Showing posts with label Department of Transportation. Show all posts
Showing posts with label Department of Transportation. Show all posts

Thursday, November 30, 2017

US Coast Guard Operates Secret Floating Prisons In Pacific Ocean

Last week, Seth Wessler wrote a story for the New York Times, in which he described “terror on the high seas”: an expansion of the maritime war on drugs, the U.S. Coast Guard is operating a fleet of secret floating prisions in the Pacific Ocean. Coined “floating Guantanamos”, Coast Guard cutters have been deployed as far as 3,000 miles miles away from the nearest U.S. port, to international waters from Central America to South America in a bid to bust drug smugglers.


Wessler writes about a number of men who were detained by the U.S. Coast Guard and imprisoned on the cutters for weeks or months at a time. The practice of capturing smugglers and turning them back to their governments changed in 2012, when the Defense’s Southern Command, tasked with leading the war on drugs in the Americas, launched a multinational military campaign called Operation Martillo, or “hammer.” Post 2012, Coast Guard cutters cruise around the Pacific picking up smugglers who will then be admitted to U.S. courts.



According to Wessler, the U.S. Coast Guard never intended to operate floating prisions, but thanks to U.S. marintime law, drug smuggling in international waters is considered a crime against the U.S (even if there is no proof), making the possibility of floating prisions legal. Once detained, conditions for the smugglers are quite rough, often kept on US vessels for weeks or months on end– chained to anything, usually on the ships’ decks exposed to the bare elements.




The Coast Guard has a humanitarian public image, celebrated in local newspapers for rescuing pleasure boaters off Montauk or hurricane survivors in Florida. But as the lone branch of the military that serves as a law-enforcement agency, the 227-year-old service has also long been in the business of interdicting contraband, from Chinese opium smugglers to Prohibition rumrunners. For centuries, Coast Guard operations waited to arrest smugglers once they crossed into U.S. territorial waters. Then, in the 1970s, as marijuana trafficking ballooned on the route from Colombia into the Caribbean before arriving in the United States, Justice Department officials argued to Congress that current U.S. law constrained law enforcement’s ability to punish drug smugglers caught on the high seas. While the Coast Guard, then a branch of the Department of Transportation, could chase smugglers into the Caribbean, Justice Department lawyers could rarely hold smugglers caught in the legal gray zone of international waters criminally liable in U.S. courts.


 


Congress responded by passing a set of laws, including the 1986 Maritime Drug Law Enforcement Act, that defined drug smuggling in international waters as a crime against the United States, even when there was no proof that the drugs, often carried on foreign boats, were bound for the United States. The Coast Guard was conscripted as the agency empowered to seek out suspected smugglers and bring them to American courts.


 


In the 1990s and through the 2000s, maritime detentions averaged around 200 a year. Then in 2012, the Department of Defense’s Southern Command, tasked with leading the war on drugs in the Americas, launched a multinational military campaign called Operation Martillo, or “hammer.” The goal was to shut down smuggling routes in the waters between South and Central America, stopping large shipments of cocaine carried on speedboats thousands of miles from the United States, long before they could be broken down and carried over land into Mexico and then into the United States. In 2016, under the Southern Command’s strategy, the Coast Guard, with intermittent help from the U.S. Navy and international partners, detained 585 suspected drug smugglers, mostly in international waters. That year, 80 percent of these men were taken to the United States to face criminal charges, up from a third of detainees in 2012. In the 12 months that ended in September 2017, the Coast Guard captured more than 700 suspects and chained them aboard American ships.




Wessler details the extent of his investigation below, which provides an eye-opening view of the extent of America’s secret extraterritorial war on drugs,




Over the last year, I’ve interviewed seven former Coast Guard detainees, some of whom are still in American federal prison, and received detailed letters, some with pencil renderings of the detention ships, from a dozen others. Most of these men remain confounded by their capture by the Americans, dubious that U.S. officials had the authority to arrest them and to lock them in prison. But it is the memory of their surreal imprisonment at sea that these men say most torments them. Together with thousands of pages of court records and interviews with current and former Coast Guard officers, these detainees paint a grim picture of the conditions of their extended capture on ships deployed in the extraterritorial war on drugs.”  




