Up Front

The economy may be slowing, but it's not in reverse. One indication is that although both United Parcel Service and FedEx Corp. reported that shipments were flat to slightly down during 2000's peak holiday season compared with 1999 numbers, the two companies showed relatively strong financial returns. UPS said it expected to meet its performance targets for the year, while FedEx said that for its second quarter, which ended Nov. 30, earnings were up by 18 percent over the same period in 1999.

Customer service is the most important issue facing logistics managers, according to the results of a new survey by the U.S. Chamber of Commerce. But hiring and retaining qualified staff was rated as the most challenging aspect of their jobs. The chamber asked 344 logistics managers from both shipper companies and logistics-service providers to rate a number of issues by their importance. Results of the survey can be found at the chamber's Web site, www.uschamber.com .

U.S. Customs procedures and policies have to change, according to leading industry organizations that met in Washington, D.C., last month. The American Association of Exporters and Importers (AAEI), the Joint Industry Group (JIG), the National Customs Brokers & Forwarders Association of America (NCBFAA), and the U.S. Business Alliance for Customs Modernization (BACM) met to formulate a strategy for lobbying the 107th Congress to pass customs reform legislation. The groups also identified common positions on a number of issues, including the third version of Customs' Entry Revision Project, account-based processing, drawback, and the impact of import laws on consumers. The meeting drew more than 150 executives from some of the largest importers and customs brokers in the United States.

The Union Pacific/Southern Pacific merger has created no demonstrable competitive problems, says the federal Surface Transportation Board in its fourth annual review of the combination. The board will continue to monitor the performance of what is now the Union Pacific for another year. In its review, the board said the UP-SP combination had produced vigorous competition and improved service in the West. It dismissed concerns expressed over the market share of UP competitor Burlington Northern Santa Fe, arguing that rates were the relevant factor and that rail freight rates had declined significantly over the last three years.

Railroads by the numbers: The 2000 edition of Railroad Facts is now available from the Association of American Railroads. The annual reference booklet contains statistics on major railroads for 1999 and selected prior years. Included are data on finance, traffic, operations, equipment, employment and compensation, fuel consumption and cost, and loss and damage. It also includes profiles of Class 1 railroads, Amtrak, the two major Canadian railroads, and two Mexican railways. Copies are available from AAR to non-members at $15 for one copy, $12 per copy for two to 10 copies, and $10 per copy for orders of more than 10. Call (202) 639-2102 and press 1, or order online at www.aar.org .

Registration fees paid by parties that transport hazardous materials - or offer them for transportation - could be heading down. The U.S. Department of Transportation's Research and Special Programs Administration (RSPA) has proposed a temporary reduction in the fees to offset collections that have been greater than expected. RSPA says it is reducing future collections until the surplus is expended. For small businesses, RSPA proposes lowering the annual fee for the next six years to the minimum provided by law, from $275 to $250. For the same period, the annual fee for large shippers and carriers would be lowered from $1,975 to $475.

More than 27,000 trucking firms are included in the National Motor Carrier Directory published by Transportation Technical Services. The new edition of the directory reflects carriers that collectively account for 1.1 million trucks and tractors, 1.8 million trailers, and $166.3 billion in revenue, TTS says. For ordering information, visit www.ttstrucks.com .

Two prominent women in transportation are stepping down. After more than 30 years in public service, Lillian Borrone, assistant executive director of the Port Authority of New York and New Jersey, announced her retirement last month. Borrone was the first woman at the port to be named a facility manager, the first director of the Management and Budget Department, and the first woman appointed port director at N.Y./N.J. In Washington, D.C., Federal Railroad Administrator Jolene M. Molitoris resigned her position on Dec. 31. Appointed by President Clinton in April 1993, Molitoris was the first woman to lead the Federal Railroad Administration in its 34-year history.

If you need details about European business, a visit to the European Internet Network's pan-European Internet portal may be helpful. The English-language site now offers direct links to 14 country-specific sites, most covering Central and Eastern European nations. By the end of the first quarter, the Prague-based developers say, the site will also offer information about France, Italy, and Spain, and they expect to include every country in Europe by the first quarter of 2002. The Web site's address is www.europeaninternet.com .

Now that's personalized customer service. Recently, the airfreight specialists at freight forwarder UTi's Milwaukee, Wis., office had a large shipment for a major customer coming out of Tokyo. Because they knew seasonal freight volumes meant space would be tight, the UTi staff booked a charter flight. Still, they worried that this year's hot new video game, scheduled to ship at about the same time, would gobble up all available aircargo space - and then some. To be on the safe side, Branch Manager Rose Dentice flew to Tokyo. On her arrival, she found that the airline had indeed canceled the charter and given the space to another customer. Dentice found another suitable aircraft, supervised the loading at Narita Airport, and even took photos of the plane as it lifted off.

Online insurance registration for motor carriers is now possible. The Federal Motor Carrier Safety Administration (FMCSA) has modified its licensing and insurance information database and Web site to allow registered insurance companies and other financial institutions to file information about motor carriers'insurance policies directly online. Financial institutions may now enter certificates of insurance, notices of cancellation, surety bonds, trust fund agreements, and other evidence of security via the Internet. The Web site address is http://fhwa-li.volpe.dot.gov .

Those laptops are more hazardous than we thought. The U.S. Department of Transportation's Research and Special Programs Administration (RSPA) has issued an advisory regarding the dangers of transporting lithium batteries, which are commonly used to power laptop computers. Last year, an airfreight shipment of batteries containing lithium caught fire when the packages were damaged during unloading. Right now, there are no marking or labeling requirements for the batteries, but possible restrictions are under consideration.