Happy Holidays

Happy Holidays to all of our customers and friends at Quality Warehouse & Distribution! We look forward to providing services for you in 2010! Take take great pride in providing economical and easy New Jersey third party logistics solutions for your supply chain needs!

Stay warm and enjoy the season!

Logistics and business news: Indicators present "mixed bag" for economic outlook and recovery

As has been the case in recent months, many leading economic indicators continue to present a "mixed bag," when it comes to determining how strongly the economy is recovering. This is particularly acute when looking at retail figures released by the National Retail Federation and the Department of Commerce earlier today.

The NRF reported that October retail sales-excluding automobiles, gas stations, and restaurants-were flat compared to September and down 1.3 percent year-over-year. Meanwhile, the Department of Commerce had a rosier outlook, reporting that total retail sales-including both retail and food services-were up a seasonally-adjusted 1.4 percent compared to October and down 1.7 percent unadjusted year-over-year.

While the flat and 1.4 percent respective gains may portend some optimism for economic recovery as holiday shopping season begins to kick in, NRF Chief Economist Rosalind Wells noted that belief may be somewhat premature.

Consumer spending remains the main driver of the domestic economy-accounting for roughly two-thirds of all economic activity. And based on sluggish retail numbers, coupled with the lack of a meaningful uptick in freight volumes, analysts have told LM it may take nine months until a true recovery takes hold.

"Though the October numbers show some signs of optimism for retailers, the industry is still not out of the woods," said Wells in a statement. "While categories like apparel, sporting goods, books, music and personal care fared well, housing-related categories such as furniture and home improvement continued to struggle."

This cloudy scenario is also evident in other economic data and freight trends, too, including last week's Commerce Department report that the U.S. trade deficit expanded 18.2 percent in September to $36.5 billion for its biggest deficit since January, as well as a 0.5 percent dip in consumer spending in September, and The Reuters/University of Michigan preliminary consumer sentiment index decreased to a three-month low of 66 from 70.6 in October.

Other recent data include:

* the Institute for Supply Management's manufacturing index topping 50.0 percent (which indicates positive growth) for the last three months;
* the October Cass Freight Index declining 12.3 percent year-over-year and flat growth from September to October;
* durable goods orders in September were up 1.4 percent and September inventories were down 0.4 percent from August and 13.4 percent year-over-year, according to the Department of Commerce; and
* the Association of American Railroads reporting that as of Thursday, November 12 volumes are down 17.8 percent year-to-date, and the Intermodal Association of North America's recent report that third quarter volume is down 16.4 percent.

"The economic recovery is going to continue to be choppy with plenty of stops and starts," said Eric Starks, president of FTR Associates. "Part of this has to do with international volumes not coming back to life yet...although some global economies-like parts of Western Europe-are showing some growth but not enough to generate freight."

Read the rest of the logisticsmgmt.com article here.

Green logistics: Industry expert cites ways of going green and cutting costs at the same time

WALTHAM, Mass.-It's possible to save money and the environment at the same time, and if you need proof, just look at the Green Machine.

That was the message Jack Ampuja, president of the consulting firm Supply Chain Optimizers, and executive director of the Center for Supply Chain Excellence at Niagara University in Lewiston, N.Y., was trying to get across at a Council of Supply Chain Management Professionals (CSCMP) New England Round Table event in Waltham, Mass. Tuesday night.

The event featured, among other things, a description of a new type of tractor for hauling freight, which Ampuja dubbed the "Green Machine" because of its environmentally-friendly design.

The tractor, he said, was conceived and built by a number of former trucking industry workers and veterans in Michigan. The tractor, Ampuja said, contains a long list of "green" enhancements, including nitrogen-filled tires (ordinary air escapes through the rubber over time), carbon-fiber springs, and a special hydrogen injector system for the engine.

Right now, companies like office furniture maker Hayworth, along with Pepsi, Anheuser-Busch and other companies, are expecting to save thousands of gallons of fuel per truck per year, and cut greenhouse gas emissions by amounts measured in metric tons.

