Just like for many of our affiliated third party logistics providers, it is important to track key industry trends, innovative progresses and the viewpoints from 3PL customers.
From 3PL Wire, we have found the following article summarizing this recognized industry study. Read below:
3PL Study – 2009 Released
The 14th Annual Third-Party logistics Study sponsored by Oracle, Capgemini, Georgia Institute of Technology and Panalpina has officially been released.
The annual study aims to document the growth and evolution of the third-party logistics (3PL) industry by identifying and tracking key trends and views of the 3PL industry largely from the perspective of 3PL customers.
The 2009 report highlights three streams of research:
1. Web-based survey
2. Workshops with shippers
3. Data from the Capgemini Accelerated Solutions Environment ® (ASE)
4. Focus interviews with industry executives
For access to the complete report, visit their website at http://www.3plstudy.com/
Please click here to view the complete article.
Friday, December 18, 2009
Tuesday, November 17, 2009
Green logistics: Senate EPW Committee passes 'Climate Change' bill
S. 1733 the Clean Jobs and American Power Act-more commonly known as the "Climate Change" bill-was passed by the Senate Committee on Environment and Public Works (EPW) by an 11-1 vote late last week.
This bill, which was introduced by Senators Barbara Boxer (D-Calif.) and John Kerry (D-Mass.), has a goal to hit a 20 percent reduction from 2005 levels of carbon dioxide emissions, along with an 83 percent reduction in CO2 emissions by 2050.
Senator Boxer said in a statement that this bill will help the U.S. wean off a dependence on fossil fuels; put the country in charge of its own energy future; prevent dangerous pollution; and spur billions of dollars of private investment to create millions of clean energy jobs
But one aspect of this bill that has been met with heavy scrutiny due to the potential for increased costs for businesses and consumers as a result of "cap and trade," a form of emissions trading, which is used to control pollution by offering economic incentives in order to achieve reductions in emissions pollutants. Cap and trade would put limits on emissions from motor vehicles, coal-fired plants, and factories.
The argument against cap and trade-and its subsequent potential impact-on transportation and logistics was made clear in a recent Logistics Management reader survey poll of 115 logistics and transportation executives, which found that 90 percent of respondents opposed the bill, with 92 percent indicating it will increase costs to varying degrees.
The survey stated that 8 percent of respondents maintain cap and trade will raise costs by 0-5 percent, 24 percent said it would raise costs by 6-10 percent, 25 percent said it would raise costs by 11-15 percent, and a cumulative 44 percent indicating costs would go up by 16 percent or more.
But Kerry and Boxer maintain that these higher emission reduction targets impact "less than two percent of American businesses and keeps American industry competitive during the transition to a new energy economy."
Meanwhile, reasons from survey respondents for the argument against cap and trade included: lack of details on how the process works, no scientific evidence to support human caused climate change, add extra costs to the supply chain and subsequently shift production to countries with less restrictions, lack of demonstrable benefits, and increased unemployment, among other factors.
This bill, which was introduced by Senators Barbara Boxer (D-Calif.) and John Kerry (D-Mass.), has a goal to hit a 20 percent reduction from 2005 levels of carbon dioxide emissions, along with an 83 percent reduction in CO2 emissions by 2050.
Senator Boxer said in a statement that this bill will help the U.S. wean off a dependence on fossil fuels; put the country in charge of its own energy future; prevent dangerous pollution; and spur billions of dollars of private investment to create millions of clean energy jobs
But one aspect of this bill that has been met with heavy scrutiny due to the potential for increased costs for businesses and consumers as a result of "cap and trade," a form of emissions trading, which is used to control pollution by offering economic incentives in order to achieve reductions in emissions pollutants. Cap and trade would put limits on emissions from motor vehicles, coal-fired plants, and factories.
The argument against cap and trade-and its subsequent potential impact-on transportation and logistics was made clear in a recent Logistics Management reader survey poll of 115 logistics and transportation executives, which found that 90 percent of respondents opposed the bill, with 92 percent indicating it will increase costs to varying degrees.
The survey stated that 8 percent of respondents maintain cap and trade will raise costs by 0-5 percent, 24 percent said it would raise costs by 6-10 percent, 25 percent said it would raise costs by 11-15 percent, and a cumulative 44 percent indicating costs would go up by 16 percent or more.
