by Douglas Ravnholdt, CAE
I was impressed. The IRTA Convention in Seattle last summer was great. I would like to offer a big thank you to the planning committee and Mark Stone of Milestone Presentations for a job well done. I still shiver a bit when I think about stepping into the gigantic deep freeze warehouse at CITYICE Cold Storage in my shirt sleeves during the Terminal 91 tour.
It is said that there is no such thing as a dumb question, but I disagree because I asked one during the tour. Talking with Steve Sasala, director of the Port of Seattle, I asked "Why are we importing apples when we are in the heart of the most productive apple growing area in the world?" (A Chilean reefer ship was unloading apples during IRTA's tour of the port). Sasala tactfully responded by saying "There are no apples on Washington State apple trees at this time of year."
So I learned something new in Seattle, as I will when we meet in Baltimore next June. I hope that the following items will give you new information, too. Don't hesitate to e-mail me (irtamail@aol.com) or call (888-454-IRTA; outside North America dial 303-690-3233) if you have any questions.
Convention Planning
The Annual Conference of IRTA, Reefer Transpo 2000, will be held June 22-23 at the Hyatt Regency in Baltimore, Maryland. The hours each day will be shorter than at the Seattle gathering, the panels will be smaller to allow more in-depth discussion and there will be breakout sessions.
The Convention Planning Committee members are Joe Carone, Marcia Holland, Sheldon Meyer, John Murphy, Barbara Pratt, Mark Stone, Mark Wieckowski and me. Ideas for the program and speakers may be sent to any member of the committee. Suggestions for sponsors and exhibitors should be directed to Mark Stone (4255 South Buckley Road, Suite 118, Aurora, CO 80013; telephone 303-690-3233 or fax 303-690-3278) or e-mailed to me.
Also, check out the IRTA web site and the members' only section (www.irta.org/members-only). We want your questions, suggestions and comments.
PMA Membership
In October, the IRTA Board of Directors authorized the association to purchase a membership in the Produce Marketing Association (PMA). Nancy Tucker, vice president of PMA, is a member and strong supporter of IRTA. It is our board's feeling that joining other organizations that share common interests demonstrates our willingness to share information and cooperate whenever we can.
Lots & Lots of Fruit
My wife, Kathryn, and I planned a trip to Amsterdam during September. I learned that the Worldwide Fruit and Vegetable Trade Show (the IFW Convention) was being held in Rotterdam at the same time we planned on being there. Gerhard Breuer, editor of ArgoPress of Switzerland, invited me to visit the exhibit floor at no charge.
There were over 500 companies represented from 42 countries! We ate our way through the exhibits and delivered the pitch for IRTA membership to several interesting people. Before entering the exhibit room at the Ahoy' Convention Center, we passed by the "worlds largest" fruit and vegetable basket. Its organizers hope the basket will achieve official recognition in The Guinness Book of Records.
We Need Your Help
IRTA board member Monica Fekete is the new chair of our Law and Legislation Committee. Volunteers are needed to serve on the committee and can call us toll free at (888) 454-4782. The committee also needs suggestions for issues that it might tackle.
Career Resource
Looking to fill a position? Seeking a new career? Let us help by publishing your listing in The IRTA Report and posting the information at our web site. If you wish, we can keep your name or the name of your company confidential. (There is no need to list your name in the job finder service.) Just send us a brief resume or job announcement.
Finally, take care out there, especially if you're planning on piloting a ship in the southern hemisphere. I've heard that there is an iceberg floating around that is about the size of Rhode Island. And wouldn't you know, it is starting to break up into chunks the size of Cleveland.
Enjoy the Holidays! o
by Robert C. Mirone
I was surprised to learn recently that the U.S. Army Corps of Engineers estimates that the major channels in the Port of New York and New Jersey will not be dredged to fifty feet until the year 2015. This seems reckless. I seriously doubt that such a delay serves the needs of the United States.
