Shippers group may admit carriers
Staff -- Logistics Management, 1/1/2002
In what may turn out to be a giant step in collaborative relationships, the nation's largest shippers organization may soon invite carriers to become full-fledged members.
That would be a major change for the National Industrial Transportation League (NITL), an organization that has long identified itself as the "voice of the shipper." Still, the league's board of directors was scheduled to vote on the proposal, which was made by the league's executive committee, in a meeting in Houston on Jan. 11. If adopted by the board, the proposal would then go to a vote of the full membership.
The proposal, dubbed Vision 2020, was announced to members during the league's annual meeting in Charlotte, N.C., in November. On the meeting's opening day, League Chairman Van L. Hayes told members, "We have to develop a vision of who needs to be involved in league activities—shippers, carriers, intermediaries. We've reached a point where they all need to be involved."
The proposed change would allow full membership for those groups and create a new membership category for academics and other individuals. The associate member category for carriers would be eliminated. Hayes said the proposed change would make the league "the voice of the freight transportation industry" rather than that of a single group within that industry.
The rationale for the change was also outlined in a white paper prepared by NITL President Edward L. Emmett. He argued that as a result of deregulation, "the vast majority of issues affecting shippers require collaborative shipper/carrier approaches. It is still vital for the freight transportation customers to be heard, but as part of a team promoting the overall needs of freight transportation." In addition, Emmett said, the distinction between shipper and carrier has been blurred with the development of the third-party logistics industry and by a shift in business practices that has seen many motor carriers become major customers of the railroads.
The proposal is also driven in part by declining membership in the league, the result of business mergers and other industry developments. "The membership base is declining," Hayes said. "If we stand still, I can assure you, we're going backward."
Although some members voiced support for the proposal, it was met with immediate objections from other members, predominantly rail shippers, who fear giving railroads a greater voice in the organization. Relations between many major shippers and the railroads are among the most acrimonious in the transportation industry.
"I see this as weakening our base," said one attendee in Charlotte. "You're turning a blind eye to some of the issues that are coming up ... I see this as the last shippers organization. I'd hate to give that up."





















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