MIT report on the value of On-Time-Deliveries (OTD) in relation to payment for transportation

The study showed that although there is no correlation for better OTD when a shipper pays a higher rate, there was a distinct correlation for poor OTD when a shipper pays a lower than average cost.  The study found that shippers that paid less than $50 average per shipment had a significant reduction in service (40%-70% OTD) vs shippers that paid market rates. 

This aligns with JBS’ pricing tariffs which are generally within 5% of the average market rate.  Last year JBS’ OTD matrix for TL business was at 97.5%.

Click below to see the full report:

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JBS kicks off 30-year anniversary celebration season

The traditional ‘Cinco de Mayo’ cookout on May 5th was the first event of the year, put together by the JBS social committee to celebrate the 30th anniversary of the company.

The rich buffet featured traditional Mexican dishes and freshly barbecued meat for tacos for all employees to enjoy.

Cinco de Mayo is observed as a holiday in Mexico to commemorate the Mexican Army’s unlikely defeat over French forces at the Battle of Puebla on May 5, 1862, under the leadership of General Ignacio Zaragoza.

The JBS social committee consists of 6 employees as depicted in the image below. From left to right: Steve Krisch, Elvia Arceo, Emilie Sudar, Kathy Jakubowski, Lucy Martinez, Joe Gizzi.

The next planned event is the actual anniversary on June 1st, the date JBS was founded in 1986.

TCA – What took you so long?

I applaud TCA for their reversal on the controversial truck/weight legislative issue.  ATA has been the “big brother” in the trucking industry for many smaller associations including TCA.  ATA’s voice and resources in Washington certainly help when the issue is mutual for all e.g. safety and infrastructure.  However in this case, expanding the length of LTL Pup trailers from 28′ – 33′ would encroach too close to the TL market and TCA members. By no longer supporting this legislation, TCA’s new President John Lyboldt is standing up to ATA and supporting his members.  Let’s face it, this part of the legislation really serves no purpose other than helping ATA’s large LTL carriers like UPS and Fed Ex AND is counter to the overall safety on American highways.  ATA and TCA should work together when the benefits are mutual but in this case, not so much.

Alec A. Gizzi, President JBS Inc.

For more information:  http://www.logisticsmgmt.com/article/truckload_group_splits_with_ata_policy_on_truck_size_and_weight_issue/news

Excellence Award for JBS Logistics

Naperville, IL – JBS Logistics has just been rewarded the 2015 Award For Excellence In Warehousing And Distribution by All American Poly.

JBS Logistics has been a warehouse and distribution center for All American Poly since 2012. All American Poly (AAP) is a manufacturer of polyethylene packaging products with over 300 employees and 3 manufacturing facilities in the US. With their headquarters in New Jersey, they are one of the fastest growing companies in the polyethylene industry. Since AAP’s core strengt his in manufacturing and selling of their products, they choose to outsource most of their warehouse operations in the US by using companies like JBS for their expertise and market location. The award recognizes JBS’ contribution as being one of AAP’s best warehouse partner in regards to volume and accuracy of product moved.

The award was presented by AAP’s Steve Berkowitz (far right) and Isaac Ravitz (far left) and was received by JBS team members Phil Spencer, Deb Novak and Tom Keller.

PRESS RELEASE: JBS Renews with the U.S. EPA SmartWay® Transport Partnership

Naperville, IL – JBS Logistics trucking division JBS Transportation today announced that it has submitted and received approval for their 2016 data update with the SmartWay® Transport Partnership, an innovative collaboration between U.S. Environmental Protection Agency (EPA) and industry. The SmartWay Transport Partnership provides a framework to assess the environmental and energy efficiency of goods movement supply chains.
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JBS will continue to contribute to the Partnership’s savings of 144.3 million barrels of oil, $20.6 billion in fuel costs, 61.7 MMT of carbon dioxide (CO2), 1,070,000 tons of nitrogen oxides, and 43,000 tons of particulate matter, the equivalent of taking 13 million cars off the road. Carbon dioxide is the most common greenhouse gas, and nitrogen oxide is an air pollutant that contributes to smog.  By joining SmartWay Transport Partnership, JBS demonstrates its strong environmental leadership and corporate responsibility.

“We are dedicated to helping obtain SmartWay Transport Partnership goals, and as such we will continue to do our part as a responsible corporate citizen to move product across this country on energy efficient equipment” said JBS President Alec A. Gizzi.

Developed jointly in early 2003 by EPA and Charter Partners represented by industry stakeholders, environmental groups, American Trucking Associations, and Business for Social Responsibility, this innovative program celebrated its 10 year anniversary in 2014. Partners rely upon SmartWay tools and approaches to track and reduce emissions and fuel use from goods movement. The Partnership currently has over 3,000 Partners including shipper, logistics companies, truck, rail, barge, and multimodal carriers.