But Kerry and Boxer maintain that these higher emission reduction targets impact "less than two percent of American businesses and keeps American industry competitive during the transition to a new energy economy."
Meanwhile, reasons from survey respondents for the argument against cap and trade included: lack of details on how the process works, no scientific evidence to support human caused climate change, add extra costs to the supply chain and subsequently shift production to countries with less restrictions, lack of demonstrable benefits, and increased unemployment, among other factors.
Wednesday, October 21, 2009
New Study Highlights Role of Third-Party Logistics Providers in Helping Shippers Adapt to Economic Challenges
The fourteenth Annual Third Party Logistics (3PL) Study examining the current global market for logistics outsourcing was recently released. The study surveyed shippers and logistics service providers in North America, Europe, Asia Pacific and Latin America. Key findings included:
* The economic downturn has created significant challenges for both shippers and third-party logistics providers (3PLs) – 82% of shippers are employing cost-cutting tactics and 60% are rethinking their supply chains and relationships with 3PLs
* 88% of shippers feel that IT-based logistics services are important, but only 42% are satisfied with the capabilities of their provider – as a result of this IT capability gap, shipper respondents reported a lack of the key performance indicators, alerts and visibility required for an adaptive supply chain and 3PLs reported similar difficulties in getting the data and commitment they need from shippers
* There are significant differences between how 3PLs evaluate their role in the supply chain and how they are viewed by shippers – 59% of shippers feel their use of 3PLs has a positive effect on customer service compared to 88% of 3PL respondents
* Shipper respondents devote an average of between 47% (in North America) and 66% (in Europe) of their total logistics expenditures to outsourcing and this is expected to increase in the next five years.
“Shipper-3PL relationships are being impacted significantly by the prevailing uncertainty and economic volatility in global markets,” said Dr. C. John Langley Jr., Professor of Supply Chain Management, Georgia Institute of Technology. “It is very important for 3PLs to mitigate or reduce any financial risk or service level impact that this may cause.”
Economic uncertainty and the use of 3PLs
Economic volatility has challenged shippers and 3PLs alike to contend with factors such as unpredictable demand, instability in fuel costs and currency valuation, and excess inventory. In response, not only are shippers attempting to cut costs, 77% are also seeking to improve forecasting and inventory management.
Cost reduction and improved reliability in services are the main factors likely to increase shipper respondents’ use of 3PLs. This includes converting fixed to variable costs (59%), expanding to new markets or offering new products (56%), and restructuring the supply chain network to improve financial performance (48%).
Read the rest of the mhia.org article here.
* The economic downturn has created significant challenges for both shippers and third-party logistics providers (3PLs) – 82% of shippers are employing cost-cutting tactics and 60% are rethinking their supply chains and relationships with 3PLs
* 88% of shippers feel that IT-based logistics services are important, but only 42% are satisfied with the capabilities of their provider – as a result of this IT capability gap, shipper respondents reported a lack of the key performance indicators, alerts and visibility required for an adaptive supply chain and 3PLs reported similar difficulties in getting the data and commitment they need from shippers
* There are significant differences between how 3PLs evaluate their role in the supply chain and how they are viewed by shippers – 59% of shippers feel their use of 3PLs has a positive effect on customer service compared to 88% of 3PL respondents
* Shipper respondents devote an average of between 47% (in North America) and 66% (in Europe) of their total logistics expenditures to outsourcing and this is expected to increase in the next five years.
“Shipper-3PL relationships are being impacted significantly by the prevailing uncertainty and economic volatility in global markets,” said Dr. C. John Langley Jr., Professor of Supply Chain Management, Georgia Institute of Technology. “It is very important for 3PLs to mitigate or reduce any financial risk or service level impact that this may cause.”
Economic uncertainty and the use of 3PLs
Economic volatility has challenged shippers and 3PLs alike to contend with factors such as unpredictable demand, instability in fuel costs and currency valuation, and excess inventory. In response, not only are shippers attempting to cut costs, 77% are also seeking to improve forecasting and inventory management.