PBS NewsHour interviews Seth Wessler, where he speaks about the 700 suspected drug smugglers imprisoned on Coast Guard cutters between September 2016 through 2017.










Saturday, October 7, 2017

Tesla's Dirty Secret: It Was Banging Out Parts Of The Model 3 By Hand

As it turns out, Elon Musk’s warning earlier this year that the Tesla Model 3 roll out would be production hell was an understatement.


In a damning – if unsurprising – report, the Wall Street Journal revealed Friday that Tesla managed to produce only a tiny fraction of the 1,500 Model 3 sedans that it promised customers because key parts of the cars are still being assembled by hand, far away from the assembly line at the company’s Fremont factory. As of a few weeks ago, the advanced assembly line that Tesla has long boasted about - and which it had spent billions upon billions in capex to build -  wasn’t ready and the company was working frantically to try and finish it, while keeping the arrangement a secret from purchasers and investors.



More apropos, the report strongly suggests that Tesla’s Monday warning about “production bottlenecks” might not be its last as Elon Musk’s dream of building millions of the "everyman’s electric car" melts before his eyes. 





Unknown to analysts, investors and the hundreds of thousands of customers who signed up to buy it, as recently as early September major portions of the Model 3 were still being banged out by hand, away from the automated production line, according to people familiar with the matter.



While the car’s production began in early July, the advanced assembly line Tesla has boasted of building still wasn’t fully ready as of a few weeks ago, the people said. Tesla’s factory workers had been piecing together parts of the cars in a special area while the company feverishly worked to finish the machinery designed to produce Model 3’s at a rate of thousands a week, the people said.



As one analyst quoted by WSJ snydely pointed out, “that’s not how mass production vehicles are made.”





Automotive experts say it is unusual to be building large parts of a car by hand during production. “That’s not how mass production vehicles are made,” said Dennis Virag, a manufacturing consultant who has worked in the automotive industry for 40 years. “That’s horse-and-carriage type manufacturing. That’s not today’s automotive world.”



When called for comment by WSJ, an angry Tesla spokesperson delivered a statement that could have been taken right out of Trump"s playbook, slamming what Tesla described as a "decade-long campaign of misleading reporting" by the WSJ.





In a statement, a Tesla spokeswoman declined to answer questions for this article and said, “For over a decade, the WSJ has relentlessly attacked Tesla with misleading articles that, with few exceptions, push or exceed the boundaries of journalistic integrity.



While it is possible that this article could be an exception, that is extremely unlikely.” The Journal disagrees with the company’s categorization of its journalism.Musk has staked Tesla’s future (not to mention the company’s massively inflated valuation) on the success of the Model 3, which was intended to be Tesla’s first attempt at building an electric vehicle for “mass market” consumers, priced at a relatively affordable $35,000 a car.



As WSJ pointed out, a memorable statement made by Musk during the July launch event for the Model 3 has proven unusually prophetic. Given Musk’s warnings about “production hell”, it’s surprising that the company’s investors are only now learning about the primitive methods employed by the company.





Tesla introduced the Model 3 at an event outside the company’s factory in July, when Chief Executive Elon Musk drove a shiny red Model 3 onstage as hundreds of his employees cheered the first sedans rolling off the production line.



Within minutes of stepping out of the new vehicle, Tesla’s leader warned his engineers and designers the coming months would be challenging. “Frankly, we’re going to be in production hell. Welcome, welcome!” he said to laughter. Behind the scenes, Tesla had fallen weeks behind in finishing the manufacturing systems to build the vehicle.



Or, as the philosopher said, hell is other people, not other conveyors.


Last Monday, Tesla announced it had produced only 260 of the promised 1,500 sedans, an average of only three cars per day. Musk blamed unspecified “production bottlenecks” for the shortfall. That unconscionably charitable characterization of the company’s production problems has now been exposed as totally misleading.


“Although the vast majority of manufacturing subsystems at...our California car plant...are able to operate at high rate, a handful have taken longer to activate than expected,” the company said at the time.


Then on Friday, Musk came up with another excuse, when in the late afternoon, he tweeted that Tesla was ramping up production of its solar-powered Powerwall home batteries, ostensibly to deliver them to Puerto Ricans in need – which is now the reason for both the Model 3 delay and the delay in the unveiling of the Tesla Semi; furthermore it is also an attempt by Musk to cynically use the tragedy in Puerto Rico as cover for his company"s production failure.



