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Did you know?
Did you know that TIA has a bond program that can cover you up to $100,000?
The Guaranteed Payment Program offers a competitive advantage to transportation brokers by providing a guarantee of freight payment to carriers, shippers and other third-party logistics providers in excess of the $10,000 bond required by the Federal Motor Carrier Safety Administration (FMCSA) to conduct business. For more information, please go to TIA's Web site at www.tianet.org or contact Nancy O'Liddy at 703-299-5711. |
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Industry News
Fuel Surcharge Legislation Update
TIA has been working actively on Capitol Hill since the introduction of both the amendment to the Department of Defense Authorization Bill and the TRUCC Act. This past week was no exception as TIA staff and representatives met with several United States Senators and their staff to discuss removing the fuel surcharge amendment language that was added in the House of Representatives version of the legislation. The Senate has not considered the Department of Defense Authorization Bill yet.
The meetings have generally been going very well and our position has been well-received. We continue meeting, educating and informing Members of Congress on the negative impacts of all five pieces of legislation.
While the House language only directly affects Department of Defense freight, if the amendment remains intact, the fuel surcharge pass-through and disclosure provisions would be built upon to justify the passage of the TRUCC Act. If the TRUCC Act is passed, literally every rate in every lane will be impacted.
For more information, talking points and background, click here to be directed to the MEMBERS ONLY section of our website.
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The National Average Diesel Fuel Price And Most Regions Decline
This week's national average price of diesel fuel, along with most regions, decreased from last week. By comparison, gasoline is $4.095 per gallon which is 01.6¢ higher than last week.
Bloomberg Energy reports that as of mid day, Monday, June 39, the spot price for a barrel of West Texas Intermediate oil is $140.33
To read the latest diesel prices from the U.S. Department of Energy Web site, click here.
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Legislation Introduced To Improve Air Service And Provide Passenger Rights
Representatives Oberstar (D-MN) and Costello (D-IL) have introduced the "Air Service Improvement Act of 2008"(,H.R. 6355) which would require air carriers and large-and medium-hub airports to file emergency contingency plans with the Secretary of the Department of Transportation (DOT) for review and approval. The Secretary may establish minimum standards for plans and require airlines to modify the plans they submit. These plans must detail how the air carrier will provide food, water, restroom facilities, cabin ventilation, and medial treatment for passengers on board an aircraft that is on the ground for an extended period of time without access to the terminal. The plans must also detail how facilities and gates will be shared.
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University of Portland Board of Regents appoints D. Allen Lund as its new chair
The University of Portland Board of Regents has elected D. Allen Lund as it new chair, effective June 1. Lund, previously the vice chair, replaces outgoing board chair Ted Winnowski, who has served with distinction for the past six years.
Lund is the president and CEO of the Allen Lund Company, a La Cañada, Calif.-based transportation and logistics provider established in 1976, today earning $310 million in revenue annually.
Lund has been honored for his work in the transportation industry and in Catholic education. He has served on the board of governors of Legatus International, an organization designed for Catholic CEOs which provides a network of peers who have a common experience of corporate leadership, shared values and a common religious heritage.
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Choptank Transport Named Maryland Small Business of the Year
"The Maryland Chamber is pleased to honor Choptank Transport with the 2008 Small Business of the Year Award," Maryland Chamber President & CEO Kathleen T. Snyder, CCE said. "By focusing on outstanding customer service and technological innovation, Choptank has achieved impressive growth in recent years. The judges were equally impressed by Choptank's strong commitment to employee development and community service."
Choptank Transport had been one of three finalists in the annual Maryland Chamber of Commerce competition. Small, large, and nonprofit companies divided the competition, which began in early 2008. The awards program is designed to recognize the dedication, innovation, and entrepreneurial spirit displayed by Maryland small businesses.
Choptank Transport is a full-service, asset-based, freight management company specializing in refrigerated and van transportation. Choptank serves the 48 contiguous United States, Canada, and Mexico, with over 24 locations and 5,500 carriers under contract. Headquartered in Preston, MD, they handle over 30,000 shipments annually
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Industry News
Fuel Surcharge Update-Your Help Is Needed
Congress is considering legislation that would require brokers, forwarders and motor carriers to disclose profit margins on each load to the carrier and driver at the time we pay the carrier's invoice.
The Owner Operator Independent Drivers Association (OOIDA) has convinced some in Congress that brokers are unscrupulous and are ripping off truckers on fuel surcharges and that new laws are required to fix the problem.
