Up Front
Staff -- Logistics Management, 12/1/2002
U.S. Customs has issued the final version of its rule requiring ocean carriers and consolidators to submit cargo manifest information electronically at least 24 hours prior to loading containerized cargo on board vessels at the port of origin. The rule took effect Dec. 2, but the agency will not assess penalties for non-compliance for 60 days to give the shipping community time to adjust its practices. Customs authorities say they will process non-compliant cargoes separately and will not delay the unloading of compliant shipments at U.S. ports. In the meantime, importers, customs brokers and carriers have expressed concern that the detailed information required under the new rule often is not available prior to an outbound vessel's departure. Look for more details about the impact of the 24-hour manifest rule in the January issue of Logistics Management.
Airlines have been charging a cargo security fee since late last year. Now the trucking industry appears to be heading in the same direction. Last month, Con-Way Transportation Services announced that its less-than-truckload (LTL) operating units would assess an $8 per shipment "homeland security surcharge" for shipments moving between the United States and Canada. Company officials cited such costs as registration of each piece of equipment and each driver who crosses the border, as well as costs incurred by delays and more complex preparations for customs clearance. Con-Way is a participant in C-TPAT, the Customs-Trade Partnership Against Terrorism, which will mandate facility security standards that could cost the LTL carrier an additional $20 million to implement at its 426 service centers.
Should "Just-in-Time" give way to "Just-in-Case"? John Duernheim, chief operating officer of OIA Global Logistics in Portland, Ore., suggests that although JIT is "one of the greatest cost-saving programs for the manufacturer since Henry Ford invented the assembly line," supply chain disruptions linked to last September's terrorist attacks and the recent West Coast port shutdown have rightly led shippers to reconsider that concept. A more appropriate approach in today's environment is "Just-in-Case," which Duernheim defines as keeping enough inventory on hand to cover emergencies. "JIC" also would give transportation providers the flexibility to find more efficiencies and reduce everyone's costs, he says, adding that the U.S. economy might get a noticeable boost if companies were to increase inventory and associated shipments.
Transportation was a hot topic throughout the 107th Congress. Just how important became clear in a recent press release issued by Rep. Don Young (R-Alaska), chairman of the House Committee on Transportation and Infrastructure. Young outlined his committee's accomplishments over the past two years in such areas as transportation and infrastructure security; maritime, air and rail transportation; highways and transit; and more—30 pieces of legislation in all. To read Young's summary of these laws, most of which have a direct impact on freight transportation, go to "Current News" at www.house.gov/transportation.
President Bush hailed the Nov. 23 tentative agreement between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) as being "good for workers, good for employers, and ... good for America's economy." The six-year agreement offers more stability for shippers and carriers while introducing more technology for processing shipment data. Though the union will lose about 400 jobs, it will gain increases in wages and health benefits, new safety provisions and protection for members' pensions. An assembly of delegates is expected to ratify the proposal by the middle of this month, and a secret rank-and-file ballot will follow soon after. Look for updates on our Web site, www.logisticsmgmt.com.
Would you like to help children and young adults discover the world of transportation? The U.S. Department of Transportation's "Garrett A. Morgan Technology and Transportation Futures" program, named after the inventor of the traffic signal, is looking for volunteers to work with educators on transportation-related curriculum development. The program has three goals: to connect young people and the transportation community, support development of technology-based transportation education and ensure that America's future transportation workforce is technologically literate and internationally competitive. DOT has created education outlines for students from pre-kindergarten through graduate school. For more information, go to http://education.dot.gov. The colorful Web site also has activities for kids, including a section on "Transportation Superheroes," which features men and women who pioneered some aspect of passenger or freight transportation.
After a period of relative quiet, Deutsche Post World Net is shaking things up once again. To begin with, Deutsche Post says it will consolidate all of its Danzas business units under the DHL brand name beginning in April 2003. DP executives characterize the integration as "the decisive step toward making Deutsche Post World Net the global number one logistics provider." The "one brand, one face to the customer" approach for all express and logistics services will result in significant facility and staff reductions. DHL, meanwhile, has launched an assault of sorts on the North American transportation and logistics market. In recent months it has announced it would challenge FedEx and UPS by entering the U.S. domestic ground parcel business, purchased Mayne Logistics Loomis to give it entrée to the Canadian domestic parcel market, and opened a logistics customer service center in Phoenix, Ariz., to serve the United States, Canada and Latin America.
Can't get away from the office to take professional development courses? Distance learning may be the solution. More and more educational institutions are offering online educational alternatives to meet the needs of logistics professionals who have too many responsibilities and too little time. Just two examples: The Institute of Logistical Management (ILM) in Burlington, N.J., (www.logistics-edu.com) focuses on "real world" transportation and logistics courses in areas such as motor carrier operations, transportation law, global logistics and warehousing management. Another offering is available from The Logistics Institute (TLI) at Atlanta's Georgia Tech. The multimedia program, developed by TLI director Dr. Edward H. Frazelle, focuses on global logistics, supply chain strategies, inventory management, and warehousing and materials handling. The classes are enhanced versions of "short courses" currently offered at Georgia Tech's campus. For information, go to www.conted.gatech.edu/tli.
You never know when an old industry connection will resurface. Transportation lawyer William J. Augello and transportation consultant Ray Bohman, both long-time contributors to this magazine, have been friends and colleagues for many years. Until recently, though, neither realized that their relationship might have been preordained. While looking at a photo of the first class of Interstate Commerce Commission (ICC) practitioners, who had posed at the White House in 1932 with then-President Herbert Hoover, the two transportation experts discovered that both of their fathers were in the photo and therefore were likely to have known each other decades before their sons ever met.
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