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4th Quarter 
2014

In This Issue
Rick Rodell Holiday Message
Will Cargo Leave WC?
Transportation News
Holiday Cheer
Current Fuel Costs
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Merry Christmas from Cornerstone Systems! 
 
During the holiday season, more than ever, our thoughts turn gratefully to those who have helped us shape our business. 

And in this spirit we sincerely say thank you.  It has been an honor and a pleasure to work with you this year. 



We wish you the best of holidays and a prosperous 2015!
 
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Water Cooler Trivia

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Holiday Retail Trivia
 

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Holiday Message From Chairman/Founder Rick Rodell
Rick Rodell
Cornerstone Systems Chairman/Founder Rick Rodell

 

Greetings,

   

This has been one of those years that most of us are just plain glad is reaching its end. Between record snowfalls, port strikes, and all of the repercussions that stemmed from them it has just not been a whole lot of fun going to work.

 

However, the Christmas Season is upon us, and between buying presents, decorating the house, the office and work areas, it is difficult to not smile and look forward to getting with our friends and loved ones to eat, drink and be merry. Not to mention hoping someone remembered that special gift you wanted.

 

For me it was a time of change and rearranging some of my responsibilities. Tim Clay, who has worked for and with me for some 26 years, was made CEO to go along with his President title. He is now in charge of running Cornerstone and I expect some changes, but I also expect to see some excitement as he goes about fine-tuning the various parts of Cornerstone. My title is now Chairman/Founder, and when asked what I do, I just say pretty much whatever I want when I want. I still come into the office on a regular basis; I still get involved when I can be of benefit, but the buck no longer stops with me. It now stops with Tim. I have always been involved with various charities, but I now find myself doing a little more with them and for them. I've been spending some time with the new director of one of them, who amazingly asked if I would do some mentoring. That has been fun and I trust helpful.

 

For now, I want to just say thanks to all of our vendors that work hard in helping us deliver the level of service that our customers have come to expect of us. I also want to thank those customers for using us to get their product to market, and I want to thank all of the dedicated people of Cornerstone who work diligently to see to it that our customers' expectations are being met.

 

Finally I want to wish all of you a very Merry Christmas and a Happy New Year. I also wish that 2015 will be the kind of year that makes this year's difficulties disappear or at least makes them hard to remember. Have a great rest of the year, and once again, MERRY CHRISTMAS AND HAPPY NEW YEAR!

 

Regards,

 

Rick Rodell

Chairman / Founder 

 

 

 

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Will Continuing WC Issues Cause Permanent Cargo Loss?

Unhappy Shippers Reviewing All Routing Options

 

Many customers are now asking about other routing options, instead of using only the West Coast.  Congestion, labor issues, bigger vessels, the chassis situation, not enough truckers and more are causing people to re-think their shipping strategy.  Yet, many shippers can't escape LA-Long Beach even if they wanted to, due to the location of distribution centers, transit time or cost requirements. But enough freight could move if it wanted to and West Coast port directors are concerned about long term ramifications.    

 

"Overall, where we are right now with our shippers, overall on the West Coast including the PNW and Southern California, they are very unhappy. They are as unhappy as I've ever seen them, since the 2002 time frame (10 day work stoppage)," Chris Lytle, executive director of the Port of Oakland, said at JOC Group's 2nd Annual Port Performance Conference-North America in Newark, New Jersey. "I hear every day cargo owners threatening to minimize their use of West Coast ports. The prospect of this permanent cargo diversion is sobering, it's alarming. We have to solve these endemic issues."

 

Jon Gold, vice president of supply chain and customs policy at the National Retail Federation, echoed shippers' frustrations. "The issues at the Ports of Los Angeles and Long Beach have thoroughly frustrated the importing community," he told JOC.com on Tuesday. "Until they see significant changes with stakeholders working together to develop and implement solutions that truly make the ports the most efficient in the world, they will continue to look for alternate routes.  Shippers will continue to diversity their supply chains to ensure they do not have such issues in the future that impact their bottom line and impact with their ultimate consumer." 

     

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Transportation Industry News
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Industry News
  

Vote Today (December 11) May Change HOS Rules -  

The likelihood that truck drivers will have different hours of service rules and more time on the road next year increased when Congress included a rider that would suspend a portion of the 2013 HOS rules in its omnibus spending bill.  The House is expected to vote on that $1.013 trillion bill by midnight Dec. 11, though a very short-term extension of one or two days may be required to get the bill through the Senate, according to Reuters. Unless President Obama vetoes the bill, the HOS rules will change.  A battle has been raging over the inclusion of an amendment that would suspend for one year the requirement that drivers include two back-to-back 1 a.m. to 5 a.m. periods in any 34-hour "restart" period. That restriction was included in the July 2013 hours of service rules.  Sen. Susan Collins, R-Maine, first introduced the amendment in June, and it was approved by the Senate appropriations committee. The rider quickly fell into legislative limbo after a highly publicized truck accident and gridlock that derailed the Senate's fiscal 2015 spending bill.  The Collins amendment also suspends a once-in-seven-days limit on the use of the restart, which was introduced in 2004 to allow drivers to begin a new 70-hour work week more quickly. Previously, truckers were required to be off-duty 48 hours between work weeks.  In addition, federal regulators would be required to study the safety effect of the restart provision, taking into account the impact of more day-time driving and less night work. The change to the restart provision would take effect immediately once the bill is law.

