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Count on Cornerstone - The Clear Choice - For Rock Solid Results April 2010
In This Issue
CS Employee of the Year
Positive Industry Signs
New "Marine Highway"
Transportation News
Current Fuel Costs
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Water Cooler Trivia
 
George Carlin

Thanks to Jim Wiskur for submitted this piece of advice...

 How To Stay Young
By George Carlin
 
1.  Throw out nonessential numbers.  This includes age, weight and height.  Let the doctors worry about them.  That is why you pay them.
 
2.  Keep only cheerful friends.  The grouches pull you down.
  
3. Keep learning. Never let the brain idle.
 
4.  Enjoy the simple things. 
 
5.  Laugh often, long and loud.
 
6.  The tears happen.  Endure, grieve, and move on.  The only person who is with us our entire life is ourselves.  Be ALIVE while you are alive.
 
7.  Surround yourself with what you love.  Whether its family, pets, keepsakes, music, plants, hobbies, whatever.  Your home is your refuge.
 
8.  Cherish your health.  If it is good, preserve it.  If it is unstable, improve it.  If it is beyond what you can improve, get help.
 
9.  Don't take guilt trips.  Take a trip to the mall, or another country, but NOT to where the guilt is.  
 
10.  Tell the people you love that you love them, at every opportunity.
 
 
AND ALWAYS REMEMBER:
Life is not measured by the number of breaths we take, but by the moments that take our breath away.
 
 
More...Water Cooler Trivia
 
Completely useless but fun...
 
Which breed of dog has captured #1 "Most Popular" spot consecutively for last 19 years? 
 
 
 
Answer:
Labrador Retriever
 
Does your pup rank among the top 10 in U.S.?
 
1.  Labrador Retriever
2.  German Shepherd
3.  Yorkshire Terrier
4.  Golden Retriever
5.  Beagle
6.  Boxer
7.  English Bulldog
8.  Dachshund
9.  Poodle
10.  Shih Tzu
 

Share your useless trivia
 
Greetings!

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
 
We are here to help. 
 
Heather McPherson Named CS Employee of the Year
2009 Quality Award Given for Outstanding Performance   
 
Cornerstone's CEO/Chairman Rick Rodell and COO/President Tim Clay proudly presented the 2009 Quality Employee of the Year Award to Heather McPherson (Portsmouth, VA office) for her overall quality performance as an employee, but also for promoting quality in others. 
 
The quality program is unique in that is is employee driven.  All nominees are sent in each quarter by fellow co-workers who notice and celebrate quality performance in any Cornerstone employee, in any location nationwide.  The quarterly nominees are then reviewed by a Quality Committee (staffed by 5 employees) who must try and choose just one winner.  The four quality quarterly winners are then eligible for the "Employee of the Year" award which is chosen by Cornerstone's Senior Staff. 
 
"Please join me and the Senior Staff in congratulating Heather on this outstanding achievement" said CEO/Chairman Rick Rodell "and thank you Heather for doing a great job for Cornerstone."
 
Quality:
 
Heather McPherson 2009 Employee of Year 
 
 
And the winner is... 
2009 Quality Employee of the Year
Heather McPherson - Portsmouth, VA 
 
"I would like to thank the Senior Staff for being so generous as to award me with this title."  
 
 
    
2009 CS Quality Quarterly Winners
1st Quarter - Neil Hoekstra - Comstock Park, MI
2nd Quarter - Jesse Villagomez - Palos Hills, IL
3rd Quarter - Heather McPherson - Portsmouth, VA
4th Quarter - Janice Hight - Memphis, TN
 
Congratulations to all of the winners!
Industry Signs Continue to Show Positive Direction
Statistics UpPublications and Media Reporting Good News
 
Just a few excerpts...
 
"March import shipment totals should provide a lot of hope to transportation service providers and importers as the number of import shipments was up nearly 10% from March 2009.  Year-to-date total shipments are up 11% when compared to 2009.  However, caution should be taken as the first quarter of 2009 was historically poor", according to U.S. Import market data compiled by Zepol Corporation.
 