Cost reduction and improved reliability in services are the main factors likely to increase shipper respondents’ use of 3PLs. This includes converting fixed to variable costs (59%), expanding to new markets or offering new products (56%), and restructuring the supply chain network to improve financial performance (48%).
Read the rest of the mhia.org article here.
Monday, September 21, 2009
ISM: Manufacturing finally growing
After 18 consecutive months of contracting, the manufacturing sector posted growth for the sector in August, according to the latest report from the Institute for Supply Management (ISM).
Norbert Ore, chair of ISM’s Manufacturing Business Survey Committee, said his reaction was “relief” to see the PMI, ISM’s composite index which covers the overall health of the manufacturing sector, rise four percentage points to 52.9 percent, marking the first time the index has climbed above 50 since the recession began.
Typically, the 50 percent mark is the dividing line between “growth” and “contraction,” whether in reference to the PMI or any other indices covered by the monthly ISM report.
It wasn’t exactly a surprise. August’s number represents the eighth straight month of increase for the index, and both Ore and ISM have been predicting the index would push past 50 in either the third or fourth quarter this year.
The ISM has also predicted that growth would continue through the rest of the year, paving the way for a stronger sign of recovery in 2010. The PMI alone, Ore said, will most likely stay above 50 until at least the end of the year. Even if it slips, it would have to fall 2.9 percentage points to go back to contraction, which Ore said is unlikely to happen.
Read the rest of the scmr.com article here.
Norbert Ore, chair of ISM’s Manufacturing Business Survey Committee, said his reaction was “relief” to see the PMI, ISM’s composite index which covers the overall health of the manufacturing sector, rise four percentage points to 52.9 percent, marking the first time the index has climbed above 50 since the recession began.
Typically, the 50 percent mark is the dividing line between “growth” and “contraction,” whether in reference to the PMI or any other indices covered by the monthly ISM report.
It wasn’t exactly a surprise. August’s number represents the eighth straight month of increase for the index, and both Ore and ISM have been predicting the index would push past 50 in either the third or fourth quarter this year.
The ISM has also predicted that growth would continue through the rest of the year, paving the way for a stronger sign of recovery in 2010. The PMI alone, Ore said, will most likely stay above 50 until at least the end of the year. Even if it slips, it would have to fall 2.9 percentage points to go back to contraction, which Ore said is unlikely to happen.
Read the rest of the scmr.com article here.
Wednesday, August 19, 2009
Logistics and business manufacturing: Signs are positive but economic recovery needs time
While some economic indicators paint an optimistic picture for recovery, supply chain and freight transportation industry experts maintain it will be a while before the recession truly abates.
On the optimistic front are: the Bureau of Economic Analysis’s (BEA) recent release on the second quarter’s 1.0 percent GDP decline, ahead of the first quarter’s 6.4 percent loss; the BEA also reported that real exports of goods and services were down 7.0 percent on the second quarter, compared to 29.9 percent in the first quarter; the Institute of Supply Management’s PMI (formerly known as the Purchasing Managers Index) hit 48.9 in July, representing the seventh consecutive month of growth (an index of 50 or higher typically means the economy is not in decline); the Commerce Department’s report that orders for U.S. durable goods—except for automobiles and aircraft—were up 1.1 percent in June, the biggest gain in three months; and the Cass Information Systems Freight Index down 15.3 percent in July compared to 20 percent and 21.4 percent dips in June and May, respectively.
But despite these signs, there are other data points that suggest the economy is still stuck in neutral and remains at “the bottom.” Among these data points are: June truck tonnage down 13.6 percent year-over-year, according to the American Trucking Associations; cargo container volume decreases at the Ports of Long Beach and Los Angeles still hovering around 30 percent; and a recent report from the Federal Reserve’s “Beige Book,” indicating economic activity is weak heading into the summer, although the overall pace of decline has stabilized albeit at a low level.
“While some numbers are encouraging, I would not get too excited just yet,” said Eric Starks, president of freight transportation forecasting consultancy FTR Associates. “But they do tell us that economic conditions did not deteriorate at the same level in the second quarter as the first. It appears that the ‘bleeding’ has stopped or is coming to an end, and that the long healing process has begun.”
Starks noted that the current economic situation is not something many shippers have previously experienced, with shippers anxious for an uptick in demand heading into 2010 to chip away at excess inventories and subsequently force increased manufacturing output.
