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Management Update

An executive summary of industry news

By Staff -- Logistics Management, 8/1/2004

  • The highway bill ran into a ditch last month, and could be stuck there for the rest of this year.

    Senate and House negotiators were unable to agree on a compromise spending bill for funding road and bridge work for the next six years before leaving for their six-week summer recess. Lawmakers in the House of Representatives backed a White House plan to appropriate $284 billion while the Senate is looking for at least $5 billion more. Although conference negotiations are slated to resume in September, many observers doubt a compromise can be reached before November's presidential election.

  • Shippers might not benefit from using the new ATA/NITL uniform model contract, claims noted transportation lawyer William Augello. Last month the American Trucking Associations (ATA) and the National Industrial Transportation League (NITL) published a truckload contract template, which the groups said was designed to take the "legalese" out of shipper-carrier agreements. Augello, however, says that by using this form, shippers would give up one of the key benefits of deregulation: the freedom to draft contracts that reflect their individual needs. The Transportation Consumer Protection Council has prepared a list of 17 objections to the optional model pact. Anyone interested in obtaining that list can e-mail Augello at: williamaugello@comcast.net.

  • Motor carriers hauling some types of hazardous materials will encounter more red tape next year. The Federal Motor Carrier Safety Administration (FMCSA) said that as of January 1, 2005, it will require carriers hauling explosives, radioactive materials, toxic inhalants, and liquefied natural gas to obtain federal permits. The agency said the regulation will promote safer transportation of the most hazardous shipments. Trucking industry officials have said they oppose the plan because it would add to carriers' administrative burden and would encourage carriers to get out of the hazmat business.

  • Warehousing consultant Kenneth B. Ackerman

    has added a new honor to his long list of accomplishments. Ackerman last month was named chairman of the Global Institute of Logistics, a forum for the third-party logistics industry. Ackerman founded his consulting firm, The K. B. Ackerman Company, in 1981. In addition to his consulting work, Ackerman publishes Warehousing Forum, a monthly newsletter. He has authored several books on warehousing and has been honored for distinguished service by the Council of Logistics Management, the International Warehouse Logistics Association, and the Warehousing Education and Research Council.

  • If you want to find out what all the RFID "buzz" is about, consider attending the Frontline Solutions 2004 conference and exposition, slated for September 13–15 in Chicago. Exhibitors will represent companies involved in radio frequency identification, automatic identification, and mobile supply chain solutions. The concurrent conference program will showcase case studies outlining how companies have utilized technology to improve supply chain performance. For more information, go to www.frontlineexpo.com.

  • Shippers' spending on truckload freight skyrocketed over the past year, according to preliminary findings of our exclusive Masters of Logistics annual survey on logistics and transportation spending. Survey respondents reported that they spent 55.7 percent more on truckload freight in the last 12 months than they did in the previous year. The survey was conducted by Logistics Management, Georgia Southern University, The University of Tennessee, Capgemini, and Oracle. Look for more details on this benchmarking study in our September issue. Executive Editor James Cooke and researchers from those groups will also present the full study results at the Council of Logistics Management's annual conference in October.

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