Your Help is Needed to Protect Your Business!
To Contribute to the Legislative Fund click here. For additional information go to www.tianet.org and login to the members only section. For questions contact John Stirrup at stirrup@tianet.org or (703) 299-5704.
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August Issue Of Inbound Logistics Will Be Devoted To 3PLS
The August issue of Inbound Logistics will be devoted to the 3PL industry and with a circulation of 60,000, 80 percent of which are either shippers or receivers, you have an excellent opportunity for you to advertise services to a large and receptive audience. For more details, contact Inbound Logistics magazine at publisher@inboundlogistics.com or call 312-629-1560. The magazine "closes" July 11.
Network F.O.B. Freight Brokerage Acquires Virginia Company
Network F.O.B., has completed the acquisition of Gale Transportation Services Inc., of Winchester, VA.
The acquisition was announced jointly by Network F.O.B. President Timothy Taylor and Gale Transportation Services President Arnold M. Gale.
Taylor said Gale Transportation Services is the second freight brokerage company to become part of the Network F.O.B. national system within the past year through acquisition. Taylor noted that the acquisition is part of a long-range plan to expand Network F.O.B. operations on a national basis.
Gale Transportation Services, a family-owned business, was founded in 1980 by Arnold Gale. Taylor said Gale would continue as Director of Transportation of Network FOB.
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Truck Tonnage index rose 3.3 Percent in May
Truck tonnage in May jumped 3.3 percent from a year earlier, marking the seventh straight year-over-year increase according to a report released by the American Trucking Associations.
Tonnage rose 0.5% from April, the first month-to-month gain since January, ATA said in its monthly seasonally adjusted for-hire truck tonnage index.
The seasonally adjusted tonnage index equaled 114.8 (2000 = 100) in May. The not seasonally adjusted index increased 1.1 percent to 118.3 from 117.1 in April. The seasonally adjusted index was 3.3 percent higher compared with May 2007, marking the seventh consecutive year-over-year increase. In April, the year-over-year gain was 2.2 percent.
In a statement released by the ATA, high diesel fuel prices continue to place a significant burden on motor carriers. Since trucks haul virtually all consumer goods at some point in the supply chain, the industry is significantly impacted both directly through high diesel prices and indirectly as consumers have less money to spend on truck-transported goods.
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Driver Turnover Rates Decline But Could Change When The Economy Turns Around
According to a recent report released by the American Trucking Associations, driver turnover at truckload carriers with annual revenue of more than $30 million declined to 103 percent in the first quarter, the lowest annualized rate in five years.
The large TL turnover rate was 112% in the fourth quarter of 2007, compared with 127 percent a year earlier. ATA also said turnover at small truckload firms declined two percentage points to 80 percent in the first quarter, the lowest rate since the third quarter of 2004.
When it does come back, it will be even worse than before and the demographics have not changed, making it more difficult to recruit new drivers," says ATA Chief Economist Bob Costello.
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NETWORK FOB
Network FOB offers EXIT planning for owners looking to retire or cut back their risks and diversify their investments. If you're looking at your future and asking the hard questions, Network FOB has an exit strategy that might be right for you. Our strategy keeps your workers working as you ease out of day to day work. We provide opportunities to your employees to grow and increase their income. Call (651) 256-1007 or click here to e-mail Tim Taylor and find out how you and your employees can benefit.
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Industry News
The 2008 3PL Summit Meeting Results Are Discussed.
Jon A. Langenfeld, Michael Halloran and Benjamin J. Hartford of Robert W. Baird & Co., Equity Research attended the Eyefortransport Third-Party Logistics Summit and summarized their findings.
Though not showing signs of improvement, domestic freight demand trends remain stable at lower levels and are following a normal seasonal pattern. However, there is the potential for further risk to demand over the next six-to-twelve months given prevailing weakness among the consumer and emerging weakness in the industrial segments.
With few exceptions, carriers and brokers commented on firming pricing in the last 45-60 days driven by tightening capacity. Though demand is not showing signs of improvement, improving supply/demand balance supports better rates for carriers a trend which is expected to persist for the foreseeable future. Bid activity has slowed materially as shippers appear to realize lower rates are not attainable.
Truck Brokers' demand remains stable, but load fulfillment becoming more challenging as pricing starts firming and as fuel becomes an increasing component of carriers' decision-making criteria. Small/medium-sized brokers experiencing margin compression from firming industry price trends and increased fuel surcharges. Multiple asset-based providers continue to see truck brokerage as a significant long-term growth avenue.
