Up Front

By Staff -- Logistics Management, 8/1/2000

The emergence of electronic commerce

The emergence of electronic commerce and what it means for logistics is the theme of this year's Council of Logistics Management's Annual Conference, which is expected to draw 5,500 logistics professionals. There's still time to sign up for the meeting, which will be held from Sept. 24 to 27 at the Ernest N. Morial Convention Center in New Orleans. The council must receive registration and payment by Sept. 8. Registration, payment, and hotel reservations can be handled online at www.clm1.org. Alternatively, conference materials can be faxed to the council at (630) 574-0537 or mailed to 2805 Butterfield Road, Suite 200, Oak Brook, IL 60523. Hotel reservations can also be made by faxing the hotel reservation form to Global Reservations Inc. at (972) 580-1135.

Still working on the railroads:

Still working on the railroads: The Federal Railroad Administration will offer rail carriers up to $3.5 billion in loans, including as much as $1 billion for improving short-line and regional railroad infrastructure. The Railroad Rehabilitation and Improvement Financing Program will provide funding for upgrading small railroads to accommodate 286,000-pound cars, for highway/rail-grade crossing elimination projects, and for other railroad infrastructure improvements. The direct loans or loan guarantees can be provided for a maximum term of 25 years.

DaimlerChrysler will become the world's biggest maker of heavy- and medium-duty truck engines

DaimlerChrysler will become the world's biggest maker of heavy- and medium-duty truck engines once it completes its acquisition of Detroit Diesel Corp. The German/American automaker already owns 21 percent of Detroit Diesel and has agreed to pay about $423 million for the remaining 79 percent of the company's shares. That announcement followed hard on the heels of the acquisition of Western Star Trucks of Canada by DaimlerChrysler's subsidiary, Freightliner.

Fleet managers could cut fuel and maintenance costs

Fleet managers could cut fuel and maintenance costs and reduce emissions simply by cutting back on idling and using separate devices to cool cabs and warm up engines, says a study by the Department of Energy's Argonne National Laboratory. Auxiliary devices such as direct-fired burners, thermal storage devices, and auxiliary power units consume only one-tenth to one-fifth as much fuel as a diesel engine, according to the study. Argonne transportation analysts estimate that the average U.S. longhaul heavy truck's engine idles up to 1,890 hours a year, burning about one gallon of diesel fuel per hour. Cut that by 1,450 hours, and truckers could save $1,500 in fuel and $275 on maintenance and overhaul costs annually per truck. Operators can figure their own savings by using a worksheet available from Argonne on the World Wide Web at http://www.ipd.anl.gov/ttrdc/idling.html.

Yes it seems unfair, but it's the law.

Yes it seems unfair, but it's the law. Shippers cannot postpone paying freight charges due to alleged loss or damage, advises Logistics columnist and consultant Ray Bohman. Charges should be paid in full and the portion applicable to items lost or damaged should be included in the claim, he writes. Valid claims will not be paid until freight charges are paid in full. Further, delaying payment beyond the carrier's time limit may put at risk any negotiated discounts.

Electronic signatures become legal nationwide on Oct. 1

Electronic signatures become legal nationwide on Oct. 1 as a result of the Electronic Signatures in Global and National Commerce Act, signed by President Clinton at the end of June. But the law neither eliminates the risks related to e-signatures and electronic documents nor ensures their enforceability, warns the law firm Reed Smith Shaw & McClay. Businesses will still have to take steps to provide safeguards. Reed Smith expects standards will emerge over time to guide development of enforceable electronic agreements. In the meantime, proceed with caution.

Missed shipments hurt e-tailers twice.

Missed shipments hurt e-tailers twice. Seven Internet retailers that angered customers during the Christmas season by failing to deliver on time and notify customers of delays have agreed to pay $1.5 million in civil penalties in settlement of charges filed by the Federal Trade Commission. The FTC charged the companies with violating the Mail and Telephone Order Rule, citing their failure to offer buyers a timely opportunity to consent to delays in shipping or to cancel their orders. The companies-CDnow Inc., KBkids.com, Macys.com, Minidiscnow.com, The Original Honey Baked Ham Co., Patriot Computer Corp., and Toysrus.com Inc.-agreed to change procedures to ensure that such violations will not reoccur this year. The settlements concluded an FTC investigation into whether online retailers delivered goods on time during the holiday season.

One way national LTL carrier Consolidated Freightways Corp. is addressing ongoing financial pressures

One way national LTL carrier Consolidated Freightways Corp. is addressing ongoing financial pressures is by selling its 3.2-acre Menlo Park corporate headquarters in California's Silicon Valley and merging its corporate and administrative units in Vancouver, Wash., just across the Columbia River from Portland, Ore. The company is purchasing a 480,000-square-foot building on 23 acres there to house both of those functions. CF's 106-person customer-service center will remain in Dallas, Texas. CF is also selling its current administrative campus in Portland, Ore. Employees from Menlo Park will begin relocating to Vancouver in September. CF's Portland employees will move in phases over the next four to six months, the company says.

Loading and securing hazardous-materials cargoes

Loading and securing hazardous-materials cargoes in transportation equipment can be a big worry for shippers. A new guidebook prepared by the Institute of Packaging Professionals and offered by the Vessel Operators Hazardous Materials Association (VOHMA) can help. The Shipper's Guide to Loading and Securement of Packaged Hazardous Materials/Dangerous Goods in Intermodal Equipment spells out various modal requirements and recommendations on materials and methods. It provides information on load planning for containers plus criteria for blocking and bracing. An appendix provides a list of government contacts and industry suppliers as well as information on equipment specifications. The guide is available for $35 plus $4.50 for shipping from VOHMA, 1118 Bay Road, Lake George, NY 12845, (518) 761-0263, fax (518) 792-7781, e-mail mail@vohma.com, or online at www.vohma.com.

Another source of info on dangerous-goods shipping

Another source of info on dangerous-goods shipping is the first edition of Infectious Substances Shipping Guidelines from the International Air Transport Association. The publication addresses the safe shipping of infectious substances by all modes. Guidelines in the text are based on both national and international regulations and provide information on classifying, packaging, labeling, documenting, and handling shipments. The publication is available for $50 from IATA, (514) 390-6726, or at www.iataonline.com.

Container shipping rates to Asia are on the rise.

Container shipping rates to Asia are on the rise. The Westbound Transpacific Stabilization Agreement is raising rates on a variety of commodities beginning next month. The rate increases range from $80 to $240 per 20-foot container and $100 to $300 per 40-foot container, depending on the commodity and point of origin. The rate increases will be phased in beginning on Sept. 1 and continuing on Oct. 1 and Jan. 1. WTSA members include 12 major shipping lines that trade between ports and inland points in the United States and destinations throughout Asia.