carriers applaud move to curb energy speculation
In a victory for transportation interests who’ve charged that
commodity speculators, not economic fundamentals, have
caused the price volatility in oil markets during the past
three years, the far-reaching financial reform bill recently
signed by President Obama curtails speculation on energy
pricing. The legislation, known as the Wall Street
Transparency and Accountability Act, restricts the betting
on the direction of energy prices to so-called commercial
end-users who use sophisticated trading tools to reduce risk
associated with managing their business.
The measure, which was signed into law in July, is the
most sweeping overhaul of the nation’s financial rules since
the Great Depression. Embedded in the controversial
2,300-page bill is language that limits the role of speculation in the $615 trillion financial derivatives market.
The transport sector keyed in on a provision in the bill
that allows only companies with what are being termed
legitimate commercial interests to enter into derivatives
transactions, or “swaps,” without regulatory oversight.
Many of these companies traditionally use the derivatives
markets to hedge against fluctuations in energy prices that
may affect their profit margins.
In a statement, the American Trucking Associations said
it “applauds Congress’s decision to curb excessive commod-
ity speculation while protecting the ability of the trucking
industry to hedge its exposure to increased fuel prices. The
legislation will help ensure that fuel prices are linked to the
market forces of supply and demand.”
The Air Transport Association, which represents the
nation’s major passenger and cargo airlines, also hailed pas-
sage of the bill, saying the law will ultimately reduce the risk
of cost spikes associated with speculative trading and will
align energy prices more closely with supply and demand
fundamentals.
alliances
; Semper Fi. Savi Technology is shipping 50 additional
portable deployment kits to the U.S. Marine Corps for use in
locating, tracking, and managing RFID-tagged supplies in
Afghanistan. The U.S. Defense Department currently has
nearly 1,300 kits deployed around the world. The kits use
RFID, GPS, and Iridium modems to communicate via satellite
with the DOD’s In-Transit Visibility network and allow logistics personnel to know the whereabouts of mission-critical
assets at all times.
; Swiss bliss. Electronics distributor Avnet Logistics has contracted with Swisslog for a new order picking and storage
system. Swisslog’s AutoStore solution, consisting of 45,000
storage bins and 37 robots, will be installed at an Avnet distribution center in Poing, near Munich, Germany.
Swisslog also inked a deal with Target Corp. for a new
picking and storage system, and has contracted with dairy
company Schreiber Foods to develop a state-of-the-art DC.
; Revved-up deal. Jaguar Land Rover has extended its contract with pallet and container pooling specialist CHEP. CHEP
has been handling the carmaker’s packaging needs in the
United Kingdom since 2000 and will continue serving the
Halewood, Solihull, and Castle Bromwich plants.
; A material improvement. Invista Apparel, one of the
world’s largest producers of polymers, fibers, and fabrics, has
selected the Zemeter Demand Planner software from Supply
Chain Consultants to improve forecast accuracy and manage
its supply chain costs. Invista Apparel is the third Invista business to adopt Zemeter to support its manufacturing/supply
chain organization.
; Juiced up. Clement Pappas & Co., a private-label beverage
manufacturer, has selected third-party logistics service
provider Transplace to manage its shipments throughout
North America.
