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

Jerry goes to Yellowstone

My friend Jerry Hempstead has been traveling out west with his bride and yesterday emailed me something that was a cross between a travel log review and a rant.  I found it humorous, but somehow reflective of Obama administration pending policy on health care.    Read on.

"In an effort to help stimulate the economy and to keep the Mrs. happy we spent the first 10 days of July touring Mt. Rushmore, Little Big Horn, Yellowstone and Grand Teton.

The trip had been one of my wife's dreams as she is a fairly accomplished photographer and this part of the country offers opportunities for great photos. I was taken aback while here to find that our government through the contractor here has learned the art of improving yield the way the transports do.  Accessorial fees...and not small ones.

When you check into your hotel at Yellowstone, for example, they offer you the use of a card so that you can charge things to your room such as meals in the dining facility. Well if you do use the card they charge a fee. I learned my lesson after the second day when I came to find out that the fee for a dinner of $56.06 was $8.50 and the fee for using the card for a $27.40 breakfast was $4.

Now that's not the best of it. They charge a "Utility Fee" for just about everything you buy here at the National Park. An it appears the utility fee is in some instances subject to a minimum charge just like the transports do. So that breakfast for $27.40 had a $1 "utility fee" applied to it. There was also the sales tax of $1.55. Now recall that I charged this to my room and got hit with the $4 fee for doing that. To add insult to injury when I checked out they charged me tax and a another utility fee on the grand total.

When I inquired as to what this utility fee was (at all three Yellowstone hotels I stayed at) nobody could explain it. They handled me a card with some mumbo jumbo about environmental stewardship and thats why I need to "participate" in the utility fee.

The reality here is that the services in the national parks are a monopoly managed by our government for "we the people".

The hotel room prices are some of the highest I have ever paid, and I've traveled the world over in 32 years of peddling freight.  The hotel at Lake Yellowstone is in my humble opinion a dump that should be demolished and rebuilt. It is past the point of repair for historic sentimentality.  $216 a night for a small room with the wallpaper pealing and a bathroom so dirty even the bugs would not go in it.

In an effort to be good stewards the light bulbs in the room I think were 25 Watt, just enough that you would not bump into things but not bright enough to recognize who was in the room with you.

Gasoline costs $3 a gallon here because there is no competition. That's true of the overcharging for everything.  All the stores are managed by the same company that manages the hotels and the dining. All overpriced.  So here I am on independence day in our national parks - which I as a citizen am told belongs to me, and I'm being ripped off by the government that I have elected to run the place."

Somehow this makes me think the Obama health care plan will be similar.

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Busy Week

This has been an interesting first two days of the week.  On Monday, June 21st,  I attended the graduation of a cousin of mine from the United States Merchant Marine Academy at Kings Point, NY.

Kings Point cranks out experienced young people with more sea time than any other Maritime academy including Annapolis.   It was my first time to KP.  What an impressive place.  With a motto of "Acta non Verba" (Action, Not Words),  The USMMA trains young people who are ready for the operational end of our industry.  

The graduating class of 2009 was composed of only about 150 graduates.  However among them were an impressive number of young women. In fact the valedictorian of the class as well as the class president were both female, one of which was matriculating with a degree in intermodal logistics.   It's not unusual to find that the senior management of shipping companies, terminal operators and related firms all have Kings Point grads at or near the top.

My cousin will go directly to a destroyer based in Yokosuka, Japan for active duty with the Navy.   Given the crazies in North Korea, I worry our young man will be in Harms Way, sooner rather than later.

Kings Point is a small school, but they usually draw important visitors.   The kids graduating Monday received commissions from the Army, Navy, Marines, Air Force and Coast Guard.  In almost every case, there was a flag or general officer present to commission the new ensigns and lieutenants.    The graduation keynote speaker was US Secretary of Transportation Ray LaHood.   LaHood is a career politician and Obama appointee new to his job.  As a result his comments were brief.   However, he did report that the 2010 federal budget would contain approximately 12 million dollars for KP to maintain and renovate facilities.   With that being the extent of his salient comments, I'm not sure what that means for our transportation department!

Flying back to Atlanta from New York wasn't without tribulation.   Having spent 20 minutes in a holding pattern over Greenville SC,  the rocket scientists at Air Traffic Control diverted our Delta MD-88 to Birmingham for fuel.   We sat there for an hour, before being vectored back to the ATL.   Total flight time from NY to ATL: 8 Hours.  That one made me wish our Secretary of Transportation could be aboard.  No such luck.  Guys at his level fly in private jets!

