An executive summary of industry news

Staff -- Logistics Management, 3/1/2001

The strengthening of the nation's highway system ranks among the top 10 achievements of the federal government in a recent study by the Brookings Institution. A survey of 450 history and political science professors conducted for the Washington think tank rated the building of the highway system as the seventh most important achievement of the second half of the 20th century. The professors were asked to rate 50 major government endeavors on their importance, difficulty, and success. At the top of the list: rebuilding Europe after World War II.
The numbers tell the bad news. A report issued by the Bureau of Transportation Statistics at the end of January shows that transportation industry profits across all modes declined by 13 percent from the second quarter to the third quarter last year, even as revenues increased. The report was included in the latest of the bureau's "Transportation Indicators" series. The figures cover for-hire transportation, including passenger and freight transportation. The "Transportation Indicators" reports, which provide data on transportation in the economy, are available at the bureau's Web site, href="http://www.bts.gov">www.bts.gov, the fourth week of every month.
Flight delays continue to get worse. Only 73 percent of scheduled flights by major airlines arrived on time last year, according to the February edition of the Department of Transportation's monthly Air Travel Consumer Report. That compares with an average 78-percent on-time record for the airlines since the DOT began tracking the numbers in 1987. In December, airline on-time arrivals fell to a dismal 63 percent. Chicago's O'Hare International Airport reported that less than half the flights scheduled to arrive or depart during that month did so on time.
Trucking will continue to dominate the freight market in the next quarter century. The Changing Face of Transportation, a report issued by the DOT in the waning days of the Clinton administration, projected that truck ton-miles would grow by 88 percent by the year 2025. The trend toward smaller, more frequent shipments and demands for increased reliability will drive many of the modal choices. Globalization will also affect the market: The report forecasts that both foreign waterborne commerce and airfreight ton-miles will more than double during that period.
A proposed commercial vehicle safety policy for the next decade could affect motor carrier operations. The draft policy by the Federal Motor Carrier Safety Administration, 2010 Strategy: Saving Lives Through Safety, Innovation, and Performance, reiterates the agency's intention to implement truck driver hours-of-service rules, as well as a number of other policy initiatives. The draft report is available on the Department of Transportation's Web site at www.dot.gov. The policy's principal goal is to cut the number of deaths and injuries in truck and bus crashes in half by 2010.
Eliminate the Customs Service? That's a proposal outlined by a blue-ribbon panel focusing on how the country should deal with terrorism. The bipartisan commission, headed by former senators Gary Hart of Colorado and Warren Rudman of New Hampshire, said that customs functions should be folded into a proposed Cabinet-level agency called the "Homeland Security Agency." The new agency would also encompass the Border Patrol, Coast Guard, and Federal Emergency Management Agency. Should Congress take up this proposal, expect renewed debate over whether the Customs Service's primary role is to facilitate trade or handle enforcement.
The Surface Transportation Board gives passing marks to operations on the former Conrail network. In its first annual review of the Conrail deal, the board said that CSX and Norfolk Southern, which split the Conrail network in 1999, had largely overcome their transitional problems. The board says conditions it imposed are working and that no problems related to increased market power have been demonstrated. But critics of the original Conrail decision argue that the STB's conditions overlook the deal's effects on bottleneck shippers and do not offer captive shippers sufficient protection against the likelihood that the railroads will pass along their steep acquisition costs in the form of higher rates. A federal appeals court in New York heard arguments last month in a case challenging the STB's original decision to split up Conrail. The court will likely take several months to decide that case.
Can employers use genetic tests to screen employees? Burlington Northern Santa Fe Railway has found itself at the center of what could be an important case on that subject. The federal Equal Employment Opportunity Commission (EEOC) has asked a federal district court to order the railroad to stop such tests of employees. EEOC claims BNSF has a nationwide policy of requiring employees who have submitted claims of work-related carpal tunnel syndrome to provide blood samples for a test to screen for a chromosome some believe is associated with the syndrome. BNSF says that the test was used in exams of 20 employees out of 125 who claimed carpal tunnel injuries, none of the tests were mandated, and the company has stopped using the test. A BNSF representative says EEOC went to court without speaking to the railroad about its policies.
A stellar lineup of speakers will address a new conference on trade with Mexico that takes place next month. Among the participants are top trade officials from Mexico and private- and public-sector experts on cross-border issues from the United States. The conference, sponsored by the International Business Studies Program at Belmont Abbey College, will be held in Charlotte, N.C., on April 2 and 3. For further information, call W.M. Norton Ltd. at (704) 825-3922.
Demands for fast and reliable fulfillment aren't going away. When NASSTRAC holds its annual meeting in Florida next month, the group will focus on strategies shippers and carriers are implementing to meet those demands. The program features a panel of motor carrier executives who will discuss how shippers are purchasing transportation today. NASSTRAC represents shippers on transportation and supply chain issues. For additional information on the conference, check the group's Web site at href="http://www.nasstrac.org">www.nasstrac.org or call (202) 484-9188.
An MBA program in intermodal transportation management has been launched by Dowling College. The New York school offers full- and part-time programs at centers in New York City and on Long Island aimed at developing managerial skills for both government and industry leaders. For additional information, contact professor Carl Berkowitz at (631) 244-3261 or e-mail: berkowitz@dowling.edu.
The annual Quest for Quality surveys will be in the mail soon. Readers will be asked to rate the performance of their carriers in several categories. The results of the survey will be published in the August issue of Logistics Management & Distribution Report . Top-ranked carriers will be recognized in print and at an awards ceremony to be held later this year.