Tag: North America

Shippers wait to see whether other carriers will follow Maersk’s lead in restructuring inland network

Posted by | Feb 26, 2007 | |

Carriers determined to raise rates above and beyond higher rail costs

Maersk Line’s decision to streamline its inland network is causing heartburn for shippers such as Dave Panjwani, but the restructuring reflects the enormous cost of intermodal service to Maersk and other carriers.

Gordon Dorsey, a spokesman for Maersk, said the inland portion of shipping a container from Hong Kong to destinations in the U.S. interior accounts for about two-thirds of the total cost.

According to Dorsey, only a small percentage of the carrier’s customers will be affected by its action, but one of them is Panjwani, manager of international logistics for Deere & Co.

Maersk spokeswoman Jessica Kubacz declined to say where it is terminating inland service.
Besides revamping its inland network and consolidating some of its worldwide liner services, including trans-Pacific and trans-Atlantic routes, Maersk is seeking hefty rate increases this year, as are most other carriers. While that will be the main subject of contract negotiations between shippers and carriers over the next two months, Maersk is getting an early jump.

In the coming months, other Midwest shippers and NVOs will face choices similar to those encountering Panjwani and Huang. An informal survey of shippers, carrier executives and forwarders conducted in mid-February found that no other container lines had yet decided to revamp their inland networks as Maersk is doing, but it’s clear that carriers are determined to pass along the higher intermodal rates demanded by the railroads.

The main cost driver for all carriers this year is the cost of rail and truck intermodal service, said Lamont Petersen, vice president of marketing for Hyundai Merchant Marine.
According to Petersen, the rates charged by the container lines were not remunerative even before the railroads hiked their prices.

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FedEx Pilots "Smart" Tracking with Google Earth

Posted by | Feb 26, 2007 | |

According to ZDNet, FedEx CIO Robert Carter revealed at the Wharton Technology Conference in Philadelphia a pilot program that FedEx is experimenting with tracking valuable packages with Google Earth. The tracking involves more than just positional information – things like: package’s temperature, location, humidity levels and delivery status. The tracking device used in the pilot involves a “wireless device, about the size of a small cell phone, transmits information back to the company over public Wi-Fi networks.” For a long time now, I’ve been expecting one of the big tracking companies (UPS, FedEx, DHL) to release a network link capability to allow individuals to track their packages. But, none has yet to be released. In this case, FedEx is only experimenting with valuable packages. According to FedEx CIO Carter, using Google Earth has saved them considerable money for the tracking. But, whether this will be available anytime soon? He says: “It’s still a closed pilot, which is about all I can say.”

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USPS prepares mailers for new postal law effects

Posted by | Feb 26, 2007 | |

The diligence the U.S. Postal Service is taking to interpret the new postal law and communicate its effects to its customers became clear at the quarterly meeting of the Mailers’ Technical Advisory Committee.

On Dec. 20, President Bush signed into law the Postal Accountability and Enhancement Act, the first major change at the USPS since 1971. The law benefits customers by ensuring predictable price increases tied to the Consumer Price Index and lets the agency continue its transformation efforts and cost-cutting measures.

Linda Kingsley, the new vice president of strategy and transition at USPS, announced that the agency is working closely on the bill and has published a new Web page at www.usps.com/postallaw. It will give visitors updates on any changes the agency has made to the new law.

Ms. Kingsley and the strategy and transition group will also have a lead role in identifying, planning and managing the timely implementation of the new law’s provisions. In this regard, the group will serve as the primary liaison among all functions with roles in this process, with the ultimate goal of having maximum levels of integration, cooperation and success.

Postmaster General John E. Potter announced that the Postal Regulatory Commission and the USPS will hold a conference March 13 titled “Meeting Customer Needs in a Changing Regulatory Environment.” There, they will discuss how the Postal Accountability and Enhancement Act could increase the agency’s ability to meet customer needs. The event will take place at the Bolger Center in Potomac, MD.

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UPS, Airbus Revise A380 Agreement

Posted by | Feb 26, 2007 | |

UPS and Airbus signed an agreement yesterday that sets out a timetable for deciding the status of UPS’s order for the freighter version of the A380. The agreement specifies changed delivery dates for the A380F and provides for possible termination of the original purchase agreement by either party later in 2007.

Deliveries of UPS’s first 10 A380s were originally scheduled to begin in 2009 and run through 2012.

“UPS’s decision to purchase the A380 freighter was based on a lengthy evaluation of our future network needs to meet customer demands across a variety of global trade lanes,” said Bob Lekites, UPS’s vice president of Airline and International Operations. “Those needs still exist and UPS has been carefully evaluating various options since Airbus announced production delays late last year. This agreement will provide us additional time to evaluate our network requirements and make a decision once and for all as to how best to ensure service to our customers.”

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Cost of maintaining rural mail service questioned

Posted by | Feb 24, 2007 | |

Lorelei Beal says it’s “ridiculous” that Canada Post plans to fork over more than CD500 million to maintain rural mail delivery across the country.

The Conservative government ordered the post office late last year to continue rural roadside delivery amid concerns about the safety of mail carriers on busy rural roads.

Beal, who lives on Highway 7 between Guelph and Rockwood, said postal workers haven’t expressed any safety concerns about door-to-door mail delivery for years.

She is one of the rural residents who’s still getting mail delivered to her mailbox. Not all residents have been so lucky.

Some Puslinch Township residents were irked last year when they were told they wouldn’t get their mail delivered to the end of their laneway anymore, but instead had to pick up letters at a communal super-mailbox.

Canada Post spokesperson John Caines said this week it will cost CD153 million over the next two years to implement their rural delivery plan.

However, Canada Post expects to spend more than CD500 million over five years to ensure rural residents are receiving their mail, he said.

Caines said staff have to be hired to assess 843,000 rural customers in five years, which explains the huge cost.

He said Canada Post expects within the next 18 months to examine whether service to 5,500 rural mailboxes should be restored.

Wellington-Halton Hills MP Michael Chong isn’t certain what Canada Post’s solution will entail, but said rural Canadians expect home delivery.

Canada Post has been given a monopoly on mail delivery and in return residents should expect to get their mail, Chong said.

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