Shippers Required to Weigh Containers as of July 1st

Shippers Required to Weigh Containers

1

The Wacky World of Diesel Fuel Surcharges

1

Focus on The Client — Dr. Fresh

2

Shippers Still Struggling to Improve 3PL Relation-ships

2

Me, Myself & I— Dwayne Phillips

3

Your Global Logistics Expert

3

Fun Facts about Mothers Day

3

Happy Anniversary FMI Employees

4

April & May Birthdays 4

FMI Challenge Winners 4

Take the FMI Challenge 4

April/May 2016

Volume 14, Issue 2

Inside this issue: FMINEWS!!

Industry Update on all the topics concerning freight logistics, transportation and some fun things too...

Mission Statement “We will be the staff our clients require to reach goals and achieve their vision.”

The International Mari-time Organization (IMO), in collaboration with industry representatives, has developed a new regulation that will soon be part of the Safety of Life at Sea (SOLAS) convention. Beginning July 1, 2016, the Verified Gross Mass (VGM) regulation, which requires shippers to certify the weight of their containers before they are loaded onto vessels (gate-in or off-rail), will go into

terminal representatives in a timely manner before vessel loading, regardless of who may have packed the cargo into the container.

Carriers and termi-nal operators will not permit loaded containers to board a vessel without an electronic or hard-copy VGM confirma-tion that is signed by an authorized shipper’s repre-sentative. The car-go may be returned to the shipper or

stowed in the port at the terminal’s discretion. KWE (2016, March 12). Shippers Required to Weigh Containers as of July 1st. Re-trieved from http://www.kweusa.com/news/

effect for all 171 member states of the IMO. Local state authorities responsible for maritime affairs will enforce this policy. The

shipper (listed in the bill of lading) is the party responsible for providing the VGM of the container to the carrier and port

“The most difficult thing is the decision to act, the rest is merely tenacity.”

—Amelia Earhart

The Wacky World of Diesel Fuel Surcharges The business of diesel fuel surcharges has grown increasingly complex over their 43-year history and seems to have moved further away than ever from their original purpose, which was to help motor carriers recoup soaring fuel costs triggered by the 1973-74 Arab oil embargo. Shippers are sympathetic to the carriers’ need to manage cost, however, they also believe the surcharge mechanism has gone from being a clean pass-through of fuel costs to an arbitrage de-signed to enhance a carri-er’s revenue and profit. Surcharges are part of

shipper-carrier contracts and are not regulated, so the potential for free-market double-dealing is always present. For

example, the surcharge formula is based in part on a fleet’s fuel efficiency, and many modern-day fleets boast the most fuel effi-cient trucks in history. However, the surcharges are based on a lower miles-per-gallon (mpg) threshold that becomes detrimental to

the shipper when calculat-ing fuel costs. Most of the industry uses an index pub-lished each Monday by the Department of Ener-gy’s Energy Information Administration (EIA) that surveys about 400 nation-wide locations and deter-mines national and regional prices. The EIA index in-cludes a nationwide average price, as well as prices bro-ken down by various re-gions. For our client's ben-efit, FMI has its own fuel surcharge factor which is usually less than the carri-er’s own index. Solomon, M. (2016, Feb 18) The Wacky world of Diesel Fuel Surcharges, or “ How I learned to hate the peg’. Retrieved from http://www.dcvelocity.com

Page 2 FMI Newsletter

Focus On The Client — Dr. Fresh prides itself on its ability to gather and analyze data in order to enhance product quality and performance. Its R&D facility is committed to staying ahead

of the curve in the develop-ment of new and break-through products to help improve consumers’ well being. For more information visit: www.drfresh.com

development has been the foundation of the company’s steady growth and success. Dr. Fresh owns more patents than any other U.S. oral care company. Smart

manufacturing methodolo-gies combined with state-of-the-art equipment technology have enabled Dr. Fresh to offer the highest quality, yet cost effective health and personal products. The company also

Dr. Fresh, one of the fastest growing oral care companies in the U.S., is a multinational company with distribution in over 35 countries worldwide with

major offices in London, UK and Shenzhen, China. With headquarters in Los Angeles, California, the company offers consumers over 250 quality and affordable personal care products. Innovation in new product A fond farewell..

“It has been my honor and

pleasure to work with such a talented and dedicated group

these last 4 years. We have all put in long hours and did what was needed in order to get the

job done - who could have asked for more.”

-Scott Monroe (National Warehouse Manager)

Shippers Still Struggling to Improve 3PL Relationships Despite strong growth in the adoption of third-party logistics (3PL) services, U.S. businesses still struggle to maxim-ize the benefits of the outsourced relationship, a University of Tennessee study reveals. The study identified three common mistakes that companies ad-mit they make when starting a relation-ship with a 3PL. First is their failure to conduct a thorough needs as-sessment before hiring a 3PL. Sec-ond is providing inaccurate in-formation about themselves when they send out bids to find 3PL part-ners. The third error is omitting their top leaders

from the 3PL selection process, leading to the lack of a business wide strategy

to support the new partner-ship. The inefficient rela-tionship between businesses and their 3PL partners

comes despite strong growth in the sector. More than 80 percent of

Fortune 500 compa-nies outsource their logistics opera-tions all or part of the time. Possible solutions include improved clarity of expectations and a balance between accountability and independence, the study concluded. The best 3PL part-nerships focus on outcomes instead of processes, and implement contracts that in-clude incentives for the 3PL to meet its goals.

