STB rolls out proposed reciprocal switching regulations

Posted on July 29, 2016 by | Leave a comment

The proposed new regulations are opposed by the AAR as we might expect. Rules have not been updated since 1985. The finding is a small modification. Rails who want switching from another line need only show it is in the interest of lowering overall costs, not that the other line is behaving monopolistically.

Something must be done to loosen up the switching rules.  Rails argue that it would be costly and prevent them from making large capital investments. But when you consider that since the 1880’s rails have benefited from free land …

I agree with the last paragraph in the article:  this rule should keep the lawyers busy!

www.logisticsmgmt.com 2016-07-29 09-49-14  New regulations focused around reciprocal switching were proposed by the Department of Transportation’s Surface Transportation Board (STB) yesterday.

Source: STB rolls out proposed reciprocal switching regulations

Thanks to author Jeff Berman for the article!

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Posted in Production Operations, Rail, Supply Chains

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Macy’s logistics exec admits $3.5m shipping scam

Posted on July 28, 2016 by | Leave a comment

Thanks to Loadstar for reminding us that in business our ethics can be challenged daily.  Logistics is no different.  This type of scam has been practiced for years; there was an incident when I was working for a mining company.  It involved accountants and shell companies that simply cashed checks without providing services.

Complexity in supply chains offers increased opportunity to cheat without being noticed.  The more partners there are, the more diverse interests and more complex contracts. But not every contingency can be detailed in a contract.  At the base, business deals are founded on trust.

  Logistics executive working for Macy’s pleads guilty to shipping scam that saw $3.5m embezzled from the retailer

Source: Macy’s logistics exec faces jail after admitting $3.5m shipping scam – The Loadstar

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A taste of irony: LNG tanker transits new Panama Canal locks

Posted on July 27, 2016 by | Leave a comment

LNG is an area in which we can expect the new bigger Panama Canal to make a great difference in trade patterns. The major source of US export LNG will be in the deep south, the US Gulf Coast. There are also major LNG processing and storage facilities in the Caribbean island nations.  Transit times to Asia and to South America will be substantially improved, making US LNG exports competitive from a transportation standpoint.  And it appears the canal is accomplishing that.

So why hasn’t the flow of tankers happened yet?  The Canal management expects it to happen soon.  But wait a minute!  Just as for container ships, it appears that the Gulf Coast tanker ports cannot handle the larger vessels. They need operational and infrastructure improvements to support the larger ships’ needs for berthing, loading, and unloading.

Isn’t it ironic?  All the angst over dredging East Coast ports for container ships and rigging terminals to unload big ships fast, and no one thought of the same issues for tankers? Is no one in shipping thinking about supply chains?

Here’s the nice story by Deepa Vijiyasingam of Platts.

Platts Source: First LNG tanker transits new Panama Canal locks; 54 vessels through: ACP – Shipping | Platts News Article & Story

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Posted in Ports, Production Operations, Shipping, Strategy, Supply Chains, Uncategorized

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