Eyefortransport 3PL Summit, Atlanta Georgia

On Tuesday,  I attended the Eyefortransport 3PL Summit here in Atlanta.  I'm on the board of the American Society of Transportation & Logistics, so I was asked if I would attend if given a free ticket.   I've attended various eyefortransport events over the years including events in Hong Kong and Amsterdam.  They are usually well attended by important folks on both the 3PL and customer sides of the fence.  Not so much this year.    Only about 145 people attended.   I suppose this is a result of the tight travel and entertainment budgets most firms have in place today.   Nobody has the extra cash to attend a business conference.    That would have been the case with me, but I live in Atlanta and the ticket was free!

On the whole the conference was valuable, with keynote speakers from Maersk Logistics (soon to be Damco), MeadWestVaco and other firms, subjects like compliance and risk management were discussed and presented.  These conferences are about people however.  It takes a quorum of industry professionals sharing their knowledge that keeps these things interesting and valuable.   In this regard I think EFT missed the mark this year.   For the most part I think that's not their fault.   In case you haven't noticed...the economy sucks.

In Obamaland All You Need Is The Willing Suspension Of Disbelief

Some people are just pathologically honest.  Check out the blog article written by my friend Mike Regan of Tranzact Technologies.   Mike calls em like he sees em.   I typically agree with his positions.  Check out his excellent article today at Logistics Managements web site.  Mike is a Chicagoan and highly familiar with the ways of our President.  Given that our SecTrans is also a Illinois career politician, some comments apply to Ray LaHood as well.

Eric

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Twitter Me Not...

Do you use Twitter?  This is the social networking tool that allows users to tell multiple followers exactly what they are doing at any given moment. 

Frankly I see little business use for this tool, but apparently there are some. There are also some good reasons NOT to use this tool.  A great friend of mine who is also an attorney, once told me that anything you write down in email or any form of written communication can be used as admissible evidence in a court of law.   I can only think that Twitter now puts that rule on steroids.  All electronic communications are stored somewhere for perpetuity. 

Check the link out here on what happened to an Ad agency executive who shared his personal opinions on twitter prior to a meeting with FedEx.  Good on the FedEx folks for their reaction to this event.

 Eric

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Finally: Somebody did some Homework

DHL's proposed air line haul deal with UPS has caused considerable controversy since its announcement in May. Understandably, there's been a lot of concern from the citizens of Wilmington, Ohio, where DHL's hub is located, as well as employees, politicians, union officials and DHL customers. 

Much of what has been reported however has been inaccurate, or at the very least, lightly researched regarding what the history and business impact of the DHL/UPS deal is.  So much so that it's become a political football.  That's no surprise in a federal election year and in a politically important state like Ohio.  The situation is very serious for all concerned, so accurate information becomes all that much more important.

Having said the above, I want to point to the factcheck.org article that appeared in Newsweek this week. This article has more correct information than almost everything else I've read. Both the Obama and McCain camps would do well to read it.

Factcheck.org a nonpartisan, nonprofit, "consumer advocate" for voters that aims to reduce the level of deception and confusion in US politics. The Annenberg Political Fact Check is a project of the Annenberg Public Policy Center of the University of Pennsylvania.

I highly recommend reading the complete article!

clipped from www.newsweek.com Distorting the DHL Deal An AFL-CIO flier and Obama campaign ads say that McCain cost Ohioans 8,000 jobs. We say that's a distortion of the record. Joe Miller | factcheck.org Ads from the AFL-CIO and the Obama campaign claim that McCain is partly to blame for the loss of more than 8,000 jobs in Ohio. They paint a false picture. There's at least some truth in both ads: German-based DHL announced a deal that could result in 8,200 lost jobs in Wilmington, Ohio. And McCain did in fact oppose an amendment that would have kept DHL from buying Wilmington-based Airborne Express. McCain's campaign manager, Rick Davis, was also a DHL lobbyist charged with easing the merger through the Senate. But the ads go too far. Some statements about McCain are misleading and some of the inferences the ads invite are unsubstantiated: The ads charge that McCain opposition to a 2003 amendment helped DHL and amounted to turning his back on workers. That's misleading. McCain said he opposed a version of the amendment because it was a special project inserted into an unrelated bill, not to help DHL. And the Teamsters union praised the merger at the time, saying that it would lead to more jobs. And at first, more jobs indeed followed. The ads also imply that the DHL merger is a direct cause of the job losses in Ohio, which we find to be both unlikely and unsubstantiated. Airborne Express had laid off 2,000 employees before the merger, and analysts at the time said that the struggling carrier would need to make expensive investments in its international infrastructure to remain competitive. Analysis The AFL-CIO and presumptive Democratic presidential nominee Barack Obama are blaming John McCain for the loss of more than 8,000 jobs in southwestern Ohio. The AFL-CIO mailer is the most explicit, saying that "McCain helped cut a deal that sent over 8,000 jobs to a foreign-owned company." Obama's television ad, which began airing on Aug. 14, charges that "John McCain helped pave the way for foreign-owned DHL to take over an American shipping company." An Obama radio ad, which began airing in Ohio over the weekend, repeats the message that McCain "used his influence in the Senate to help foreign-owned DHL buy a U.S. company and gain control over the jobs that are now on the chopping block in Ohio."

