scientific concept to master. The technology has been "10 years away" since the 50's, though followers have reason to believe this endeavor might be different. Lockheed Martin's Skunk Works has a legendary history of advanced innovation - the [lightbox title="Title" href="http://www.icosa.co/magazine/wp-content/uploads/2013/02/88a28a8877aa538242258691346c017f.jpg"]SR-71 Blackbird[/lightbox] spy-plane instantly comes to mind.

Thomas McGuire, an aeronautical engineer in the Skunk Work’s Revolutionary Technology Programs unit, describes Lockheed Martin's approach:

Aviation Week was given exclusive access to the latest experiment. Read Guy Norris' piece for further information.

Colorado Gubernatorial Energy Forum

LIVE - SENATORIAL AND GUBERNATORIAL ENERGY FORUMOCTOBER 14TH FROM 9:45 am TO 12:30 pm

The candidates will provide their views on the future of the Colorado energy economy, followed by a moderated Q&A session. A panel discussion focusing on the opportunities for Colorado business and jobseekers in the energy industry will also be held.

This forum is sponsored by:

Colorado Business Roundtable Consumer Energy Alliance Colorado Energy Coalition Vital for Colorado Farm Bureau Colorado South Metro Denver Chamber Colorado Motor Carriers Association Grand Junction Area Chamber of Commerce Action 22 - Giving voice to Southern Colorado Metro North Chamber of Commerce AABE - Denver Area Chapter Colorado Women's Chamber of Commerce CACI - Colorado Association of Commerce & Industry Denver South Economic Development Partnership Western Slope Club 20

U.S. Net Energy Imports at Lowest Level in 29 Years as Domestic Production Keeps Booming

Net energy imports, as a share of U.S. energy consumption, continue to fall due to increased domestic production in areas such as the Bakken Basin, Marcellus Shale region, Eagle Ford shale, and the Permian Basin.  Last week, the Energy Information Administration (EIA) reported net imports have declined to 10.9% for the first six months of 2014 — the lowest level in almost 30 years. Total domestic energy production is currently outpacing the United States ever increasing energy consumption, helping lessen dependence on energy imports, says EIA analyst Allen McFarland.

He continues by breaking out each source of growth by energy type, "The increase in total energy production was almost entirely concentrated in petroleum and natural gas. Petroleum accounted for 52% of the 2014 year-to-date increase, natural gas for 27%, renewable energy for 9%, and nuclear electric power for 2%. In contrast, total coal production fell 1%. The increased liquids production reflects the use of advanced drilling methods, including hydraulic fracturing and horizontal drilling."

Full report published by the EIA:

Total U.S. net imports of energy as a share of energy consumption fell to their lowest level in 29 years for the first six months of 2014. Total energy consumption in the first six months of 2014 was 3% above consumption during the first six months of 2013, but consumption growth was outpaced by increases in total energy production. These changes led to a 17% reduction in net imports compared with the first six months of 2013.

Total energy consumption increased every month in 2014 compared with the same month in 2013. However, 81% of the total increase in consumption came in January and February, reflecting the effect of colder weather during the polar vortex. Natural gas accounted for 55% of the 2014 year-to-date increase, coal for 24%, renewable energy for 12%, petroleum for 8%, and nuclear electric power for 3%. Of the total natural gas consumption increase, the residential and commercial sectors accounted for 69% of the gain, again reflecting the cold winter, while 30% of the increase came from the industrial sector, continuing a long-term trend toward higher industrial use of natural gas.

The increase in total energy production was almost entirely concentrated in petroleum and natural gas. Petroleum accounted for 52% of the 2014 year-to-date increase, natural gas for 27%, renewable energy for 9%, and nuclear electric power for 2%. In contrast, total coal production fell 1%. The increased liquids production reflects the use of advanced drilling methods, including hydraulic fracturing and horizontal drilling. These techniques have led to higher production in areas such as the Bakken Region, Marcellus Region, Eagle Ford play, and Permian Basin, and have greatly increased U.S. oil and natural gas production.

Total energy imports in the first six months of 2014 fell 6% compared with the first six months of 2013, almost entirely because of decreasing petroleum and natural gas imports, which fell 6% and 5%, respectively. Total energy exports increased 8% compared with the first six months of 2013. The increase was almost entirely the result of a 21% increase in petroleum product exports.

The Future of Commodities

Commodities as they are traditionally known, consist of things like agricultural products and fossil fuel resources, but what if we widened that lens and thought about commodities differently? This issue delves into not only commodities as we know them but also commodities like time and people. We're interested in what drives the direction of all types of markets and how our view of them has evolved and changed over time.

