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Keeping you in the know... September 2008
In This Issue
CS Family Cookout
Industry Poll
Industry Updates
Current Fuel Costs
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Water Cooler Trivia
 
Completely useless but fun...
 
 
The Eisenhower interstate system requires that one mile in every five must be straight.  These straight sections are usable as airstrips in times of war or other emergencies.
 
Share your useless trivia
 
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Industry updates are important to all of us.  If you would like to receive an update on a topic not listed in this issue or receive more information on Cornerstone Systems, please contact us at 800-278-7677 or visit our website at www.cornerstone-systems.com
 
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Balloons and Burgers
CS Family Cookout Celebrates New Office Location
 
2008 Employee Cookout 32008 Employee Cookout 2Sure, the employees were celebrating their new office location with a cookout and giving tours of the new office to family members, but lets face it...the hit of the open house cookout came from the sprinkling of colorful balloons located outside.  Catered by "Back Yard Burger" and "Likety Split Ice Cream", adults and children alike enjoyed an evening of  fellowship and fun.
 
                                  2008 Employee Cookout
Industry Poll
Vote Photo How Would You Vote?
 
 
 
Lots of talk about manufacturing shifting back to U.S. & Mexico. 
 
Do you agree?
 
Yes or No?
 
This poll has been running on our website since early September.  It continues to fluctuate but as of this morning (9/12/08), readers are voting 71% yes and 29% no.
 
How would you vote?
 
Click here www.cornerstone-systems.com and scroll to the bottom of our home page to find the poll.  Vote now!
Industry Updates
Palin Opposes WC Fee, Mexico Opens New Port Bidding, Peak Season Affected By Slow Economy, ILWU-PMA Contract Close to Full Agreement, New Seals Will Be Mandatory  
 
Alaska Governor Sarah Palin has urged California Governor Arnold Schwarzenegger not to sign a bill that would impose a $30 per TEU fee on containers moving through the ports of Los Angles, Long Beach and Oakland.  Palin feels that the enactment of California Senate Bill 974, introduced by Senator Alan Lowenthal, will have negative impacts on both Alaska and California. "Shipping costs have increased significantly with the rising price of fuel and these higher costs are quickly passed onto Alaskans.  This tax makes the situation worse", said Palin.  "The fees could also harm California by driving business away from its ports."
 
Mexico's Department of Communications and Transportation has opened bidding for construction of a large port in Punta Colonet which will directly compete with Los Angeles and Long Beach as an alternative port for U.S. importers and retailers.    Punta Colonet is about 80 miles south of Ensenada in Baja California.  Officials envision a port capacity of 2 million containers annually when it opens in 2014, but expect a $4 billion, 18-berth port with a capacity of 15 million TEU's/year at full build-out.    The developers would also construct a 200-mile rail line with 1 or 2 border crossings and connectors to railroads in the U.S. 
 
The usually strong peak season is expected to be relatively weak this year as major retailers react to slow economic growth and cut back on imports.  These cutbacks, in turn, reduce the volume of goods typically moving by truck and rail in the third and fourth quarters.   Forecasters for the National Retail Federation expect cargo volume at 10 major retail container ports in the U.S. will fall 4% this year, the first such decline since 2001.  They further expect that it may be well into 2009 before we hit the bottom of the cycle.  
  
Last week ILWU caucus members voted unanimously in favor of sending the tentative six-year contract negotiated in July  to the general membership.  A vote by the general membership is scheduled for this week and the results will be announced before the end of September.  The PMA membership is also expected to approve the contract which will be in effect until July 1, 2014.  Details of the contract have not been disclosed. 
 
Effective October 15, all U.S.-bound maritime containers must have seals that meet the ISO/PAS 17712 standards (for unique numbering, strength, durability and resistance to tampering).   Requirements for the special seals were established by the SAFE Port Act.  Industry officials expect the requirement to complicate life for shippers and carriers.  They question whether enough of the required container seals will be available to meet demand. 
Current Fuel Facts            
The Energy Information Administration reports U.S. On-Highway Diesel Fuel Prices (dollars per gallon) as follows:
 
9/01/08                         Date Released 
4.121                               Price   
(Down) .024                  Change From Week Ago
(Up) 1.228                     Change From Year Ago
 
The Department of Energy is now forecasting that diesel fuel will average $4.09 this year, down 9 cents from a previous forecast.   
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