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Released: May 7, 2008
Shippers, Carriers Meet At NASSTRAC Conference To Discuss Issues
More than 400 transportation decision-makers and providers met last week in Orlando for the 2008 NASSTRAC Conference & Logistics Expo. Major manufacturers, retailers, distributors, and 3PLs attended to discuss issues ranging from fuel costs and logistics costs to capacity and equipment demand.
The keynote presenter was Tom Donohue, president and CEO of the U.S. Chamber of Commerce, who discussed the serious concerns around the country’s infrastructure and the pressing need to reinvest back into it in order to ensure timely, safe deliveries for shippers nationwide. “We have abundant evidence that America’s infrastructure is not only showing its age, but showing that it lacks capacity to handle the volume of moving people and goods,” stated Donohue. “From exploding steam pipes under New York streets and traffic congestion in all urban centers, to record level flight delays in the skies across the country, it is evident that now is the time to move on a robust, thoughtful, and comprehensive plan to build, maintain, and fund a world-class 21st century infrastructure.” He emphasized that state and local governments, as well as the industry, cannot treat infrastructure like other problems or programs where you can wait until the very last minute and then write a big check. Infrastructure projects require foresight and years of careful planning. He emphasized the importance of organizations like NASSTRAC to get involved and aggressively push decision-makers on Capitol Hill to make decisions swiftly about infrastructure investments.
In addition, executives from leading carriers discussed the most critical issues of concerned to shippers. Topics ranged from balancing capacity and infrastructure importance to the political implications of potentially changing party leadership this election year and rising fuel costs.
> View conference highlights
A Strategic Look At Supply Chain Management
NASSTRAC’s Education Advisor, John Langley, Ph.D. of Georgia Tech, discussed the need to look strategically at supply chain management. According to Langley, although the corporate world is showing an increasing interest in supply chain management, there are still numerous issues that are seeking additional resolution. He highlighted a number of issues and challenges that are being faced regularly by those who are managing supply chain, logistics, and transportation responsibilities, including value creation, matching supply and demand, integration, managing information technology, outsourcing, globalization, environmental priorities and “green” logistics, and the need to change and reinvent.
> Members: Download the presentation
World Economy Impacts Domestic Freight System
Paul Bingham of Global Insight talked about how the world economic growth has peaked and is slowing. In fact, he mentioned, the world economy is in a recession when real DGP growth is below 2 percent; and that the world container trade has been growing faster than the world economy, but double-digit growth is now over. In fact, in 2007, DGP was at 3.8 percent, which is expected to decrease to 3.4 percent by the end of this year. TEUs in 2007 are at 7.2 percent, and are expected to remain flat this year. He highlighted that there is a significant U.S. transport system capacity challenge: the trade growth remains faster than the growth of the U.S. domestic freight system capacity across seaports, airports, terminals, railroads, trucking, warehousing and labor. He suggested that partial solutions could include more integrated international trade with inland
> Members: Download the presentation
Diesel Prices Drop 2.8 Cents to $4.149
The average retail price for a gallon of diesel fuel fell 2.8 cents this week to $4149, the U.S. Energy Information Administration reported to NASSTRAC Monday. As the dollar strengthened in international trading, the price of oil fell slightly last week before bouncing back to a new record on Monday, giving retail fuel merchants the opportunity to ease up in the race to stay ahead of rapid changes. The highest prices were in California, $4.382 per gallon, and on the West Coast in general, $4.303 per gallon, up nine-tenths of a cent from last week and $1.368 higher than a year ago. The Gulf Coast saw the lowest prices, down 2.9 cents to $4.084 per gallon, still $1.34 higher than last year at this time. Only in the Rocky Mountains did the price go up and at that it only gained 1.5 cents to $4.156 per gallon, up $1.161 from a year ago. The biggest drop in prices occurred in the East Coast. On average, prices fell 3.6 cents to $4.194, which was $1.413 higher than a year ago. In some parts of the East, diesel prices fell as much as 4 cents per gallon.
> View a graphic of national fuel pricing. |
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