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Management Update

By Staff -- Logistics Management, 1/1/2004

  • The final rule on advance electronic cargo notification requirements has been issued at last. Mandated by the Trade Act of 2002 and the Maritime Transportation Security Act of 2002, the rule was published last month in the Federal Register by the Bureau of Customs and Border Protection. The final version includes three major changes to the proposed rule that was published in July: a new requirement for additional data elements for inbound split air shipments; the removal of requirements for advance notice for air shipments of letters and documents, which will be published in a separate Federal Register notice; and a reduction in the time frame for advance notice of outbound rail shipments to two hours prior to arrival at the border. The final rule also clarifies several issues, including liability for accuracy of information and effective dates for different modes of transportation. For details, go to www.cbp.gov.

  • Is your company a logistics leader? In our May issue, Logistics Management will profile companies that have implemented best practices in their logistics operations. Just in case the recognition alone isn't incentive enough to talk about your company, we're also running a contest: The reader who submits the winning entry, as chosen by LM's editors, will win a Macintosh "iPod" digital music player. For more details, see Page 33 in this issue or fill out the entry form at www.lmsurveys.com/bestpractices.

  • Look for the debut of a new LM columnist next month. With our February issue, Patrick M. Byrne will replace William C. Copacino, who has written our well-received "Copacino on Strategy" column for the past 17 years. Copacino, a recipient of both the Council of Logistics Management's Distinguished Service Award and the Salzberg Medallion for service to the logistics profession, has been promoted to Group Chief Executive of Accenture's Business Consulting Group. Byrne takes over as managing partner of Accenture's Supply Chain Management service line, and in that role will pen a monthly column on supply chain excellence for Logistics Management. Copacino sums up the major changes he's chronicled for this publication over the years in his farewell column on Page 66.

  • A new report urges trading partners to work together on backhauls to share the transportation savings. The Food Marketing Institute and the Grocery Manufacturers of America last month issued a report calling for greater collaboration to reduce costs for both buyers and sellers. The groups' "Fairness Statement" recommends that trading partners form a joint team to manage backhauls and establish performance metrics for all parties to meet. Those measures should cover pick-up and delivery issues, loading practices, equipment compliance, and consistent participation. A copy of the statement can be found on both organizations' Web sites: www.fmi.org and www.gmabrands.com.

  • The motor carrier marriage of Roadway and Yellow has been blessed. Roadway Corp. stockholders last month gave their approval to a merger with Yellow Corp. Both carriers had dominated the LTL market for years, but in recent years the growth of regional LTL truckers, combined with a decline in LTL freight volumes, has pressured the two companies to look for efficiencies. Yellow has said that Roadway will continue to operate as a separate subsidiary.

  • More funds could flow toward American railroads, if a number of key senators get their way. South Carolina's Sen. Fritz Hollings last month introduced legislation that calls for a six-year, $42 billion investment in U.S. rail infrastructure. The bill aims to create a non-profit, public-private partnership called the Rail Infrastructure Finance Corp. (RIFCO), which would issue $30 billion worth of tax-credit bonds. RIFCO, in turn, would offer grants to the states, which would be required to put up another $12 billion in matching funds.

  • The nation's highest court will step into the border-opening dispute with Mexico. The U.S. Supreme Court last month said it would review a federal court order requiring the Department of Transportation to conduct a full Environmental Impact review before it can fully open the U.S.-Mexico border to Mexican truckers. Under orders from President Bush, DOT had complied with the terms of the North American Free Trade Agreement that called for opening U.S. highways to Mexican motor carriers handling cross-border shipments. But several environmental, labor, and consumer groups, citing safety and environmental concerns, obtained an injunction against the border opening on the grounds that DOT had failed to comply with U.S. environmental laws.

  • What's longer than a football field, has 76 wheels, and flies? Well, nothing yet—but a cargo aircraft that fits that description, known as the Pelican, is being designed by the Boeing Corp. for the U.S. military. In "The Future of Flying," National Geographic's cover story last month, Project Manager Blaine Rawdon described the Pelican as "in essence, a flying ship." The enormous aircraft would boast a wingspan of 500 feet and weigh 3.2 million pounds. As currently envisioned, it would carry a payload of 1,400 tons of cargo—five times the capacity of today's largest cargo aircraft, the Antonov 225. Ocean carriers should watch out: Boeing's designers say the airplane would be ideal for transoceanic flights, moving 10 times faster than containerships at a fraction of the operating cost of conventional airfreight services.

  • Canada has created its own version of the U.S. Homeland Security Department. Last month, Prime Minister Paul Martin announced the creation of the Canada Border Services Agency (CBSA). The new government arm will include such agencies as the Canada Customs and Revenue Agency, Citizenship and Immigration Canada, and the Canadian Food Inspection Agency. CBSA will become part of the Department of Public Safety and Emergency Preparedness. Canadian authorities said the new organization would foster trade and travel while improving security.

  • Four distinguished logistics leaders are the first recipients of a new award. At its annual meeting last month, the American Society of Transportation and Logistics (AST&L) announced a new membership designation, Distinguished Logistics Professional. Chosen as the first honorary recipients were: Dr. L.L. Waters, an early pioneer in logistics education; William A. "Gus" Pagonis, who oversaw military logistics in Operations Desert Storm and Desert Shield; Don Schneider, who implemented the nationwide expansion of the family-based trucking company that bears his name; and Frederick W. Smith, who created the overnight package business when he launched Federal Express.

  • If you missed out on the Council of Logistics Management's annual meeting this year, you can catch up by reading the conference proceedings. CLM has just published a collection of papers based on presentations made during its annual conference, held last year in Chicago. CLM members can access the papers online at the organization's Web site, www.clm1.org. Members may purchase a CD containing the proceedings for $39.95 plus $5 shipping; non-members for $74.95 plus shipping.

  • One of the oldest names in American shipping has come back to life. Former APL executive Edward Aldridge and other maritime industry veterans have resurrected the once mighty name of United States Lines. The Port of Long Beach, Calif., reports that U.S. Lines will operate a trans-Pacific service with a fleet of five small containerships. The Costa Mesa, Calif.-based carrier expects to make its first voyage this month, carrying cargo from Hong Kong and Shekou, China, to Long Beach.

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