A.M. Executive Briefing - April 11
This Morning's Headlines:
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New System to Simplify Clearance
This year, Canada will introduce the Customs Self Assessment procedures to allow automatic clearance of high-volume, low-risk cargo.Instead of clearing each shipment individually at the border, drivers, carriers, and importers will be able to volunteer to pre-register high-volume, low-risk cargo. This will allow them to receive automatic clearance at the border, and pay customs electronically. Periodic audits would be used to ensure companies did not abuse the program.
The changes are part of a five-year, C$100 million plan to streamline Canada's border procedures. Journal of Commerce (04/11/00) Vol. 424, No. 29,695; P. 1; Tower, Courtney
Men With Accents Who Drive Trucks Are Feeling Alienated
The severe shortage of truck drivers has prompted one outfit to recruit and illegally import workers from countries like Australia and New Zealand and employ them despite their alien status. A recent raid in Little Rock, Ark., by federal agents turned up 90 such illegal truckers, all of whom – save a handful who married Americans – face deportation.Australian-born Peter Andrew Ruston, who worked as a driver out of Little Rock, placed ads for trucking jobs in the United States in newspapers back home, and for his efforts he bilked a small cut of each imported employee's wages plus close to $2,000 in processing fees per applicant. Those fees and small cuts have added up to $10.9 million for Ruston over the past several years.
The foreign drivers came over on falsified visas from depressed economies with dreams of making a good living while cruising America's highways and byways. While here, the foreign drivers formed a surrogate community, enjoyed their earnings, but felt disillusioned by the whole ordeal.
"It's a lot of yahoos and good money," said New Zealand trucker Dave Bryant. "But at the end of the day, it's no way to make a life."
Ruston has denied the barrage of charges he faces, and the foreign drivers have been allowed to continue driving in order to support themselves while the case is being worked out. Wall Street Journal (04/11/00) P. 1; Tejada, Carlos
Experts Consider Future of Intermodal Rail
Intermodal rail business has grown quickly over the last 25 years, making it the fastest-growing line of business for railroads. However, capital investment was questionable since intermodal was initially a low-priced alternative to trucking and revenue was incremental. Today, intermodal is still growing and excess capacity is no longer a problem.Brooks Bentz, senior manager at Anderson Consulting, explained that the industry has grown to 10 million annual loads for the last 25 years. Bentz will moderate sessions at the International Intermodal Expo in Atlanta, emphasizing that intermodal is small compared to total inter-city miles, as terminal capacity is limited from expansion. Bentz believes that information technology will help increase capacity.
Bill Greenwood, an early intermodal marketer, says railroads could benefit from optimization models and software fixes. Rail mergers are allowing more route decisions, as newer locomotives have more power.
Railroads have been funding infrastructure as opposed to equipment, creating effective capacity. Improving average train speeds and cycle-time has helped car supply. Union Pacific continues to expand to a 6% increase, aiming to increase terminal-operating efficiency and encourage southbound loads on Sunday, not Friday, with low pricing.
Ted Prince, senior vice president of sales at Kleinschmidt Inc., says domestic traffic is flat, as growth is focused on long-hauls east to west. Journal of Commerce--International Intermodal Expo Report (04/11/00) P. 2; Kaufman, Lawrence
West Coast Ports Prepare for Crunch Time
The ports of Los Angeles and Long Beach are preparing the intermodal community for another peak shipping season. The 1997 peak shipping season caused firsthand damage to the ports after the Union Pacific Railroad service crisis caused gridlock, clogging rail yards for weeks.Hal Hilliard, marketing manager at the Port of Long Beach, says they want to avoid the clogs with planning, as the Harbor Area Intermodal committee meets monthly to discuss cargo projections and possible problems. The committee has helped in past peak seasons and this year the concern is the ability to handle increased volume. Asian imports could reach 15% higher than last year, according to Hilliard.
This year even January and February remained busy, as the strong economy maintains growth for customers. Intermodal experts have focused on the container terminals, which are often a source of congestion. The best measure is for terminals to extend gate hours, opening earlier. Hanjin Shipping runs from 3 a.m. to 7 a.m. so truckers can get loads before Los Angeles freeways are packed.
The harbor's effort as a whole is considered uneven, as patchy cooperation causes long lines even during the off-season. Shippers and receivers must stay open longer to help truckers get their deliveries off.
A new electronic communication system linking terminal operators and trucking companies should help cargo flow better, according to Joe Nievez of Qwikway Trucking in Los Angeles. The system needs to include true interactive capabilities for best efficiency.
The congestion in the harbor area should be reduced with the implementation of these measures as ports also build terminals of 300 acres or more. Journal of Commerce--International Intermodal Expo Report (04/11/00) P. 8; Mongelluzzo, Bill
Tipping the Health Scales
The Federal Highway Administation recently had research conducted for it showing that truckers would be better able to withstand job-related hardships such as fatigue if they improve their health. The study noted the importance of truckers' gaining information on wellness issues, and changing their attitudes and habits.The FHWA plans to present a driver wellness program to trucking companies, along with fatigue management training from the American Trucking Associations. Land Line Magazine Online (04/10/00)
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