can you shed some light on what is influencing pricing from your company’s perspective?
O’Kane: I think what is going on and entering into our decision-making now is that we are relatively at capacity and at some terminals overcapacity, but we are in a situation where we are buying tractors and trailers and hiring drivers so our cost point has shifted between variable and fixed costs pretty radically as a result. With a couple of those dynamics in buying tractors, for example, where we have 140 tractors on order that cost about 16 percent more than similar tractors did in 2006. For trailer prices, we are finding that with steel prices and tire prices, we are going to pay 25 percent-to-30 percent more but don’t have an exact comparison [to previous prices for trailers] because our spec has changed with some additional value items.

LM: What about the costs related to filling trucks with drivers?
O’Kane: The biggest driver is the cost of labor which is difficult. On a regular basis, we are running our own driver academy in which we train dock and warehouse staff to become professional truck drivers. Each driver that we produce out of that school, almost without exception, is a great employee, but it is cost of north of $20,000 per trained driver that we experience in that process. And at the same time wages have been tightening and drifting in an upward direction. We never reduced driver wages in 2008 or 2009 when many other carriers did. We granted an increase in 2010 and again this month. There is going to be continual pressure on driver wages, because during the deepest of the recession, the labor pool left the LTL sector and our sense is there are a lot of people that don’t care to come back into it so our sense is that wages will continue to play a very big role going forward, with driver wages putting continued pressure on rates going forward.

LM: What are some of the related impacts of that trend?
O’Kane: Some of the truckload guys are kind of curtailing capacity, because they are chasing drivers. We at least have the opportunity of providing preferable employment in many ways for many of their drivers, with things like regularly-scheduled on-home time.

LM: Is another benefit of this on the LTL side the ability to more easily flex up or down your network as demand indicates?
O’Kane: Yes. Drivers are the limiting factor right now. It used to be that we would talk about terminal doors being the limiting factor. Going forward, the limiting factor, when it comes to rates, is going to be the ability to recruit or develop and retain quality drivers.

Source: http://www.logisticsmgmt.com/article/equipment_and_driver_expenses_are_moving_ltl_rates_up_says_a._duie_pyles_ok/

The change creates an opportunity for shippers who package their product in a manner which creates a denser shipping unit to possibly achieve a reduction in transportation charges for LTL rated shipments. Conversely, shippers who continue to use “Clothing, NOI, NMFC Item 49880, Sub 3″ on their bills of lading will now increase their rated class from Class 100 (see OLD Item 49880, Sub 3 prior to 12/25/10) versus the rated class of Class 250 (see NEW Item 49880, Sub 3 after 12/25/10).

In accordance with NMFC Rule Item 360, Sec. 2 (c), it is the responsibility of shippers to acquaint themselves with the descriptions of articles in the tariff under which they ship. Shippers must place the appropriate description, NMFC item number and Sub number on the original bill of lading.

Need help determining the density of your package? Visit the YRC Density Calculator page to learn how to calculate your shipment’s density. Completing the bill of lading with the appropriate information insures a properly rated invoice.

Interested in other helpful hints from the National Motor Freight Classification and Commodity Classification Standards Board? Check their website: www.nmfta.org

OLD:*

NEW:*

*The National Motor Freight Classification (NMFC) is a standard that provides a comparison of commodities moving in interstate, intrastate and foreign commerce.

* As referenced by NMFTA.

http://www.yrc.com/yrcnews/20110216-chart.html

LXE, a division of EMS Technologies, announced the launch of the Tecton™ rugged HandHeld computer, targeting supply chain applications. The successor to LXE’s highly successful MX7 HandHeld, the IP-65 rated Tecton™ HandHeld computer accelerates real-time data capture with an industry-leading PXA 320 806 MHz processor running Windows® Mobile 6.5 or Windows® CE 6.0.

“There are some so-called warehouse handhelds that were not specifically designed for warehouse applications, and others that compromise in terms of ergonomics or processing power,” said Steve Newell, LXE vice president and general manager. “The Tecton™ Handheld computer is the first device in the category to address all the challenges of maximising supply chain productivity – it’s purpose-built for the warehouse.”