 

Tacoma, Seattle Focus on Intermodal to Protect, Expand Market Share - 

The ports of Seattle and Tacoma are scrambling to improve intermodal access to protect the discretionary cargo they have, and, perhaps, even regain business lost to Southern California and Canadian ports.  They have their work cut out for them. Shippers have already diverted goods away from Puget Sound to Port Metro Vancouver and the Port of Prince Rupert, because of cheaper and often more reliable intermodal services to Chicago. The pull of the Los Angeles-Long Beach port complex and better availability of empty containers it provides Midwest exporters has also cost the Pacific Northwest duo market share.  Seattle and Tacoma had a 10.7 percent combined market share of North American west coast container volume in the first three quarters of this year, compared with 11.4 percent in the same period in 2013 and 11.9 percent in the first three quarters of 2012, according to data collected by JOC.com from the individual ports.  "If we hope to grow, it has to come from intermodal," said Linda Styrk, managing director of the seaport division at the Port of Seattle. "We are a secondary port and unless our population base morphs, we are going to have to work at least twice as hard to grow our volume."

 

Diesel Prices in 2015 Expected to be Far Less Expensive - 

A new U.S. Energy Department forecast is calling for far less expensive diesel prices in the new year.  On-highway retail diesel are projected to average $3.07 per gallon in 2015, compared to this year's expected average of $3.82 and 2013's average of $3.92. The forecast for next year is 31 cents per gallon less than expectations a month ago, according to the DOE's Short Term Energy Outlook.  The fuel is expected to average $3.05 for the first quarter of 2015, falling to $2.98 in the second quarter before rising slowly with a fourth quarter 2015 average of $3.17.  The average price for diesel fuel this week, according to the department is $3.535, down from a high for this year for the year of $4.021 hit in March.  U.S. regular gasoline retail prices are projected to continue declining for the remainder of the year, averaging $2.61 per gallon in December. The DOE expects prices, which averaged $3.51 in 2013, to average $3.37 in 2014 and $2.60 in 2015.  The new 2015 forecast is 35 cents lower than one a month earlier while these prices compares to national average this week of $2.679.  The DOE is expecting lower fuel prices is due to a 40% falloff in the price of oil since peaking in June. On Wednesday crude in New York trading closed at a new-five year low of $60.95 per barrel with Iran's oil minister saying on Tuesday he could see the price falling to as low as $40 per barrel.  This comes as the OPEC oil cartel has seen oil demand at is lowest level in 12 years yet recently decided to keep production levels unchanged while U.S. production of crude oil has been increasing, all leading to a worldwide glut of oil as some overseas economies are slowing.  

     

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Holiday Food Drive Kicks Off Festive Month of Giving

CS Employees Partner Up Once Again with Youth Villages and Food Bank

 

The Cornerstone of who we are not only revolves around how we conduct ourselves in the office, but also in how we spend our time after the workday ends.  At Cornerstone, we feel strongly about taking care of our customers, our employees and the communities in which we live.  We recognize the importance of sharing resources through donations of time, money and efforts to those who are in need.   

 

Mid-South Food Bank Holiday Food Drive:

The entire month of December at Cornerstone's HQ office in Memphis, TN is dedicated to the Mid-South's Food Bank Holiday Food Drive.  This non-profit organization serves more than 300 charitable feeding programs in 31 counties across three states (West Tennessee, North Mississippi, East Arkansas).  For every non-perishable food item donated to the food bank, employees earn one day of wearing jeans to work.  The food drive is still in full swing with non-perishable food items stacking up in the hallways.  Employees love wearing jeans to work and helping others in the process.  This year we added a new twist with a competition between the "Red team" (Senior Staff, Intermodal, Rates, Receptionist) and the "Green Team" (Sales, IT, Truck, LTL, Accounting).  All employees on the team who donates the most food will get two free movie passes.  Last year Cornerstone collected 612 pounds of food during their Holiday Food Drive and this year our goal is to far exceed that amount.      

 

Youth Villages "Holiday Hero" Program:  

Youth Villages is a private nonprofit organization dedicated to helping emotionally and behaviorally troubled children and their families live successfully.  Some children do not have families and would not have Christmas without support of this program. Youth Villages makes sure every child receives holiday gifts by having them fill out a wish list.  "Holiday Heroes" sponsor a child by purchasing/wrapping $100 worth of gifts from the child's wish list, or by sending a $100 cash donation so that Youth Villages can fill their wish list.  Cornerstone has proudly participated in the "Holiday Hero" program since 2007.  Last year Cornerstone employees were able to help 35 deserving children and this year we set a new record by sponsoring 42!
 
Ugly Christmas Sweater Contest: 

And for a little holiday fun, Cornerstone employees held their first, and very successful, Ugly Christmas Sweater Contest at the Memphis/HQ office. 

Ugly Christmas Sweater Contest Winner:  Paulette Snell (pictured in center, front row)

 .  

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Fuel Prices           

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

 

Diesel Dives 7¢ to $3.535 as Oil Continues to Drop

Gas Drops a Dime; Price is Down $1 Since April  

 

12/8/14                                       Date Released 


3.535                                           Average Retail Price  
 
-0.070 (Down)                             Change From Week Ago
-0.344 (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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Newsletter Sources:  Cornerstone Systems, Transport Topics, Journal of Commerce, Progressive Railroading, HDT TruckingInfo, U.S. Energy Information Administration

 

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