Eric Joiner's Freightdawg.com - The Logistics and Supply Chain Blog!

Why What Jamie Lee Curtis drives is Important.

Gasoline in California costs almost $4.60 a gallon.  I have no idea how those folks afford that.  However an eventual alternative is coming in the form of hydrogen powered vehicles.  Last week the first commercial fuel station was introduced in Los Angeles to support early hydrogen fueled test cars.

BMW, Honda and GM are introducing hydrogen powered test vehicles.  The total number of prototype vehicles is under 100 nationwide.  The test however, isn't really as much about the technology to produce the cars as the ability to produce and distribute the hydrogen fuel.  Today, the number of hydrogen fueling stations is less than 30 nationwide.

Movie star Jamie Lee Curtis drives a hydrogen car.  Honda gave her a new FCX Clarity sedan to drive.  They gave her husband and an number of other celebrities prototype cars to drive as well.  Their purpose is to provide high profile demonstrations of the new technology to early adopters who may have the shekels to secure the first expensive vehicles. About 200 of the cars will be part of a milestone leasing program over the next three years in the US and Japan.

The benefit of hydrogen is that the exhaust of an H powered vehicle is water vapor.  The problem with hydrogen is that it's a bulky gas.  It's too bulky to produce in a central refinery environment then transport to a fueling station. Hydrogen needs to be produced on site at the fueling station.

Producing hydrogen gas involves electricity.  A lot of electricity. Basically you take high voltage electrical current and pass it through water.  This cracks the hydrogen atoms (H) off of the water molecule (H2O).  The resultant gas is collected in a tank for use as fuel. 

From an environmental point of view, hydrogen may be a clean fuel, but the means to create it may not be when electricity is largely produced from coal, oil and nuclear fuels.

Given the energy requirement to produce hydrogen as a fuel source, it's use for automobiles may not be commercially viable for awhile. However, when considering commercial vehicles like semi-trucks, the possibilities change. Trucks already use centralized fueling stations either through company depots or over-the-road truck stops. Truck Stops present a concentrated opportunity to create hydrogen based fuel stations.

Trucking companies and truck stops would have to make infrastructure investments to make the fueling of hydrogen powered vehicles a reality.  However, state and local governments could make allowances for these investments in fuel tax exemptions or other tax related benefits to offset the initial costs.

State legislatures in the US (Oklahoma and North Carolina for example) have made investments in other energy hungry industries in the last few years, in particular the allowance of tax credits to technology companies like Google, Yahoo! and Microsoft that consume as much as 50 mega watts of energy annually through regionally placed data centers.  (That's enough electricity to power a small city.)

One of the critical ways that the data center technology firms work with state governments is through investment in alternative "clean" energy sources such as wind, hydro and solar energy sources.  Wind energy in particular presents attractive possibilities because wind turbines can be deployed in multiple locations where the basic requirement is wind strength.

Warren Buffett and Berkshire Hathaway invested in railroads and rail tank cars because they realized that the conveyance of coal, ethanol and grains would be profitable businesses in an energy shortage.  The transport of commodities that are the potentials of energy generation are almost guaranteed to be profitable.

The same can be said for wind energy when related to the production of hydrogen fuels as well as direct electrical grid power generation.  Electricity cannot be stored as a fuel.   However, hydrogen, produced by electrical generation can be.   

The firms that produce wind turbines include GE, Hitachi, Siemens and others.  Their order books are full.  They will stay full for a long time.  Long enough to change the core businesses of these conglomerates over time.  In due course investors will realize that the critical investment is in the producers of the technology that produce the fuels. Buffett gets this already.

Google, Microsoft and Yahoo! etc., power the electron economy.  Trucking companies deliver the goods.    Both will have wind energy behind them sooner rather than later.

In the meantime, Jamie Lee and others will simply look cute in their new cars, mostly unaware of the economic harbinger their vehicles represent.

Eric

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And Now for something Entirely Different...

I once worked with a guy back in the mid 1980's who truly had no idea about international geography. This guy had come from a domestic air freight company and had to be educated on "where stuff was". One day I asked him how things were going and he replied that he had a heck of a sales lead on some business going to the "Far East". I asked him exactly where...and he replied "Savannah".(doh!)

