different technology from traditional DCs, from a varied product mix to stronger reliance on parcel shippers.
17G
Dreen goals. Computer maker ell met its goal of being “carbon neutral” by the end of 2008, but other companies looking to go green might not find it so easy. While suppliers might be under pressure from customers to “green” their operations, there is often no financial help from those customers to help them meet those initiatives.
News updates on events throughout the industry available at www.trafficworld.com ■ Diesel Falls 14. 6 Cents to $4.207
■ UPS Freight Workers Ratify Contract
■ GAO Pans Customs’ Security Program
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■ STB draft environmental impact study, executive summary [pdf]
■ O-H Logistics white paper: Best Practices for Transportation Management [pdf] ■ Second-quarter earnings (updated daily)
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18T vaking stock. Shippers and ser-ice providers for years relied on low-cost transportation to keep inventories lean, therefore avoiding the costs associated with carrying inventory. But with low-cost transport becoming a distant memory, shippers are now relying on technology to keep inventory at a minimum.
27U mnderfunded. The Iowa Depart-ent of Transportation estimates short line railroads suffered more than $20 million in damages from June floods, but low-cost loans from the state total just $4 million — and can’t be used for bridge or signal repairs.
er margin air cargo and other businesses.”
30L c osing altitude. Domestic air argo volume just keeps falling, with June seeing the sharpest decline since just after the September 11 terrorist attacks. The business is on track to see is third consecutive year of declines.
23T g ruckload growth. Looking to row beyond its current service offerings, UPS Freight is considering a stronger presence in the truckload market. The company says despite the weakened economy, it is in a good position for growth and offering truckload would “complete our suite of services.”
29H e opeful future. ABX Air’s par-nt company puts aside concerns that the loss of DHL’s business will ground the carrier for good. The company was already working to expand its business beyond DHL, and a company executive says the carrier is expanding beyond the parcel market and into “high-
31P g rofit hit. Along with a weakened lobal economy, an investigation into alleged bribery and corruption in Nigeria has battered Panalpina’s bottom line. The forwarder reported that its first-half net profit plunged 29 percent compared to the first half of 2007.
24M mack restructured. Volvo is aking major changes to its Mack Truck division, moving its 100-year-old headquarters from Allentown, Pa., to Greensboro, N.C., as well as streamlining its operations. The company says the moves will make it more competitive in a brutal trucking economy.
“The uncertain impact on
semiconductor demand adds
significant risk to an already
grim forecast.”
26Approve now, review later. Wanting to speed up its acquisition of the Elgin, Joliet and Eastern Railway, Canadian National Railway has asked the Surface Transportation Board to approve the purchase by October and deal with environmental mitigation later. CN warned it will take court action if STB doesn’t agree to the railroad’s schedule.
Bad news for high-value semiconductor shippers: Spending on those high-cost chips is expected to drop 22 percent worldwide in 2008.
Gartner, a technology research firm, says economic uncertainty, excess inventory and lowered demand for memory products will lead to fewer sales.
“The bursting of the (semiconductor) spending bubble should come as a surprise to no one,” said Klaus Rinnen, managing vice president for Gartner’s semiconductor manufacturing group. “The fact that it coincides with downward economic pressures and the uncertain impact on semiconductor demand adds significant risk to an already grim forecast for capital equipment.”
Gartner predicts semiconductor capital spending recovery to begin in 2009, but it could be some time until it again meets the 2007 spending level of $63.4 billion. In 2008, Garter predicts spending to reach only $49.2 billion.
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