Other things to keep an eye on are rises in home starts and sales, according to Tim Feemster, senior vice president and director of global logistics at Grubb & Ellis Company. Feemster’s sentiment is supported by recent signs of stabilizing prices with a composite index of home prices in 20 major U.S. cities being flat, according to the Case-Shiller Price Index, compiled by Standard & Poor’s, which was reported by the New York Times, and followed reports that sales of existing home sales have been up for three straight months, with June being the largest percentage increase in eight years.
And Josh Green, CEO of Panjiva, an online search engine with detailed information on global suppliers and manufacturers, said the consensus regarding the economy seems to be that the bottom has been reached, but what happens from here is anyone’s guess.
“Whatever recovery we see is likely to be slow and steady, rather than a quick ramp up back to pre-recession levels,” said Green. “I think the thing nobody wants to talk about is that the fear that the growth we are seeing now is more of a hiccup and that there is risk of a further downturn. When [certain] indices come out, it does seem like we are moving in right direction, but we are still very vulnerable to any kind of external shocks to the system that could send things down and put the economy back on a downward stretch.”
Recent Panjiva data indicated that from June to July the number of global manufacturers shipping to the U.S. rose by 7 percent, which was consistent with the 6 percent gain seen during the same timeframe last year. Panjiva also reported that the 2008 increase preceded the freefall in global trade from July 2008 to February 2009. Even though the month-to-month increase was up 7 percent, Panjiva said that the overall number of companies currently shipping to the U.S. is down roughly 10 percent year-over-year.
From May to June, the number of global manufacturers shipping to the U.S. was flat, following increases of 2 percent from April to May, 8 percent from March to April, and 2 percent from February to March.
“We are basically following the seasonal path of last year, which is good news in this economic environment,” said Green. “It feels like the [economic momentum] is positive right now. At this time last year, it was a bit more uneasy and when things got worse the economy went into a tailspin. Now, it feels like it is going in the other direction, as we have seen some encouraging signs and may be regaining our footing. There is no question we are still vulnerable to additional shocks, though.”
Read the rest of the scmr.com article here.
On the optimistic front are: the Bureau of Economic Analysis’s (BEA) recent release on the second quarter’s 1.0 percent GDP decline, ahead of the first quarter’s 6.4 percent loss; the BEA also reported that real exports of goods and services were down 7.0 percent on the second quarter, compared to 29.9 percent in the first quarter; the Institute of Supply Management’s PMI (formerly known as the Purchasing Managers Index) hit 48.9 in July, representing the seventh consecutive month of growth (an index of 50 or higher typically means the economy is not in decline); the Commerce Department’s report that orders for U.S. durable goods—except for automobiles and aircraft—were up 1.1 percent in June, the biggest gain in three months; and the Cass Information Systems Freight Index down 15.3 percent in July compared to 20 percent and 21.4 percent dips in June and May, respectively.
But despite these signs, there are other data points that suggest the economy is still stuck in neutral and remains at “the bottom.” Among these data points are: June truck tonnage down 13.6 percent year-over-year, according to the American Trucking Associations; cargo container volume decreases at the Ports of Long Beach and Los Angeles still hovering around 30 percent; and a recent report from the Federal Reserve’s “Beige Book,” indicating economic activity is weak heading into the summer, although the overall pace of decline has stabilized albeit at a low level.
“While some numbers are encouraging, I would not get too excited just yet,” said Eric Starks, president of freight transportation forecasting consultancy FTR Associates. “But they do tell us that economic conditions did not deteriorate at the same level in the second quarter as the first. It appears that the ‘bleeding’ has stopped or is coming to an end, and that the long healing process has begun.”
Starks noted that the current economic situation is not something many shippers have previously experienced, with shippers anxious for an uptick in demand heading into 2010 to chip away at excess inventories and subsequently force increased manufacturing output.
Other things to keep an eye on are rises in home starts and sales, according to Tim Feemster, senior vice president and director of global logistics at Grubb & Ellis Company. Feemster’s sentiment is supported by recent signs of stabilizing prices with a composite index of home prices in 20 major U.S. cities being flat, according to the Case-Shiller Price Index, compiled by Standard & Poor’s, which was reported by the New York Times, and followed reports that sales of existing home sales have been up for three straight months, with June being the largest percentage increase in eight years.