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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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Give me my Super Chief!

House Passes Passenger Rail Investment and Improvement Act of 2008

In days of $4.00 a gallon gasoline, the United States is in serious need of additional mass transit and longer range railroad infrastructure. Given the size of the United States and the speed and convenience of airline travel, passenger rail service in the form of government owned Amtrak has diminished substantially over the years and become unprofitable. However, now that fuel has become almost prohibitively expensive, rail service could make a come back.

HR Bill 6003, known as the Passenger Rail Investment and Improvement Act of 2008 aims to provide renewed funding for Amtrak, as well as to fund private efforts to establish rail service on class 1 freight rail lines as well as improve state and regional rail infrastructure.

The bill is primarily Democrat backed and lead by Rep James Oberstar (D-MN). Critics see it as funding of a dying horse in Amtrak. However, given the critical need of this country to create cost effective and fuel efficient mass transit services, I view this as a potentially great use of public funds.

The US, unlike Europe, does not have a significant passenger rail infrastructure to fall back on. We need one.  Airline travel has become brutal.  Security screening, high passenger volume, decreased service to smaller destinations and the shear cost of tickets, have made airline travel ugly. It's a necessity, but darned ugly.

Here's just some of what HR 6003 includes.

state preparation of state rail plans. Requires studies of passenger rail service, locomotive biofuel, and the use of bio-based lubricants. Requires Amtrak to establish a Next Generation Corridor Equipment Pool Committee. Directs the Secretary to establish a rail cooperative research program, and the Comptroller General to compare the U.S. passenger rail system with the systems in specified other countries. Authorizes a public transportation authority or rail carrier to submit disputes over trackage use and railroad rights-of-way to the Surface Transportation Board for non binding mediation. Authorizes the Secretary of Transportation to establish a high-speed rail corridor program, including capital project finance grants. Directs the Secretary to solicit proposals for projects for an initial high-speed rail system between Washington, DC, and New York City (Northeast Corridor), as well as for additional projects on any other corridor. Directs the Secretary to conduct an alternatives analysis of the December 1, 1998, extension of the designation of the Southeast High-Speed Rail Corridor.

What if train service became fashionable again?

In these days of high speed electric rail trains in Europe and Asia, as well as the Amtrak Acela trains, why cant rail services be established to serve 150 to 500 mile rail corridors profitably?   Consider a high speed train with modern internet connections, airline type seats,  meeting room cars,  satellite television, dining and bar cars (of course!) etc? Combine those amenities with modern, hybrid locomotives and this might be a real winner.

"I'm telling you, as a 100K a year flyer, I'd use these kinds of services. Delta could still haul my luggage and me to Los Angeles from Atlanta, but I'm not going to pay them $1400.00 to take me to Jackson, MS. when I could go from Atlanta to Jackson for less than $100.00 by train."

I need speed to get to where I am going, but more importantly I need productive time. If I could use my internet connections and cell phone while rolling through the countryside to a region where I would be for several days, I would use the train without question and happily.

Give me my Super Chief!   It's time for America to get back on the railroad.

Eric

clipped from www.progressiverailroading.com House signs off on Amtrak, high-speed rail bill Yesterday, the House approved the Passenger Rail Investment and Improvement Act of 2008 (H.R. 6003) by a 311-104 vote. The bipartisan legislation was introduced last month. H.R. 6003 would reauthorize Amtrak for five years and provide more than $500 million annually for a state intercity passenger-rail grant program. The bill also would enable private operators to launch passenger-rail service pilot programs on freight-owned tracks in Amtrak's worst-performing corridors, and require the federal government to work with states and railroads to plan rail infrastructure projects. The bill aims in a number of ways to improve and expand U.S. passenger-train service," said National Association of Rail Passengers Executive Director Ross Capon in a prepared statement. "The bill will allow for significant investment in rolling stock and tracks, including the addition of needed track capacity at some key chokepoints where Amtrak and freight trains both suffer delays." In addition, H.R. 6003 calls for developing high-speed rail service between Washington, D.C., and New York City that would complete the trip in under two hours. The bill would require the U.S. Department of Transportation to solicit proposals for engineering, finance and development plans for the system; create a commission comprising state, local, federal, rail and rail labor stakeholders to evaluate the proposals; and report recommendations to  Congress.