Intermodal demand is benefiting from conversion from motor carriage to intermodal because of the better relative fuel efficiency, tighter truckload capacity, better rail service, and lower price point.
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Save the Date!
November 14-18, 2008
The TIA Fall Meeting will be held on November 14-18, 2008 in Ft. Lauderdale, FL.
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Senator Dorgan Introduces Legislation To Try Club Oil Speculation by Cutting Oil Speculation
On June 24, Senator Byron Dorgan (D-ND) introduced legislation that is designed to put downward pressure on gas prices by curbing the rampant speculation taking place in the energy futures markets.
The legislation, called the "End Oil Speculation Act of 2008" (S.3183.IS) would require the Commodity Futures Trading Commission (CFTC) to use its emergency authority to crack down on the root cause of the recent surge in energy prices. Dorgan feels that excessive speculation drove oil and gas prices to record levels. The legislation sets out the specific requirements to force the CFTC to shut down the excess speculation.
Dorgan's statement said that trading 20 times higher than the oil which is delivered each day. The world uses about 86 million barrels of oil per day, yet trades approximately 1.5 billion barrels of oil per day.
TIA Watchdog
Have you been utilizing the TIA Watchdog website? Remember to assign access to your people who are qualifying your new carriers and 3PL's. This will allow you to find out important information about companies so that they can make informed decisions when selecting business partners. This system gives you a way to quickly alert each other to marketplace problems and help reduce future negative incidents from occurring.
To access the site go to www.tiawatchdog.com for questions contact Jessica Mizell (615) 599-9263 or mizell@tianet.org
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Have You Signed Up For Next Certified Transportation Broker Exam?
The next Certified Transportation Broker (CTB) exam is on Saturday, July 26, 2008. It is a four-hour, multiple-choice exam covering: Basic Business Practices; Logistics, Transportation and Carrier Management; and Broker Regulations, Operations and Practices. You must pass all three sections in order to earn your CTB designation.
Deadline to register is Monday, July 21 so, less than a month away. Having your CTB will favorably reflect on your commitment and professionalism.
Click here to download a registration form, or contact Tia Johnson at 703-299-5701, or johnson@tianet.org
TIA Calendar of Events
July 7, 2008
Temperature Control Transport
July 14, 2008
Partnership Selling in the Supply Chain
July 26, 2008
CTB Exam
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TIA Announces 2008 Leadership
The members of the Transportation Intermediaries Association (TIA), the nation's leading third-party logistics trade association, announced their leaders for 2008, at TIA's 30th Annual Convention and Trade Show held April 9-12, 2008, in Washington, D.C.
2008 Executive Committee:
Chairman: Doug Clark - Cargo-Master, Inc.
Vice Chairman: Chip Smith - Twin Modal, Inc.
Treasurer: Geoff Turner, CTB - Choptank Transport, Inc.
Secretary: Alec Gizzi, CTB - JBS Logistics, Inc.
Past Chairman: David Gee, CTB - Virginia Highway, Inc. dba VHI
TIAFoundation Chairman: Michael Regan - TranzAct Technologies
TIA Services Chair: Gilles Roch, CTB - G. Roch Consultant, Ltd.
2008 At-Large Members:
Sandra Ambrose-Clark - ESJ Enterprises, Inc.
Timothy L. Bray, CTB - Breck Logistics, Inc.
Wayne Carucci - Gateway Distribution, Inc.
James R. DeMatteis, CTB - Des Moines Truck Brokers, Inc.
Donald E. MacDonald, CTB - UniGroup, Inc.
Danny Mills - Dedicated Carriers, Inc.
Gregory D. Sebolt - General Freight Services, Inc.
Sean H. Snow - England Logistics, Inc.
Kent Stuart - C.H. Robinson Worldwide
David W. Taylor, CTB - Midwestern Transit Services, Inc.
Jeffrey Tucker, CTB - Tucker Company
Barcy Vidt, CTB - H & W Trucking, Inc.
2008 TIA Conference Chairs:
Airfreight Conference: K.C. Pelle - MEGATRUX, Inc.
Highway Logistics Conference: Rick Staller - San Antonio Merchant Shippers
Intermodal Logistics Conference: Jeffrey R. Brashares - Pacer Global Logistics
International Logistics Conference: Mark Christos - Matson Integrated Logistics
TIA is the professional organization of the $164 billion third party logistics industry. With 1,200 member companies, TIA is the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce. TIA is the voice of transportation intermediaries to shippers, carriers, government officials and international organizations. TIA is the United States member of the International Federation of Freight Forwarder Associations (FIATA).