Nevada Wins Tesla Gigafactory

Elon Musk and Telsa Motors have been shopping around the US looking for the ideal location for the Gigafactory - Tesla and Panasonic's massive lithium ion battery manufacturing venture. Congratulations to the state of Nevada for winning the site selection. It's an exciting manufacturing plant (the world's largest lithium ion production facility) during an exciting time in the life of Tesla Motors - The company's stock was just given a $400 target price by market analysts.  Stifel Nicolaus analyst James Albertine compared investors’ enthusiasm for Tesla stock with a “freight train.”

“While there are no fewer than a half-a-dozen other key concerns we share with industry purists, the reality is, these issues simply do not matter with respect to Tesla’s stock,” Albertine wrote in a letter to clients. “Tesla sentiment is like a freight train, in our view, benefiting from a well manicured growth story that has caught the eye of a much broader investor base relative to most auto stocks.”

The stock reached $290 per share yesterday, following upbeat second-quarter results. The electric car maker is on target to achieving an annual rate of production of 100,000 cars by the end of next year, doubling its current rate. More inroads are being made in China which are also contributing to the string of records.

The Gigafactory is an important step in the company's growth path as it prepares to mass-produce a $35,000 model by 2107.  The facility looks like it will reach 50 GWh in annual battery production by 2020, which is enough to power 500,000 of Tesla's cars.  Nevada, while offering a $1.25 billion tax incentive package, will be gaining significant capital investment and around 6,500 jobs. Governor Sandoval said at the announcement that the agreement will add up to $100 billion to Nevada's economy over the next 20 years. Check out the full Gigafactory Press Release below.

THURSDAY, SEPTEMBER 4, 2014

CARSON CITY, NV – Governor Brian Sandoval and Elon Musk, Chairman and CEO of Tesla Motors, announced today that Nevada has been selected as the official site for the Tesla Gigafactory.

“This is great news for Nevada. Tesla will build the world’s largest and most advanced battery factory in Nevada which means nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years. I am grateful that Elon Musk and Tesla saw the promise in Nevada. These 21st century pioneers, fueled with innovation and desire, are emboldened by the promise of Nevada to change the world. Nevada is ready to lead,” stated Governor Brian Sandoval.

“I would like to recognize the leadership of Governor Sandoval and the Nevada Legislature for partnering with Tesla to bring the Gigafactory to the state. The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come. Together with Panasonic and other partners, we look forward to realizing the full potential of this project,” said Elon Musk, Chairman and CEO of Tesla Motors.

“On behalf of the State of Nevada, I would like to acknowledge this monumental day and provide my initial support. This is a significant opportunity to make a major stride to improve our statewide economy. I look forward to receiving the necessary information so the Legislature can meet and take necessary action to support this major industry coming to Nevada,“ stated Speaker Marilyn Kirkpatrick.

http://www.teslamotors.com/about/press/releases/nevada-selected-official-site-tesla-battery-gigafactory

Moving Big Things to Remote Locations

A Q&A WITH CAP LOGISTICS For the most part, pieces and parts for businesses in the heavy industries is not manufactured or produced in place. Most of what is used by the mining, oil and gas, or the equipment industry, for example, must be moved around the country. Throughout the week, business runs as usual, but there are instances where companies are forced to make quick decisions that involve moving these pieces and parts for an operation around the country or the world quickly.

A smaller transportation company called CAP Logistics does just that, taking needed shipments for companies around the world and transports them where they need to be, no matter when, where or what size.

What is CAP Logistics? What does it do as a company?

CAP Logistics is a multi-modal logistics company specializing in on-demand, customer driven transportation solutions. The company was started over 32 years ago to provide service to the heavy industries in remote locations in the Rocky Mountains that were trying to avoid expensive downtime.

Who are the primary players within the company?

We’re a smaller family-owned company, so while we have a traditional corporate hierarchy with “final say” decision makers, we tend to run more of a horizontal operation. This allows our management and executive leadership broad latitude to engage with our customers and our staff on a multitude of issues and opportunities. We’ve come to find out that through this team ideation process that we can identify answers and solutions quicker and more robust when we work as a collective team.

How was CAP Logistics created?

Like most entrepreneurial start-ups, CAP’s glamorous beginnings started in the basement of our owner’s, Gayle and Karen Dendinger’s house. Gayle delivered freight and made customer visits. Meanwhile, Karen had just delivered their first baby a year earlier so she stayed home taking shipments and handling all the accounting, but at the time, Karen knew nothing about freight so Gayle often jokes, ‘Karen used to answer the phone, take the order and as soon as she’d hang up her and the baby would both start crying.’ It was all worth it. The Dendinger’s opened their first office just a few short months later and the rest is well, history.