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The Politics of Logistics

Now that the US Democratic party seems settled on Barack Obama as its presumptive candidate, and the Republicans have John McCain slotted to oppose him,  its time to start to evaluate what their individual political policies may mean for the logistics and supply chain industry.

Ben Gordon of BG Strategic Advisors wrote an excellent piece for Logistics Management Magazine that highlights four strategic issues where political differences may cost your logistics firm some serious cash.

These initiatives involve ease of union organizing, cargo inspection, free trade and taxes. Suffice it to say, supply chain operations in the US will likely be more expensive next year.

It's depressing really. All the more reason to do your homework now.   These issues will impact jobs, corporate profitability and the serious need to get the US economy moving again. 

clipped from www.logisticsmgmt.com This year we face a highly uncertain Presidential election. What are the implications of the 2008 elections for the supply chain sector? Here’s where each candidate stands on the hottest issues that could affect logistics and supply chain managers. By Benjamin Gordon, BG Strategic Advisors -- Logistics Management, 4/29/2008 12:05:00 PM "'In this world nothing can be said to be certain, except death and taxes." Benjamin Franklin’s observation is as true today as it was in 1789. In 2008, we face a highly uncertain Presidential election. Senators Barack Obama (D-IL), Hillary Clinton (D-NY), and John McCain (R-AZ) represent dramatically different scenarios for the logistics sector. What are the implications of the 2008 elections for the supply chain sector, how can you prepare, and what opportunities should you pursue? As the elections approach, here are a few topics that you should watch closely as you seek to position your business for success: Card check: the new unionization drive 100% inspection: cargo screening and the growing cost of compliance Free trade frozen: threats to NAFTA The taxman cometh: the likelihood of tax hikes

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Mercy Corps Gives Aid In China and Myanmar

One of the things my company does that makes me very proud is it's involvement in emergency and disaster relief.

DHL has a huge global logistics network and the company has never been shy about using it to help those in need.  DHL people also respond in the form of our Disaster Recovery Team (DRT).  The DRT consists of a highly organized group of DHL employees who deploy to the disaster region and then distribute food and supplies to those in need in conjunction with local authorities.   The US DRT team has deployed for Hurricane Katrina, the earthquake in Peru and other disasters.  DHL has other DRT teams in Europe and in Asia to respond on a global basis.

Such is the case in Myanmar and in China. Mercy Corps is a highly respected international aid charity.   Based in the UK, Mercy Corps is involved all over the world in assisting our fellow man in need. 

DHL assisted Mercy Corps in shipping 9 tons of food and materials to Myanmar on DHL Express aircraft. Additionally, DHL will help stage the goods for distribution in the region from company controlled facilities in southeast Asia.

Mercy Corps is currently accepting donations for humanitarian assistance to both cyclone and earthquake survivors. Mercy Corps and reputable local partner organizations will monitor distribution of donations.

HOW YOU CAN HELP:
Mercy Corps Myanmar Cyclone Fund - or - China Earthquake Fund
Dept NR, PO Box 2669 Portland, OR 97208 
www.mercycorps.org - or - 1-800-852-2100

Eric

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DHL Disaster Response Team: Good to Go!

I Rarely Mention my Employer here.

Mainly because I think it's important to write generally at an industry level. However, I am very proud of a particular group that I am humbled to call colleagues.

DHL Disaster Response Teams (DRT) are volunteer groups of people who react to both domestic and international disasters, whether man made or natural.   The DHL press release below documents the efforts of the Americas DRT in its present deployment in Peru as a result of the earthquake there.

These folks are not professional specialists. These are rank and file employees who have gotten special training.  They deploy to hot spots within their global regions and work with local law and government agencies in ways they can help best.   Generally that means providing blankets, clothing, food, cooking gear and general survival rations to help people cope with disaster.  

One thing that I think is important to note is that the DHL DRT teams are not "branded". They wear blue jump suits, but nowhere on their clothing does it say "DHL".    They are part of a greater good in this instance.

