Management Update
An executive summary of industry news
By Staff -- Logistics Management, 2/1/2004
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The government should inspect every air and sea container that comes into the United States. That's the position of the powerful Democratic House Minority Leader, Nancy Pelosi of California. In the Democrats' response to President Bush's State of the Union Address last month, Rep. Pelosi called for checks on all incoming containers to improve national security. She said that at the moment, government inspectors physically examine just 3 percent of all containers arriving on our shores.
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The annual "State of Logistics Report" has a new sponsor: the Council of Logistics Management. Considered by many to be the definitive word on the industry's economic impact, the report quantifies the value of logistics and transportation activities in the United States. The report is written by economists Robert Delaney and Rosalyn Wilson. Wilson is best known as the author of the fact book, Transportation in America. Delaney, the report's founder, was until recently a vice president with Cass Information Systems. ProLogis and Cass Information Systems had sponsored the report for the past few years.
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The Feds are set to launch a safety inspection program for intermodal container chassis. Transportation Secretary Norman Y. Mineta last month announced the inspection plan, which aims to ensure that the trailer beds used for hauling cargo containers are safe. As part of the program, chassis providers will be required to obtain a registration number from the U.S. Department of Transportation (DOT) and display it on the chassis for data-capture purposes. The Federal Motor Carrier Safety Administration will enforce the rules, which the DOT will spell out over the coming weeks.
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How much does your company plan to spend on software this year—and what will you spend it on? We'd like to know, so we've posted a questionnaire on that topic on our Web site. The survey is designed with a quick and easy, point-and-click format. To take the survey, go to www.lmsurveys.com/software/lm. We'll report the results in our May issue.
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FedEx and UPS will challenge a ruling that an air carrier working for rival Deutsche Post meets the federal requirements for U.S. ownership. Last month, an administrative law judge in the U.S. Department of Transportation determined that Astar Air Cargo (formerly DHL Airways) meets the test of national control of an airline. Federal officials so far have resisted requests from the two parcel giants for a formal probe of Astar's ownership structure.
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Expect more states to charge tolls to pay for the upkeep of highways and bridges. That was a hot topic at last month's Transportation Research Board meeting in Washington, where Patrick Jones, executive director of the International Bridge, Tunnel and Turnpike Association, told attendees that tolls will supplant fuel taxes as the primary source for funding improvements and upkeep for the nation's transportation infrastructure. Despite those predictions, a couple of key Congressmen are calling for a hike in the federal gas tax to finance the next round of national highway grants. (See News & Analysis, Page 16.)
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Government and industry could take advantage of similarities between the Customs-Trade Partnership Against Terrorism (C-TPAT) and existing industry security initiatives, suggest results of a recent survey of chemical company executives. The survey, conducted for international freight forwarder BDP International, found that many chemical company executives are largely unaware of C-TPAT and its similarities to the chemical industry's Responsible Care program. Integrating C-TPAT and Responsible Care would promote both supply chain efficiencies and improved security, said Michael Ford, BDP's vice president for regulatory compliance.
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Curious about what your colleagues in logistics are earning? Then be sure to check out next month's issue of Logistics Management as soon as it's available. We'll feature the results of our annual salary survey, which provides a snapshot of what logistics professionals are making these days. Here's a preview of what to expect—and it's no big surprise: Logistics managers are working harder for meager pay gains.
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A new educational and research center will soon be available to supply chain executives. Consulting firm A.T. Kearney and the Institute for Supply Management have teamed up to establish the A.T. Kearney Center for Strategic Supply Leadership. The new center's mission is to pioneer new supply chain strategies, including breakthroughs in purchasing and supply management. From those ideas will come educational programs designed to improve business performance, say the center's organizers.
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As more companies source products from Asia, demand for logistics knowledge is growing in that part of the globe. To meet that need, the Council of Logistics Management will host its first Asia-Pacific Conference next month. The conference will take place March 1–2 at the Raffles City Convention Centre in Singapore. The program features three tracks—Global Perspectives, Industry Specifics, and Logistics Frontiers—as well as tours of logistics facilities. For more information, go to www.clm1.org.
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Need information about companies that sell and repair commercial trucks? Then you might want to pick up a copy of the new National Truck Equipment Association (NTEA) 2004 Membership Roster and Product Directory. The 196-page publication contains a list of truck body, equipment, and trailer manufacturers, and more. Non-members can purchase the directory for $50 per copy. (It's $10 for members.) For more information or to obtain an order form, call 1-800-441-NTEA or visit www.ntea.com.
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Top-notch presenters will be offering the latest information on transportation law and regulations at the Transportation Consumer Protection Council's 30th Annual Conference in March. The four-day event, scheduled for March 21–24 in Orlando, Fla., opens with all-day seminars on transportation, logistics, and the law with William J. Augello; freight-claims filing and recovery with John T. Harvey; and contracting for transportation and logistics services with Raymond A. Selvaggio. Workshops fill the other days, covering topics including regulatory compliance, risk management, and outsourcing. You can register online at www.tcpcinc.com.
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All signs point to increased Asia-U.S. ocean trade. A rise in freight bookings and strong economic signals from both sides have forecasters at Drewry Shipping Consultants calling for 94.4 million TEUs to be shipped worldwide this year, an 8.4-percent bump over 2003. They also see another 10-percent rise, to 104 million TEUs, in 2005. Ocean carriers in the trans-Pacific trade are predicting vessel capacity will keep pace with demand, but warn that space will again be tight, especially during peak periods. Members of the Transpacific Stabilization Agreement say they still plan to implement general rate hikes for inbound shipments on May 1.
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Longshoremen plan to shut down the Port of San Francisco for one day next month. A copy of a letter from Jack Heyman of ILWU Local 10 says the union recently voted to hold a one-day work stoppage to protest the war in Iraq. The letter makes it clear that this is not a strike, but a political protest that happens to take advantage of a contract clause that lets the union call for a "stop work meeting" once a month. Heyman notes that he hopes to get "all ports on the West Coast to take the same action as Local 10."
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