For more information about the JBS Logistics and our transportation and warehousing services, visit http://www.jbstrans.com or call 800-877-3953.

For information about the SmartWay Transport Partnership visit http://www.epa.gov/smartway.

Congress changes in the Transportation Industry for 2016

Highway Bill – FAST Act (Fixing America’s Surface Transport Act)

Signed into law by President Obama last month, this bipartisan legislation will finally give relief to the industry that has not seen a multiple year (6 years) funded Highway Bill since 2005. Although the last 3 years of the bill are not yet funded, FAST Act does give hope to States, giving them the ability to do some long term infrastructure planning.

Here are a few other important pieces of the Bill that will go into effect:

  • Removal of CSA Scores: The FMCSA was ordered to take down the published CSA (Compliance, Safety, and Accountability) scores that were available for public viewing on their website.   Pressured by industry leaders including the Transportation Intermediaries Association (TIA) President Bob Voltmann as “unreliable” and “plagued with serious data flaws”, Congress urged the FMCSA to clean up their data before the scores can be used to determine a carrier’s Satisfactory Rating.
  • Military: The bill establishing a pilot program meant to bring in young veterans and military reserves into the industry at an earlier age. Other changes would let military driving experience count toward a skills tests and it would allow military vets to receive their medical certification from Veterans Affairs doctors rather than having to use those in the FMCSA’s National Registry.
  • Driver Drug Testing Reform: The bill allows carriers to test drivers via hair test (currently using a urine test) once the Department of Health and Human Services (DHHS) establishes guidelines for hair testing. The bill requires DHHS to produce the guidelines within a year of the bill’s enactment.

Final Rule on Driver Coercion

The FMCSA issued its final rule on driver coercion November 30th with an effective date of January 29, 2016.   Basically under the rule it is prohibited for a shipper, receiver, motor carrier, or a broker to force (coerce) a driver to violate various regulations of the FMCSA. The rule further states that a driver MUST state to the party requesting such services that the request will force him to violate a specific FMCSA rule. A driver must bring a complaint to the FMCSA within 90 days of the alleged coercion.

Hours of Service (HOS) Rule

The Highway Bill also made a provision for FMCSA to provide Congress with an assessment on how the current 34-hour restart rule provides improvement “in all outcomes related to safety, operator fatigue, driver health, and work schedules”. The rule, suspended in December of 2014, will continue to be suspended until at least November.

Electronic Logging Devise (ELD) Rule

FMCSA issued their final ELD Rule in early December that will require carriers to use electronic logging devises to record a drivers’ hour of service. The 516 page rule details new technical specs for ELD’s and clarifies what supporting documents will be required. Motors carrier will have almost two years before the new rule becomes law as the deadline for compliance will not be until December 2017.

Pacific Maritime Association (PMA) suspends West Coast Ports 2/6/15 weekend

PMA just released a press statement (below) confirming that the west coast Ports will suspend loading and unloading operations for this weekend.  This 2 day work stoppage will effect rail, yard and gate operations as well.  According to analysts, this could cost the US economy up to 2 Billion Dollars a day.  The White House should consider employing the Taft-Hartley Act to force negotiators back to the bargaining table and workers back to work.

FOR IMMEDIATE RELEASE

Contacts: Wade Gates, (415) 591-4048, pmanews@bm.com Steve Getzug, (310) 633-9444, steve.getzug@hkstrategies.com

WEST COAST PORTS TO TEMPORARILY SUSPEND WEEKEND VESSEL OPERATIONS IN LIGHT OF CONTINUED UNION SLOWDOWNS

San Francisco – February 6, 2015 – The Pacific Maritime Association (PMA) announced today that weekend vessel loading and unloading operations will be temporarily suspended this weekend, with yard, rail and gate operations continuing at terminal operators’ discretion. In light of ongoing union slowdowns up and down the coast which have brought the ports almost to a standstill, PMA member companies finally have concluded that they will no longer continue to pay workers premium pay for diminished productivity.

“After three months of union slowdowns, it makes no sense to pay extra for less work,” said PMA spokesman Wade Gates, “especially if there is no end in sight to the union’s actions which needlessly brought West Coast ports to the brink of gridlock.”

Vessel operations are scheduled to resume Monday, February 9. Yard operations – that is, moving processed containers for truck and rail delivery to customers – will continue at terminal operators’ discretion, although the ILWU continues to limit operations by withholding the needed crane operators or operating slowly.

