Up Front

By Staff -- Logistics Management, 4/1/2000

Union delayed:

Union delayed: In a vote that took some industry watchers by surprise, Truckload Carriers Association members narrowly rejected a proposed merger with the American Trucking Associations. The vote of 213 against integration and 206 in favor was announced late last month during the TCA's annual meeting. The organization's leaders said they intended to continue talks with the ATA. Gary Baumhover, the outgoing chairman of TCA, says, "This does not mean the end of a 62-year-old friendship; it just means we'll be dating differently."

Pricey price lists have drawn fire from shippers.

Pricey price lists have drawn fire from shippers. The U.S. Federal Maritime Commission is investigating charges that ocean carriers are charging stiff fees for public access to their automated tariff systems. That may be in conflict with the Ocean Shipping Reform Act. The commission has ordered its staff to prepare an advance notice of proposed rulemaking on fees for access to carrier systems. In addition, it ordered staff to prepare a formal announcement pressing carriers to voluntarily provide adequate user instructions; adequate retrieval capabilities, including a commodity index and search feature; access to historical information by the use of an access date; and user-friendly tariff-access software.

How's OSRA working at one?

How's OSRA working at one? The Ocean Shipping Reform Act (OSRA) went into effect just about a year ago. One indication of its success is the number of service contracts filed with the Federal Maritime Commission. Commissioner John A. Moran said in a speech in February that 95,357 service contracts and amendments were filed with the commission between May 1, 1999, and Jan. 31, 2000. These represent 29 percent of the total service contract filings during the 15-year period covered by the Shipping Act of 1984.

Look no farther than your computer screen

Look no farther than your computer screen for access to information on railroads both large and small. The industry has launched a new Web site, Steelroads.com, that provides access to every major rail carrier in the United States, Canada, and Mexico. The site promises to add links to a number of transportation services in the months ahead, including waybill freight-booking modules and sites with car-request capabilities. The site is sponsored by members of the Association of American Railroads, the American Short Line and Regional Railroad Association, and Amtrak.

A sign of the e-times:

A sign of the e-times: The market for electronic procurement software will reach $2.2 billion by 2004, growing at an average rate of 55 percent a year during that time, according to a new report, E-Procurement Solutions (ePS) Worldwide Outlook. The report was produced by Dedham, Mass.-based consultants ARC Advisory Group.

Schneider Logistics has jumped into the freight-payment business.

Schneider Logistics has jumped into the freight-payment business. The third-party logistics arm of Schneider National Inc. has acquired the freight-payment services unit of Tranzact Systems Ltd. The new company within Schneider will be called Tranzact Payment Services and will offer freight-payment and audit services. The business processes more than $4 billion in freight payments annually. Tranzact's remaining businesses, Tranzact Technologies and Freedom Logistics, were not part of the transaction.

Students meet the test.

Students meet the test A team of six MBA students from the University of Wisconsin's Grainger Center for Supply Chain Management took first place at the third annual University of Tennessee Graduate Logistics Case Competition in February. Other teams participating in the competition included the University of Tennessee, Michigan State University, and Penn State University. Student teams had 24 hours to analyze a case study, develop a solution, and prepare a presentation for the judges-supply chain executives from CAT Logistics and BASF, the company that developed the case.

Preparing for spills:

Preparing for spills: The Department of Transportation has released its 2000 Emergency Response Guidebook. The book-a joint project of the United States, Canada, and Mexico-provides information to first responders, such as fire fighters and police, on handling transportation incidents involving hazardous materials. The DOT's Research and Special Programs Administration is distributing two million copies of the first printing of the English version without charge to police, fire, and other emergency organizations through a network of state agencies. The guidebook, which will also be printed in French and Spanish, may be purchased from the U.S. Government Printing Office, Superintendent of Documents, P.O. Box 371954. A searchable version of the guide can be found online at hazmat.dot.gov/gydebook.htm.

Nice name. Lousy effort.

Nice name. Lousy effort. The manager of a Western Union office became suspicious last month when a man tried to cash a check for $715.47 made out to Roadway Express. According to a report in the Dallas Morning News, the man told the manager that was his name-Roadway V. Express-and provided a photo ID obtained locally to prove it. Somehow, the manager didn't believe him. After checking with a local Roadway terminal and confirming that the check was stolen, the manager called police. Mr. Express-in reality, Anthony T. Jackson of Cedar Hill, Texas, according to the Dallas newspaper report-was arrested and charged with larceny.

American booty:

American booty: Roadway Express was in the spotlight again when 55 Academy Award statuettes disappeared off a dock at one of its terminals in Los Angeles, but Oscar was saved in the end. Willie Fulgear, a salvage worker going through a trash bin, found 52 of the statuettes and turned them in to police. Roadway presented him with a $50,000 reward and the Academy of Motion Picture Arts and Sciences invited him to the Academy Awards ceremony. A Roadway driver has been arrested and charged with grand larceny in the theft.

If you were wondering what the logistics industry could do for an encore

If you were wondering what the logistics industry could do for an encore after last month's Danzas-AEI merger, now you know: An even bigger merger is in the offing. Last month, shareholders of Ocean Group plc, parent company of MSAS Global Logistics, and NFC plc, parent of Exel Logistics, approved plans to merge the two logistics giants in a $4 billion deal that will marry MSAS's international expertise with Exel's strength in warehousing-based logistics. Both companies are based in London; for legal reasons they will not release information about the merger in the United States, Canada, Australia, or Japan.

Ocean carriers have been slow to impose fuel surcharges

Ocean carriers have been slow to impose fuel surcharges to counteract vessel fuel and diesel oil prices that have soared by as much as 80 percent in the past 12 months. Late last month, though, Matson Navigation Co. raised its fuel surcharge to 3.25 percent from 2.25 percent. Just three days later, the Westbound Transpacific Stabilization Agreement, a "discussion group" of 12 container shipping lines, announced that its members would impose an "interim" fuel assessment of $80 per 40-foot container, $64 per 20-foot container, and $4 per revenue ton for less-than-containerload freight on cargo moving under service contracts, including those with all-inclusive rates that have pre-established fuel surcharges built in. Shippers that use regular tariff rates already are paying the higher surcharges.