Worse, as the WSJ points out, although Tesla has struggled with production issues in the past – most notably during the rollout of its 2015 sports-utility vehicle – the obstacles facing the Model 3 are far more threatening to the company’s long-term financial health.





Tesla’s rollout of the Model X sport-utility vehicle in 2015 also was plagued by quality and design issues that left suppliers scrambling and hourly workers having to rush to meet lofty goals. And with employees at the company’s Fremont factory telling WSJ that it could be another month before the assembly line is ready, the production problems plaguing the Model 3 could pose a much bigger threat to the company’s long-term financial health.



Painting a comical scene of primitive, ad hoc production methods more appropriate for some Lada factory deep in the bowels of Russia and certainly not the pinnacle of modern production, the WSJ described a factory where workers struggled to perform tasks typically reserved for heavy machinery as they strained to piece the cars together.





One worker who spent time in the Model 3 shop—dubbed by some as Area 51 because of the limited access and secretive nature—described watching young workers in September struggling to move large pieces of steel to weld together instead of using robots as is traditionally the case.



“In place of the robots…you’ve got two associates lining up with a big, old spot welder hanging from the ceiling by a chain, and you’ve got one associate kind of like balancing it and trying to get the welder in position, and you’ve got another welder with his arm guiding it,” this worker recalled seeing. “Sparks go flying.”



It almost makes one wonder where all those billions in capex spending are going?


Finally, the report also contradicts a claim Musk made while speaking to analysts in August that the Model 3s would be “full production cars.”





In August, Mr. Musk told analysts that the Model 3s coming out of the factory were “not engineering validation units.”



“They’re fully certified, fully DOT-approved, EPA-approved production cars,” Mr. Musk said, referring to the Department of Transportation and the Environmental Protection Agency. “These are not prototypes in any way. They’re not validation anything. They are full production cars.”



The bottom line is that as much as we’re sure Musk would "love" to help the good people of Puerto Rico rebuild their devastated energy grid - especially if it involves billions in US taxpayer subsidies - he’s not the savior that the Isle of Enchantment needs right now. And while we are confident that Tesla shareholders will soon get what they deserve, we look forward to what the next inevitable "mule with a spinning wheel" product will be...


Saturday, September 16, 2017

"Unprecedented Thefts" Force Baltimore Bike-Sharing Program To Suspend Operations

In 2016, the city of Baltimore partnered with Bewegen Technologies to launch North America’s largest electrical-assisted cycling (or pedelec) bike sharing program. The system is located in Baltimore’s metropolitan area with over 25 stations available. Fast forward one-year later, this grand "sharing economy" experiment in America’s most dangerous city has imploded due to what the company"s CEO says is a level of theft he has never experienced before.


As of today, Baltimore officials have suspended all operations of the bike fleet until October 15, 2017. According to the Baltimore Sun, the temporary shutdown is due to “thieves ripping the bicycles out at an unprecedented pace”, said Alain Ayotte, CEO of Bewegen Technologies, the Canadian manufacturer. The manufacturer of the $2.36 million Baltimore Bike Share system said his company has "never experienced the level of theft" that caused officials to announce a temporary shutdown of the program to allow additional locking devices to be installed to the bike docks.


Per Baltimore Sun,





"We don’t have this issue anywhere else, not at this level,” Ayotte said Wednesday. “Our locking system is recognized [as] very, very up to industry standard, but due to the issues that occurred in Baltimore this summer, we did add additional security.”



The bike-share program launched last fall with 200 bicycles at 20 stations and was supposed to grow to 500 bicycles at 50 stations in the spring. Instead, it has suffered so many thefts and maintenance backups that most of the bicycles are out of service. The program will close Sunday and reopen Oct. 15.



Unwittingly, some bicycle stations were placed in areas of extreme wealth inequality and high violent crime. Even though, each bicycle is outfitted with GPS, it did not deter thieves. Baltimore is suffering from a racial wealth divide according to JPM. The report highlights African Americans are 63% of the total 620k population with nearly 1/3 having a net worth of zero.


