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

Some Maritime Updates

APL Officially Opens Phoenix HQ

I never thought I'd see the day when APL would leave Oakland, California.   The company has been a bay area maritime fixture for decades.  However, costs being what they are, the company has completed its headquarters relocation to the Phoenix area.  Approximately 300 people will occupy the headquarters building located on North Scottsdale Road.    Approximately half the staff transferred from Oakland. 

To APL employees:  Just remember..."its a dry heat".   One other thing... the Phoenix police use traffic cameras on North Scottsdale Road.    I know.  The last time I was in Phoenix I got a ticket for $164.00 in the mail courtesy of the the local shutterbugs.

Maersk gets ready to jack up the Trans Atlantic trade

Get ready folks.  Maersk has indicated its going to remove capacity in the Atlantic for the first time in years as well as aggressively raise rates.   The worlds largest container carrier no doubt will have followers who do the same.  

Maersk will replace its 4000 TEU vessels in the Med trade with 2900 TEU vessels as part of its 2010 trade strategy.   The company thinks the Atlantic trade has hit economic bottom and feels that restriction of capacity will force higher demand for the remaining slots.

Eric

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SoCal Fires Rage

For all those who haven't seen pictures of the raging wild fires near Los Angeles, Boston.com has an amazing photo collection worth viewing.  Thousands of acres of mountain Forrest as well as peoples homes are being destroyed.   It's a tragedy, but there is beauty in these photos somehow. 

I worry about friends and colleagues in the LA area.  Traffic and work flows at the ports of Los Angeles are no doubt also slowed by the smoke and hazardous conditions.

Check it out.

http://www.boston.com/bigpicture/2009/09/wildfires_in_southern_californ.html

Eric

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How to Get Obama to pay for my fishing trip

 I have a birthday coming up in the next couple of weeks.   I usually go fishing a couple of times a year with a great uncle of mine and other family members.   This fall it happens to coincide with my birthday.  Given that these trips are not cheap and that we employ guides who do not work for free,  I figured I'd solicit my parents and brother and sister to kick in some escarole (money) to offset costs and as my birthday present.   My family likes to give electronic gifts like Amazon gift certificates, so this is right up their alley.  Anyway...so I send an email to my tribe...

My brother Harry, who is a very successful executive recruiter and general contrarian, gets the gmail thread started by saying he'll match funds with any relative who kicks in a certain amount.  My Dad, who is a brilliant guy but another comodian, says he will kick in $10.00.  Sis says she'll match.   My mother is a willing participant but has no idea how to play. (typical.)  So brother Harry gives her this idea.  How about lets use the Obama Stimulus plan to pay for Eric's trip?

   H-man sends the following:

Send Eric a check for $300 and then file a $250 stimulus voucher with the federal government.  your tax deferred gift will be $50, which you can deduct on a straight-line basis through 2014.  in about 10 weeks, you should see a rebate check from the Obama administration.  I will match your first $50 and include that with my contribution.  my total contribution of $150 will then be grossed up for tax purposes and filed with a W2 to the IRS, "Department of Fish and Game Tourism, Special Programs."  this tax deduction will be used to offset the TARP funds that were allocated to Freddie and Fannie under the bush administration.

For more info or to get a copy of the form for this plan, please call the Department of Fish and Game Tourism, Special Programs at 1-800-366-2661.

Now here is the question Freightdawg readers:  Will this work?   Harry says he made this up, but its just clever enough that with the right twist...who knows.

If it does I might just vote for Obama next time around!

Eric

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Teamsters Go to FedEx Shareholders

The Teamsters are making a concerted effort to unionize FedEx Ground.  In this instance, as reported by Logistics Management Magazine, they are going to shareholders trying to persuade them that the FedEx Ground business model of independent contractors is a "flawed model" with tax and benefits liabilities that FedEx may be liable for in the future.   As Jerry Hempstead points out below,  the shareholders are going to do what's good for the shareholder.   Right now FedEx shares are doing pretty well.  

Parcel shipping: Teamsters renew call for FedEx Ground employees to unionize Jeff Berman, Group News Editor -- Logistics Management, 9/2/2009 WASHINGTON—In its latest attempt to get FedEx Ground employees to organize, the Teamsters Union said in a letter to FedEx shareholders that its business model for FedEx Ground is highly flawed, as well as “an unlawful and unsustainable business model.” FedEx classifies its Ground drivers as independent contractors rather than full-time employees. And the Teamsters charge that this “misclassification” has allowed FedEx to “evade expenses like payroll taxes, overtime pay, and benefits,” adding that “numerous state and government agencies have found that FedEx Ground’s contractor model is a sham and are looking to collect the money owed to workers and states.” The Teamsters also cited an August 2008 Bloomberg article that stated the pre-tax liability from unpaid payroll taxes could be as high as $2.5 billion.   While the Teamsters stated their case to FedEx shareholders, an industry analyst told LM they are likely to have a “hard sell” ahead of them for a few different reasons. “The shareholders in my humble opinion are going to do what's best for the shareholder and not what's best for a bargaining unit that does not represent any FedEx employees,” said Jerry Hempstead, president of Orlando-based Hempstead Consulting. “The shareholders have seen the price of the stock double in the last six months [from $35.76 on March 6 to $69.60 on September 2]. That's usually a sign that Wall Street is positive on the direction management is taking the company and a vote of confidence in those steering the ship.”

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