Management Update
Staff -- Logistics Management, 1/1/2003
Should transportation security prevail over safety? At the Dangerous Goods Advisory Council's annual conference, Chief John Eversole, retired from the Chicago Fire Department and this year's recipient of DGAC's Wilson Award for outstanding service, made the case for balancing both considerations. Recent proposals to remove hazardous materials placards from trailers and containers because they could be targets for terrorism are short-sighted, Eversole said. Such information is critical to the safety and success of first responders to transportation emergencies, he noted, adding that unmarked trailers of dangerous goods led to the deaths of firefighters in at least two incidents in recent years. Instead, he concluded, uniformly applying existing safety regulations in harmony with—rather than in conflict with—safety needs will be the key to creating effective and practical security standards.
Shippers who are concerned about hazmat transportation security can get a free security awareness training CD-ROM from the U.S. Department of Transportation. The training tool includes guidelines for securing hazardous materials in storage facilities and in transit, assessing vulnerability, running employee background checks, and conducting security reviews. Single copies may be ordered online at http://diy.dot.gov. Choose "RSPA Office of Hazmat Safety," followed by "Training Materials and Publications," then "Free Publications." Scroll down to "Security Training Module." Readers also may order via e-mail sent to training@rspa.dot.gov or by calling (800) 467-4922, ext. 3.
December was a busy month for transportation-related appointments. Most prominent was the nomination of John W. Snow, chairman of CSX Corp., to be U.S. Treasury Secretary. Snow, trained as an economist and a lawyer, served in the U.S. Department of Transportation before joining CSX. Also last month, President Bush named Roger Nober chairman of the Surface Transportation Board. Nober formerly was a lawyer at DOT and for the House Transportation and Infrastructure Committee. Outside of government, Paul M. Tellier, Canadian National's president and chief executive officer, resigned to take the same position at railcar manufacturer Bombardier Inc. Tellier is credited with turning the formerly inefficient, government-owned railroad into a lean and profitable public company. He was succeeded by E. Hunter Harrison, former president and CEO of Illinois Central Railroad, which CN acquired in 1998.
For the latest on legal and regulatory developments affecting transportation, plan to attend the Transportation Consumer Protection Council's annual conference, April 6-9 in Reno, Nev. TCPC and the Transportation Loss Prevention and Security Association will offer sessions on such topics as how to prepare for court cases; how to purchase transportation insurance; and recent court decisions affecting transportation and logistics. Participants also can attend a concurrent exhibition and optional seminars on freight claims filing and recovery; contracting for transportation and logistics services; and transportation, logistics and the law (taught by Logistics Management contributor William J. Augello). For more information, go to www.tcpcinc.com or contact TCPC at (631) 549-8984.
Perhaps it was merely wishful thinking. CF AirFreight, the freight forwarding arm of defunct Consolidated Freightways Inc., tried to keep going after its parent shut down in September. At the time, the forwarder said it was profitable and had sufficient funding to continue as a separate business. But shippers, spooked by its relationship with the bankrupt motor carrier, took their business and ran. That led CF AirFreight to shut its doors on Nov. 21. The Mendota Heights, Minn.-based company, originally named FlightMasters/SeaMasters, was acquired by CF in 2000.
Of all the headaches resulting from the recent closure of West Coast ports, one of the biggest was the logjam of ships waiting to be unloaded when the ports reopened. By now, that problem has been sorted out, but it did lead to some creative thinking on ways to cope with the backlog. One such idea comes from Kevin Neels and Catherine Taylor of Charles River Associates' transportation practice. Neels and Taylor believe that allocating places in an unloading queue, then allowing carriers to buy and sell slots based on consignees' needs, would be the most efficient solution. Parties with the most to lose by delay would be willing to pay for a position at the front of the queue, they reason. The consultants envision an arrangement whereby consignees with less time-sensitive cargo would receive the proceeds of payments made by shippers of more time-sensitive commodities.
Return of the CATS ... The remarkably successful Cargo Criminal Apprehension Team, better known as the Cargo CATs, is back in action. Los Angeles-based Cargo CATs is a unique interagency strike force that includes city, county and state law enforcement investigators who are dedicated to preventing and solving cargo thefts. Since its founding in 1990, Cargo CATs has made 871 arrests, cleared 720 cases and recovered more than $126 million in stolen property. Budget cuts had shut down the strike force earlier this year, but a determined group of shippers, carriers, and other cargo interests, led by the National Cargo Security Council (NCSC) and Fireman's Fund Insurance, worked long and hard to convince local authorities to fund Cargo CATs again. The Port of Long Beach, the Port of Los Angeles and the Los Angeles County Board of Supervisors have agreed to provide funding for six months. A coalition of cargo interests has pledged support, but more is needed. NCSC Executive Director Joe Baker Jr. is soliciting donations or funding ideas; contact him at ncsc@cargosecurity.com if you'd like to contribute.
CSX Corp. will transfer CSX Lines to investment firm The Carlyle Group. The shipping line, which serves Alaska, Hawaii, Puerto Rico and Guam, will be renamed Horizon Lines LLC. CSX will receive $300 million in cash and securities while retaining an interest in the carrier. The deal also includes CSX Lines subsidiary Horizon Services Group, a provider of IT services to ocean carriers and shippers. This latest development continues CSX's divestment of its ocean shipping holdings, which began with the sale of most of its Sea-Land subsidiary to Denmark's A.P. Moller Group. "Completion of this transaction is consistent with our long-stated strategy of becoming a more rail-based organization, strengthens our balance sheet, and provides shareholders with significant value," said CSX Corp. President Michael J. Ward in announcing the deal.
How can multinational companies keep supply chain managers informed when they're located on opposite sides of the globe? Speaking at the Council of Logistics Management's annual conference in San Francisco, Carol P. Skolimowski, director, regional logistics international for pharmaceutical giant GlaxoSmithKline, explained how her company uses London as a pivot point, consulting regional managers in a sequence that takes time differences into account. Doing so makes it possible for logistics managers around the world to review, modify and approve business plans in record time, she said. In addition, presenting data in graphic formats via Webcasts and Internet "meetings," and having a common "logistics language" with universally understood vocabulary ensure effective communication when multiple languages are involved.
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