But Ampuja was selling a point, not a truck: for all the cutting-edge improvements and patented design, Ampuja said the tractor is built out of off-the-shelf parts, and therefore costs the same as any other tractor on the market, so using them will not cost extra. If anything, Ampuja said, using them will save money long-term.

And that, Ampuja told the packed room, is the reality of the green movement in the corporate world.

"They (cutting costs and helping the environment) are not at odds," he said. "They complement each other."

Ampuja cited a recent study by the Aberdeen Group which found that leading companies are "greening up" by, among other things, redesigning logistics systems and redesigning packaging.

In addition to technological advances, Ampuja challenged the audience of supply chain managers, consultants and vendors to look to their own operations for other ways to go green and save money. Network optimization applications, he said, will be another major component of a green plan in the future, especially with oil prices expected to rise.

This week, prices passed the $80/barrel mark, and the room was silent when Ampuja asked if anyone thought prices would fall anytime soon. That will become a big problem, he said, for unprepared companies with poorly-organized supply chains.

"Most networks are built around lower energy costs," he said.

Right now, Ampuja said, the smart companies are working on "what if" plans for oil prices at $100, $120, or even $150/barrel, ready to implement when and if prices go that high. With each plan, companies have to think about how many distribution centers they have, how efficient the routes are between them, how they manage inventory to feed those routes, and other issues.

Read the rest of the logisticsmgmt.com article here.

New Study Highlights Role of Third-Party Logistics Providers in Helping Shippers Adapt to Economic Challenges

The fourteenth Annual Third Party Logistics (3PL) Study examining the current global market for logistics outsourcing was recently released. The study surveyed shippers and logistics service providers in North America, Europe, Asia Pacific and Latin America. Key findings included:

* The economic downturn has created significant challenges for both shippers and third-party logistics providers (3PLs) – 82% of shippers are employing cost-cutting tactics and 60% are rethinking their supply chains and relationships with 3PLs
* 88% of shippers feel that IT-based logistics services are important, but only 42% are satisfied with the capabilities of their provider – as a result of this IT capability gap, shipper respondents reported a lack of the key performance indicators, alerts and visibility required for an adaptive supply chain and 3PLs reported similar difficulties in getting the data and commitment they need from shippers
* There are significant differences between how 3PLs evaluate their role in the supply chain and how they are viewed by shippers – 59% of shippers feel their use of 3PLs has a positive effect on customer service compared to 88% of 3PL respondents
* Shipper respondents devote an average of between 47% (in North America) and 66% (in Europe) of their total logistics expenditures to outsourcing and this is expected to increase in the next five years.

“Shipper-3PL relationships are being impacted significantly by the prevailing uncertainty and economic volatility in global markets,” said Dr. C. John Langley Jr., Professor of Supply Chain Management, Georgia Institute of Technology. “It is very important for 3PLs to mitigate or reduce any financial risk or service level impact that this may cause.”

Economic uncertainty and the use of 3PLs
Economic volatility has challenged shippers and 3PLs alike to contend with factors such as unpredictable demand, instability in fuel costs and currency valuation, and excess inventory. In response, not only are shippers attempting to cut costs, 77% are also seeking to improve forecasting and inventory management.

Cost reduction and improved reliability in services are the main factors likely to increase shipper respondents’ use of 3PLs. This includes converting fixed to variable costs (59%), expanding to new markets or offering new products (56%), and restructuring the supply chain network to improve financial performance (48%).

Read the rest of the mhia.org article here.

Transportation/logistics: National Retail Federation leads opposition to seaport drayage regulation

In a remarkable demonstration of solidarity, scores of shippers’ associations have come together to champion a single cause: rejection of a change to federal trucking laws.

“We understand that a campaign is underway to persuade Congress to grant to local governments the ability to regulate the harbor drayage industry to address environmental and port security matters,” stated a letter from the National Retail Federation (NRF) to Rep. James Oberstar, D-Minn. “While we strongly support efforts to improve air quality and port security in and around America's ports, the effort to undermine federal preemption of interstate commerce is an attempt to overturn losses in the federal courts restricting local regulation of truck drayage services.