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JBS Logistics Spreads Holiday Cheer This Season

Another Holiday season is in full swing at JBS! This year, we have spent time volunteering and donating to two very special causes: CIACO (Chicago Italian American Charitable Organization) and LivingWell Cancer Resource Center.

CIACO

CIACO

CIACOEach Thanksgiving CIACO (Chicago Italian American Charitable Organization) donates more than 600 “baskets of love” to 600 families that are truly in need. Each box consisting of a frozen turkey, many different canned and bottled items to prepare a complete Thanksgiving meal! In our photos featured, you can see the JBS truck getting loaded in Bensenville with 600 turkeys to be shipped to a Bouna Beef warehouse in Cicero. Once at the Bouna Beef warehouse, hundreds of volunteers from CIACO and other businesses will create 600 large cartons and fill each one with all the ingredients.

JBS National Account Manager, Dan Mastropieri, and his family helped unload and pack the “baskets of love”.  After filling boxes with stuffing and ketchup bottles, Dan’s 7 year old Nico takes a well deserved break!

CIACO

CIACOCIACOLivingWell Resource Center

LivingWell

JBS is proud of our continued efforts of Corporate Responsibility to our community.  This Holiday Season we decided to commemorate a truly unique organization that helps families deal with cancer.  Living Well is a non-profit organization that helps families feel less alone, better informed, more hopeful, and empowered to take on the challenge of facing cancer.

LivingWellEach sweatshirt, shown here, was gifted from JBS to our respected customers and represents a $2,500 donation made to Living Well in the name of our late dear friend and co-worker, Linda McCreery.

Learn more about their programs and services by visiting their web site at http://livingwellcrc.org.

Seasons Greetings to you and yours!

Capital Hill Visits

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I again attended the annual “Fly into DC” for TIA’s PAC last week (June 18th – 19th) to educate Congress about pieces of legislation that impact our trucking industry.   TIA’s Legislative Staff did a great job of preparing our group of 50 or so logistics executives on the key talking points we would be addressing in our individual meetings with Congressman(woman) and Senators.   The one main topic of discussion was advocating for the passage of House Bill 4727.  This piece of legislation was introduced on May 22nd by Rep. Jimmy Duncan (R-2nd/TN) and three cosponsors Rep Eric Paulsen (R-3rd/MN), Rep Rodney Davis (R-13th/IL), and Rep Sam Graves (R-6th/MO).  The bill creates a National Standard for Hiring Motor Carriers as it requires that an entity (shipper, broker, forwarder, etc..) must ensure the following prior to hiring a motor carrier:

  • Is properly registered with the Federal Motor Carrier Safety Administration (FMCSA);
  • Maintains the required minimum insurance; and
  • Is not classified by FMCSA as “unsatisfactory”

This simple 2-page bill sets a minimum standard for hiring a motor carrier.  HR 4727 advocates safety on America’s roads by requiring the shipping public to check and make sure the trucking company they are hiring has these three (3) minimum requirements.  Since this information is already available on the FMCSA web site, it will be easy to verify a carrier selection.  It does not set a standard for criminal wrongdoing or gross negligence.     If any entity coerces a motor carrier into doing something illegal (such as driving over the legal speed limit, or forcing a driver to go over his hours of service limits), this bill will not prevent that entity from being held liable.  This bill is endorced by trucking groups such as OOIDA, shipper groups such as NASSTRAC and NAM, as well as the US Chamber of Commerce. 

Although a long shot to be passed on its own, we do hope that HR 4727 will be included into the next Highway Bill which is up for reauthorization September 30th.    For a full copy of the bill go to www.tianet.org.

 

Alec

Obama’s Transportation Bill & Highway Taxes

A good article in the Herald yesterday morning raised awareness about Obama’s Transportation Bill letting individual states use Tolls for regular maintenance on Interstate highways.  Currently, states cannot add a toll tax unless it’s for new construction.  This means that “freeways” such as Chicago’s Eisenhower and Kennedy Expressway could soon see tolls as a way to fund future repairs and maintenance.

The trucking industry is against this method of taxation as it disproportionately hits truckers hardest.  The ATA (American Trucking Association) supports an increase in fuel tax as the only fair method to fund highway spending.  The highway trust fund is funded with an $0.18 per gallon tax, which has not been raised since the 1980’s.  The trust is actually collecting less money today than it did 20 years ago as more people use mass transit and more fuel-efficient vehicles.  Some people favor a “mileage tax” but that would require some kind of GPS vehicle reporting devise in all autos.  The anti-government and privacy movement would have a real hard time with the government knowing every move we make.  I don’t blame them for that.

Congress passed the Highway Trust Fund in October 2012 as a two-year deal, but the Fund will run dry this August.  Without some long-term solution, states will not be able to make any long-term infrastructure plans for highways and bridges.