Going Green

Because of growing gas prices and transportation costs, logistics companies are moving more toward going green. Why, not? It not only saves tons of money, but it saves the economy and ozone.

A few of the big players so far have been Wal-Mart, Xerox and SC Johnson. Some companies have even bought Toyota Priuses for technicians.

It is good to see this move, everyone can benefit.

Ports Fee Approved

A $15 dollar per 20 foot equivalent on loaded containers entering or leaving the Los Angeles and Long Beach port has been approved. This fee will be added to truck or rail leaving the port and was approved by the port commissioners.

The fee will be applied once per loaded container, helping to avoid double charges. The first terminal to handle the container will collect the fee. Fees will not be collected on empty container moves.

The new fees are expected to generate around $1.4 billion for transportation projects.

China's Growing Logistics Industry

China's logistics industry is expected to grow 20% every year. This will put the industry at $162 billion U.S. dollars by 2010.

In 2006 alone China's logistics industry rose more than 12.1% over the previous year.

To date, more than 60 cities have initiated logistics development plans.

A little update from the chinadaily news.

Kitty Hawk Files Chapter 11

Kitty Hawk, Inc. and all of its subsidiaries announced yesterday that the "Company" filed voluntary petitions for re-organization under Chapter 11 of the United States Bankruptcy Code. The filing was made as an effort to address financial issues and potentially find a financial investor.

Kitty Hawk is an air cargo, air freight transportation company, that has been providing over 30 years of air cargo transportation throughout the United States, Canada and Mexico.

Wal-Mart Reduces Carbon

Walmart has stated recently that it will decrease products on the shelves that are based around non-renewable energy. For example they will cut back on basic detergents, focusing more on high concentration soaps.
This is a great step towards saving money and taking care of mother nature by reducing warehousing needs, storage costs and shelving the products.

Freight Trail Derailed!!!

In Des Moines, Iowa on Wednesday the 26th, a 27 car freight train derailed. 16 of the cars had been overturned and were carrying soybean product. No one was reported injured according to the railroad spokesman.

The tracks around the area were also destroyed, making this stretch of track inoperable until repairs can be made.

Story reported in Forbes.

Volumes on the Rise

Freight traffic volumes have been on the rise at a rate of 2.2% since 96. This increase has created stand still traffic during peak travel and demand times.

The DOT just announced aid to at least 5 metro cities that will help begin the process of relieving congestion on roads due to freight transportation.

One such solution may involve moving delivery times to off-peak hours. This change could have many side effects. Shipments could miss cut off points, delivery receivers would have to have someone available for delivery and some businesses just can't afford to change times like the restaurant business.

Logistics services will have to take a good look at how all these changes will impact business.