The little cartoon below I think should be included in ALL sales training for international logistics people. You'd be surprised how many folks truly have no idea where places are. That is shameful in a global economy, though this little cartoon is hilarious to me.  For we DHL folks there is a version of this on youtube in German!   

Dont know your state capitols in the US?   Yakko has that covered as well.

(Note: Some corporate proxy servers ban video from youtube.com.  If you see white space below...you may be on such a network. Please revisit from home or a connection that does not go through your company VPN.)

Eric

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Ferry Capsizes with Massive Loss of Life

Periodically the ocean reminds us that sailing the seas in ships is still a dangerous business.  Filipino Ferry Princess of Stars capsized on June 24, 2008 with only 62 survivors out of a passenger list of over 800.

The ferry capsized after being hit by Typhoon Fengshen on Saturday while sailing from Manila to Cebu City. Despite efforts by the Philippines Coast Guard, few passengers were able to be rescued from inside the capsized vessel. The ship remains afloat and rescue divers are still attempting to save those who may be trapped in air pockets.

Modern transportation has become so reliable in most cases that we often take it for granted until weather impacts the ships or planes involved. 

clipped from www.iht.com MANILA - What Rodel Laborte could not forget was the screaming of his fellow passengers. As the strong waves and wind tossed around the 24,000-ton ferry - "like a paper boat," he said - pandemonium broke out. The shrieks got so loud, he said, he could not determine if the captain gave an order to abandon the ship. "My heart was racing fast," Laborte said. "All I could think about was whether there were enough lifeboats for all of us." When the ship tilted heavily to the left, Laborte decided to jump, along with several others, into the churning water, where they clung to a lifeboat. It took only minutes for much of the ferry to disappear, he said. Laborte, 60, was one of the 62 survivors of the Princess of the Stars, which was struck by Typhoon Fengshen on Saturday, possibly killing most of the more than 800 passengers and crew on board. He and 27 others huddled in the lifeboat, which ended up Monday on the shore of Quezon Province, miles from the island of Sibuyan, near where the ferry capsized. The ferry disaster could turn out to be one of the worst in the Philippines in the past two decades. On Tuesday, rescue teams from the Philippine Coast Guard managed to penetrate the overturned ship and found many decomposing corpses floating inside.

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Scott Kalitta Killed in Drag Racing Accident

46 year old Scott Kalitta was killed yesterday when his DHL sponsored funny car dragster crashed. Kalitta is the son of racing legend Conrad "Connie" Kalitta.

The senior Kalitta also owns Kalitta Air , the all cargo airline. Kalitta Air lost a B747-200 in a crash in Belgium on May 25th, 2008.

Condolences to the Kalitta family on this tragedy.  This has been a very hard month.

clipped from www.southernledger.com Scott Kalitta died Saturday when his Funny Car crashed and burst into flames during the final round of qualifying for the Lucas Oil NHRA SuperNationals at Old Bridge Township Raceway Park. The NHRA said the 46-year-old Kalitta _ the 1994 and 1995 Top Fuel season champion who had 18 career victories, 17 in Top Fuel and one in Funny Car _ was taken to Raritan Bay Medical Center in Old Bridge, where he died a short time later. Witnesses told The Star-Ledger of Newark that Kalitta's Toyota Solara was traveling at an estimated speed of 300 mph when the crash occurred. The Palmetto, Fla., resident started his career at Old Bridge Township Raceway Park in 1982. His father, Connie Kalitta, was a longtime driver and team owner known as "The Bounty Hunter," and his cousin, Doug Kalitta, also drives competitively. Scott Kalitta is survived by wife Kathy and sons Corey and Colin.

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Aviation News Today Podcast 6.20.2008

ANT has a great podcast for the weekending June 20th.   Some of the key topics covered include the DOT's proposed auctioning of slots in the New York New Jersey market. 

I don't normally agree with anything New York Senator Chuck Schumer (D-NY) says, but I think he has a point in this weeks testimony in Congress.  Anybody who has flown into the New York market in the summer time knows its a mess. Also covered is the recently announced global marketing link up between United and Continental Airlines.

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Earth Class Mail: Confluence of Virtual and Real Mail

How would you like to have a mailing address on Park Ave in New York, or Market Street in San Francisco? What if all your important "snail mail" showed up in your email box instead of the US Mail box in front of your house?