We need a major East Coast port that is capable of handling the large-size vessels of today To restrict access for so many years makes little sense. It stymies the ability of carriers to provide prompt and adequate access to goods. How does this assist U.S. manufacturers, shippers and consumers? This is an area in which I think IRTA should take a vigorous stand in contacting our representatives and government to act more dynamically and to remember that ocean carriage is important to the well being of the world as well as the nation.
While a rapid change in our federal government's stance on this project would be welcome, not all change is beneficial.
High Touch Versus High Tech
I am becoming aware of what appears to me to be a "glitch" in the ever expanding world of technology and its impact on work. In the field of refrigerated transportation, we have been reassured that the computer will allow everyone who needs to track cargo to know instantaneously where the cargo is at any given moment. But what is being overlooked is the human element.
Not all of us are highly computer literate. Nor does the whole world work with the same computers and software. Wouldn't it be nice, for example, when touching base with your freight forwarder, to call someone and carry on a conversation rather than trying to get the information you need via a computer?
I daresay this would even be helpful in establishing customer relationships. Maybe we should give some thought to the most advanced computer that ever existedÑthe human being. It is nice to hear a friendly if somewhat harassed voice on the other end of a telephone line, and it is comforting to know that someone thinks enough of your business to look into it for you.
IRTA Moves Forward
The earnings from the Seattle conference have put us back in the black. I hope that it is not too late to thank The Journal of Commerce for its Herculean efforts in advertising our convention and to commend Mark Stone for overseeing the logistics.
This good fortune has permitted us to purchase a membership in the Produce Marketing Association (PMA) and to send our executive director, Doug Ravnholdt, to attend PMA's convention last month. As you probably know, IRTA has much in common with this organization, which has enthusiastically supported us.
There is also, I am sad to say, some bad fortune to report.
A Somber Note
As many of you may know, Joseph James Carone, the son of IRTA Secretary Joe Carone, recently died in an automobile accident. There are no words to express the sorrow or to ease the pain of such loss. However, our association has taken a small measure to remember and commemorate the life of this fine young man. The Board of Directors has donated a $250 scholarship, on behalf of the membership, to assist a student at Middlesex County College where Joe serves as a member of the faculty. o
Reprinted with permission from The Journal of Commerce
Tick tock, tick tock. As the new millenium approaches, a buzz of nervous anticipation is zigzagging through the belly of the maritime community. Many wonder: Are we ready? What if...? Tick tock.
Given that computers fire the engines of oceangoing vessels, direct navigation and steer them, and that computer chips are embedded in radar systems, global marine signaling devices, electrical power generators, environmental control systems, locks and elevators, the concern is understandable.
"When you really start thinking about it, 95% of U.S. trade is at stake here," said James E. Forde, an attorney in the litigation practice group at Thatcher Proffitt & Wood, a New York- based law firm.
"The marine industry has been pretty late in reporting on its readiness for Y2K, and we have found it difficult to get accurate information with respect to what is happening," Forde added.
Late Surge Expected
Every sea captain worth his salt knows Y2K is an approaching iceberg. But are they greeting the potential danger with a collective shrug?
"We've tried to make all our clients aware of what can go wrong," said Robert D. Somerville, president and chief operating officer of the American Bureau of Shipping. "But I don't think we have any idea of all that can happen. There is nobody who has the complete answer."
Just staying home on New Year's Eve isn't good advice said James Darling, senior vice president of Chubb & Son, a Warren, New Jersey-based marine insurer. "You can't stop the flow of commerce," Darling said.
But Darling added that he has "heard that port officials expect a rise in imports during the last couple weeks before New Year in order to avoid January 1."
What About Liability?
Forde noted that while some large companies may be "up to snuff," they are "uneasy" about the readiness of the various ports at which they call.
Indeed, the problem with Y2K is that maritime interests are interconnected for the purpose of global trade. "You may be ready, but the other guy may not be," Forde concluded.
Joseph O'Doherty, chairman of the hull committee of the American Institute of Marine Underwriters, a New York-based trade group, said that lack of preparedness for Y2K will likely mean that a resulting mishap will not be covered by marine insurance. o
Reprinted with permission from The Journal of Commerce
KLM Cargo, the Dutch airline, has teamed up with TCP Reliable, Inc., of Edison, New Jersey, to offer pharmaceuticals shippers a new service that controls the temperature and humidity of their products during a door-to-door delivery.