"Retail spending posted its fourth consecutive month of gains in March", the Commerce Department reported.  "Advance seasonally estimates of U.S.  retail and food services sales for March were $363.2 billion, an increase of 1.6 percent from the previous month and 7.6 percent above March 2009.  Auto sales were up 7.4 percent compared with February and surged 16.1 compared with March last year, driving the change."  
 
"Keeping in line with recent projections for positive growth for United Sates retail container ports, the latest edition of the Port Tracker report by the National Retail Federation and Hackett Associates expects, April cargo volumes to be up 8 percent year-over-year."  Their predictions continue with May up 7 percent, June up 17 percent, July up 12 percent and August up 15 percent.  "We expect these numbers to continue to climb as merchants and their customers move away from the recession and back toward normal shopping habits" said NRF Vice President for Supply Chain and Customers Policy Jonathan Gold.
 
"Domestic intermodal rail weathered the economic recession better than most transportation modes, and the industry appears now to be on the verge of experiencing unprecedented growth.  Most companies today have a carbon footprint strategy.  Reducing carbon emissions from transportation is an important part of the strategy, and shifting from truck to rail at distances of more than 700 miles is the easiest way to achieve that goal.  Also, demand for domestic transportation is increasing now that the economy is emerging from recession, while a the same time the recession thinned the ranks of motor carriers" reports the Journal of Commerce.
 
"U.S. railroads intermodal traffic jumped 12.1 percent in March on a year-over-year basis.  On a seasonal adjusted basis, U.S. carloads increased 3.9 percent and intermodal volume rose 2.1 percent compared with February totals" according to the AAR (Association of American Railroads).
 
"Intermodal traffic remained strong through the end of the first quarter as domestic intermodal continued to increase market share" according to Robert W. Baird & Co. Inc.'s "Domestic Truck, Intermodal and Rail" report for March.
 
"The U.S. economy improved in most of the Federal Reserve's 12 districts in March, with the transportation sector improving in most areas", the Fed said.
 
"A surge in inventories fueled a high growth rate in the manufacturing sector in March, ending the first quarter with a bang, according to the latest monthly report from the Institute for Supply Management (ISM).  The index the ISM uses to measure the sector, or PMI, hit 59.6 percent, up 3.1 points from February.  This marks eight straight months of increase for the PMI placing the sector's overall health well into "growth" territory.  According to Norbert Ore, chair of ISM's Manufacturing Business Survey Committee, the current growth rate is the fastest since 2004."
 
---
 
Not to rain on the parade of positive news...
 
3PL wire reports...
"While Eivind Kolding, Partner and CEO of Maersk Line, believes that the worst is behind the container line industry, the pain is far from over.  Mr. Kolding noted that while there appears to be a good balance in supply vs. demand, it remains fragile.  Trade volumes are up, but still way off from historical norms.  The supply imbalance of container ships is lower, but still exists.  2009 was certainly a bad year for carriers:  Mr. Kolding cited a 29% drop in container rates that contributed to an estimated $20 billion dollars in industry losses for the year.  Import volumes are currently up 13%, but retail sales have only increased by 1%, therefore the volume increases could be short lived once inventory restock is over.  Consumer confidence is up, but still below where it should be."
DOT's New "America's Marine Highways" Program
Could Shift Freight to Waterways From Congested U.S. Highways  

MARAD LogoAs part of the new DOT initiative, the Department of Transportation's Maritime Administration (MARAD) will help to identify rivers and coastal routes that could carry cargo efficiently, by passing congested roads around busy ports and reducing greenhouse gases.  Under "America's Marine Highway" program, the DOT explained that regional transportation officials will be able to apply to have specific transportation corridors and individual projects designated by the DOT as a marine highway, provided they meet certain criteria. And once projects are designated, the DOT said they will receive preferential treatment for any future federal assistance from the DOT and MARAD.  U.S. DOT Secretary Ray LaHood said that "for too long, we've overlooked the economic and environmental benefits that our waterways and domestic seaports offer as a means of moving freight in this country. Moving goods on the water has many advantages. It reduces air pollution. It can help reduce gridlock by getting trucks off our busy surface corridors." Mark Yonge, Managing Member of Maritime Transport & Logistics Advisors LLC and Vice Chair of the Coastwide Coalition added "with this announcement, American's Marine Highways, present and future, is now acknowledged as an integral part of the country's intermodal system, as a marine highway-an intermodal alternative that provides additional transportation capacity for our nation's transportation needs and economic sustainability."  He also pointed out that this should be very comforting to all logistics providers and shippers now that the economy is getting back on track and transportation demand is once again growing.    