At one point, the thefts became so rampant, maintenance employees spent a majority of time searching for stolen bikes. The Department of Transportation had to apologized for misleading millennials about the true nature of the bicycle problem calling it a ‘rebalancing issue’.


In particular, a citizen named Brian Seel, wrote a Medium piece titled: “Baltimore Bike Share Only Has Four Bikes”. Recently, he rode to all 25 bike sharing docks and only found four working bikes. In the article, he explains how the ‘real problem’ is communication issues with the bike sharing company…


Mr. Steel rode to all 25 stations. In his first finding, he stopped at Baltimore City where there were no bikes, but 5 listed on the APP.



At Baltimore Visitors Center there were no bikes, but 7 listed on the APP.



In Baltimore’s financial district there were no bikes, but 6 listed on the APP.



Baltimore Bike Sharing’s twitter plays it cool….



It’s a ‘manageable situation’



The last one is hilarious: “This is not unusual”…..



Baltimore is a shrinking city with a population at a 100-year low. Officials are unwittingly throwing money at anything, such as a bike-sharing system, to attract millennials. Unfortunately, there is too much overhang in a city where 50-years of democrat-controlled leadership, in-conjunction with decades of deindustrialization. This should be a big clue to millennials that the narrative of city life continues to crack.

Monday, February 13, 2017

"Stealth Recession" - The Mystery Of The Teleporting Commuter

Via ConvergEx"s Nicholas Colas,





The game is afoot: call it the “Mystery of the Teleporting Commuter”.  Starting in October 2016, the amount of gasoline supplied to the US market started to decline on a year over year basis.  This negative trend accelerated in January, leaving both energy analysts and macroeconomic pundits to wonder if the US has entered a stealth recession.





We regularly look at US gasoline production in relation to the Department of Transportation’s “Miles Driven” data, and when you add that variable to the mix the mystery starts to clear.  Even though gasoline supplied was down 1.6% in October and -0.3% in November, the DOT data (November last month available) shows miles driven up 1.6% and 4.3%, respectively.  By this math, imputed fuel efficiency for the US fleet is improving noticeably compared to historical trends that date back to the 1970s – a trend that is worth watching in 2017.





And while that’s an important piece of the puzzle, the real upshot is the gasoline data alone is not enough to conclude that the US economy has grabbed a lower gear or slipped into reverse.  The miles driven data shows we can (and probably are) still cruising along.



Are you an American male between the ages of 35-54?  If so, congratulations (of a sort).  According to the US Department of Transportation’s Federal Highway Administration you drive more than any other age cohort/gender demographic.  A lot more, as it turns out: you clock an average of 18,858 miles/year, some 14% more than the national average of 16,550 miles/year.  The group least likely to get behind the wheel:  women over the age of 65, who drive an average of 4,785 miles/year.  If you are in neither camp, you can see how your demographic stacks up here: https://www.fhwa.dot.gov/ohim/onh00/bar8.htm


Regardless of where you are on that continuum, Americans do a lot of driving.  In fact, over the last 12 months ending November 2016, we put a collective 3,215 billion miles on the odometer.  That is the equivalent of driving back and forth to the Sun every 3 weeks.  And since most Americans (86% according to a 2009 Census study) commute to work alone in their car, taking an average of 25 minutes door-to-door, driving is closely correlated with employment levels.  All those miles behind the wheel are therefore an important economic indicator.


It is for this reason that a Goldman Sachs note out this week about the decline of gasoline supplied to the US market caught a lot of attention.  Less gas consumption should, logically, mean fewer people doing the daily commute.  Not to mention shopping, going out to eat, and everything else Americans like to do.


The upshot is this: implied gasoline supply to the US based on data from the EIA was down 5.2% in January.  These are levels consistent with a recession, even though Goldman is careful to point out that they don’t expect one is in the works.  So what’s going on?


There is another data set to consider: the Department of Transportation’s “Traffic Volume Trends”, which estimates the total miles driven on American roads through 4,900 sensors placed on both rural and urban arterial roads.  Squaring that information against the gasoline supplied data from the EIA yields some useful observations:


  • Gasoline supplied – the number everyone is worried about – has actually been declining on a year over year basis since October 2016. The comps are: October (-1.6%), November (-0.3%), and December (-2.4%).  We use the EIA’s monthly data, which is less noisy than the weekly data that is getting all the attention, so January 2017 is not available yet.