What makes it different from other companies of its type?

CAP Logistics is different on many levels. First and foremost, we’re a family company and not a big box forwarder. Because we operate with an emphasis on team ideation and groupthink, many of our employees share great camaraderie and respect along with pride in the service each person provides in varying roles throughout the company.

Just as important as our people, are our customers. CAP Logistics has spent the last 32 years focused on key heavy industries, creating specialized teams, while investing in technology and infrastructure to support these customers in remote and urban locations around the world. Through our proprietary business intelligence, we’ve customized profiles to accommodate special information for each individual customer and their unique needs and organizational standards.

We’ve also created the CAP Carrier Standard, which ensures our customers safe transportation of their freight. With ever changing regulations and standards CAP continues to be on the cusp of safety and risk management by only employing drivers and vendors with excellent driving records. This helps keep the public safe when drivers are on the road carrying our customer’s freight. It also means our customers will get all of their freight in tact!

Where are your headquarters and other offices?

CAP is headquartered in Denver, Colorado with operational locations in Chicago, Houston, Salt Lake City, and Southern California to serve heavy industries west of the Mississippi, although we do provide service throughout the East Coast and around the world.

Do you have facilities near bigger clients. What determines that? What is the primary purpose for that?

CAP Logistics has a broad customer base that encompasses various industries. Our national customer service staff and operational offices are located in areas that best serve our customers in key industries around the world. We’ve ultimately chosen these locations because of the industries we serve, not just for specific customers.

Give us examples of different types of projects. For example, I believe you are moving a large piece of equipment from one part of the world to Beulah, ND? Tell us about how you handle unique projects and tackle others that may not have been done before. Are there specific procedures you follow?

That’s correct, we just moved a large boiler for a coal to gasification plant to Beulah. The boiler this company needed was manufactured in Italy so it had to be trucked from Italy to Antwerp, Belgium. From there it sailed across the Atlantic, through the St. Lawrence Seaway and into the Great Lakes before arriving in Milwaukee where it was then trucked to Beulah. It took a lot of planning, paperwork and of course logistics, which our international team took in stride.

And of course, every shipment is different and every company has specific standards and requirements when you move their freight. Our international teams as well as our domestic teams have to take these requirements into account each and every time we get a shipment. End users change, supplier’s change and documentation can sometimes be very rigorous. It’s a lot to know if you don’t do it each and every day. So there really aren’t specific procedures to follow each time, because every shipment is like a puzzle with unique pieces and parts.

What might be the most unusual project that CAP Logistics has tackled?

We’ve had lots of unique moves over the years. Everything from taxidermy, generators, and computer chips, but some that really stand out are moving propane tanks through the Hawaiian Islands on a barge, chartering two Tomahawk helicopters to Asia, transferring oil-slicked turtles from a cleanup site to a wildlife refuge, and transporting a 118-foot long tractor-trailer rig carrying a generator rotor across the country on the Antanov 124, one of the largest aircraft in the world.

According to your Vice President of Sales & Marketing John Boner, CAP Logistics tackles jobs that others might not be able to tackle or perform. And thus, since they can be difficult, it is very important to be up front, honest and in good communication with the client. Tell us more about that? About client relations?

We always try to deliver realistic expectations to our customers at CAP Logistics. Most of our shipments are emergency or mission-critical so it’s very important that our customers are aware of their options. Most times we’ll have a customer call in and tell us what is going on, usually they have a specific idea of what they would like to do. Part of our process in creating unique customized solutions is by giving customers more ideas and options for their freight that they might not have considered. Most times, through conversations with our operations team, we can create new ways to transport their freight. And like anyone, people just want to be updated and communicated with. We want our customers to be aware of what is going on with their shipment. Because at the end of the day it’s the transparency in our work and the relationships that we build that means the most to our customers.

Tell us about your conscious as a company and how CAP Logistics contributes to the community because I know that it is very community conscious.

At CAP our team is our family and because of that the team collectively gets involved in endeavors and organizations that are near and dear to our “family”. CAP also participates in and gives to events and organizations that are in line with our business objectives. Gayle has always said, “It is good business to be a good neighbor.” That is always changing and evolving depending on what we are focused on or what is transpiring at a given moment. We always try to stay present with what is important to our employees and our customers, because at the end of the day, we wouldn’t be where we are without them.

This article originally appeared in The Drill, August 27, 2014