Keep the HOS rules in place for six more months.

That was the Justice Department's response to a recent court decision vacating the controversial hours-of-service (HOS) rules for truck drivers. In January the federal government had implemented rules that changed the number of hours drivers could operate big rigs. But last month the U.S. Circuit Court of Appeals for Washington, D.C., threw out those rules on the grounds that the government had failed to consider their impact on drivers' health. The Justice Department asked for the six-month extension to allow the Federal Motor Carrier Safety Administration (FMCSA) more time to study the issue and determine whether it should devise new regulations to replace the ones vacated by the court. Look for the court to respond shortly.

Meanwhile, the HOS controversy could end up putting an electronic eye in every truck. Two days after asking the appeals court to stay its order vacating the new hours-of-service rules, FMCSA proposed using on-board electronic recorders to monitor HOS compliance. Similar proposals to require the "black boxes," which record engine running times and speeds, have met with stiff opposition from truckers in the past.

There's a lot more to the "Masters of Logistics" survey results than we could print in this issue.

You can get the complete story at the Council of Logistics Management's annual conference, slated for Oct. 3-6 in Philadelphia. The research team that conducted the study will present the full results at a session on October 4. For more information about the conference, considered to be one of the leading educational events for logistics and supply chain professionals, visit CLM's Web site at www.clm1.org.

Just about everyone agrees that freight rates will rise next year. The question is, by how much? Transportation industry pundit Mike Regan (a.k.a. CEO of TranzAct Technologies) has issued his predictions. If Regan is on the mark, then shippers should plan on less-than-truckload rates increasing by 4 to 4.5 percent. Rates for shipments requiring special handling or destined for East Coast commercial zones could go significantly higher. Base truckload rates could jump 5 percent, but surcharges are "the real wild card," Regan says. He forecasts ocean rates will increase by 5 to 6 percent, while intermodal freight will see hikes of 5 percent and parcel and air cargo rates could each rise by 4 percent.

Maersk Sealand will go its own way in the eastbound trans-Pacific trade. The giant Danish carrier has resigned from the Transpacific Stabilization Agreement, a group of ocean carriers that discusses and recommends freight rates and surcharges for that trade lane. U.S. law allows carriers participating in such agreements to discuss rates and surcharges, but member lines are free to implement or deviate from the group's recommendations. Maersk Sealand executives reportedly believe that the company would have more flexibility in dealing with shippers outside of the TSA structure. Maersk's departure leaves 14 other container lines in the group.

Want to learn about the latest supply chain and logistics developments in the comfort and convenience of your own office? Then sign up for the 2004 Global Supply Chain Conference. Top-notch educational sessions will be just a click away on October 20 and 21, when Logistics Management and sister publications Supply Chain Management Review and Modern Materials Handling sponsor this outstanding virtual event. The webcast-style conference will feature seminars on supply chain strategies and logistics best practices. To learn more about the conference or to register, go to www.scmr.com/GSCC.

Frequent

LM contributor and legal authority William Augello will host a series of seminars on transportation law this fall.

Augello will conduct seminars based on his textbook, Transportation, Logistics and the Law, on the following dates: Sept 14 in St. Louis, Oct. 20 in Houston, Oct. 26 in Grand Rapids, Mich., Oct. 27 in Dearborn, Mich., and Nov. 9 in Chicago. Immediately following those sessions, the Transportation Consumer Protection Council (www.tcpcinc.com) will offer one-day seminars on transportation and logistics contracts and freight claims. For more information, go to www.transportlawtexts.com/seminars. And watch for Augello's article on LTL transportation and the law in our October issue.

Cross-border truckers have been put on notice: Dates for mandatory advance electronic cargo filing are coming up fast. Customs and Border Protection (CBP) last month issued a schedule for motor carriers to submit that data through an approved electronic data interchange system at least one hour prior to entering the United States from Canada or Mexico. Implementation will be in three phases, depending on the border-crossing point. The effective dates are Nov. 15, Dec. 15, and Jan. 15. For a complete list of the compliance dates for the various ports of entry, go to CBP's web site, www.cbp.gov.

The federal government will begin testing biometric devices for identifying transportation workers at ports and airports. The Transportation Security Administration (TSA) last month awarded $12 million to the consulting firm BearingPoint to develop a single, nationwide identification system that would prevent unauthorized access to secure areas in seaports, airports, and trucking and rail terminals. The grant marks the beginning of the third phase in the development of the Transportation Worker Identification Credential (TWIC). Some 150,000 workers in six states will take part in testing a tamper-resistant I.D. card that contains biometric information about each credential holder. According to TSA spokesperson Dennis Kayser, the cards will help screen workers for ties to terrorism and eliminate identity fraud.

Automatic identification giant Symbol Technologies has made a play to enter the red-hot RFID market. Last month Symbol reported that it had reached a deal to buy Matrics Inc. for $230 million in cash. Rockville, Md.-based Matrics designs and builds radio frequency identification (RFID) systems. The move comes at an opportune time, with the U.S. Department of Defense and retail giants like Wal-Mart now demanding that suppliers mark their shipments with RFID tags to promote visibility. Market research firm Venture Development Corp. estimates that RFID systems will account for $1.5 billion in sales in 2004.

Need an explanation of gear ratios? How about some tips on payload-weight distribution? Then you may want to pick up a copy of The Truck Equipment Handbook, published by the National Truck Equipment Association. The pocket-sized book is filled with diagrams and charts, and includes a glossary of truck terms, formulas for matching chassis and bodies, government regulations affecting truck equipment, and much more. This useful reference for anyone who buys or specifies commercial vehicles is available to NTEA members for $13 and to non-members for $25. To order a copy, call 1-800-441-NTEA or download an order form from www.ntea.com under the "Products and Services" section of the Web site.

Well-known logistician Gen. William ("Gus") Pagonis has a new tour of duty. Pagonis has joined the board of directors of Pittsburgh-based GENCO, a provider of reverse-logistics systems and services. Pagonis formerly was a senior vice president at Sears, where he implemented a new logistics model that cut supplier delivery times in half. But he's best known for his role as commander of logistics operations during the Gulf War, where he served under Gen. Norman Schwarzkopf.