Oberstar, who chairs the Committee on Transportation, was warned that legislation eliminating the federal preemption of state and local regulation of foreign and interstate commerce would not improve air quality or port security in and around the nation's ports, “but will re-impose a fragmented, local, patchwork regulatory structure on foreign and interstate commerce, contrary to the U.S. Constitution and acts of Congress.”

Joining the NRF in this appeal are National Association of Manufacturers, The National Industrial Transportation League, The Waterfront Coalition and more than 30 other lobbying groups. Together, they oppose new laws proposed by the Port of Los Angeles and others that would exempt harbor drayage from preemption under the Federal Aviation Administration Authorization Act.

House Committee spokesman, Jim Berard, said in an interview that the letter has not been widely circulated among committee members yet, and that a position or statement has yet to be issued.

As reported in LM, the issue of exempting port trucking services from federal preemption emanated with the Port of Los Angeles' claim that ocean cargo gateways should be

allowed to regulate interstate trucking services in order to improve air quality and port security in the aftermath of 9/11. Shippers argue that the supporters of this special exemption are only seeking to change federal law in response to a series of unfavorable legal decisions restricting their authority over port drayage operations and to undermine ongoing litigation in this area.

Read the rest of the logisticsmgmt.com article here.

Logistics and Business Manufacturing: Economic Data Presents Mixed Views for Recovery

At a time when freight volumes remain depressed amidst the recession, coupled with reports indicating that the economy has “bottomed out,” it is very clear that those optimistic for a near-term recovery need to take a long-term view.

Some recent economic indicators for this sentiment include:

• A recent report from the Federal Reserve indicating industrial capacity usage in May, at 68.3 percent, hit a record low in May.
• Retail sales in May fell 4.7 percent year-over-year, according to the National Retail Federation.
• The U.S. trade deficit rose to $29.2 billion in April from $28.5 billion in March, with (adjusted for inflation) exports and imports down 4.3 percent and 2.7 percent, respectively.

The news is not all bad, though. Recently-released data from Panjiva, an online search engine with detailed information on global suppliers and manufacturers, notes that May represents the third consecutive month that there was an uptick in the number of global manufacturers shipping to the U.S. May saw a two percent bump, following gains of two percent in February and eight percent in March. Panjiva said this is the first time it has seen three consecutive monthly increases since it began tracking this metric in July 2007.

Even though these numbers are heading in the right direction, the company cautioned that last spring it also saw some uptick in the number of global manufacturers shipping to the U.S., leading to the possibility that there may be a seasonal component to these findings. Also, the company noted the two percent May gain is “modest,” with the recovery to pre-trade levels likely to be a while.

“We are seeing some encouraging signs, but there is still a low level of overall activity in an absolute sense,” said Panjiva CEO Josh Green in an interview. “It feels like the ‘deer in the headlights’ moment is over.”

Another positive, he noted, is that the sense of economic panic from earlier in the year seems to be gone, but there is still a long way to go. Companies continue to be cautious in their approach to placing orders, according to Green, and they are much more cognizant of the risks that are in their supply chains.

Examples of this risk are directly related to the fallout from last October’s financial crisis, Green noted, with companies not being as diligent as they need to be when it comes to volatile conditions in the market.

Read the rest of the Supply Chain Management Review article here.

Ocean cargo/global logistics: Florida shippers poised to take advantage of regional marketing alliance

PANAMA CITY—Port Manatee’s stature as an emerging container port took a major step forward late last week.

Executive director David L. McDonald and Panama Canal Authority CEO Alberto Alemán agreed to a two-year strategic marketing alliance. The accord, known as a Memorandum of Understanding (MOU), allies the two organizations to achieve increased trade by soliciting shippers worldwide through collaborative marketing and information sharing.

