2014 Rate Outlook

2014 Rate Outlook 1

As Always, Time is Money 1

Focus on The Client—

Panini America, Inc.

2

Overseas Parcel Delivery

Limitations

2

Me, Myself & I— Adriana

Lira

3

Logistics Outsourcing 3

I’ll Be Happy When... 3

YRC’s ‘Reset’ Button 4

FMI Challenge Winners 4

2014 Rate Outlook Cont. 4

Happy Anniversary FMI

Employees

4

March & April Birthdays 4

Take the FMI Challenge 4

March/April 2014

Volume 12, Issue 2

Inside this issue:

FMI NEWS!!

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.”

Trucking:

D e r i k A n d r e o -

li,Ph.D.C., senior ana-

lyst at Mercator

International LLC

observes that the

expense of diesel will

r e m a i n s t a b l e .

Meanwhile, trucking

rate increases lost

momentum in 2013, as

the much-anticipated

capacity crunch failed

to materialize—even after

the implementation of new

capacity sapping hours or

service (HOS) rules on

July 1. We may see a

modest bump in rates

here.

significant change this

year.

Ocean:

An ocean carrier price

fixing case currently

under investigation by

the European Commis-

sion (EC) may indicate

how desperate things

have become in this

sector, rate hikes are

unlikely.

Air: Flying Low

Overcapacity seems to be

plaguing the air cargo

sector . Tonnage is

predicted to gradually

increase by the end of the

(Continued on page 4)

Rail/Intermodal:

Brooks Bentz, a partner in

Accenture’s supply chain

management practice,

jokingly referred to

“yawns of surprise” when

evaluating rates in 2013,

and does not see a

“Be who you are and say

how you feel, because

those who mind don’t mat-

ter and those who matter

don’t mind.”

—Dr. Seuss

As Always, Time is Money

Federal Motor Carrier

Safety Administrator

Anne S. Ferro is sending a

clear message to the

nation’s shippers: Stop

detaining and delaying

t r u c k d r i v e r s

unnecessarily, or prepare

to be regulated. Her

passion could translate

into rule-making aimed at

preventing shippers from

detaining drivers, eating

into their available hours

of service and per-mile

pay. “Driver detention,”

she said “represents

under compensation or no

compensation.” Long

waiting times at loading

and unloading docks, ship-

pers, consignees and

terminals is a sore point

for truck drivers and

trucking companies of all

types. Detention is often

cited as a factor in

debates over the driver

s h o r t a g e . D r i v e r

detention costs the

trucking industry as much

as $4 billion a year in lost

productivity, according to

a 2009 Department of

Transportation study.

Truck drivers measure

that lost productivity in

hours spent waiting for

trailers to be loaded or

unloaded; the lost miles

they could have been

driving with freight while

waiting; and the money

they’re not earning while

waiting at a customer’s

site. Motor Carriers often

charge detention fees,

and some of that money

may be passed on to

rivers to compensate them

for lost time and wages.

During the company’s annual

corporate address at the 2014

Industry Summit in Las Vegas,

Panini America CEO Mark Warsop

announced the Panini Rewards

Program. The Panini Rewards Plat-

form will give collectors the ability

to earn points by scanning randomly

inserted Rewards cards with their

mobile devices in all Panini America

products.

Page 2 FMI Newsletter

Focus On The Client— Panini America, Inc.

company has exclusive

autograph and memorabilia

agreements with NBA

superstars Kobe Bryant

Blake Griffin, Kevin

Durant and Kyrie Irving.

Through it’s memorabilia

division, Panini Authen-

tic—the company also

has exclusive

memorabilia agreements

with NFL Quarterback

Andrew Luck and Team

Relationships with the

Denver Broncos and

Dallas Mavericks for

game worn memorabilia.

Panini has distribution

channels in more than 100

countries and employs a

staff of more than 800.

