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4th Quarter 2012

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Despite Sandy Volume Up
Transportation News
Current Fuel Costs
CS Halloween Winners
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Despite Sandy, Port Volume Expected to Rise 

Superstorm Caused Problems But Not Stopping Growth   

 

Cargo volume at the nation's major ports is expected to increase nearly 6% in November, despite temporary closures of some seaports because of Superstorm Sandy.  A monthly Global Port Tracker report released Tuesday forecasts that cargo volume this month will rise to 1.37 million twenty-foot equivalent units, or TEUs, up 5.9% from November 2011. (One TEU is the equivalent of a 20-foot cargo container.)

 

"Sandy certainly caused major problems that are still being cleaned up, but retailers managed to get their cargo into the country and will have plenty of merchandise on store shelves for the holidays," Jonathan Gold, vice president for supply chain and customs policy of the National Retail Federation, said in a statement.

 

The Global Port Tracker, which is produced for the retailing trade group, includes the ports of Los Angeles, Long Beach, Oakland, Seattle and New York.

 

With the busiest shopping season of the year set to kick off, ports have been busy handling merchandise ordered by retailers to ramp up their inventory for the holiday.

 

The report also forecast cargo volume to rise to 1.34 million twenty-foot equivalent units in December, an increase of 9.4% from the year before.

 

  

 

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Logistics Aid Still Needed in Sandy's Wake -

The list of transportation and logistics services needed in the wake of Hurricane Sandy is long and changing and not likely to get shorter in coming months.

"The long-term needs are just now beginning to be understood," said Jock Menzies, president of the American Logistics Aid Network. "At first there was so much fog about what was going to be needed. Now we're moving into the recovery phase."  There are still thousands of displaced people in New York and New Jersey and many more without power throughout the region. Port terminals have reopened, and roads and highways are clear, but communities leveled by the "superstorm" are still a long way from recovery.  Weeks after Sandy, "voluntary organizations are still talking about response efforts, about getting to people they haven't served yet," said Kathy Fulton, director of operations at ALAN. "We're just at the beginning of the recovery phase."  ALAN, founded after Hurricane Katrina devastated New Orleans and the Gulf Coast, connects relief organizations to transportation and logistics companies that donate everything from transportation services to warehouses to experienced logistics personnel. Specific goods and services needed by relief agencies are posted on ALAN's online portal, accessible through http://www.alanaid.org/.  "We've had requests for materials handling equipment including lift trucks and pallet jacks," Menzies said. "We're looking for a straight truck with a lift gate right now to do some delivery work in New Jersey with the American Red Cross."

A quick perusal of ALAN's portal site shows the variety of goods or services requested by relief agencies, from transportation to buckets, laundry supplies to laptops and even gift cards from big box retailers and home improvement stores.  Warehousing space is likely to become more critical as donated goods - solicited and unsolicited - pour into the Northeast. "There's been so much unsolicited or undesignated supplies sent to the city already," said Fulton. "No one has asked for them, no one has said who they are for. From a logistics perspective, that's a huge challenge. They clog the infrastructure that's in place. If you have to unload a truck of mystery bags sitting in front of a truck of lifesaving supplies, that's bad."  Donating money directly to relief organizations involved in the recovery is a better way to get needed relief supplies to storm victims, Menzies and Fulton said.

 

FMCSA Continues to Strengthen Rules Regarding Egregious Safety Patterns -
On November 12th, the Federal Motor Carrier Safety Administration (FMCSA) published in the Federal Register a Notice of Proposed Rule-making (NPRM) which would amend their regulations to grant them the authority to suspend or revoke a motor carrier's operating authority that has shown egregious disregard for safety compliance.  Examples of egregious behavior could include motor carriers that have attempted to avoid regulatory compliance by masking or otherwise concealing noncompliance by submitting new applicants for registration. This is often under a different name to continue operations after being placed out of service. Motor carriers do this to avoid payment of civil penalties and/or to avoid a negative compliance history. Motor carriers that avoid compliance by operating under affiliated companies are commonly known as reincarnated carriers. 
 

Global Container Trade Fell in September -

Global container volumes dropped in September both month-to-month and year-over-year as exports from major regions fell away.  Analysis by Container Trade Statistics revealed that global box traffic fell by 0.25 percent in September compared to August and was 0.45 percent down on volume in September 2011.  By trading region, the biggest declines came from sub-Saharan Africa, the Indian subcontinent and the Middle East, and South and Central America, where CTS recorded contractions of 14.2 percent, 10.3 percent and 9.2 percent, respectively.  North American exports also fell, down by 1.25 percent from August and 2.3 percent compared to September 2011.

Exports from Asia were up 1.4 percent year-on-year at 3.89 million 20-foot-equivalent units but fell compared to August by 0.4 percent. Volume was down 1.8 percent from this year's peak in May.  In terms of imports, Asia saw its volume decline in September by 8.9 percent year-on-year, but CTS said North America's imports gained by 0.54 percent year-on-year, although they fell 1.1 percent in comparison to August 2012.  The decline in Europe's imports slowed in September, dipping just 0.32 percent to 1.7 million TEUs. The modest drop comes after large 8+ percentage point year-on-year declines in both July and August.  European exports in September continued the gains seen throughout 2012, rising 2.56 percent year-on-year to reach 1.37 million TEUs.  

 

NAFTA Trade -  

When the U.S., Canada and Mexico implemented the North American Free Trade Agreement in 1994, it opened the door for open trade by ending tariffs on various goods and services and creating an even playing field for the three markets. Today, agricultural goods such as eggs, corn and meats; manufactured products such as auto parts; and raw materials such as steel and lumber flow freely across the borders, primarily by truck and rail.  The U.S. exported more than $280 billion in goods to Canada in 2011, making its northern neighbor the largest source for outgoing products.  U.S. imports, at more than $315 billion, make Canada the second-largest source of inbound goods after China.  Exports to and imports from Mexico set record highs in 2011, with exports reaching $198.4 billion and imports hitting $262.9 billion.  

The combined $1.1 trillion in combined trade among the three partners make NAFTA the second-largest trade bloc in the world, second only to the 27-member European Union. 

  

 

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Fuel Prices            

The Energy Information Administration reports U.S. On-Highway Diesel Fuel Prices (dollars per gallon) every week.   

 

11/12/12                                       Date Released 


3.980                                              Average Retail Price  
 
-0.030 (Down)                              Change From Week Ago
-0.007 (Down)                              Change From Year Ago
Fuel Pump 
                
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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CS Halloween Costume Contest Winners

 Annual Contest at HQ / Memphis Office

2012 Halloween Contest Winners

Contest Winners:

Angelica Denson - Gene Simmons /KISS

Matthew Magbee - Castaway's FEDEX Employee Chuck Noland & Pal Wilson

 

There were Black-Eyed Peas, Cowboys, Monsters, Bloody  Mary's, Little Red Riding Hood and Horses...but the 2012 Halloween Costume Winners were Angelica Denson (Gene Simmons/KISS) and Matthew Magbee (Castaway's FEDEX Employee Chuck Noland & Pal Wilson)!

 

Each year Cornerstone's HQ office in Memphis holds a Halloween Costume Contest and Breakfast.  Judges choose costume winners and they are announced in the afternoon, followed by Halloween desserts and candy. 

 

Congratulations to all that participated, and to winners Angelica and Matthew!

 

 

 

 

 

 

 

Newsletter Sources:  Cornerstone Systems, Transport Topics, Journal of Commerce, Progressive Railroading, TIA, LA Times, U.S. Energy Information Administration 

 

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