And Josh Green, CEO of Panjiva, an online search engine with detailed information on global suppliers and manufacturers, said the consensus regarding the economy seems to be that the bottom has been reached, but what happens from here is anyone’s guess.
“Whatever recovery we see is likely to be slow and steady, rather than a quick ramp up back to pre-recession levels,” said Green. “I think the thing nobody wants to talk about is that the fear that the growth we are seeing now is more of a hiccup and that there is risk of a further downturn. When [certain] indices come out, it does seem like we are moving in right direction, but we are still very vulnerable to any kind of external shocks to the system that could send things down and put the economy back on a downward stretch.”
Recent Panjiva data indicated that from June to July the number of global manufacturers shipping to the U.S. rose by 7 percent, which was consistent with the 6 percent gain seen during the same timeframe last year. Panjiva also reported that the 2008 increase preceded the freefall in global trade from July 2008 to February 2009. Even though the month-to-month increase was up 7 percent, Panjiva said that the overall number of companies currently shipping to the U.S. is down roughly 10 percent year-over-year.
From May to June, the number of global manufacturers shipping to the U.S. was flat, following increases of 2 percent from April to May, 8 percent from March to April, and 2 percent from February to March.
“We are basically following the seasonal path of last year, which is good news in this economic environment,” said Green. “It feels like the [economic momentum] is positive right now. At this time last year, it was a bit more uneasy and when things got worse the economy went into a tailspin. Now, it feels like it is going in the other direction, as we have seen some encouraging signs and may be regaining our footing. There is no question we are still vulnerable to additional shocks, though.”
Read the rest of the scmr.com article here.
Thursday, July 23, 2009
Trucking news: ATA makes its case for longer, heavier trucks
Earlier this month, the American Trucking Associations (ATA) cited myriad ways in which U.S. trucks would be more fuel efficient and green if they were more productive like trucks in Europe, Canada, and Australia.
This, said the ATA, was a major takeaway from the preliminary results of a multi-nation study. And the ATA noted that these findings corroborate results gleaned from the 2008 American Transportation Research Institute’s higher productivity model. The results cited how many countries—in anticipation of increasing freight volumes—are focused on programs that increase truck size and weight and resulted in significant productivity, environmental, and safety improvements.
Truck size and weight issues have received a considerable amount of attention in recent months in the form of two pieces of legislation:
-the “Safe Highways and Infrastructure Preservation Act” (H.R. 1618)—also known as SHIPA—would expand the current 80,000 pound truck weight limit of commercial weight vehicles on the 161,000 mile National Highway System and also prohibit states from end-running the federal law and allowing longer and heavier trucks; and
-the “Safe and Efficient Transportation Act of 2009” (H.R. 1799), which would increase truck weight limits to 97,000 pounds from the current 80,000 pound weight limit and allow states to authorize the operation of heavier trucks.
The ATA referenced a recent conference hosted by the University of Michigan Transportation Research Institute, where global trucking experts opined the U.S. is behind in various truck productivity and sustainability categories, adding that current U.S. truck size and weight regulations are preventing trucks from utilizing the full potential of domestic infrastructure. The ATA also said that “increasing truck size and weight standards to align more closely with international standards would improve truck productivity and the ability to reduce greenhouse gas emissions and carbon output.”
ATA Vice President of Public Affairs Clayton Boyce said in an interview that opponents of longer and heavier trucks are wrong on the assumption that bigger trucks are less safe and not as environmentally sustainable as smaller ones.
“More productive trucks in general have been a part of our policy since October 2007,” said Boyce. “Larger sizes are safer and more environmentally advantageous. We would like to see an increase in the maximum weight to 97,000 pounds and a lifting of the moratorium on the expansion of LCV (longer combination vehicles) allowances and the harmonization of LCV regulations in the West [where there are some disparities in truck sizes from state to state].”
The ATA said it has proposed a program to: allow 6-axle vehicles to carry 97,000 pounds in states that permit them; allow states to permit 33-foot trailer combinations; and allow a 10 percent increase in auto hauler weight’s to account for heavier vehicles.
