newsworthy
Robinson for monetary damages, smaller brokers
would actually be hurt the most should the Illinois verdict
become precedent. Langenfeld contends insurers would
be compelled to raise premiums and to limit access to
adequate liability coverage, actions that would add significant costs to already thinly capitalized third parties.
Ann Christopher, vice president and general counsel
for Kenco, a third-party logistics company, told attendees
at the recent Warehousing Education and Research
Council annual meeting that the verdict could have “
dramatic implications” for brokers and third parties. In the
future, she said, brokers will need to be more careful in
conducting due diligence on a carrier’s safety record
before engaging that carrier.
Christopher also warned that the case is a shot across
the bow for the entire industry. Transportation, she said,
“is the next cash cow that tort attorneys will go after.”
—Mark Solomon
accolades
Many happy returns. Genco Pharmaceutical Services has
received the Healthcare Distribution Management
Association’s Runner-up iBusiness Solution Award in the
service provider category. Genco Pharmaceutical Services, a
supply chain solutions company and processor of pharmaceutical returns, was recognized for its application of RFID
technology in the processing of Schedule II drugs.
Keeping its cool. Sysco Corp., North America’s largest
food-service distributor, has named Thermo King its
Operations Supplier of the Year. Thermo King supplies refrigeration units and parts to Sysco.
Rock solid. The International Foodservice Distributors
Association (IFDA) has presented its 2009 Cornerstone Award
to Michael Roach of Ben E. Keith Foods of Fort Worth, Texas.
The annual award is given for industry leadership and service.
Vrooom, vrooom. Yamaha has named APL Logistics its
Truckload Carrier of the Year. APL has been working with
Yamaha for 35 years, transporting its motorcycles, boats, and
snowmobiles.
Green laurels. The Association of American Railroads has
given its John H. Chafee Environmental Award to Mike
O’Malley. O’Malley, assistant chief engineer of facilities for
CSX Transportation, was selected for his leadership on green
policies, including initiatives that provided energy cost savings of $9.3 million over the past five years.
shipping slows, but capacity grows
With economies around the world struggling to recover, it comes as no surprise that ocean shipping is
going through travails of its own. But the severity of
the problem across the industry is unlike anything
observers have seen before.
IHS Global Insight and Lloyd’s Register-Fairplay
Research, research firms that closely follow ocean
shipping trends, say there is an unprecedented imbalance in the supply of ocean shipping capacity and
demand for that service. And given the long lead
times for bringing new ships on line, the gap may
widen even if ship owners cancel orders and scrap or
idle more vessels.
That could prove good news for shippers, as capacity will be plentiful and rates low when demand begins
to pick up. But it is proving painful for ship operators.
Evidence of the slumping demand for ocean service
can be found in the National Retail Federation’s
monthly Port Tracker report, which includes statistics
on retail import volumes at major U.S. ports.
According to the report issued in May, imports rose in
March from February’s seven-year low, but volume
was still down 15 percent from the March 2008 level.
Year-over-year volumes have declined for 21 straight
months, and the report forecast that double-digit
declines would continue through September.
The U.S. trends reflect what is happening worldwide. IHS Global Insight and Lloyd’s Register-Fairplay,
both subsidiaries of international research firm IHS,
reported in a webcast last month that world container volume will be down 5. 8 percent this year.
Although they expect demand to pick up toward the
end of the year, the researchers say growth in container capacity will easily outstrip growth in demand
for at least the next several years.
Faced with a capacity glut, ocean carriers have been
canceling orders for new vessels. Christopher Pålsson,
manager and senior consultant for Lloyd’s Register-Fairplay, estimates that those cancellations will average 330 ships a month this year. He also expects ship
owners to take many vessels out of service to reduce
capacity. Even so, Niklas Bengtsson, a project manager and senior consultant for Lloyd’s Register-Fairplay,
predicts worldwide container fleet capacity will grow
by 8. 9 percent a year until 2013, while demand will
grow by about 4 percent a year during that time.
If there was good news in the report, it’s this: The
research firms see the recession, while unusual in its
depth, as part of a normal business cycle. They expect
world trade to grow over the longer term, albeit at
slower rates than in recent years.
