An executive summary of industry news
Staff -- Logistics Management, 5/1/2002
If supply chain security is a top priority for you, consider attending "Securing Assets in a Global Supply Chain," a conference and exhibition organized by the National Cargo Security Council (NCSC). The conference, to be held June 3–5 in Scottsdale, Ariz., features some of the nation's leading security experts, including shippers, carriers, government officials and security solution providers. Thirteen workshops will feature presentations by representatives of the FBI, U.S. Department of Transportation, Federal Aviation Administration, U.S. Customs and the U.S. Congress as well as major retailers and high-tech manufacturers. General and breakout sessions will cover such topics as developing a master security plan for distribution centers and warehouses, offshore security issues, fleet surveillance, terrorism and cargo crime, and security audit programs. For more information, contact NCSC at (410) 956-0941, e-mail ncsc@cargosecurity.com or visit www.cargosecurity.com.
You know what they say about the best-laid plans ... Last month, the National Industrial Transportation League and the Alliance for Rail Competition (ARC) announced that they had formed the Coalition for Rail-to-Rail Competition. The two groups were supposed to work together to promote greater competition among railroads. Now, that effort has been derailed. In a letter to ARC chairman Terry Whiteside that was reported in NITL's newsletter, League Chairman Van Hayes said that "the League believes it is in our best interest to discontinue [the venture] at this time." Why the change only weeks after announcing the new coalition? According to Hayes' letter, "Matters pertaining to the structure and efforts of the coalition have proven to be a distraction for the League's members and staff. For the League to pursue its overall mission on behalf of shippers, we think it necessary to take this action at this time."
Here's another plan that has fallen by the wayside. The Westbound Transpacific Stabilization Agreement (WTSA), a group of 13 ocean carriers, had announced a one-year "refrigerated trade management program" that would allocate a percentage of refrigerated cargo market share to each member carrier. (See "NITL questions refrigerated container quotas," March 2002, page 18.) The aim of the plan, which included monetary penalties for carriers that exceeded their allocations, was to restore plummeting rates. But shippers questioned the legality of the arrangement and the Federal Maritime Commission said it would investigate. The WTSA withdrew the plan, saying that significant delays involved in the regulatory process and changes in the market eroded the value of the program.
Everyone knows that operator fatigue is frequently a factor in transportation accidents. But how important a factor is it? According to National Transportation Safety Board Chairman Marion Blakey, 100,000 highway accidents annually are attributable to fatigue. Tiredness also is behind 16 percent of marine vessel casualties and was a factor in 20 rail accidents over the last decade, she noted in a speech highlighting National Sleep Awareness Week last month. "We are a nation on the move 24 hours a day," she said, "and this increasingly exposes all of us to the dangers of operator fatigue, not only when we travel but also where we live, work and play."
The Council of Logistics Management's online bookstore is open for business. The bookstore (www.clm1.org/bookstore/bookstore.asp) makes it possible to order any of CLM's publications online in minutes. Discounts are available for CLM members on all publications, including the newest offering, a professional development course available on six compact discs. Visitors to the site can also orderThe Shadow Organization in Logistics: The Real World of Culture Change and Supply Chain Efficiency, highlighted in our recent article "The Shadow Knows" (March 2002, page 39).
Unisys Corp. has launched a new consulting arm called Unisys R2A Transportation and Management Consulting (TMC). The new business unit will offer consulting services to players in the transportation industry in such areas as security, strategic planning and revenue management for cargo and logistics. Participating in the venture, which was formed through the acquisition of Roberts, Roach and Associates, are airline economist Philip Roberts, former airline executives Michael Roach and Ron Kuhlmann, and Greg Hendricks, formerly with Unisys and SABRE.
Cummins Inc., maker of heavy-duty truck engines, is staying ahead of the curve when it comes to restrictive new standards for emissions. Last month the company announced that it was the first on-highway engine manufacturer to fulfill its commitment to meet emissions standards set by the Environmental Protection Agency for nitrogen oxide and non-methane hydrocarbons by October 2002. Cummins and several other manufacturers in 1998 had agreed to move up the compliance date from January 2004 to October of this year. The manufacturer shipped its first compliant engine early in April after more than 6 million miles of road testing and 115,000 hours of laboratory tests.
The World Trade Institute of Pace University, whose office was destroyed on Sept. 11 when the World Trade Center collapsed, is back in action. All of the institute's staff members were evacuated safely, but the need to seek new quarters after 30 years on the 55th floor of One World Trade Center and re-create training programs has kept the educational organization on the sidelines until now. Starting late last month, WTI has again been offering training in international trade operations in New York, Chicago and Los Angeles. Seminars cover customs law, Mexican logistics, export controls, compliance for exporters and importers, and other international trade topics. For more information, contact WTI at (888) 722-3984 or e-mail wti@pace.edu. The new address is 551 Fifth Ave., 8th Floor, New York, NY 10176.
The Intermodal Institute at the University of Denver has announced a new degree program leading to a Master's of Science in Intermodal Transportation. The 15-month program, designed for managers already working in the field, will begin in September. In addition to studying freight/logistics and passenger/planning issues, students also will gain expertise in finance, management and leadership. The program requires a seven-day residency on campus once each quarter, with additional work at home between sessions. Students will complete an intermodal transportation-planning project for their employers and conclude the program with a week-long study trip to intermodal transportation facilities. For more information, contact the Intermodal Transportation Institute at (303) 871-4702 or e-mail catjohn@du.edu.
We've all heard horror stories about warehouse management software (WMS) installations, but most users are actually quite satisfied with their software, according to a new study by one of our sister publications,Warehousing Management magazine. Some 59 percent of the 125 respondents reported being happy with their systems' performance. Twenty-eight percent said they were very happy; only 13 percent said they were dissatisfied with the software. Just over half—54 percent—said they had already achieved a return on their investment. The study also found that among distribution center managers who plan to purchase a WMS, the primary objectives were reducing shipping errors, increasing productivity and tracking inventory levels.
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