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Thank You, Sponsors!
TIA thanks the 30th Annual Convention and Trade Show Sponsors:
TransCore; Internet TruckStop; Getloaded.com, LLC; Aljex Software, Inc.; Avalon Risk Management, Inc.; Landstar Global Logistics, Inc.; TMW Systems, Inc.; TransCredit, Inc.; MEGATRUX, Inc.; Registry Monitoring Insurance Services, Inc.; Landstar Carrier Group; Descartes Systems Group, Inc.; JBS Logistics, Inc.; Cargo-Master, Inc.; McLeod Software; Dedicated Carriers, Inc.; Des Moines Truck Brokers, Inc.; Infinity Software Solutions, Inc.; MyFreightWorld; RFX, Inc.; and Schneider National, Inc.
2008 Directors Circle Members include:
Aljex Software, Inc.; Avalon Risk Management, Inc.; Getloaded.com, LLC; Huffman, Usem, Saboe, Crawford & Greenburg, PA; McLeod Software; RJ Ahmann Company; TransCore; and TransCredit, Inc.
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Industry News
FMCSA Seeks CDL/Learner's Permit Upgrades
The Federal Motor Carrier Safety Administration (FMCSA) has published a Notice of Proposed Rulemaking (NPRM) to revise the commercial driver's license (CDL) knowledge and skills testing standards and to require new minimum standards for state issuance of commercial learner's permits.
The NPRM would impose new standards on document security and record keeping and require states to verify the applicant's Social Security Number with the Social Security Administration.
The proposed rules would limit the initial and renewal periods for both commercial learner's permits and CDLs, clarify under what circumstances an applicant must surrender a CDL and require all states to use standardized CDL endorsement and restriction codes.
The proposed rule also seeks to address the problem of applicants who attend a driver training program in a state other than the state of domicile by requiring states to recognize learner's permits issued by other states for training purposes.
Finally, the NPRM would specifically prohibit a motor carrier from using a driver who does not hold a commercial learner's permit or CDL in compliance with the rules.
Click here for the full announcement.
For additional information concerning this and other transportation issues, contact Earl Eisenhart at 202-898-1050, or eeisenhart@grservices.com.
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Agreement on Road Map Towards Mutual Recognition of AEO and C-TPAT
The European Union (E.U.) Commission issued a press release following the Ninth Meeting of the Joint Customs Cooperation Committee (JCCC) stating that agreement had been reached on a road map towards mutual recognition of trade partnership programs currently in place in the E.U. and U.S.
The Customs-Trade Partnership Against Terrorism (C-TPAT) program implemented by the U.S. and the Authorised Economic Operator (AEO) program implemented by the E.U. are both designed to support the development and implementation of measure to enhance security in the supply chain through improved customs control. Both programs are compatible with the World Customs Organization's Framework of Standards for Security and Safety in the Supply Chain but have not been mutually recognizable.
Work began in 2007, with the completion of a detailed comparison of the two programs and where Customs and Border Protection took part in pilot projects observing the E.U.'s audit process for security components of the AEO certification process. The cooperation between the two administrations has lead to the formal agreement on a road map to achieve mutual recognition. Both administrations are optimistic that full mutual recognition will be achievable in 2009. During 2008, work will be progressed on the aspects deemed necessary prior to final approval.
Click here for the full announcement.
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NETWORK FOB
Network FOB offers EXIT planning for owners looking to retire or cut back their risks and diversify their investments. If you're looking at your future and asking the hard questions, Network FOB has an exit strategy that might be right for you. Our strategy keeps your workers working as you ease out of day to day work. We provide opportunities to your employees to grow and increase their income. Call (651) 256-1007 or click here to e-mail Tim Taylor and find out how you and your employees can benefit.
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TIA's 30th Annual Convention and Trade Show Marks Another Successful Year
Nearly 600 industry professionals attended TIA's 30th Annual Convention and Trade Show, held last week, in Washington, D.C. Highlights of the event included:
Capitol Hill Day
During TIA's first Capitol Hill Day, TIA members met face to face with various Members of Congress and their staff to discuss a number of industry issues.
Opening Ceremony
The Opening Ceremony featured Keynote Speaker Tony Snow and a State of the Association Address by TIA President and CEO Robert Voltmann (click here to view Mr. Voltmann's remarks).
