BORDER LINES

A roundup of North American news:

By Staff -- Logistics Management, 10/1/1999

- Canada's struggling airlines have asked the government to facilitate a restructuring of that industry. Transport Minister David Collenette issued a special order that permits Air Canada and Canadian Airlines to discuss for 90 days a restructuring without risking a violation of federal competition laws. At the end of that time, Collenette will evaluate the airlines' proposal for its ability to ensure stability in the airline industry and maintain an acceptable level of competition. After he and Canada's Competition Bureau make their recommendations to the legislature, the federal government will consider accepting the proposal and making any regulatory and policy changes required to implement the final plan.

- Three logistics-service providers are expanding services in Mexico. Circle International has teamed up with LTL carrier Billings Freight Systems to provide service via dedicated driver teams from the Eastern and Southern United States to Circle's Laredo, Texas, facility. There, a joint operations staff and an in-house Mexican customs broker move shipments through customs. From Laredo, the program offers one-, two-, or three-day delivery, depending on the destination, to 22 cities in Mexico. Toronto-based Clarke Inc. has acquired a distribution facility in Los Angeles, opened offices in Mexico City and Querétaro, and announced plans to establish operations in Dallas. Those moves are designed to support a significant expansion in cross-border business with Mexico. United States Cold Storage (USCS) has launched "PDQ" (Proven Distribution Quality) service for temperature-controlled freight moving to Monterrey, Guadalajara, Mexico City, and Cancún. USCS consolidates shipments into truckloads at its refrigerated warehouse in Laredo, Texas, which a company representative says adheres to high standards of food safety and product control.

- The Port of Vancouver has spent weeks clearing up the container backlog that resulted from a month-long truckers' strike. A reported 8,000 containers were stranded at the port while more than 400 drivers who perform local drayage demanded that they be paid by the hour rather than per trip. A new agreement that requires the drivers' employers to be licensed and to certify that they provide fair, hourly remuneration for drivers' services went into effect early last month. The Port Authority also has instituted several measures designed to reduce the congestion and delays that sparked the drivers' action. Among them is a reservation system that allows truckers to book pickup or delivery times in advance.

- NAFTA Notes: USCO Logistics has purchased Grupo Financiero Santander Mexico's shares in its Mexico business unit. Full ownership will allow USCO to further expand its Mexican operation, which has been renamed Almacenadora USCO Logistics de Mexico, S.A. de C.V. Canadian National has launched "RoadRailer" service between Toronto and Montreal. The door-to-door service uses trailers with two sets of retractable wheels, one for rail and one for road use, so that a single trailer can travel by either mode without using a flatcar. DHL International has opened an international gateway in Edmonton, Alberta, to meet demand for overnight service between Edmonton and major West Coast cities. Mueller Industries has chosen M.S. Logistics Services to manage its order-processing and warehouse operations in Mexico City.