Management Update
An executive summary of industry news
By Staff -- Logistics Management, 3/1/2004
Motor carriers should stop inflating class ratings for mixed commodity shipments, says the National Small Shipments Traffic Conference (NASSTRAC), which represents small package and LTL shippers. NASSTRAC objects to a provision in the National Motor Freight Classification that lets motor carriers rate palletized shipments at the highest class rating for any commodity on the pallet. A pallet containing 50 boxes of bowling bowls and one box of ping pong balls, for example, would be rated as ping pong balls—a low-density item with a high (read: expensive) class rating. A provision in the rule allows rating of individual items in mixed shipments. NASSTRAC, however, says the requirements to qualify for that provision are burdensome and will become more so if some proposed changes are adopted. The group instead favors rating mixed shipments based on the average density of the palletized commodities. For more on this issue, turn to the "Bohman on Pricing" column on Page 25.
Two key lawmakers want to make intermodal equipment providers responsible for chassis liability.
Senators John McCain of Arizona and Ernest Hollings of South Carolina have filed legislation that would require equipment providers to assure their chassis comply with federal safety rules before they are interchanged to motor carriers. The bill would also have the Secretary of Transportation establish a system for registering intermodal equipment, give the Transportation Department authority to regulate the inspection, maintenance, and repair of chassis, and provide civil penalties for non-compliance.
Atlantic and Gulf Coast dockworkers are optimistic that they'll reach agreement on a new labor contract. The International Longshoremen's Association (ILA) and the United States Maritime Alliance, which represents employers, carriers, and ports, issued a statement saying the two sides hope to reach a settlement by March 31, six months prior to the expiration of the current Master Contract. Negotiators are striving to avoid a shutdown such as the one that plagued West Coast ports two years ago. That three-week action had a strong negative impact on the nation's trade and domestic commerce.
Port authorities, on the other hand, are worried they won't get money they need for maintaining waterways.
The American Association of Port Authorities (AAPA) says the Bush Administration's proposed FY '05 budget won't pay for critically important deep-draft dredging projects, even though the Harbor Maintenance Trust Fund has a surplus exceeding $2 billion. Failure to fund those projects will leave waterways in such poor condition that ships will be forced to bypass some ports to avoid running aground, said AAPA President Kurt Nagle. Calling the shortfall a "brewing crisis," Nagle urged Congress and the White House to use the trust fund for its intended purpose, or render ports unable to support growing trade.
The Food and Drug Administration has joined the rising chorus of groups advocating RFID tags. A recent FDA report says tagging pharmaceutical products with radio frequency identification devices will improve tracking and tracing and would make the U.S. drug supply more secure. The agency wants such a system to be in place by 2007. Some companies have proposed tagging individual items, but have backed off somewhat because of consumers' concerns that RFID tags could compromise their privacy.
Be on the lookout for Logistics Management' s Quest for Quality ballots. Each spring, LM mails surveys to selected groups of readers, asking them to rate the performance of their transportation, warehousing, and logistics service providers. Reader feedback determines the winners of the Quest for Quality awards, which will be announced in our August issue. If you receive a ballot, please take the time to fill it out and let us know which companies are providing you with gold-star service.
Menlo Worldwide is the latest U.S. logistics provider to forge ties in China. Menlo Worldwide Logistics said last month that it has formed a strategic business partnership with Guangdong Postal Logistics, a subsidiary of the Guangdong Postal Bureau. The arrangement will combine the postal group's distribution infrastructure in southern China with Menlo's global forwarding and logistics network. The partners plan to serve the increasing number of U.S. manufacturers that are setting up shop in the People's Republic of China as well as domestic Chinese companies. For more on new transportation and logistics developments in China, look for a feature article on that topic in the May issue of LM.
Motor carriers are doing their part to help improve the nation's air quality. Schneider National Inc., UPS, FedEx, and DHL are among the charter members of the Environmental Protection Agency's new SmartWay Transport Partnership program. That initiative aims to reduce carbon and nitrogen oxide emissions from trucks by millions of tons by 2012. Those reductions could save as many as 150 million barrels of fuel oil a year. Using measurement tools developed by the EPA, participating carriers calculate baseline emissions data and identify ways to improve their fleets' fuel efficiency and environmental performance.
Get the impression that more traffic jams than ever are holding up your shipments? A new study confirms shippers' suspicions that highway gridlock has worsened. A study released last month by research firm Cambridge Systematics reports that there were 233 major traffic bottlenecks in the United States in 2002, up from 167 in 1997. The study defined a major bottleneck as a place where drivers experience at least 700,000 hours of delays every year. By the way, researchers pinpointed the Ventura Freeway at the 1-405 Interchange in Los Angeles as the worst bottleneck in the United States.
If you need help in managing today's growing demands for better cargo security, the National Cargo Security Council is the place to turn. The group's mission is to assist shippers, carriers, port authorities, and other supply chain stakeholders in protecting their assets. NCSC recently published an updated version of its popular guidebook, Guidelines for Cargo Security and Loss Control. The 205-page book offers practical advice and reference material on 16 security-related topics. It's available for $34.99; call 410-956-0941 or go to www.cargosecurity.com.
A well-known third-party logistics provider has a new name. USCO Logistics of Naugatuck, Conn., has taken on the name Kuehne & Nagel Logistics Inc. to reflect its new ownership. Kuehne & Nagel, the Schindellegi, Switzerland-based global logistics company, bought USCO in 2001. Kuehne & Nagel Logistics operates some 12 million square feet of warehouse space in 40 facilities across the United States.
The inventor of the first narrow-aisle lift truck has passed away. Christian D. Gibson, who had worked for industrial truck maker Raymond Corp. as an engineer for 36 years, died in January at the age of 89. Gibson designed the first narrow-aisle truck in 1949. The then-revolutionary forklifts influenced warehouse design by making it possible to reduce the amount of floor space needed for aisles and greatly increase available storage space.
Bamboozled by logistics buzzwords? You can cut through all the jargon with the Glossary of Supply Chain Terminology
by Philip Obal, president of software research firm Industrial Data and Information Inc. (IDII). The 420-page book includes definitions for thousands of terms, abbreviations, and acronyms used in logistics, warehousing, manufacturing, and supply chain management and technology. The book goes for $49.95. For more information, call IDII at 918-464-2222, or go to www.idii.com.
Talkback
Related Content
Related Content
Sponsored Links























View All Blogs