Both of these possibilities are real if you sign up with Earth Class Mail.  Earth Class Mail is a service that allows your physical, US Post Office mail to be sent to a specific destination, then scanned and sent to you as email.  Further,  Earth Class Mail has the ability to assign you a virtual (real) mailing address at a prestigious vanity address, then accomplish the same thing.

Here's how it works. First, you pick a "Remote Address" for one of Earth Class Mails locations, and have selected mail sent to that address. As a Commercial Mail Receiving Agency, Earth Class Mail receives your mail, then instantly scans all the sealed envelope images, and then electronically delivers each envelope image to you online.

Some of the things you can do with Earth Class Mail include:

• Delete all junk mail with a click of your mouse 
• Have Earth Class Mail securely scan mail contents so you can read it online
• Shred sensitive information
• Forward the original to you or someone else
• Forward the electronic document to whomever you choose;
• Archive the paper originals at Earth Class Mails facility

If you travel a lot, or have a small business that requires mail management, this is a seriously good option.  Pick a Park Ave address, but have the mail delivered electronically to your email address in Peoria or your gmail address which is accessible anywhere. How cool is that?  Say you are a retiree with an RV who wants to check up on their snail mail while on the road.  Access it via Earth Class Mail. Your physical mail is scanned and sent to your email account, allowing you to deal with it any way you want.    My son has spent the last 6 weeks in Italy studying abroad. With this service he could have checked his postal mail every day.

This isn't a solution for magazines and DVD's etc. It's primarily aimed at important mail you might receive such as bills or correspondence.   Certainly you also wouldn't want your Netflix video DVD's being handled virtually. That's REAL media you are paying to enjoy. Its not an information transfer. Its a media transfer.

With Earth Class Mail, you get your postal mail scanned and sent to you via email, archived if needed, and a vanity postal address to boot!  If you run a small business, or are a traveling executive, this service is well worth a look! Check out the video below.

(Note: Some corporate proxy servers ban video from youtube.com.  If you see white space below...you may be on such a network. Please revisit from home or a connection that does not go through your company VPN.)

Eric

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Parcel Shipping Comedy?

I was surfing over at Shipping Coach.com and was thrilled to find out that there is actually a comedian who has a routine about parcel shipping.  The Youtube video below is pretty funny.

I recently had to ship a package to Italy where my son is studying this summer and weighing and dimming that puppy was harder than it looks.  It's disconcerting when a parcel shipping pro has some of the same issues as Brian Regan describes below. It doesn't matter which parcel carrier you use...the challenges are the same!

(Note: Some corporate proxy servers ban video from youtube.com.  If you see white space below...you may be on such a network. Please revisit from home or a connection that does not go through your company VPN.)

Eric

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Traveling in Style: Race Horse Transportation

A month or so ago, around the time of the Kentucky Derby, I posted an article here at Freightdawg.com asking for information on the transportation of race horses. I wanted to know how high dollar equine investments get moved from race-to-race and stable-to-stable, when the distances are great and the cargo is beautiful, valuable and capable of kicking a hole in the side of the stall. I wanted someone with expert knowledge to possibly write the article I am now (virtually) penning. 

I was disappointed that I got no takers. However, this is a special category of transportation, so the field of candidates might not have been very deep in the first place. Sooo... I decided to do the research and figure it out myself. This is also why I just love the Internet. Information is easy to find.

First stop: Google. I visited the web site for Keeneland Race Track in Kentucky. Keeneland is one of the top thoroughbred auction companies in the world as well as a premier racing facility.  Because of that I figured they might know people who knew about how to transport the animals that get sold.  I was right.

A quick email to the folks in marketing at Keeneland pointed me to H.E. "Tex" Sutton Forwarding. Founded in 1957, Sutton Forwarding specializes in race horse transport by air. I sent a note to Sutton through their web site and was soon having email conversation with Rob Clark, CEO of Sutton Forwarding and VP of Clark Aviation.   

Sutton is unique because not only do they provide forwarding services, but they operate a dedicated charter aircraft specially configured to handle race horses. The dedicated B727-200F has specially crafted stalls for horses.  Sutton has also invested in unique walk-on boarding ramps for horses.  The key to the business, according to Rob however, is the horsemen who handle the animals.