Port Manatee becomes the 10th U.S. member of an exclusive Panama Canal MOU fraternity, including the Port Authority of New York and New Jersey, Georgia Ports Authority, South Carolina State Ports Authority, Virginia Port Authority, Massport, Port of Miami, Port of Tampa, Port of Houston and the Port of New Orleans. Port Manatee, the closest U.S. deepwater seaport to the Panama Canal, is the only non-established container port in the group.

“After Miami, we are the closest deepwater port to Panama Canal,” said Steve Tyndal, senior director of trade development and special projects.

In an interview with LM, Tyndal also noted that public-private financing was providing revenue for significant enhancements for the port’s infrastructure.

“The MOU with the Panama Canal Authority formalizes a relationship we have enjoyed for nearly 40 years and demonstrates the canal’s confidence in Port Manatee’s future as a container port. In time, that confidence will result in thousands of regional jobs,” McDonald predicted after the signing.

Two years ago the Panama Canal Authority (ACP) broke ground on the $5.25 billion Panama Canal expansion. The project essentially doubles the canal’s capacity with the creation of two new sets of locks, enhanced navigational features and the addition of new access channels – all to accommodate larger post-Panamax-sized ships. Construction is expected to be complete in five years.

“This collaboration is beneficial as we seek innovative ways to provide our customers with the most safe, reliable and efficient service,” added Alemán. “Looking ahead to 2014 and the completion of the waterway, we anticipate growth in trade and the emergence of new economic opportunities.”

source www.logisticsmgmt.com

Logistics and transportation business: U.S. Census Bureau says new manufactured goods orders are down

- Interesting article from logisticsmngmt.com

eff Berman, Group News Editor -- Logistics Management, 4/24/2009

WASHINGTON—The United States Census Bureau reported that new orders for manufactured goods in March decreased $1.3 billion—or 0.8 percent—to $161.2 billion, marking the seventh decrease in the last eight months.

This data follows a 2.1 percent increase for new orders of manufactured goods in February, which was revised following a previous estimate of a 3.4 percent monthly increase.

The Census Bureau added that shipments of manufactured durable goods in March decreased $3.0 billion—or 1.7 percent—to 175.0 billion. February shipments were down 0.8 percent, with shipments down for eight consecutive months.

Inventories of manufactured durable goods in March decreased $3.7 billion—or 1.1 percent—to $331.6 billion, following a 1.3 percent decrease in February, said the Census Bureau.

An Associated Press report said that February’s increase in new orders followed by a small drop in March “show some faint signs of life in manufacturing.”

But that has yet to translate into growing freight transportation tonnage and volumes, which have been severely impacted by the recession.

“Things will likely continue to dip freight-wise as consumer product companies are still working through their inventories,” said David K. Schneider, Logistics Management Contributor and President of supply chain and transportation consultancy David K. Schneider & Company LLC. “But it is encouraging to see things pointing up after being down for such a long period of being pointed downwards.

(source:www.logisticsmngmnt.com

New Service: Rail Siding Available For Stripping Or Stuffing Rail Box Cars.

Quality Warehouse and Distribution has acquired an additional warehouse facility at Raritan Center, 100 Sweetwater Lane, Edison, NJ. This new warehouse has Rail Siding available for stripping or stuffing rail box cars. We will provide warehouse storage or transloading onto trucks for distribution in the middle Atlantic or New England areas. Our equipment is able to unload almost all types of cargo utilizing our fork lifts, clamp trucks, drum clamps for both fiber or steel drums and squeeze clamps for slip sheet unloading.

About Quality Warehouse

Quality Warehouse and Distribution has over 40 years of expertise in Public Warehousing, Transportation, Rail Service and Export / Import Logistics. As a world class third party logistics provider, let us be an extension of your operation without the expenses and headaches associated with it.

Conveniently located in Port Elizabeth, New Jersey and Edison, New Jersey with over 250,000 square feet of warehouse space. In addition to standard pier containers, our Port Elizabeth, New Jersey facility specializes in OVERWEIGHT pier containers that meet your import/export logistics needs. Our Edison, NJ Facilities specialize in Rail Services.