DC Velocity - December 2010

ply chain challenge. “I wish I could solve Chicago,” he said.

Hancock was bullish on Whirlpool’s use of an expanded Panama Canal when it opens for business in 2014. The expanded canal “will be a big win for us,” Hancock said, noting Whirlpool’s huge and growing presence in Latin America and its need for big box container capacity, which the enlarged canal will be able to handle.

However, Wallace was more measured in his outlook, saying that although an all-water route from Asia to the East and Gulf Coasts may be less expensive than transloading off the West Coast and moving freight inland via truck or rail, it may not provide short enough transit times to satisfy customer requirements. “We’re guarded about the Panama Canal,” he said.

The executives agreed that while supply chains may be leaner than ever, inefficiencies will always exist in a dynamic network. “There’s waste everywhere,” said Hancock, noting that a Whirlpool team meets several times a month to discuss efficiency enhancements. “Any time you have product in motion and variability, there’s waste.” ;

—Mark Solomon

short takes

Old Dominion Freight Line has announced the opening of two new service centers: a 38-door facility in South Houston, Texas, and a 44- door facility in Kalamazoo, Mich. … A. Duie Pyle, a Northeastern logistics and transportation service provider, is installing 4,464 solar panels on its 570,000-square-foot facility in Parkesburg, Pa. … Ocean carrier Mitsui O.S.K. Line (MOL) is experimenting with a low-friction ship bottom paint named LF-Sea to boost fuel efficiency and reduce CO2 emissions. The paint’s developer, Nippon Paint Marine Coatings, says LF-Sea can reduce fuel consumption by about 4 percent compared with conventional ship bottom paint. ... The Performance Team, a third-party logistics service provider, has relocated to a larger warehouse facility in Seattle. The new location provides easy access to the ports of Tacoma and Seattle. ... Mallory Alexander International Logistics has expanded its third-party logistics operations through the acquisition of Tradesource from Atlantic Services Group. Tradesource is an international freight forwarding company located in Charleston, S.C. ... Trans Ocean, a provider of bulk liquid logistics services, reports that its operations have been fully integrated into the network of the Hillebrand Group, which acquired Trans Ocean in 2007. The company says customers will now benefit from enhanced services and a wider global network, including 45 offices in contrast to the six offices Trans Ocean previously operated. … Mitsui O.S.K. Line (MOL) has joined the With All Our Hearts program to provide second-hand clothing collected in Japan to children in Tanzania. MOL will provide ocean transportation for the clothing. … September net orders of heavy-duty Class 8 commercial vehicles were up 37 percent from September 2009 levels, according to ACT Research Co. … Apprise Software, a developer of ERP software, has opened its first European office in Brno, the Czech Republic.

It’s not getting better at the U.S. Postal Service.

In mid-November, the USPS reported a net loss of $8.5 billion for the 2010 fiscal year and warned that “fundamental changes are needed” to stem the rising tide of red ink.

USPS posted operating revenue of $67.1 billion in the fiscal year ending Sept. 30, a $1 billion loss over its 2009 fiscal year. USPS blamed the revenue decline on weak volumes, especially in its core first-class mail service, which generates half of its total revenue and is its most profitable segment.

The net loss was $4.7 billion higher than the 2009 deficit, the post office said. USPS said its biggest impediment to profitability remains a $5.5 billion payment due by the end of its 2011 fiscal year to pre-fund employee retirement health benefits.

In a statement, Joe Corbett, USPS’s CFO,
said the quasi-public organization has
reduced costs by $9 billion over the past two
years, mainly by eliminating 100,000 full-
time jobs. “We will continue our relentless
efforts to innovate and improve efficiency,”
Corbett said. “However, the need for changes
to legislation, regulations, and labor contracts
has never been more obvious.”
Meanwhile, USPS announced its 2011 rate
increases for its Priority Mail, Express Mail,
and parcel delivery services. Rates for Priority
Mail, USPS’s two- to three-day delivery serv-
ice, will go up by 3. 5 percent. Rates for its
Express Mail next-day delivery product and
its portfolio of parcel products will rise by 3. 6
percent.

The rate increases are well below the rate hikes recently announced by the two main private delivery carriers, FedEx Corp. and UPS Inc. ;

—M.S.

USPS posts $8.5 billion
net loss for FY 2010
we have new phones!

Due to a recent change in phone systems, DC VELOCITY’S editors now have new phone numbers. For full staff contact information, visit http://www.dcvelocity.com/contact/?request= findStaff. ;