  • The DOT’s “Miles Driven” data tells a different story. October 2016 miles driven were up 1.6%, and November’s comp to prior year was +4.3%. You can see all the data on the DOT website here: https://www.fhwa.dot.gov/policyinformation/travel_monitoring/tvt.cfm.   Given that the National Retail Federation estimated Holiday 2016 at a 4% comparison and employment growth was positive in the month, we doubt miles driven in December 2016 was lower than the same month in 2015.

  • Put the two items together, and you get a noticeable increase in implied fuel economy for the US fleet over the last 120 days. We’ve tracked this statistic back to 1973, and average US fleet miles per gallon has in fact been increasing gently over the years.  It now sits at 23 MPG, where it was just 13 MPG back in the 1970s.  The increase comes from Federal regulation of Corporate Average Fuel Economy, which requires auto manufacturers to sell a product mix with a specific miles per gallon goal.  CAFE standards have risen over the years, resulting in better average economy.

Long term trends to better fuel economy aside, the recent drop in gasoline consumption alongside ever-greater “Miles driven” is a notable trend to follow in the coming months.  The US vehicle fleet (cars, pickups, minivans, SUVs, etc.) totals over 250 million units, and (at most) 17 million clunkers scrap out every year, to be replaced with 17 million new (more efficient) vehicles.  Now, we have had several years of very good vehicle sales during a time when CAFE requirements were rising quickly.  Incremental fuel efficiency is therefore certainly a part of the story.  As for how much, we will have to monitor the data through 2017 to see how this develops.


The bottom line, however, is that the gasoline supply data is only part of the story, and the DOT statistics tell the rest.  Miles driven can climb even when gasoline shipments decline.  It happened as recently as Q4 2016.  It probably happened in January 2017.  Sure, there will be a recession at some point.  But it probably didn’t start in January.

Saturday, December 17, 2016

Fuel Tanker Explodes; 2 Die In 55-Car Crash After "Brutal" Northeast Cold Turns I-95 Into Ice Rink

The US northeast, and much of America, woke up to a brutal blast of frigid air sweeping across the United States, which has wreaked havoc on roads in Virginia and Maryland, leaving at least three dead in multi-vehicle wrecks Saturday.


According to CBS, a 55-vehicle crash on a icy stretch of I-95 in Baltimore, which also included a dramatic crash and explosion of a fuel tanker truck, left at least two people dead and motorists stranded for hours about 5 a.m. Saturday, Baltimore Fire Department spokesman Roman Clark said. Eleven people were taken to hospitals.



The frozen roads are the result of an arctic air mass, called Winter Storm Decima, that has chilled large swaths of the northern United States for days will culminate this weekend with dangerous cold in Montana and North Dakota as heavy snow falls in other parts of the country, officials said. People in North Dakota face "life threatening cold" and the risk of frostbite with exposure of 10 minutes or less, the National Weather Service (NWS) said in an advisory. In Montana dangerous wind chills are expected to last through Saturday afternoon and people should guard against hypothermia, the NWS said.



Temperatures in parts of Montana could plummet to record lows for this day of around minus 30 degrees Fahrenheit (minus 34 degrees Celsius), meteorologist Kenneth James of the Weather Prediction Center said in a phone interview cited by Reuters.


The bitter cold comes from a blast of arctic air - the second one this week - blowing south from Canada across the U.S. border into the northern plain states and the Midwest, NWS officials said. It has joined forces with a storm that swept in from the Pacific Ocean, bringing snowfall to large sections of the northern United States as it chugs across the country to the East Coast, they said. Areas of Wisconsin, Indiana, Vermont, New Hampshire and Maine will see the heaviest snowfall from the storm on Saturday, with up to 6 inches (15 cm) of accumulation possible in those regions.


* * *


So far most impacted has been transportation along the I-95 corridor and especially around Baltimore, where traffic was at a stand still for hours while crews assessed this morning"s crash. Authorities say a tanker went off the bridge and fell down to the street below.


A Twitter clip posted on Saturday morning showed a fuel truck flipping over a median on the interstate before erupting in flames near the Washington Boulevard exit, CNN affiliate WBAL reported. Clark confirmed the video showed the I-95 crash.