The companies said the new service, called Nightingale, provides an unprecedented degree of environmental control, eliminating variations in temperature and humidity throughout the transportation chain.
Nightingale acts like an "enviro-tunnel," keeping pharmaceuticals at a relatively constant temperature at any level between minus 50 and plus 50 degrees Celsius. Exposing most high-cost pharma/biological products to very high or very low temperatures makes them harmful and worthless, prompting government agencies to consider more stringent storage, packaging and distribution regulations, the companies said.
The companies said shippers using Nightingale will incur fewer product losses and benefit from lower packaging costs and lighter shipments.
TCP Reliable Inc. makes climate-controlled packaging for the pharmaceuticals, biotechnology, cosmetics and food industries. o
For those of you running Windows, here is a way to avoid Y2K problems:
1) Double click on "my computer."
2) Double click on "control panel"
3) Double click on the "regional settings" icon.
4) Click on the "date" tab at the top of the page.
5) Where it says "short date sample," look to see if it shows "two digit year" (the default setting for Windows 95, Windows 98 and NT). This is the date that feeds application software and will not roll over correctly in the year 2000. It will roll over to "00."
6) Click on the button across from "short date style" and select the option that shows "mm/dd/yyyy."
(Be sure your selection has four Ys showing, not two.) Then click on "apply." Then click "ok" at the bottom.
For those who use Microsoft products, but not Windows, on Macintosh computers, just go to www.microsoft.com/y2k to get year 2000 information. If you do not have access to the Internet, just call 1-888-MSFT-Y2K to receive a Microsoft Year 2000 Resource CD.
Reprinted with permission from The Journal of Commerce
This autumn, the cost of shipping fresh fruits and vegetables to Asia has dropped to levels that U.S. exporters find astounding. These high-value refrigerated products, which three years ago commanded rates of $4,000 per 40-foot container, are moving to major gateways in Asia for as little as $1,500.
Fierce competition among ocean carriers for market share, intensified by new entrants in the Pacific trade, is the main reason for the rock-bottom rates. But carriers warn that if they can't somehow raise rates, they may start walking away from exports of apples, citrus and fresh vegetables.
There is no doubt that the surge in new capacity this year has forced rates down. U.S. exporters agree that with the peak harvest season at hand, westbound freight rates for reefer products can't sink much lower.
Reaching Bottom
"My sense is that we've about reached the bottom," said Brent Evans, an independent administrator for the Food Shippers Association of North America in Bellevue, Washington.
Most nations in the Far East have not recovered fully from the economic crisis that began in the summer of 1997. But U.S. exports to the region are beginning to pick up.
"We are cautiously optimistic that this fall will be better than last fall," Evans said.
Though exports are expected to improve in the months ahead, shipping executives concede that total reefer capacity in the trade will exceed cargo volume. That means if carriers want to stabilize rates, they'll have to set minimum levels and stick to them.
That's easier said than done, of course. Since the May 1 enactment of the Ocean Shipping Reform Act (OSRA), which allows confidential shipper-carrier contracts, many carriers have had a difficult time determining market freight rates for various commodities.
Previously, when tariff rates and contract terms were filed publicly with the Federal Maritime Commission, there were few secrets in rate-making.
Now there's an element of guesswork. Carriers must quote rates without knowing for sure what a rival line is offering.
Shippers have an easier time ascertaining the true market rates. U.S. exporters of fruits and vegetables usually provide Asian buyers with a price that includes transportation. Evans said the cost of the product is about the same for all packers, so if the Asian consignee rejects the price as too high, it usually means a competing exporter has gotten a better freight rate from his ocean carrier.
This method of rate discovery is imperfect and may take several weeks, but it can allow shippers to decipher the market rate faster than carriers can, Evans said.
But U.S. exporters should not consider this strategy fail-safe, said Barry Horowitz, vice president of Portland, Oregon-based Direct Line Cargo Management Services. "It presupposes that the buyer is telling the truth," he said.