Sutton employs expert horsemen who have substantial experience in handling animals that are easily stressed and are of high value.  They understand horses. Sutton arranges charter flights which are typically geared around the US racing schedule. Most of the flights are in the US, though they do handle international flights to Canada.

On every flight, Sutton has five expert handlers whose role is to load and unload as well as comfort horses during travel. In addition some horse owners and trainers will send a groom along to accompany their horses from stall to stall. 

For the most part preparation for travel involves wrapping and padding legs, calming the animals and on occasion (rarely) the application of a tranquilizer if a horse is unusually nervous. The key to transport however is that Sutton has unique loading equipment, a custom configured aircraft, and onboard crew who know how to handle horses.   

Shipments are full charter flights with rates based on yield per block hour. Sutton knows the racing schedule so is able to project when flights are necessary, so while no fixed schedule is flown, they know the racing business well enough to know when to have aircraft available. Further, their sales teams are also experts in equine transportation so know how to match loads for an efficient back haul when available.

Given that Sutton works in a boutique market, I asked Rob what the biggest challenges were today in his business. The answer I got was typical of a transportation guy..."fuel and people". Having good people to understand the business is a key to any carriers business. Fuel cost is a common problem for anybody who operates transport assets. 727's aren't the most fuel efficient aircraft out there, but the airplane Sutton charters is uniquely configured to handle high dollar cargo. It is not uncommon for a charter flight to have $400 million dollars in equine assets on board.   

Sutton is not without competition. FedEx also flies race horses, especially internationally.  However, Sutton is the only US forwarder who flies directly to airports near race tracks without marshaling through sorting hubs.  For the most part, Sutton is without a pure competitor, but offers a unique and special service to handle a special cargo.

Given that "Big Brown" is named after UPS,  I wonder if he has flown with Sutton Forwarding?!

Eric

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Global Logistics: Global 4D Education

Today I want to share something amazing. The video below is about a new type of earth globe called Global4D.  It uses simple materials and very clever programming to show the planet Earth in three dimensions as well as an additional dimension...time.  Of the dimensions, time is critical. It allows both historical perspective and education. 

Want to see what the Earth looked like 2 million years ago?  How about 5 million years ago?    What if you want to look at weather or seismic events back in history?   Globe4D can do this.   

The software isn't restricted to Earth only.  You can check out other planets and the Sun as well.  In an era when many high school students can't find China on a map, this learning tool is amazing for education.

The developers used extremely simple hardware to make this work. Hopefully this will be picked up and professionally manufactured for schools and industry in the future.

I saw this and immediately wanted to look at a few things. Can technology development be shown through a time line that literally shows globalization and cultural shrinkage?   Also can real time streaming supply chain visibility be shown on this tool?   What if the Chief Supply Chain Officer of a major conglomerate could spin a globe and check his network in real time?  This isn't much different from  some of the cool add ons for Google Earth that have been developed.  What if it could be used to highlight strategic bottlenecks? Now overlay global sales on the map by market.  How do the supply chains and the markets align? 

My imagination lights up looking at this.

(Note: Some corporate proxy servers ban video from youtube.com. If you see white space below...you may be on such a network.  Please revisit from home or a connection that does not go through your company VPN.)

Eric

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Link Luv: Blogging Bro's and Sisters.

Blogging is a personal exercise.  It's an expression of those thoughts that you believe (and hope) are most relevant to the market you are addressing.  People tend to scribe what they care about.  Having said that, I my younger brother and sister both are active and extremely "relevant" bloggers.    Blogging is a voice.  It is a way to express your personal opinion in a way that many others can relate to.  I like to think It is an ultimate expression of democracy.   

Freightdawg.com is about supply chain and logistics related issues.  That's my thing.   My brother Harry is a highly successful executive recruiter in the e-commerce field.  His blog and web site is www.marketingheadhunter.com. My sister Susanna not only works with and supports Harry's efforts, but also runs her own blog called Barefoot Stamper.com.  All of us write about divergent subjects, but have links to each other as important sites worth visiting.

I'll be honest, the fact that we all have on-line voices creates some interesting dinner conversations.   Right now, there isn't much of an idea on how to monetize the Von Trapp family of bloggers, but I bet something is out there.  We'd appreciate all the feedback we we can get on this one.

Eric

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