When will freight rates return to normal? Not anytime soon, predicts TranzAct Technologies CEO Mike Regan. The transportation software executive says shippers should factor in increases of 5 to 7 percent for the rest of this year and on into 2005. To the oft-cited litany of factors blamed for tighter truck capacity, such as changes in the hours-of-service rules, high fuel costs, and a recovering economy, Regan adds a new villain: the diversion of rail traffic to trucks. Freight that's redirected to motor carriers as the railroads wrestle with service issues will tax already-strained trucking companies, pushing truckload rates higher, he says.

Two of importers' long-cherished dreams are about to come true.

Last month, the Bureau of Customs and Border Protection (CBP) announced a pilot program to test a monthly account statement, which will allow participants to consolidate duty payments and other fees into one monthly electronic payment. The agency also announced testing of a secure data portal—similar to a Web site home page—that for the first time will provide a single point of entry for all communications with Customs. Both initiatives are part of the Automated Commercial Environment (ACE), a complete overhaul of CBP's information system that's designed to identify terrorist threats and facilitate electronic transactions between the government and the international trade community.

DHL will pump $1.2 billion into its North American operations

to better compete with rivals UPS and FedEx. DHL said the money will be used to upgrade its services and build seven new regional sort centers this year and five more after 2005. That investment will bring the number of North American sort centers to 24, doubling the current number of facilities. The air express carrier said it also will consolidate its Greater Cincinnati/Northern Kentucky International air operations into its Wilmington, Ohio, Air Park hub.

TNT Logistics will gain some forwarding muscle

now that its parent company has acquired Wilson Logistics Group.

The purchase of Wilson from Nordic Capital for about $311 million by TPG N.V. represents the Dutch mail and transportation conglomerate's first major foray into international freight forwarding. Sweden-based Wilson, with a presence in 28 countries and more 2,000 employees, will act as a platform for TNT to offer global freight forwarding services, including air freight, sea freight, and combined sea-air freight to its customers. TNT's push into forwarding marks a new strategy for competing with Deutsche Post, its primary competitor.

Cutting through contract "legalese":

The National Industrial Transportation League and the American Trucking Associations have developed a new model truckload contract that takes some of the complex legal language out of that type of agreement. By developing a model contract, the two groups hope to promote uniformity that will increase efficiency in negotiations and provide a balanced agreement between shippers and carriers. The Model Truckload Motor Carrier/Shipper Agreement covers many standard or common provisions, but it still must be customized to meet the needs of individual shippers and carriers. To view the agreement, go to www.truckline.com or www.nitl.org.

Want to know who's the "best of the best" in logistics? Then stay tuned to find out which transportation and logistics providers earned our coveted Quest for Quality awards. Each year for the past 21 years, the readers of Logistics Management have picked the companies that provide the most outstanding service in the industry. The names of the 2004 winners will be revealed in our August issue.