“Existing restrictions on truck size and weight are unreasonably low and harm the U.S.,”said Bill Graves, ATA President and CEO, in a statement. “We must raise our standards to maximize the productivity of our transportation system if we’re to remain competitive in global markets.”
Read the rest of the logisticsmgmt.com article here.
This, said the ATA, was a major takeaway from the preliminary results of a multi-nation study. And the ATA noted that these findings corroborate results gleaned from the 2008 American Transportation Research Institute’s higher productivity model. The results cited how many countries—in anticipation of increasing freight volumes—are focused on programs that increase truck size and weight and resulted in significant productivity, environmental, and safety improvements.
Truck size and weight issues have received a considerable amount of attention in recent months in the form of two pieces of legislation:
-the “Safe Highways and Infrastructure Preservation Act” (H.R. 1618)—also known as SHIPA—would expand the current 80,000 pound truck weight limit of commercial weight vehicles on the 161,000 mile National Highway System and also prohibit states from end-running the federal law and allowing longer and heavier trucks; and
-the “Safe and Efficient Transportation Act of 2009” (H.R. 1799), which would increase truck weight limits to 97,000 pounds from the current 80,000 pound weight limit and allow states to authorize the operation of heavier trucks.
The ATA referenced a recent conference hosted by the University of Michigan Transportation Research Institute, where global trucking experts opined the U.S. is behind in various truck productivity and sustainability categories, adding that current U.S. truck size and weight regulations are preventing trucks from utilizing the full potential of domestic infrastructure. The ATA also said that “increasing truck size and weight standards to align more closely with international standards would improve truck productivity and the ability to reduce greenhouse gas emissions and carbon output.”
ATA Vice President of Public Affairs Clayton Boyce said in an interview that opponents of longer and heavier trucks are wrong on the assumption that bigger trucks are less safe and not as environmentally sustainable as smaller ones.
“More productive trucks in general have been a part of our policy since October 2007,” said Boyce. “Larger sizes are safer and more environmentally advantageous. We would like to see an increase in the maximum weight to 97,000 pounds and a lifting of the moratorium on the expansion of LCV (longer combination vehicles) allowances and the harmonization of LCV regulations in the West [where there are some disparities in truck sizes from state to state].”
The ATA said it has proposed a program to: allow 6-axle vehicles to carry 97,000 pounds in states that permit them; allow states to permit 33-foot trailer combinations; and allow a 10 percent increase in auto hauler weight’s to account for heavier vehicles.
“Existing restrictions on truck size and weight are unreasonably low and harm the U.S.,”said Bill Graves, ATA President and CEO, in a statement. “We must raise our standards to maximize the productivity of our transportation system if we’re to remain competitive in global markets.”
Read the rest of the logisticsmgmt.com article here.
Thursday, June 18, 2009
Transportation infrastructure: DOT's LaHood calls for immediate 18-month highway reauthorization bill
With the Highway Trust Fund again facing the prospect of running out of money, Department of Transportation Secretary Ray LaHood called on Congress to propose an immediate 18-month highway reauthorization bill that would replenish the Highway Trust Fund (HTF).
The HTF is the federal government’s primary source for financing highway, bridge, and transit projects, and it is largely funded by the motor fuel federal tax, which is 18.4 cents per gallon for gasoline and 24.4 cents for diesel and has not been raised since 1993. One main reason for the HTF’s dwindling financial resources is that Americans are driving fewer miles, as evidenced by Americans driving 90 million fewer miles year-over-year in fiscal 2008. Many industry stakeholders maintain that raising the motor fuel federal tax is long overdue, but Department of Transportation Secretary Ray LaHood has said repeatedly that raising the tax is not under consideration.
LaHood said if the step for this 18-month highway reauthorization bill is not taken, the HTF could be insolvent by the end of August, with states facing the prospect of losing key transportation funding. LaHood’s plan follows news from earlier this month indicating that the HTF needs up to $7 billion through the remainder of 2009.
“I recognize that there will be concerns raised about this approach,” LaHood said in a statement. “However, with the reality of our fiscal environment and the critical demand to address our infrastructure investments in a smarter, more focused approach, we should not rush legislation. We should work together on a full reauthorization that best meets the demands of the country. The first step is making sure that the Highway Trust Fund is solvent. The next step is addressing our transportation priorities over the long term.”