During the Opening Ceremony, TransCore received the first-ever TIA Membership Referral Award. The award will be given each year to the member company that refers the most organizations for TIA membership.
Also at the Opening Ceremony, TIA and Avalon Risk Management, Inc., announced the 2008 Convention Scholarship Awards, which allowed selected first-time attendees to come to TIA's Convention and Trade Show at no cost.
Women in Logistics Luncheon
TIA's second Women in Logistics Luncheon was held Thursday. Women from across the industry gathered to share ideas, discuss challenges and opportunities and network.
Next Generation Luncheon
TIA's Next Generation Network held a luncheon on Saturday for those members who have or will be taking over family businesses.
New TIA Conferences
The newly-revised TIA Conferences met throughout TIA's Convention and Trade Show. The Conferences are Highway Logistics, International Logistics, Airfreight and Intermodal Logistics.
The final Attendees List will be sent to all attendees this week. Presentations from Convention speakers will follow.
TIA thanks the attendees of the 30th Annual Convention and Trade Show. Next year's event will be held April 1-4, 2009, in San Antonio, Texas.
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2008 Board of Directors Confirmed
At the TIA Board of Directors Meeting on Thursday, TIA confirmed the following officers for the 2008 Board of Directors:
- Chair: Doug Clark, Cargo-Master, Inc. (second term)
- Vice Chair: Chip Smith, Twin Modal, Inc. (second term)
- Secretary: Alec Gizzi, CTB, JBS Logistics, Inc. (first term)
- Treasurer: Geoff Turner, CTB, Choptank Transport, Inc. (first term)
- Past Chair: David Gee, CTB, Virginia Highway, Inc. dba VHI Transport
- TIAFoundation Chair: Michael Regan, TranzAct Technologies (second term)
- TIA Services Chair: Gilles Roch, CTB, G. Roch Consultant, Ltd. (first term)
- Highway Logistics Conference Chair: Rick Staller, San Antonio Merchant Shippers (first term)
- International Logistics Conference Chair: Mark Christos, Matson Integrated Logistics (first term)
- Airfreight Conference Chair: KC Pelle, MEGATRUX, Inc. (first term)
- Intermodal Logistics Chair: Jeffrey Brashares, Pacer International (first term)
- At Large Directors: Tim Bray, CTB, Breck Logistics; and Danny Mills, Dedicated Carriers, Inc.
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Silent Auction Raises Funds and Awareness for TIAPAC
Thank you to the companies who donated items - from high-end electronics to business services to travel packages to sports tickets and gear to display items - to the TIAPAC Silent Auction at the 30th Annual Convention and Trade Show. Thanks and congratulations to all of the winning bidders. Click here for a full list of items, donors and winners.
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Members Score in TIAFoundation's Annual Golf Tournament
Thirty-six attendees participated in TIAFoundation's Annual Golf Tournament, which was held Wednesday at Reston National Golf Course. Funds raised from the event will benefit the TIAFoundation.
The winners from the event were:
1st Place
Don Thornton, Kerry Byrne, Alec Gizzi and Sean Snow
2nd Place
Joe Gill, John Jenkins, Matt Rowan and Lee Marucci
3rd Place
Scott Moscrip, Charles Phillips, David Taylor and Tyler Currier
Closest to the Pin
Alec Gizzi
Longest Drive
Don Thornton
"Other Sport Beckoning" Award
Matthew Chmel, Alex Williams, Matthew McCune and Christopher Nicoletti
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Industry Leaders Honored at Chairman's Awards Reception and Dinner
At Saturday's Chairman's Awards Reception and Dinner, TIA recognized a number of leaders in the industry. The TIA Heritage Award was given to David Gee, CTB, for his 25 years of service to TIA.
The Chairman's Award was given to Boe Davis, Jr., CTB, the outgoing TIA Services Corporation Board of Directors Chairman.
Industry Advancement Awards were given to Michael S. Brown, Scott D. Wollney, Norris Beren, Richard Gluck, David Gee, CTB, Geoff A. Turner, CTB, Dan Yoest, Dave Carney, Boe Davis, Jr., CTB, Jean Regan, Jason Netland and Reggie Jackson for their contributions in developing TIA's Guranteed Payment Program.
Four member organizations were honored as founders of TIA, celebrating 30 years of membership. They are: California Cartage Company, Freight Management, Suddath Transportation and Tucker Company.
The following companies were honored for 25 years of TIA membership: | | | | | | | |