Transportation Industry News

New York's New Waterfront Plan, FMCSA rules on EOBRs, FMCSA Pushes Back CSA 2010 Rollout, TCP Expecting Increase in Truck Mergers and Acquisitions, Fuel Economy Rules Authority May Switch From DOT to EPA 

NewsNew York City officials unveiled a new waterfront plan to be implemented during the next decade. The plans calls for turning the waterfront into a central shipping hub and connecting the city's waterway ports with the national freight-rail network. "Removing trucks from our major arteries will simultaneously reduce automobile traffic and accompanying air pollution, increase efficiency in the delivery of goods, reduce the cost of those goods for businesses and consumers, and make New York a more productive and central hub for the delivery and distribution of freight in general," said Rep. Jerrold Nadler (D-N.Y.). 
 
The Federal  Motor Carrier Administration issued a rule that could require as many as 5,700 trucking fleets to use electronic onboard recorders to monitor drivers hours.  The rule stops short of requiring all trucks to have recorders to keep track of how long drivers are behind the wheel.  Transportation Secretary Ray LaHood said that the rule "gives us another tool to enforce hours-of-service restrictions on drivers who attempt to get around the rules", but some critics said that it doesn't go far enough.  Trucking industry critics and some members of Congress have been pushing FMCSA to require all fleets to use EOBRs. 
 
The Federal Motor Carrier Safety Administration is pushing back the start of its new carrier safety monitoring system (CSA 2010) until later this year, with some portions delayed until 2011.  The new schedule calls for a so-called "data preview" to begin next week and run through November 30, at which time FMCSA will begin issuing warning letters and using CSA 2010 scores to target fleets for compliance reviews and extra roadside enforcement.  
 
The owners of one in four truckload carriers say they may sell their company and leave the industry over the next 18 months, according to a survey by Transport Capital Partners.  The Business Expectations Survey shows growing confidence in the economy and the prospect for higher volume and rates but also indicates some carriers are looking for an exit ramp.  That means conditions are ripe for a flurry of mergers and acquisitions over the next year and a half.  One in eight carrier owners told TCP they would consider leaving the industry if tonnage does not increase in the next six months.  Smaller carriers, those with under $25M in revenue are less optimistic and more anxious to sell than their larger competitors. 
 
The commercial truck industry's dealers and drivers have voiced strong opposition to a Senate bill that would nullify fuel economy rules established by Congress under the Energy Independent & Security Act (EISA) of 2007.  Legislation currently before the Senate would transfer the authority of the DOT to the EPA when determining fuel economy rules for medium and heavy duty trucks.  Opposition is arguing that the EPA would be granted the authority to set fuel economy standards without considering the impact on the economy and other factors.  Under current law, the DOT is required to take these considerations into account when issuing fuel economy rules.   
Current Fuel Facts            
The Energy Information Administration reports U.S. On-Highway Diesel Fuel Prices (dollars per gallon) as follows:
 
4/12/10                               Date Released 
3.069                                     Price   
0.054 (Up)                            Change From Week Ago
0.840 (Up)                            Change From Year Ago
 Fuel Pump

Diesel rose for the second straight week and the seventh time in eight weeks, the DOE said Monday.  The diesel price was the highest since it was $3.088 per gallon on November 3, 2008.

 
If you would like to monitor the DOE website directly, click on the following link.   http://tonto.eia.doe.gov/oog/info/wohdp/diesel.asp
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