OSRA Better for Shippers?
Whether it's because they are getting better information, or because they are used to dealing in a deregulated trucking, rail and air cargo environment, the consensus seems to be that shippers are making better use of OSRA than are carriers during the first year of deregulation.
"We knew this would happen," said Jil Morley, transportation administrator at Blue Diamond Growers, a large almond shipper in Sacramento, Calif.
Shippers have been able to find out what their competitors are paying and to use that information to win lower rates, she said. This is especially true in weak trade lanes such as the westbound Pacific.
But shippers appear to have had less success using confidential contracting to get better terms of service from carriers. They've been frustrated in efforts to secure better terms of credit, penalties for inaccurate documentation or late shipments and greater carrier liability for lost and damaged freight.
In the weak westbound Pacific, shippers have been able to win guarantees of space or equipment, but that means little in a trade where vessel space and equipment are readily available.
Carriers Feel the Squeeze
The emphasis has been on rates, said Peter Friedmann, counsel to the Agriculture Ocean Transportation Coalition in Washington.
"Frankly, many shippers are focusing on rates to the extent that carriers feel if they don't get the rate down as much as possible, the shipper won't be interested," he said. "In many cases, they're right."
Shipping executives note that there's a limit to how much they can give away, even in a weak market such as the westbound Pacific. Larger carriers operate in many trade lanes, often carrying cargo for the same global customers. If carriers make costly service concessions in one trade lane, it could affect their other services, said Allen Clifford, vice president of Mediterranean Shipping Corp.
"We have to be consistent for our shippers everywhere," Clifford said. o
IRTA Board Member Barbara Pratt has recently updated her "Shipping Guide for Perishables." New sections in the 28-page document contain more details on reefer equipment, gensets, humidity control, controlled atmosphere, ethylene and dehumidification. To get a free copy, just e-mail your request to SL_Reefer@sealand.com or Barbara_Pratt@sealand.com.
Reprinted with permission from The Journal of Commerce
A former Federal Express executive now heads the nation's fastest-growing Internet grocery shopping company. Mary Alice Taylor, former senior vice president of ground operations for FedEx, is the new chairman and chief executive officer of the Bellevue, Washington-based HomeGrocer.com.
The year-old company takes grocery orders online and makes home deliveries via refrigerated trucks from centrally located warehouses currently in three markets; Seattle, Portland and Orange County, California..
Taylor, 49, will be in charge of the nationwide roll-out of the online shopping service.
"All of us are looking for ways to buy back time, so we are looking for solutions," Taylor said. "HomeGrocer.com is a spectacular solution. You get the best produce and seafood, and it's so fresh. You shop at home, and your ice cream is brought to your kitchen counter still frozen." As a career woman and mother of two college-age daughters, she wishes the service had been available years ago, Taylor said.
HomeGrocer.com will debut in another 20 markets next year. It is one of a handful of online grocers in the country, none of which has turned a profit.
Although the company offers free delivery for orders of $75 or more and charges a fee of $9.95 for smaller orders, the real cost of Internet delivery service is about $20 for each $100 grocery order, according to the Food Marketing Institute. About $15 is labor, the rest is for delivery equipment. HomeGrocer.com's trucks cost about $75,000 each.
Online grocery businesses currently operate in one of two ways: by filling orders out of centralized warehouses or by hiring people to fill Internet orders from the shelves of existing stores. Peapod.com started that way in Chicago and Dallas, but it is building warehouses similar to those of HomeGrocer.com.
"We'll become profitable because we eliminated much of the cost associated with brick-and-mortar stores," Taylor said.
"We don't have the cost associated with all those cashiers; there's no cash or bad checks involved or multiple handling of all the products," she added.
