Domestic Intermodal Improves

International volumes may have declined, but there is good news on the domestic front. Domestic intermodal had its best performance this quarter (Q3 2008) since the second quarter of 2004, according to a report released by the Intermodal Association of North America.

There was a 10.5% gain in domestic containers — their strongest quarter of growth since 1999. The increase, coupled with moderate domestic trailer volumes pushed overall domestic volume up a respectable 6.7%. This performance helped boost overall year-to-date domestic growth up by 4.7%, according to Intermodal Market Trends & Statistics.

Domestic container growth was driven by a 16.1% surge in 53-foot containers, while all other container sizes posted declines during the quarter. Domestic container gains were particularly strong in the Midwest-Northeast corridor, where eastbound shipments increased 15%, while westbound shipments increased 6%. And a first in more than three years — trailers had their second consecutive quarter of volume gains, which were primarily driven by a 10.4% increase in 53-foot units.
www.intermodal.org

UPS Survey Finds Businesses Ignore Risks

Nearly half of companies with global supply chains say they fear major disruptions in their ability to source, produce, and ship goods around the world — and they’re not doing much to prevent it, according to a new UPS-sponsored survey, “Supply Chain Resilience: How are global businesses doing?”

The global survey of nearly 350 senior executives by UPS and the Economist Intelligence Unit, released December 1, was supplemented with interviews of academic experts and leading supply chain practitioners. According to the survey, forty-seven percent of companies say they need to pay more attention to risk mitigation compared to just 16 percent that believe they pay an adequate amount of attention.

As a result, only 38 percent of those surveyed rate the resilience of their supply chain above average, while a troubling 42 percent say the expansion of their global supply chains has outpaced their ability to manage risk.
Among the findings, one of every ten companies does not monitor suppliers for anything. About half of the remainder look only at immediate suppliers. Furthermore, in almost half the companies surveyed, formal risk assessment takes place only annually.

Popular Technologies for Shippers

Eyefortransport has come out with a study that shows that among shippers, the most popular technologies, IT solutions, and system improvements currently in use are WMS (72%), ERP/MRP (56%), and Enhancing and Upgrading IT systems (50%). Among transport and logistics providers, the most used technologies and solutions are TMS (59%), WMS (57%), Enhancing and Upgrading IT Systems (52%), and Visibility Technology (47%). [Note: respondents could choose multiple answers.]

In terms of which products and solutions yielded the best return on investment, shippers’ favorites are WMS (41%), ERP/MRP (35%), and Enhancing and Upgrading IT Systems (35%). Among transport and logistics providers, the winners for best ROI are WMS (33%) and TMS (37%).

Lift Truck Safety

The U.S. Occupational Safety & Health Administration (OSHA) has launched an electronic resource for lift truck safety, providing information on mandatory safety requirements and industry best practice.
The simple, easy-to-navigate website runs through the various types of “powered industrial trucks” before explaining the basics of safe operation. You can check out the website at www.osha.gov/dcsp/products/etools/pit/index.html.

The web site has comprehensive information on training programs and certification and also includes guides for in-house training. OSHA advises, “If you are developing your operator training program, you should become familiar with the OSHA standard for powered industrial trucks and any operator’s manuals for the equipment in your workplace.”

RFID on the Rise

If the ABI Research is correct, the global RFID market will reach $5.3 billion in 2008 and continue to increase over the next five years.

ABI Research says that excluding automobile immobilization, the market is expected to experience a 15 percent compound annual growth rate (CAGR) from 2008 through 2013. Forecasts peg the market at $9.8 billion in 2013.

ABI Research believes it’s too early to tell what impact the weakened global economy will have on the RFID market. However, investments are still being made in RFID companies, consolidation continues, and contracts are being awarded.

The latest release of ABI Research’s RFID Forecasts provides extensive data on RFID revenues and unit shipments.
www.abiresearch.com/products/market_data/RFID_Forecasts
People on the Move

• Jayson Ahern has been chosen to replace Ralph Basham as Commissioner for the U.S. Customs and Border Protection.
• GSC Logistics Inc., named two new executives to its leadership team — Clement Chin was appointed Vice President of Business Development, and Richard Norton was promoted to Vice President of Operations.
• Wal-Mart Stores announced Lee Scott will retire February 1 as Chief Executive Officer. The board of directors has asked Mike Duke, head of Wal-Mart’s International division, to replace him.
• Kenneth A. Finneran was promoted to Chief People Officer (CPO) - Americas for
  Hellmann Worldwide Logistics.
• Business travel management firm Carlson Wagonlit Travel (CWT) has appointed
  Mario Lopez-Belio as Vice President and Chief Procurement Officer.
• VYCON has announced the appointment of 20-year power quality expert
  Dann McKeraghan as Director of Sales for the North American region.
• The Intermodal Association of North America elected two new members to the organization’s Board of Directors: Chris Munro, President and CEO, RoadLink, who will serve as an At-large board member, and Patrick Valentine, Director � Safety and Regulatory Issues, Maersk Equipment Service Company Inc., who will represent IANA’s Water Division on the board.
• Port of Portland Aviation Director Mary Maxwell has announced her retirement, and Steve Schreiber, the port’s current CFO and Director of Operations, will assume the role of Aviation Director — a position in which he served from 2000 to 2004.
• Ports America has announced the appointments of Donald Rupert as VP of Sales and Marketing, Steven Trombley as VP of West Basin Container Terminal (WBCT) in Los Angeles, and Peter Dunton was promoted to VP of Container Operations for Seaside Transportation Services Terminal (STS) in Los Angeles and Oakland, Calif. In addition, Douglas Tilden was named to the advisory board of Ports America Group, and
  Nasir Khan was named Chief Development Officer.
• Long Beach, Calif., Mayor Bob Foster appointed Susan Wise to the Harbor
  Commission, which governs the Port of Long Beach
  

CN Acquires Three Rail Subsidiaries

Canadian National Railway announced in November that it had acquired three principal railway subsidiaries of the Quebec Railway Corp. (QRC) and a QRC rail-freight ferry

operation for $49.8 million (Canadian). Under the transaction, CN is purchasing 540 track miles of rail line it formerly owned in eastern Ontario, eastern Quebec, and northern New Brunswick, as well as a ferry service on the St. Lawrence River in eastern Quebec.