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  • Carrier/Provider News

    Staff -- Purchasing, 7/15/2004 2:00:00 AM

    • Trucking company USF Corp. shut down its Red Star unit after back-office employees at the Red Star unit demanded union representation. The International Brotherhood of Teamsters union insisted USF sign a contract with its Red Star office workers but when Red Star managers refused to sign a contract and wanted instead to hold a vote among the office staff, 1,500 union workers walked out. USF executives say 20% of Red Star's customer base took their business elsewhere because of the strike, which forced the Red Star closure. USF said it plans to expand its Holland LTL unit, and will invest $70 million this year and hire up to 700 workers.

    • Trucking company Con-Way Transportation Services will open a truckload business in early 2005. Con-Way Truckload will provide linehaul service on full loads of LTL shipments moving in transcontinental traffic lanes. The company will have its own dedicated employees and equipment but also leverage the assets and infrastructure of Con-Way's LTL business. Con-Way currently spends about $200 million a year hiring out other truckload carriers to provide this service. "We are a major customer to a select number of very good truckload carriers who we will continue to work with," said Gerald Detter, president and CEO of Con-Way. "The new operation will focus on absorbing the growth in our long-haul portion of LTL operations, which currently is above 10% annually."

    • NWA Cargo, the cargo subsidiary of Northwest Airlines and American Airlines Cargo Division will both increase the fuel surcharge on freight shipments in response to record-high fuel prices. Effective June 16, the NWA surcharge increased to 25¢/kilogram from 20¢ for most U.S.-origin international shipments only. The American surcharge will adjust to the same level for international shipments and 10¢/lb. for domestic shipments on June 14.

    • Canadian rail carrier Canadian Pacific has changed its fuel surcharge to be calculated based on the monthly average price of U.S. benchmark West Texas Intermediate oil, instead of a quarterly average. The extra charge to shippers will be 2% of freight charges when the monthly average oil price reaches $24 a barrel, and 4% when crude averages $27. It will rise by 0.4% for each additional $1 a barrel, and fall when crude does, using the same formula, CP Rail said.

    • UPS has extended its UPS Trade Direct Ocean service to more than 70 ports in Asia, Europe, Latin America, Africa and the Middle East while adding Miami as a U.S. port of entry. The service allows customers to speed their merchandise directly into the UPS delivery system as soon as the goods clear customs, reducing the need for warehouse stops before final U.S. delivery.

    • FedEx Freight recently opened a new service center in Bangor, Maine that more than doubles the capacity of the previous facility, increasing the number of dock doors from 13 to 33. It also includes an 11,000 square-foot dock. FedEx earlier increased its capacity at five other location: Boise, Idaho; Kankakee, Ill.; Providence, R.I.; Oklahoma City and Jackson, Miss.

    • USF Logistics has received C-TPAT certification from the U.S. Customs and Border Protection agency of the Department of Homeland Security. The C-TPAT program is a government/business partnership that will give USF expedited clearances when importing shipments into the U.S.

    • Bax Global has enhanced its Bax Forwarder Network with the launch of www.baxfn.com, a new web site offering online shipping tools for freight forwarders and shippers. The tools will let Bax customers track shipments online and better understand Bax's service guide and delivery matrix.

    • Motor Cargo Industries, a Western regional transportation company, has been awarded the 2003 Distinguished Partner Award by the Yankee Candle Co. for its excellence in transit-time performance, quality service and overall performance.

    • ABF Freight System received the 2004 Excellence in Security Award from the American Trucking Associations.

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