For more information visit

t h e m a t

www.paniniamerica.net or

www.paninigroup.com.

beginning with the 2009-10

season. The Panini Group

purchased the assets of

the industry’s second-

o l des t t r ad i ng - c ard

company, Donruss, in

March of 2009 and formed

the new subsidiary, Panini

America, Inc. Since that

time, Panini has taken

significant steps to fortify

its position in the sports

and entertainment trading

c a r d a n d s t i c k e r

categories. In addition, the

The Panini Group,

established almost 50

years ago in Modena,

Italy, has subsidiaries

throughout Europe,

Latin America and the

United States. Panini

America is the only

company in the world

that manufactures

fully licensed trading

c a r d s a n d

stickers for the NFL,

NFL PLAYERS, NHL,

NBA, MLBPA and FIFA

World Cup. The com-

pany also owns exclu-

s i ve entertainment

licenses with Disney, One

Direction, Justin Bieber

and Michael Jackson, and

more than 600 global

licenses with other

sports and entertainment

p r o p e r t i e s . P a n i n i

America became the

exclusive trading card

partner of the NBA

“The USPS has ended its

test of same-day delivery

service in the San

Francisco Bay Area after

the service attracted a

grand total of 95 packag-

es over a five month

period. The USPS had

expected at least 200

deliveries per day.”

“Supply Chain Pivot”

-By Rob Shirley

The Russian cus-

toms rules are

complicated and

the courier must

provide authori-

ties the receipt

for the purchase and a

passport number of the

buyer, among other docu-

ments. As a result of the

legal requirements to deliv-

er a package in Russia be-

coming so arduous, several

express delivery services,

including FedEx, UPS, DPD

and DHL, announced in late

January that they have

halted all shipments of

goods to individuals.

Overseas Parcel Delivery Limitations In a crackdown on online

shopping, Russian customs

officials instituted new

customs rules pursuant to

which couriers must prove

a package contains

nothing more valuable

than the duty-free limit,

150 euros, or about $200.

The result is that all

shipments, regardless of

their value, now have to

be formally registered

with customs, and their

will be a 30 percent duty

on all purchases from

foreign e-commerce

companies valued at more

than 150 euros ($200).

P r e v i o u s l y ,

customs duties

were only applied

to shipments

worth more than

1000 euros or

weighing in at more than

31 kilograms. The new

limit was initiated by cus-

toms authorities in

cooperation with the

Russian Association of

Online Vendors, which

includes major domestic

e-commerce companies

and is considered an

attempt to protect and

s u p p o r t d o m e s t i c

e-commerce businesses.

Page 3 Volume 12, Issue 2

Me, Myself & I—Adriana Lira

I was born and raised in

Los Angeles, the second

child of four. As a child,

long trips were very

common which sparked my

interest to travel. My

youth days were spent

soaking up the sun from

biking alongside the

riverbed, camping, hiking

and not to mention

swimming. Swimming has

been part of my life since

a child and still is which

led me to my first

employment as a lifeguard

at fifteen and a half. I am

very grateful to have had

the opportunity to work

at such an early age with

the support of parents

since I gained valuable

skills for my future that

would complement my

education. I graduated

from UC Irvine with a

degree in International

Relations and Business

Management. While study-

ing, I had the opportunity

to not only to intern at

the Brazilian Embassy in

Washington D.C., but also

to study in Brazil and

travel to Argentina.

Unfortunately, graduating

during the nation’s

economic recession it was

difficult to find the

dream job, let alone a job.

However, I never gave up

hope and accepted any job

that opened the doors to

me. I was employed tempo-

rarily in the manufacturing

a n d t r a n s p o r t a t i o n

industries which laid a

foundation towards my

interest in international

trade. Despite the chal-

lenges I have faced, my

incessant thrive to travel

has never seized. I

recently took an incredible

trip to France, Spain and

Portugal. I feel very

blessed and cherish every

moment I have faced.

Moreover, I am very

grateful to be part of the

wonderful FMI family.

Logistics Outsourcing

The recent Coun-

cil of Supply Chain

M a n a g e m e n t

P r o f e s s i o n a l s

annual global con-

ference was the

v e n u e f o r

discussions of the

logistics outsourc-

ing i ndustry .

Information and

information technology

continue to play signifi-

cant roles in supply chain

management and out-

sourcing decisions. While

some are still trying to

define “big data,” others

are struggling with how to

define the role for big

data in their supply chain.

logistics services

strongly agree that

data-driven deci-

sion making is

essential to the

future success of

their supply chains.

Logistics fixed

asset reduction

continues to offer

the largest return

at a 23 percent reduction.

Outsourcing logistics

functions continues to rise.

Users of outsourced

logistics services report

satisfaction with the

relationship (90 percent).

