More turnover at the top. Asa Hutchinson, second in command at the U.S. Department of Homeland Security, has tendered his resignation effective March 1. As undersecretary for border and transportation security, Hutchinson oversees security initiatives affecting transportation and logistics. Logistics Management interviewed Hutchinson about his efforts to enlist shippers in the fight against terrorism in our March 2004 issue. As of this writing, the White House had not announced a possible replacement. His successor will report to a new boss: Last month President Bush nominated Judge Michael Chertoff to succeed Gov. Tom Ridge, who is leaving his post as head of Homeland Security.

Switching airfreight forwarders and carriers may get easier. Under the government's "Known Shipper Program," airfreight forwarders and carriers must certify that every customer is a legitimate shipper. Packages or freight tendered by "unknown" shippers—such as new customers—are subject to X-ray screening and/or physical inspection, which can delay shipments. Shippers have complained that this system inhibits competition because it makes it difficult to change forwarders or carriers to obtain better service or a lower rate. To solve that problem, the Transportation Security Administration says it will create a centralized database of "known" airfreight shippers. Once certified and included in that database, shippers would not have to undergo the vetting process again. No word yet on when that database will be ready.

Logistics managers negotiating to hold down rate hikes have a lot working against them these days. Higher energy prices have not only hiked transportation costs, they've also raised costs for transportation equipment and supplies, says economist Elizabeth Baatz, who writes our monthly "Price Trends" column. The prices railroads pay for rail cars, for example, shot up 18.7 percent from December 2003 to December 2004. Prices for truck trailers, chassis parts, and other OEM metal stampings were up 9.7 percent. Packaging has been particularly hard-hit: Over the same period, prices rose 36.2 percent for steel shipping barrels and drums, and 11.8 percent for corrugated shipping containers and plastic bags, says Baatz.

The Canadian landscape for contract distribution will change with PBB Global Logistics' acquisition of rival Unicity. PBB of Fort Erie, Ont., will buy Unicity Integrated Logistics (UIL) and Unicity Customs Services (UCS), based in Winnipeg, Man. UIL has been an innovator in providing international clients with access to the Canadian market, and UCS is one of the largest customs brokers in Canada. PBB executives said that the Unicity acquisition will strengthen its cross-border consolidation, deconsolidation, and forwarding capabilities and expand the company's presence in Western Canada. The deal comes just a year after PBB acquired Clarke Logistics, another large Canadian third-party logistics company.

If you do business with China—or plan to in the future—you'll want to attend our online event, "The 2005 China Logistics Conference," scheduled for April 28. John Manners-Bell of the research firm Transport Intelligence will deliver the keynote address, "China's Logistics Infrastructure: 10 Things You Need to Know." Other sessions will address ocean shipping, third-party logistics, technology, warehousing, and air cargo in China. For more details and to register, go to www.logisticsmgmt.com.

The U.S. Supreme Court will review a dispute involving Michigan's right

to impose truck fees. Recently a Michigan state court upheld that state's right to impose a $100-per-truck annual fee for interstate and intrastate operations. The American Trucking Associations (ATA) has challenged that fee on the grounds that it violates the Commerce Clause in the U.S. Constitution. The ATA argues that the fee's lack of apportionment discriminates against out-of-state motor carriers and serves as a barrier to intrastate market entry. It also contends that Michigan's fee violates the $10 maximum imposed by the Single State Registration System, a federal truck registration program. The U.S. high court is expected to hear the case sometime in April.

Are shippers looking for more control over their 3PLs? Two recent deals may signal a trend in that direction. Last month, grocery chain SuperValu bought Total Logistics Inc., a third-party logistics company, for about $233 million. Milwaukee-based Total Logistics provides refrigerated and dry warehousing services and transportation operations through its subsidiaries, Total Logistic Control (TLC) and Zero Zone. In September, Japanese trading company Sumitomo Corp. announced that it had bought ServiceCraft Logistics, a Buena Park, Calif.-based 3PL serving food and consumer goods clients. The two acquisitions may mark a shift away from the more common strategy of shippers spinning off their distribution departments as 3PLs.

Mexican motor carriers are not on par with their U.S. counterparts when it comes to safety, a federal report has concluded. Last month the U.S. Department of Transportation's Office of the Inspector General (OIG) determined that the Mexican government and that country's trucking companies have not met the safety requirements and preconditions contained in the North American Free Trade Agreement. For that reason, the Inspector General argued, Mexican motor carriers should not be granted long-haul operating authority within the United States. The report cited problems with safety inspections and raised questions as to whether the Mexican government can provide accurate information regarding a wide array of safety issues. Several groups that oppose the entry of Mexican trucks, including the Teamsters, hailed the report and called on the Bush administration to comply with the OIG's recommendations.

Amsterdam will play host to a gathering on European logistics this spring. The Council of Supply Chain Management Professionals will hold its 2005 European Conference, "Coping with Dynamics in Global Supply Chains, a European Perspective," April 21–22 in the Netherlands. Procter & Gamble Vice President Peter Williams will deliver the keynote presentation. For more information, contact CSCMP at 630-574-0985 or go to www.cscmp.org.

The federal government should protect the privacy of hazmat truck drivers who must be fingerprinted for background checks. That's the position of the Owner-Operator Independent Drivers Association (OOIDA), which represents independent truckers. The Transportation Security Administration this month began requiring drivers who haul hazardous materials to be fingerprinted and undergo criminal background checks in order to obtain commercial drivers licenses. The OOIDA also wants the federal government to narrow the list of criminal offenses that constitute grounds for denying drivers a license. For more on this issue, see "Parting Shot" on Page 72.

A new program offers online certification for supply chain professionals. Accenture, the global consulting firm, and the Retail Industry Leaders Association (RILA) will offer a retail supply chain certification that focuses on inventory management. The 50-hour course contains modules on topics such as safety stock, replenishment, and demand management. The program is priced at $1,500 for RILA members and $2,000 for non-members. To learn more about the course, visit www.retail-leaders.org/certification or contact RILA at 703-600-2017.