Lightweight and extremely well-balanced in the user’s hand, and with sleek design for an industrial tool, the Tecton™ HandHeld delivers its enhanced performance across a wide array of supply chain tasks. The unit’s multi-range scanning capabilities enable barcode reads from four inches to 40 feet, so operators can perform warehouse moves ranging from receiving to full pallet put-aways with the same version of the computer. Scan-intensive picking can be enabled with the Tecton™ computer’s available easy-grip removable handle with two-finger trigger, and every Tecton™ computer comes with LXE’s ToughTalk technology for voice-driven processes. The device also features a scan vibration signal that can be used to verify successful scans in loud warehouses, and multiple built-in data-entry options.

Performance and versatility come with field-proven ruggedness and customisations for the most demanding environments. Keypads protect against airborne and spilled chemical agents, and electrical components are secured to circuit boards to better withstand drops and shocks. An available cold-storage configuration includes programmable touchscreen and scan window defrosters, and a cold-tolerant backup power source that holds a charge longer in environments as low as -30°C.

The Tecton™ HandHeld computer made its public debut Tuesday, 8 February at the LogiMat supply chain trade show in Stuttgart, Germany. LXE begins shipments of the Tecton™ HandHeld computer and Tecton CS™ cold storage configuration on 14 March 2011.

“The Tecton™ HandHeld performs well in so many tasks because it’s light enough for scan-intensive picking, yet able to take a beating,” said Newell. “We purpose-built this computer for the supply chain with the right combination of ergonomics, ruggedness, and computing power.”

Source: http://www.logisticsit.com/absolutenm/templates/?a=5760&z=5

Those changes and others were announced as a way to “generate improved returns for shareholders,” the company said in a statement, which the company hopes will save $60 million to $70 million annually beginning in fiscal 2013.

Other changes include an exit from Turkey and a restructuring of its stores in China, which includes a closing of its Best Buy stores but an expansion of its “Five Star” branded stores.

Best Buy also plans a restructuring of its domestic end-to-end supply chain processes.

“We’re pleased to continue our investments in the Best Buy Mobile and Five Star business models, which are profitable and have significant growth opportunities,”  Brian Dunn, CEO of Best Buy, said as part of the announcement.

“The actions we are taking are consistent with our strategy of driving businesses that have earned the right to additional capital while curtailing activities that we believe will not meet our return on investment thresholds.”

Resources:
http://logisticsview.com/index.php?option=com_content&view=article&id=3032:best-buy-plans-mobile-expansion-supply-chain-changes&catid=1:latest-news
http://www.dealerscope.com/article/best-buy-plans-mobile-expansion-supply-chain-changes/1

The winter of 2010-11 is only about half over, but many spots are enduring one of their worst seasons on record for snow and cold. Seven major winter storms have already battered much of the central and eastern USA the past six weeks, with no sign of any letup in the weeks ahead, according to The Weather Channel.
Consider New York City, which has received 56.1 inches of snow, the National Weather Service said. That’s more than five times the city’s typical average of 11.1 inches, to date.This puts New York’s winter in sixth place all-time. The snowiest winter season on record there was 1995-96, when 75.6 inches of snow fell.Other notable records so far:

• Tuesday’s snowfall of 13.2 inches was the greatest one-day snowfall ever recorded in Tulsa, where records date to 1900. The 11 inches of snow that fell in just 12 hours in Oklahoma City was more than the city usually sees in an entire year.STORM: Nation’s midsection pummeled TuesdayPHOTOS: Winter storms slam U.S.•Wind chills in the Oklahoma Panhandle fell to 36 degrees below zero on Tuesday, the lowest ever recorded by the Oklahoma mesonet, a statewide network of meteorological sensors.
• Dallas/Fort Worth International Airport closed for several hours Tuesday, the first time in five years the airport shut down because of weather. Temperatures that plummeted into the teens in Dallas were the coldest the city has seen in 15 years, the weather service reported.•So far this winter, Atlanta has received 5.9 inches of snow, which is more than four times the city’s average of 1.3 inches.
• A total of 57 inches of snow fell in Hartford, Conn., in January, the city’s snowiest month ever. Records in Hartford go back to 1905.•As of Tuesday, more than half of the contiguous USA (52%) was covered with snow, according to the weather service. The average for this time of year is about 45%. Only Alabama, Arkansas, Florida, Louisiana, Mississippi and South Carolina are completely without snow.
• December was the coldest on record for many Florida cities, including Fort Lauderdale, Fort Myers, Miami, Naples, Sarasota, St. Petersburg, Tampa and West Palm Beach.
• The chill also suppressed severe weather in January. Only eight tornadoes were reported for the month across the country, the fewest in January since 2004. An average of 40 tornadoes occur each January, according to the Storm Prediction Center.