Taylor declined to say how much of the privately held company she owns. Among other shareholders, Amazon.com owns a 35 percent stake in the company, and James L. Barksdale, former FedEx chief operating officer and former Netscape president, made a $5 million investment in HomeGrocer.com this year. o
United States Department of Agriculture
Worried about African Killer bees, Asian Longhorn beetles or other plant pests hitching a ride on your shipment or otherwise affecting your business? The U.S. Department of Agriculture wants your input. The USDA announced in early October that it is seeking comments regarding several issues related to its commodity pest risk analysis process. The deadline for comments is December 7, 1999
The pest risk analysis process is a critical part of ensuring that commodities imported or transiting the United States present a minimal risk to American plant resources. The process evaluates risks associated with the movement of plant pests into the U.S. and helps develop safeguards to mitigate these risks.
"We need to improve our pest risk analysis process due to the ever increasing volume of requests for import and export permits and the accompanying increases in the risk of plant pest introductions," said Richard L. Dunkle, deputy administrator for plant protection and quarantine with the USDA's Animal and Plant Health Inspection Service (APHIS).
Every year the plant protection and quarantine branch of APHIS issues more than 5,000 permits for the importation of plants and plant products. Many requests are for the initiation of trade in a new commodity or for commodities from a new source county or region. Risk analysis, in some form, has always been the basis of import and export decisions.
Those who wish to mail a comment to the USDA should send an original and three copies to Docket No. 99-079-01, Regulatory Analysis and Development, PPD, APHIS, 4700 River Road, Unit 118, Suite 3C03, Riverdale, MD 20737-1238.
Comments will also be accepted at
a public meeting to be held in Washington, DC., November 10,
10 am at the Washington Court Hotel.
More information may be obtained from Michael Lidsky, assistant director of regulatory coordination, at (301)
734-5371. o
Do you have a joke or funny anecdote that you would like to share? Just pass it on to The IRTA Report by e-mail (irtamail @aol.com). Here are a few to pass around your office.
The Chicken Ranch
My uncle was in the fertilized egg business when I was young. He had several hundred young layers, called pullets, and 8 or 10 roosters whose job was to fertilize the eggs. My uncle kept records and any rooster or pullet that didn't perform well went into the pot and was replaced. Now this took an awful lot of time. So when my uncle saw a set of eight tiny bells that each rang a different tone he promptly bought them.
He glued a piece of foam rubber to each clapper shaft so the bell wouldn't ring except when violently shaken. He hung a bell on each rooster's neck and went and mixed a Mint Julep. Now he could sit on the porch and sip while filling out an efficiency report on the roosters by listening to the different tones of the bells and marking down each encounter. My uncle's favorite rooster was old Brewster. Brewster was a fine specimen, but his bell didn't ring all morning. Uncle went to investigate.
Several roosters were chasing pullets, bells a-ringing. Brewster had his bell in his beak so it couldn't ring. He'd sneak up on a pullet, do his job and walk on to the next one. Chagrined at first, Uncle was soon so proud of Brewster he entered him in the county fair. Brewster was an overnight sensation. They not only awarded him the No Bell prize but also the Pullet Surprise Medal.
Source: Joke of the Day (www.joker.org)
Food for Thought
If a parsley farmer is sued, can they garnish his wages?
Q: What do you say to rotten lettuce?
A: You should have your head examined.
Source: University of California, Davis, Vegetable Research and Information Center (www.vric.ucdavis.edu/)
|
|
|
|
|
|
Sea-Land Service* |
1,376,887 |
|
|
Evergreen |
1,298,143 |
|
|
Maersk Line |
1,064,916 |
|
|
Hanjin Shipping Co. |
902,305 |
|
|
APL Ltd. |
895,518 |
|
|
China Ocean Shipping |
657,531 |
|
|
Hyundai Merchant Marine |
637,103 |
|
|
P&O Nedlloyd |
551,830 |
|
|
NYK Line |
527,027 |
|
|
Yang Min Line |
525,422 |
Are you interested in writing for The IRTA Report or in sending us a press release? You can contact us by e-mail (irtamail@aol.com), by regular mail (The IRTA Report, 4255 South Buckley Rd., Suite 118, Aurora CO 80013), by FAX (303-690-3278) or by calling us at 303-690-3233. We look forward to hearing from you.