Management Update

Truckload shippers should brace themselves for rate hikes next year when the new hours-of-service rules kick in. That's the word from Bill Matheson, Schneider National's vice president of truckload services, who says shippers can expect rate increases ranging from

Four LTL carriers have earned Carrier of the Year honors from NASSTRAC. At its fall meeting, the National Small Shipments Traffic Conference (NASSTRAC) awarded top honors to less-than-truckload carriers in four categories. Roadway Express won National LTL Carrier of the Year and FedEx Freight won in the Multi-Regional category. Eastern Region Carrier of the Year was Southeastern Freight Lines, while Oak Harbor Freight Lines won that honor in the West. Logistics Management cosponsors those awards, along with an award for Shipper of the Year. For more on this year's winning shipper, NCH Corp., turn to Page 24.

CLM has named a new slate of officers for the coming year. The Council of Logistics Management last month named Elijah Ray as its new president. Senior vice president of customer solutions at the Standard Corp., Ray oversees his company's customer-focused quality strategy. Serving as first vice president will be Mark E. Richards of Associated Warehouses; second vice president will be supply chain consultant Mary-Lou Quinto. CLM also presented its 2003 Distinguished Service Award to H. Lee Scott, Jr., president and chief executive officer of Wal-Mart Stores. Scott rose through the ranks of Wal-Mart's transportation and logistics operations to reach the executive suite. CLM, based in Oak Brook, Ill., is a professional organization for supply chain and logistics managers.

Salaries for high-level logistics executives continue to top $100K. The 2003 Ohio State University Career Survey, presented at last month's Council of Logistics Management annual educational conference, found that the median annual compensation for logistics managers was $124,000. Directors earned annual compensation of $150,000 on average, while vice presidents were paid $200,000. Managers and directors saw salary increases this year, but vice presidents reported a $30,000 decline in average compensation compared to last year's results.

Two of Europe's largest airlines want to get hitched. The boards of Air France and KLM Royal Dutch Airlines have voted to place both carriers under a new holding company. Under the terms of the proposal, the Dutch airline would become a wholly owned, independent subsidiary of a new French holding company. The deal, however, still needs the okay from the French and Dutch governments as well as from both carriers' unions. Industry observers expect getting approval from labor unions will be an uphill battle. Should the deal go through, the new company—to be called Air France-KLM Group—would become the third-largest airline in the world. Cargo, by the way, would account for about 14 percent of its revenues.

New container cranes are giving the Port of Hampton Roads, Va., some extra lift. The port has installed four new "Suez Class" cranes that are designed to handle longer, wider ships. Built by ZPMC in China, the super cranes can span ships that are 22 containers wide and are stacked seven containers high on deck. The port plans to acquire four more of the cranes next year. The new equipment is part of an effort by the Virginia Ports Authority to make its facilities the leading gateway for East Coast cargo.

Uncle Sam needs a national freight transportation database. That's the conclusion of a recent report from the Transportation Research Board (TRB). TRB says such a database would furnish timely information on the origin and destination of shipments, commodities moved, modes of shipment, vehicle or vessel type, routing and time of day. Such data would give the government a better picture of national infrastructure needs and facilitate long-term strategic planning, the report's authors say.

A leading organization for independent truckers has hit a major milestone. Executive Director Jim Johnston said the Owner-Operator Independent Drivers Association (OOIDA) recently surpassed 100,000 members. Formed in 1973 during the Arab oil embargo, the group champions the interests of independent truckers before state and federal governments.

Ocean shippers briefly faced the threat of a tax on shipping containers last month. Congressman Dana Rohrabacher (R-Calif.) wanted to allow ports to tax containers as a way to fund infrastructure improvements and security services. Critics of the legislation feared that the tax could run as high as $100 per ocean container. Opponents also said the plan would lead to retaliatory taxes by trading partners. Late last month the House of Representatives defeated Rohrabacher's proposal by a vote of 65-359.

Sales of radio frequency identification devices are projected to triple in the next four years. The Wireless Data Research Group, an independent research and consulting firm, forecasts that the global market for RFID hardware, software, and services will grow from an estimated $1 billion in 2003 to $3 billion in 2007. Forty percent of those sales will come from North American markets. RFID has been touted as way to mark and track shipments to achieve visibility throughout the supply chain.

Wireless communications provider Qualcomm's OmniTRACS product recently turned 15 years old . The San Diego purveyor of the OmniTRACS satellite-based tracking system provides mobile communications for more than 2,000 truckload fleets in North America. In the 15 years since the product debuted, Qualcomm has shipped nearly half a million units to businesses in 39 countries. OmniTRACS collects and transmits more than 7 million messages daily, including text messages between dispatchers and drivers, as well as data on vehicle positioning, driver performance, and trailer management data.

The ports of Los Angeles and Long Beach clearly are the dominant trade gateways for the United States. Statistics from the American Association of Port Authorities show that 45 percent of all loaded inbound containers shipped into the United States in 2002 moved through those two ports. One-quarter of all loaded outbound containers exited the San Pedro Bay harbors last year.

The Mexican market appears to be getting hot, hot, hot again. A number of U.S.-based service providers have announced new offerings south of the border. Just a few of the items that have recently crossed our desks: G&P Trucking has launched "Seamlessly Simple" service to and from Mexico, including advance clearance and pre-arrival review as well as satellite tracking of all shipments. Pacer Stacktrain, meanwhile, has expanded its "PacerMex NonStop" intermodal service to include service between the U.S. Northeast and four major cities in Mexico. Daylight Transport now offers expedited truck service from California, Illinois, and several Northeastern states to Mexico via Laredo, Texas. Transit times are just two to four business days. And Amerijet International now offers all-cargo service to Ciudad del Carmen on Mexico's Gulf of Campeche, an important oil-exploration area.