Management Update

Giuliani’s port platform. Republican presidential hopeful and former New York City Mayor Rudy Giuliani said that if elected as President, he plans to implement a new port security law enforcement program modeled after the “CompStat” initiative he oversaw as mayor. The program, “PortStat,” would use statistics on arrests, complaints, suspicious activities, and other intelligence information to detect criminal, security-breach, and terrorist activity trends at U.S.-based airports and seaports. And the data would be used to aid federal, state, and local law enforcement agencies to adjust security strategies on an ongoing, pro-active basis. Giuliani added that the program is critical in analyzing the risk of cargo shipments before it arrives on our shores.

Is DHL looking to spend in Japan? According to Asian news source, AFX, the answer could be yes. A recent AFX story reported that DHL has expressed interest in bidding for a 50 percent stake in Exel-Sinotrans Freight Forwarding Co Ltd, a joint venture between Exel LLC, an affiliate of Deutsche Post—DHL’s parent company—and Sinotrans Air Transportation Development Co Ltd. DHL’s President of Greater China and South Korea, Jerry Tsu said in the report that DHL was in talks with ,Sinotrans, but that there was no progress to report at press time.

Something’s brewing with security. The National Coffee Association (NCA) recently announced it is collaborating with member companies—including Starbucks Coffee Co. and American Coffee Corporation—and their foreign-based suppliers to improve domestic and global supply chain security processes for coffee importing and exporting by preparing to begin a pilot phase of C-TPAT (U.S. Customs-Trade Partnership Against Terrorism). The NCA says that the objective of this initiative is to educate and facilitate participation in C-TPAT to enhance national security through the international supply chain. As a part of this endeavor, the NCA will test a Web portal—in a partnership with technology provider Intertek—that will provide a central information repository of C-TPAT information, deliver online educational resources, and maintain a registry of foreign suppliers and their security practices relative to C-TPAT, among others.

DOT is not making the grade in highway safety and security. A group of industry organizations, including the Owner-Operator Independent Drivers Association, the Teamsters Union, Public Citizen, Advocates for Highway Safety, and the Truck Safety Coalition, blasted the Department of Transportation (DOT) for what they said is a “failing performance” for U.S. highway safety and security. These groups also contend that the DOT has not complied with requirements of the recently-signed Safe American Roads Act, which includes specific safety and security measures that need to be in place before the U.S. border could be open to Mexico for the DOT’s proposed pilot cross-border trucking program. This program has been under heavy scrutiny since its inception earlier this year, due to concerns about public notice and comment required before opening the U.S. border to Mexican-based trucking companies, among others.

Now, that’s a lucrative supply chain! Retail giant Procter & Gamble recently told Reuters that it is trying to turn the company’s supply chain strategy into a growth engine that could drive as much as $1 billion in sales in the next year. The company’s Global Product Supply Officer Keith Harrison said that P&G is turning to supply chain strategy to cut down on stockouts on shelves, and he added that it has generated about $700 million annually of incremental top line growth with its shelf out-of-stock work. He also pointed out that supply chains have historically been perceived as “a bit passive” in the past, but with the ability to generate $1 billion to the bottom line, that school of thought is likely to change for many.

What’s the catalyst for cross-border security? According to Steve Russell, chairman and CEO of truckload carrier Celadon Group Inc, industry-government partnerships can serve as the catalyst. While speaking on behalf of the American Trucking Associations (ATA) before a subcommittee of the U.S. House Committee on Homeland Security, Russell said that federal initiatives that can aid motor carriers in increasing the safety and security of their operations—and are implemented in cooperation with U.S. counterparts in Canada and Mexico—can make a major difference in the safety and efficiency of cross-border operations. “Any successful effort to prevent the entry of terrorists through our air, sea, or land borders will have to rely on the cooperation of foreign governments, in essence pushing our borders out,” said the trucking executive. Russell also noted that Congress needs to expedite programs that boost the technology and infrastructure needed for trade facilitation and security at U.S. ports of entry.

A new way to reduce emissions at U.S. seaports? Container carrier APL thinks it might have one and has announced its plan to reduce curb vessel exhaust emissions through cold-ironing—a process in which vessels connect to a clean shoreside electrical power source while docked so that their diesel-powered generators can be shut down. Because auxiliary engines are shut down during cold-ironing, APL estimates the plan can eliminate 1,000 pounds of nitrogen oxide emissions, 70 pounds of sulfur oxides, and 15 pounds of particulate matter in a single 24-hour port call. Port authorities and air quality regulators have embraced cold-ironing, but the maritime industry has been wary citing safety, operational, and retrofit cost concerns. With financial support from the Port of Oakland, the Bay Area Air Quality Management District, and Pacific Gas and Electric (PG&E), APL said it will test the concept this summer aboard the 863-foot container vessel APL China.

Port of Long Beach and YITC “Green”-light deal. The Port of Long Beach and Port of Shenzhen terminal operator Yantian International Container Terminals (YICT)—two of the most environmentally friendly seaport entities—have recently inked a Memorandum of Understanding to exchange technical information on port emissions, pollutants, and best practices surrounding port and urban sustainability policies. The two ports will collaborate on environmental issues such as marine wildlife, air quality, soils and sediments, water quality, and community engagement.

Now On Demand: LM’s 3rd Annual China Logistics Conference features Dr. Stephen Flynn as the keynote speaker, sharing his blueprint for a layered, global security system that all shippers can help to create. In addition to the keynote, the online conference offers a series of educational webcasts for logistics and supply chain managers who need to meet the logistics challenges and take advantage of doing business in China. Sessions include: Global Supply Chains: On the Edge of Disaster; U.S. Ports: Preparing for Future Growth; Minimizing Supply Chain Costs through Protective Packaging Material Selection; China Logistics 101: Tales from the Trenches; and China Infrastructure and Beyond. Register at www.logisticsmgmt.com/China2007