Management Update

An executive summary of industry news

By Staff -- Logistics Management, 3/1/2007

• Let the wrangling over cross-border deliveries begin. On February 23, U.S. Transportation Secretary Mary Peters announced that for the first time, U.S. trucking companies will be allowed to make deliveries in Mexico and Mexican carriers that pass Federal Motor Carrier Safety Administration (FMCSA) inspections will be allowed to make deliveries beyond the 20–25 mile commercial zones currently in place along the U.S.-Mexico border. According to industry reports, the year-long program will permit up to 100 Mexican and U.S. trucking companies to take part in the program. As expected, shots from both sides of the issue began ringing out almost immediately. “They’re playing Russian Roulette on America’s highways,” said Jim Hoffa, general president of the International Brotherhood of Teamsters. An Associated Press report noted that Sen. Patty Murray, D-Wash., Chair of the Senate Appropriations Subcommittee on Transportation, Housing, and Urban Development, announced that she would convene a hearing on March 8 to investigate whether the Bush administration has “fulfilled the spirit and the letter of the law.” The American Trucking Associations (ATA) came out quickly in support of the pilot plan.
• Last-minute squabble almost collapses DP World-AIG deal. In December, DP World agreed to sell port operations at more than 20 U.S. ports to AIG Global Investment Group. The Port Authority of New York and New Jersey’s (PANY/NJ) 11th-hour demand for a “lease transfer fee” of up to $84 million temporarily put the skids on the deal. Port officials reportedly wanted the fee as compensation for $30 million in past improvements to Port Newark Container Terminal (PNCT), but DP World’s CEO called the fee request “totally unreasonable.” The dispute ended on February 16 when PANY/NJ withdrew its demand and accepted a commitment from AIG that its Ports America affiliate would invest at least $50 million in PNCT.
• Peace in Canada? Canadian National Railway Company (CN) announced that it has reached a tentative settlement with the United Transportation Union (UTU). At press time, 2,800 UTU conductors and yard-service employees remained on strike pending ratification. The agreement was reached a day after Canadian Labor Minister Jean-Pierre Blackburn introduced legislation in Parliament to force striking employees back to work as early as March 1. The strike, which began on February 10, had a notable impact on the automotive and chemical industries in the U.S. and Canada, delaying shipments of coal, grains, lumber, and auto parts.
• NITL conference will have an eye on policy. The National Industrial Transportation League (NITL) will host its Spring Policy Forum in Washington D.C. on March 26. Industry association leaders representing all modes of freight transportation, including the American Trucking Associations (ATA) and Association of American Railroads (AAR), will get together to share their perspectives. Key themes of the event include labor relations, transportation funding and infrastructure, future trends in regulation, and security. For more information, go to www.nitl.org.
• Does your wallet feel any heavier this year? Chances are, it doesn’t. As Senior Editor Jeff Berman reports in this month’s cover story, logistics salaries have leveled off. The question: How do logistics professionals break out of this salary rut and fast-track into a supply chain career? Find out in our webcast on Thursday, March 22, when we unveil the nitty-gritty details of LM’s 23rd Annual Salary Survey. Jeff will share which industries pay the most, which titles bring in the biggest bucks, and which education programs can help boost your bottom line. He’ll be joined by Don Firth, president/CEO of JobsInLogistics.com, and Don Jacobson, president of LogiPros, to tell you how to pump new life into your career. Go to www.logisticsmgmt.com/salary07 to register.