By THE ASSOCIATED PRESS Posted 09:50 AM ETThe economy gained strength at the end of last year as Americans spent at the fastest pace in four years and U.S. companies sold more overseas. The growth is boosting hopes for a stronger 2011.
The Commerce Department reported Friday that growth rose to an annual rate of 3.2% in the October-December quarter. That’s better than the 2.6 percent growth in the previous quarter. And it was the best quarterly showing since the start of last year.
The economy has now consistently picked up speed since hitting a rough path in the spring.
For all of last year, the economy grew 2.9%, the most since 2005. It was an improvement from 2009 when the economy suffered its worst decline in more than 60 years.
Increased consumer spending was a key reason the economy grew more strongly. Americans boosted their spending at a 4.4% pace, the most since 2006. They spent more on furnishings, appliances, cars and clothes.
That’s largely why economists are more optimistic about the economy’s performance this year. Consumer spending accounts for roughly 70% of overall economic activity.
After the recession ended in June 2009, consumers kept spending cautiously. At the end of last year, though, that began to change.
Looking ahead, economists expect consumer spending will rise 3.2 percent or more for all of 2011. That would be almost double last year’s anemic rate.
A cut in workers’ Social Security taxes, higher stock prices and wage gains from a slowly healing jobs market should make people feel better about spending, economists say.
Against that backdrop, economists are hopeful that consumers can once again be counted on to power the economy, especially as other bracing forces like government stimulus fade.
Stronger sales of U.S. exports to foreign buyers was another major force helping the economy at the end of last year. Exports grew at a 10% pace, up from a 5.8% pace in the July-September quarter. Economists expect sales of exports to continue to provide support for the economy this year.
Business spending on equipment and software also helped growth in the October-December quarter. Businesses also started spending again on home building and commercial construction projects after deep cutbacks.
Government spending, however, stopped being a source of growth for the economy at the end of last year. It dipped 0.6% in the October-December quarter — the first drop since the start of 2010. The pullback reflected cuts in spending by the federal government on defense and by state and local governments, which are struggling with budget problems. Federal spending on non-defense projects, however, grew.

To better serve your logistics needs, we would like to announce that Chain Express Corp. has changed its location.

The Associated Press

8/4/2010

NEW YORK — Shares of trucking company YRC Worldwide Inc. fell Tuesday as investors worried over the challenges ahead, despite its report of a much narrower second-quarter loss.

The stock dropped 19.4 percent, or 8 cents, to 33 cents in afternoon trading. The stock has traded as low as 10 cents and as high as $6.18 in the past year.

The company, based in Overland, Kan., posted a loss of $9.5 million, or a penny per share, compared with a year-ago loss of $309 million, or $5.20 per share.

Revenue fell to $1.12 billion from $1.23 billion a year ago.

Analysts surveyed by Thomson Reuters expected a loss of 8 cents per share with revenue of $1.19 billion. The estimates typically exclude items.

At YRC’s national unit, shipments per day were down 18.6 percent. They were up 11 percent compared with the first quarter.

YRC’s regional unit reported shipments fell 3.1 percent from a year earlier, but leaped 13.8 percent from the seasonally weak first quarter. The company said the sequential volume growth pressured its liquidity.

Longbow Research analyst Lee Klaskow said he thinks “management is showing signs of progress that will help YRC return to profitability.” But he recommends investors “stay on the sidelines” because the company is still struggling. He said there is still a chance the company will be forced into filing for bankruptcy, as it nearly was late last year, but Klaskow noted he thinks the company has enough support to survive.

Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.

The Associated Press

8/2/2010

THOMASVILLE, N.C. — Old Dominion Freight Line Inc. said it approved a 3-for-2 stock split for shareholders as of Aug. 9.

Shareholders will get certificates for the new shares, and instead of partial shares they will get cash based on the average of the high and low sales prices on the record date.

After the split, Old Dominion will have 55.9 million shares outstanding. It’s the fourth 3-for-2 split in slightly more than seven years. The company said the split will improve trading volume of its stock.

“We are pleased to declare this three-for-two stock split, which is our fourth three-for-two split in just over seven years. In making this decision, our Board of Directors considered our industry-leading financial performance together with our prospects for continued growth,” said David S. Congdon, president and CEO of Old Dominion. “This action, which we expect will improve the market liquidity and trading volume of our stock, reflects our board’s confidence in our ability to drive long-term value for Old Dominion’s shareholders.”

The shares rose 63 cents to $40.06 in morning trading.