Ames, B. (2016, February 24). Businesses still struggle to improve 3PL relationships despite increasing demand for outsourced services, study finds. Retreived from http://www.supplychainquarterly.com/

Dr. Fresh has a variety of products for children and adults. For more information please visit their web-site at http://www.drfresh.com .

“It may be possible to gild pure gold, but who can make his mother more

beautiful?”

—Mahatma Gandhi

Page 3 Volume 14, Issue 2

Me, Myself & I— Dwayne Phillips I grew up a Navy Brat and was born at the Norfolk Naval Hospital in Ports-mouth, Virginia. We lived all over the country, from Hawaii to New York, and had our fill of wonderful summer sunsets and frigid winter snow drifts. My earliest memories growing up were of grey ships, aircraft carriers, and the belief that Santa Claus was a Lt. in the US Navy. Go Navy! As a teen grow-ing up, I had many small jobs, but the one that took was that of a life-guard and pool manager. This was my summer job from my junior year in High School to my last year in College. I taught swim lessons, diving, & lifesaving classes and coached a swim team. In 1979 I taught one partic-ular student lifesaving, her name was Maria. More on her later. My early academic pursuits and goals were focused on becoming a physicist or scientist. This goal changed shortly after my father passed during my junior year in High School. He had always wanted to be an artist, and instead, he spent 31 years in the service. Being an avid art-ist myself, I decided to pursue my dad’s longtime dream. In college, I spent

my first 2 years bouncing around majors like most freshman & sophomore do. I went from printmaking, painting, & writing songs. I enjoyed throwing clay (potter’s wheel) and was good enough to be considered for a modified course at Claremont College to get a Masters in ceramics. But all I kept think-ing was, “what does one do with a degree in ceramics?” I decided on a more profita-

ble major and opted for a degree in advertising and marketing. After college, I was hired on as an art direc-tor with a national ad agency and at some point started tinkering with computers and networks. Over the next 15 years, I moved on from being a creative director to running pre-press shop. I picked up an extensive knowledge of com-puter platforms and networks and managing them. In De-cember of 2000, I received an offer from Tim Ponder to create an IT department at FMI, I was excited but I knew absolutely nothing about

freight logistics. Fast for-ward 15 years and you will find this freight guy is still excited about this industry. Only now I am versed in EDI, logistics, and TMS systems & integrations. As for that girl I taught lifesaving to in 1979, Maria, well I married her 6 years later in 1985.Three years later, in the Spring of 1988, we had our first child, my daughter Maggie. Over the next 7 years, we had 4 more children, all Boys; Dwayne, Jesse, Adam, and my youngest Zachary who turns 21 this year. I call them my wolf pack. In December, we celebrated our 30th wedding anniversary and are moving on to the next phase of life. But unlike some of our friends, we are not empty nesters. This concept is still foreign to us because we still have 3 of my grown sons or ‘renters’ living with us who are either finish-ing college or in pursuit of professional jobs. In addition,

my younger brother lives with us. He is mentally disa-bled; works full time loves video-games and fits right in with this

motley crew. My wife, need-less to say, has already earned her wings in heaven. Life is Good!

Your Global Logistics Expert

Freight Management Inc. has been selected as Inbound Logistics Top 100 IT Provider for 2016. As always, the editorial selection team had their work cut out for them, ultimately selecting 100

was recognized by the Transportation Intermediar-ies Association (TIA) in San Antonio, TX as a founder of the group since 1982.

technology solutions leaders from the 400+ can-didate pool. The Top 100 list ap-

pears in the April 2016 issue. After publication, the list will be posted online at www.inboundlogistics.com/cms/top-100-lit . Additionally FMI’s own president, Robert Walters

Fun Facts About Mother’s

Day 1. In its early days,

people observed Mother’s Day by going to church and writing letters to their mothers. Even-tually, sending cards and giving gifts and flowers were added to the tradition.

2. 120 million Mother’s Day cards are ex-changed annually in the United States.

3. Consumers purchase an average of 2.8 Mother’s Day cards every year.

4. More people pur-chase fresh flowers and plants for Moth-er’s Day than any other holiday except Christmas/Hanukkah.

5. In 2015, the Nation-al Retail Federation (NRF) estimated that U.S. consumers would spend nearly $21.2 billion cele-brating Mother’s Day.

6. According to In-sure.com 2014 Moth-er’s Day Index, the various task Moms perform at home would be worth $62,985.

2900 E. La Palma Ave Anaheim, CA 92806 Phone: 714-632-1440 Fax: 714-632-7366

Email: krunkle@freightmgmt.com

If you have any articles you’d like to submit, please contact

Kim Runkle.

FMI Newsletter

What is the number under the parked car?

Fax or email answers and address to 714-632-7221 or

sporter@freightmgmt.com to collect your prize. Winners will be announced

bi-monthly.

Take the FMI Challenge FMI Challenge Winners Answer:

1. Parachutes 2. An owl 3. A map

Congratulations: John Pace – CamelBak Products

Amrita Mahadeo - MechoSystems Mike Barbata - Jet Delivery Elizabeth Jaimes - Dr. Fresh

Dee Murphy - Dot-Line Transportation Mike Augustine - Pepsi Beverages Co.

Happy Anniversary FMI Employees

February and March Birthdays

Shew Jean Choo— 4/14 Ryan Audoma— 5/23

Ina Cordova— 11 years Shew Jean Choo— 8 years

Laurie Galli— 8 years Ryan Audoma— 2 years

Angela Shackford— 9 years Christina Lopez— 4 years

2900 E. La Palma Ave. Anaheim, CA 92806

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