What is interesting is how these teams use their logistics experience in the relief efforts.  For instance, the DRT has developed a "ball" that can be airdropped to victims that contains survival food (Rice and Beans).  Rice and Beans seem like poverty food, but beans contain protein and rice contains valuable energy in carbohydrate form.   Whats critical is that both can be cooked over an open fire with only water and a single pot.  Guess what?  The air drop contains a pot to cook with too.   All this is backed up with DHL's global forwarding, project, express and aviation network.   When Katrina victims needed water, DHL (and many others) flew entire aircraft full of bottled water into the area.

The DHL Disaster Response Teams have helped out with a number of efforts including Hurricane Katrina, the Indian Ocean Tsunami, The earthquakes in Pakistan and Peru and others.   This is part of Deutsche Posts global social responsibility program, but I think it's just great people doing whats right.  This is what corporations should do as part of the communities they serve.

I'm humbled and honored to work along side these colleagues.

Eric

clipped from www.dhl-usa.com

DHL Delivers Help to Earthquake Victims in Peru

Pisco, Peru -- August 21, 2007

Expert volunteers provide logistics support at Pisco Air Base The DRT Americas, based in South Florida, and DRT Asia Pacific, based in Singapore, were both set up last year. A third DRT for the region Middle East and Africa is planned for this year so that DHL will be able to offer its humanitarian support worldwide. The DRTs, whose services are provided free of charge, each draw on a pool of about 80 DHL employees. Up to 15 DHL expert volunteers are on the scene at any one time. "Sheer manpower and goodwill are making up for the lack of cargo handling equipment," said Chris Weeks, Director of Humanitarian Affairs at DHL, who is on the scene. "The DRT is busy reorganizing the two temporary warehouses at Pisco Air Base so that more goods can be stored under cover and shipped out more quickly."    Because the main highway between Lima and the affected region was heavily damaged, most relief supplies are being flown directly to Pisco. Each day, planes loaded with tents, blankets, medicines, food, drinking water and other supplies land at the air force base. In addition to the work at the airport, the DRT Americas and local officials are considering the possibility of dropping relief supplies by helicopter in outlying areas that have not yet received any help. Officials say more than 500 people were killed and more 1,500 injured in the devastating quake that struck the South American country. An estimated 200,000 people are thought to be homeless.    By itself, the DRT has already managed 400 tons of relief items and most donations have consisted of grains (including rice and beans) and clothing. Local authorities have announced the need for tents (family-size), diapers and toilet paper. In addition, many people have lost their homes, therefore, there is a need for building supplies including hammers, wheel barrows, shovels. Relief materials have arrived from Argentina, Brazil, Colombia, Italy, Ireland, USA, Venezuela, and Peru.    In recent years, DHL and its employees have gained extensive experience in disaster relief management and are able to react quickly and in a professional manner to sudden onset natural disasters. The company has already used its transport and logistics skills as part of relief efforts launched after the tsunami disaster in the Indian Ocean, Hurricane Katrina in the Gulf Coast region and the earthquake in northern Pakistan. For years, DHL has been active in the countries where it conducts business in to live up to its social responsibility standards.

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Two Great China Blogs. Go There Now.

On a slow Saturday afternoon, I have been catching up on some of my favorite web sites.  Work and business travel have been hectic lately, so I have a back log of stuff to read.  In doing so though,  I was reminded how much I really like a couple of sites on China that I visit regularly.  I don't often write articles that basically say "leave my site and go here".  However, I am doing that today regarding a couple of my very favorite blogs on China. 

China Law Blog. Written by two lawyers with the international law firm of Harris & Moure,  Dan Harris and Steve Dickinson do a really great job writing about what's "really" going on in China from a local level.  China Law Blog recently was recognized as "Best Business-Law Blog" by Chinalyst, a community of English Language blogs on China. 

Particularly interesting are sections on hiring, outsourcing, local customs and the impact of Chinese politics on business and culture.  

Check out this recent article on China Outsourcing and Mattel.  I found it of representative value relative to the hard work Mattel put into setting up their offshore activities even in light of a recent recall of toys that were found to have lead paint in them. Quality control is a big deal at Mattel, but I guess this is proof that sometimes "shit happens".

Another favorite I'll add for good measure... "Bunnies' Blog - The Adventures with the Venture Communist"  This is the blog of Bunnie Huang, a venture capitalist doing business in China.   Great, great reading for anybody considering setting up shop in China or setting up outsourced operations.    The Venture Communist article is almost a "stream of consciousness" in writing style but it contains high value information. 

Both of these sites are worth bookmarking.

Eric

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