Following the crash, I-95 in parts of southwest Baltimore has been largely shut down as emergency vehicles descended on the scene, stalling traffic for miles and leading authorities to urge stranded motorists on both sides of the interstate to "remain warm and calm and shelter in place" in their cars, Clark said.




"If you don"t have to go out on the roads, we would ask that you just
stay in at this time until the temperatures rise," Clark told CNN.


Mayor Catherine Pugh gave a statement on the incident:





I want to share my deepest condolences to those affected by this morning’s multi-vehicle crash.  Today’s icy road conditions remind us all that it is imperative to exercise extreme caution due to severe weather. I want to thank the emergency crews for their expedient response. They continue to work closely with City agencies to render aid and coordinate efforts to stabilize road conditions for motorists. For the latest updates and information, please follow the Baltimore City Department of Transportation. We ask that residents delay travel if possible.



Elsewhere in the northeast corridor, police responded to more than 40 traffic incidents in northern Virginia, some involving multiple vehicles, according to the state police. One person was killed in a multi-vehicle crash at 5:12 a.m. on Interstate 495 in Fairfax County, state police said.


At Dulles Airport, just outside Washington D.C., icy conditions forced the closure of runways. The dangerous conditions arrived as some people started their holiday travel early.


In Indiana, the Wayne Township Fire Department and the Indianapolis police had to evacuate stranded drivers from I-465. The slick roadway forced rescuers to use a ladder in the evacuation. Police in Marion and Hendricks counties responded to nearly 200 accidents, 36 involving injuries, between 10 p.m. and 4 a.m., according to the Indianapolis police.



In the West, a snowstorm has already hammered parts of Oregon, dropping snow on the region on Wednesday. Photos showed cars strewn across snow-covered roads and trucks spun out at odd angles. Officials asked drivers to avoid the roads as traffic ground to a virtual halt.



In the Portland metro area, the snowstorm jammed public transportation and stranded hundreds of students who couldn"t get home due to dangerous road conditions, reported CNN affiliate KOIN. Many were stuck in traffic on school buses or spent extra hours at school, waiting to be picked up after one to three inches of snow fell across the region. Many of the area schools closed Thursday to avert more chaos on the roads, according to CNN affiliate KPTV.



Oregon also had three avalanches Wednesday amid the flurry of snow, closing down Highway 20, said the Oregon State Police.


As millions of people take to the roads over the holiday weekend, snow and ice will make for dangerous driving conditions on the roadways, the National Weather Service warns.


Drivers in Raleigh, North Carolina have been advised to stay home and avoid travel due to the inclement conditions.


"Freezing rain is causing traffic-related issues throughout Raleigh at this hour," the Raleigh Police Department said in a memo Saturday.


"As is typically the case, bridges and overpasses were the among the first areas to have issues due to icing, but the problems are widespread and not limited to those locations."


In the Indiana counties of Marion and Hendricks, authorities responded to nearly 200 accidents between 10 p.m. Friday and 4 a.m. Saturday, according to the Indianapolis Metropolitan Police Department. Thirty-six of them involved injuries, police said.



* * *


Conditions are not expected to improve much in the coming hours as frigid air blast is bringing bone-chilling winds and subfreezing temperatures to millions across the country this weekend. The National Weather Service warns that the massive system will produce heavy snow from parts of northern California to the Great Lakes. Its reach will extend into the southern Rockies and New England by Saturday morning.


Here"s what CNN says you can expect:


  • Nearly 50% of the country will see temperatures dip below freezing Saturday and Sunday

  • With the wind chill, temperatures could reach 35 below zero in the Midwest and Northeast on Saturday

  • Close to 116 million people are under a Winter Weather Advisory

  • As temperatures rise overnight, coastal cities in the Northeast will see a changeover from snow to rain by Saturday evening.

  • A strong storm over the central Rockies will move northeast to New England by Sunday morning.

  • Potentially life threatening wind chills as low as 50 degrees below zero are expected in North Dakota, South Dakota, Montana, Colorado and Idaho.

  • Portions of Illinois, Wisconsin and Minnesota could get the coldest air the region has seen in two years.