Briefs
Staff -- Purchasing, 6/16/2005 2:00:00 AM
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LTL carrier FedEx Freight implemented a 5.6% rate increase effective May 16. Dennie Carey, senior vice president of marketing at FedEx Freight, said the rate increase was driven by increased highway tolls, cost of issuing new driver security requirements, as well as the cost of buying new engines to comply with EPA regulations.
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Shipping giant UPS unveiled plans to expand its trucking network through the $1.25 billion acquisition of Overnite Corp., a predominantly non-union less-than-truckload provider. The deal marks the biggest buy in UPS' history. Based in Richmond, Va., Overnite has a network of 208 service centers and a fleet of approximately 6,700 tractors and 22,000 trailers on the road in all 50 states. "Overnite is a perfect strategic fit for our company," said Mike Eskew, UPS chairman and CEO in a statement. "We want to offer our customers the broadest portfolio of transportation and logistics services available from a single source and this is an important capability that we needed to have." Overnite reported net income of $63.3 million in 2004 on revenue of $1.65 billion.
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The Supreme Court recently heard a case surrounding the fees for truckers in Michigan. The court heard arguments over whether the state is improperly charging truckers and discouraging them from working in Michigan. Michigan charges $100 annual fees for trucks registered in the state and trucks registered elsewhere that transport loads between two Michigan cities. The American Trucking Associations and trucking companies contend the fees could hurt its industry if other states imposed similar taxes and place a financial barrier for out-of-state trucks doing business in Michigan. But justices questioned whether there was any hard evidence that the fees would keep trucking companies from hauling loads in the state or have an impact on their routes. Chief Justice William Rehnquist suggested it might have been better to determine whether any punitive effect was taking place against the truckers in a trial, "rather than speculation on both sides." The Michigan Court of Appeals upheld the charges, noting the state's interest in regulating highway safety.
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Con-Way Transportation Services launched a new service designed specifically for distribution-critical industrial and retail businesses. The new "final-mile" service offers local cross-docking, warehousing and final delivery of freight to customers with multiple selling locations within a single geographic area. The company said each step of the process will be confirmed electronically using software that provides a retail industry-standard interface.
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GT Nexus recently launched a new managed technology service providing integrated contract management and performance analytics for global ocean transportation. The new offering is the third in a series of logistics IT services the company has brought to market.
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UPS plans to offer financing to customers in China as that market continues to emerge and become a bigger business driver. "As China ascends into the WTO, as their financial markets open, we just want to make sure our capital group can offer similar financial solutions as elsewhere," Ken Torok, head of UPS Asia Pacific, told reporters recently. Torok did not say when he expected UPS to be able to offer financing, but China is gradually opening its financial sector to foreign competition in line with promises it made when it joined the World Trade Organization at the end of 2001. In its first quarter results, UPS said its export volume from China doubled over a year earlier. "China is not an option for us, it's absolutely essential," Torok said.
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The federal government will triple its capacity to inspect the nation's rail lines thanks to three new advanced track inspection vehicles being launched over the next year and a half, U.S. Secretary of Transportation Norman Mineta said recently. The announcement came during an appearance recently in Louisiana to demonstrate a new self-propelled rail track inspection vehicles, the T-18. Mineta noted that with the T-18 and two more inspection vehicles under construction, the Department of Transportation's Federal Railroad Administration will soon be able to inspect 100,000 miles of track each year, tripling the agency's current capacity.
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LTL provider Saia recently launched its Xtreme Guarantee service, which will guarantee all six of the company's proprietary Customer Service Indicators with a full money-back pledge. The Xtreme Guarantee provides a warranty of the total customer satisfaction experience by guaranteeing the Customer Service Indicator measurements for customers who are on Saia's current 5,700-rate base and the Saia 170 rules tariff. A failure of any of the criteria will result in a refund of the entire invoice.
LTL carriers push rate increases
02/10/2010FedEx Freight raises rates 5.59%
03/19/2007Customer Service Hat Trick
06/23/2008FedEx Freight issues rate increase
12/26/2007
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