This is likely driven in part

by results the 3PLs are

able to deliver.

Less than one third of

beneficial owners of a

supply chain say they are

in the midst of a big data

initiative and just 27

percent of 3PL executives

report they have an active

initiative. Both the

service providers

and the users of those

81%78%

73%62%

57%36%36%

33%32%

28%25%

22%18%

17%17%

15%13%

11%5%

Domestic Transportation

Warehousing

Customs Brokerage

Cross-Docking

Product Labeling, Packaging, Assembly, Kitting

SC Consulting Provided By 3PL

Order Management/Fulfillment

Fleet Management

Customer Service

Sustainability/Green Supply Chain

What gets outsourced?

I’ll Be Happy

When…

We convince ourselves

that life will be better

after we get married,

and have a baby. Then we

are frustrated that the

kids aren’t old enough

and we’ll be more content

when they are. After

that, we’re frustrated

that we have teenagers

to deal with. We tell our-

selves that our life will

be complete when we

get a nicer car, when we

are able to go on a nice

vacation or when we re-

tire. The truth is there’s

no better time to be

happy than right now. If

not now, when? Your life

will always be filled with

challenges. Chose to be

happy NOW. The choice

is yours!

2900 E. La Palma Ave Anaheim, CA 92806

Phone: 714-632-1440

Fax: 714-632-7366

Email: lbranson@freightmgmt.com

If you have any

articles you’d

like to submit,

please contact

Theresa

Alcantara.

FMI Newsletter

We are beheading words that start with “Qu”. Below you will be given clues for two words, the longer word first. When you

remove the first two letters (“Qu”) you will still have a valid word that corresponds with the second clue.

Example: British pound ; Part of the psyche Answer: Quid ; Id

1. Stop doing ; that thing 2. Peculiar behavior ; annoy 3. Subatomic particle ; large boat

4. Small game bird ; to be unwell 5. Large feather/pen ; unwell/sick 6. Nausea/uncomfortable ; simple

Take the FMI Challenge

FMI Challenge Winners

Answer:

There are 18 students in the class that

send 17 valentines each.

Congratulations

Curtis Dorn– Pacific Alaska Freightways

Virginia Apricio– Billy Hay Intl

March and April Birthdays

2014 Rate Outlook Cont.

first quarter.

Parcel:

No matter how good shippers have become

at negotiation, chances are that delivery

costs have gone up much faster than they

expected. The exit of DHL from the domes-

tic market has left shippers at the mercy of

a duopoly. Shippers have little recourse. If

one contracts a carrier, there is a good

chance that there are yearly increases built

into the agreement someplace.

(Continued from page 1)

YRC’s ‘Reset’ Button

When YRC

W o r l d w i d e ’ s

T e a m s t e r s

e m p l o y e e s

approved a five

-year contract

i n l a t e

January , they

gave the strug-

gling company

more than just

c o n c e s s i o n s

needed to

refinance $1.36 billion

in debt and avoid

bankruptcy. They also

gave the $4.9 billion

trucking operator the

chance to break free of

a cycle of short-term

crises and “reset” its

business. YRC World-

wide planned to immedi-

ately go back to its

lenders and nail down a

refinancing package to

avoid looming debt

deadlines. The agree-

ment should soothe

the nerves of custom-

ers worried about the

future of YRC’s four

subsidiaries and the

c a p a c i t y

they pro-

vide. “I don’t

think anyone

wants to

repeat what

h a p p e n e d

when Consol-

i d a t e d

Freightways

went out of

business” in

2 0 0 2 ,

Joshua Dolan, senior

director of logistics

at Dick’s Sporting

Goods. Consolidated

Freightways’ sudden

collapse snarled sup-

ply chains, cut into

LTL capacity and

temporarily boosted

shipping costs.

Happy Anniversary FMI Employees

Millie Vega, Auditor —17 years

Dwayne Phillips, Director of Technology —13 years

Ina Cordova, Account Manager — 9 years

Laurie Galli, Accounting Coordinator —6 years

Jennifer Choo, Data Entry —6 years

Sandra Aufdenkamp, Account Manager - 5 years

Tom Morin, On-Site Coordinator—3 years

Marie Lopez 3/16

Dennis Rihn 3/23

Shew Jean Choo 4/14

Marian Thompson 4/18

Chris Chang 4/29