Read the rest of the logisticsmgmt.com article here.
The HTF is the federal government’s primary source for financing highway, bridge, and transit projects, and it is largely funded by the motor fuel federal tax, which is 18.4 cents per gallon for gasoline and 24.4 cents for diesel and has not been raised since 1993. One main reason for the HTF’s dwindling financial resources is that Americans are driving fewer miles, as evidenced by Americans driving 90 million fewer miles year-over-year in fiscal 2008. Many industry stakeholders maintain that raising the motor fuel federal tax is long overdue, but Department of Transportation Secretary Ray LaHood has said repeatedly that raising the tax is not under consideration.
LaHood said if the step for this 18-month highway reauthorization bill is not taken, the HTF could be insolvent by the end of August, with states facing the prospect of losing key transportation funding. LaHood’s plan follows news from earlier this month indicating that the HTF needs up to $7 billion through the remainder of 2009.
“I recognize that there will be concerns raised about this approach,” LaHood said in a statement. “However, with the reality of our fiscal environment and the critical demand to address our infrastructure investments in a smarter, more focused approach, we should not rush legislation. We should work together on a full reauthorization that best meets the demands of the country. The first step is making sure that the Highway Trust Fund is solvent. The next step is addressing our transportation priorities over the long term.”
Read the rest of the logisticsmgmt.com article here.
Wednesday, May 20, 2009
Trade via the US west coast showed few signs of recovering in April, according to the latest container statistics from leading gateway ports
Trade via the US west coast showed few signs of recovering in April, according to the latest container statistics from leading gateway ports.
The Port of Los Angeles saw throughput drop over 12% in April year-on-year to 532,124teu, while the Port of Long Beach saw a 26.6% contraction to 408,705teu.
Throughput at Long Beach in the fiscal year which started 1 October is down 21.1% compared to a year earlier at 3.08m teu.
Throughput at Long Beach in the fiscal year which started 1 October is down 21.1% compared to a year earlier at 3.08m teu.
Read the rest of the article here.
Wednesday, April 22, 2009
New report from the Transportation Intermediaries Association takes a close look at 3PL market conditions
- Interesting article from logisticsmngmnt.com
Jeff Berman, Group News Editor -- Logistics Management, 4/17/2009
ALEXANDRIA, Va.—In an effort to provide pertinent data on business conditions within the third-party logistics (3PL) sector, the Transportation Intermediaries Association (TIA) has rolled out a new quarterly report focusing on the trends and practices of the 3PL industry.
Dubbed the TIA 3PL Market Report, TIA officials said it will provide a “representative understanding of what is happening within this business sector.
Data for the report is based on confidential feedback from 24 TIA member companies, whom answer questions on various topics, including: number of shipments by mode, total billing, and gross margins. Other data collected are customer-based forecasts to offer up expectations of near-term business volume.
Participating TIA member companies are broken up into three categories for comparison to avoid anti-trust issues, according to the TIA. The categories are: more than $10 million in month in gross billing; $3 million to $10 million per month in gross billing; and less than $3 million per month in gross billing.
“The objective of this report is to gather data from our members to find out what is really going on in the industry,” said Walter Weart, TIA Communications Manager, in an interview. “Many of the reports out there are done by [organizations] with educated and informed guesses but don’t have the depth of resources that we do. It is probably some of the best data that has ever been gathered on 3PLs.”
Weart added that this type of data has not been made previously available in the 3PL sector in the form of a “rolling history” by quarter that will ultimately build up a strong database with information on market conditions and trends.
Read the rest of the article here.
Wednesday, March 18, 2009
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Thursday, February 19, 2009
About Palisades Marketing
Experts at crafting customized warehousing solutions to meet your needs. No matter your size, efficient warehousing facilities give you the flexibility to meet changes in seasonal demands, and to minimize transportation and storage costs.
In the Warehousing, Distribution and Transportation field, we have the expertise, experience and insight to bring together a unique grouping of organizations who can provide customers with the most modern, cost-effective operational techniques available. Contact us today for all your logistics needs.
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