There’s always something going on in the world of supply chain and logistics. Here are some noteworthy news items from this week:

• December 2009 Surface Trade with Canada and Mexico Rose 10.5 Percent from December 2008
• U.S. lawmakers launch push to repeal NAFTA
• Postal Service Outlines 10-Year Plan to Address Declining Revenue, Volume
• Secretary LaHood Applauds Passage of Highway Trust Fund Legislation
• LeanLogistics Successfully Completes SAS 70 Type II Audit
• Descartes Unveils Latest Global Logistics Management Suite for Ocean Freight
• Con-way Freight Announces Best Year for Safety Since 2003
• Top Security Publication Ranks Ryder Number One in Industry

The 10.5 percent increase in NAFTA trade is another positive sign that the economy is heading in the right direction. This was the first year-over-year monthly increase since September 2008. The total value of trade was $58.5 billion in December 2009. But the gap has not been fully closed. The value of NAFTA trade in December 2009 was still 4.0 percent below the value of trade in December 2007.

Some politicians, however, believe that NAFTA is doing more harm than good. Yesterday, a small group of lawmakers led by Rep. Gene Taylor, a Mississippi Democrat, unveiled legislation to withdraw from the North American Free Trade Agreement (you can read the text of the bill here). There are 28 co-sponsors of the bill, including Rep. Walter Jones, a North Carolina Republican, who is quoted in the Reuters piece as saying, “You’ll see the American people rally behind this, in my humble opinion.” I sure hope not, but when you have a lot of unemployed people out there struggling to pay their bills, NAFTA and free trade agreements are easy targets. The talking points about NAFTA stealing jobs sound good, but the overall affect of global trade on jobs and the economy is much more complex, and if you do your homework, you’ll learn that the benefits greatly outweigh the negatives. But who likes to do homework?

Then there’s the sorry state of the U.S. Postal Service. The agency lost $2.8 billion last year, and if no action is taken, it will face a cumulative shortfall of $238 billion by 2020. I highlighted the problems USPS faces last August in “Obama’s Logistics Analogy for Healthcare Reform.” In a nutshell, mail volume is declining rapidly, which translates into lower revenues, but pension and healthcare costs continue to rise. According to the USPS press release, mail volume is projected to fall from 177 billion in 2009 to 150 billion in 2020 (a 37 percent decline in First-Class Mail alone) and revenue from First-Class Mail will plummet from 51 percent today to about 35 percent in 2020. When will Congress realize that in today’s world of online publications and banking, electronic communication, social media, and smartphones, the USPS doesn’t own the podium anymore?

LeanLogistics is the third logistics software vendor this year that has completed a SAS 70 Type II Audit, following in the footsteps of LOG-NET and Transplace. Simply put, if you’re a software-as-a-service provider, completing a SAS 70 Type II Audit is becoming a customer requirement.

As someone who shares the road with big trucks, Con-way’s news is comforting. According to the company’s press release, “Using Federal Motor Carrier Safety Administration (FMCSA) standards, the company reported an accident frequency rate of .53, or one accident for every 1.9 million miles driven. That number represents a 13.1 percent decrease from Con-way Freight’s 2008 figure. The nationwide average accident frequency for motor carriers is .71, and FMCSA considers a carrier to be operating safely when its rate falls below 1.50.” How important is safety when selecting a carrier? I’ve never asked this question of shippers, but I will guess that it should rank at least third in importance, behind cost and service.

Ryder’s recognition by Security Magazine is very interesting. According to the press release, “Ryder’s Global Security team is charged with identifying and implementing proactive measures to reduce theft and losses; improve supply chain, cargo, and fleet security; and protect the Company’s and customers’ physical, personal, and intellectual assets.” I hope to speak to someone at Ryder in the days ahead to learn more, so I’ll revisit this topic in a future posting.

Finally, I was saddened to learn that John (Tom) Mentzer, one of the country’s leading scholars in marketing and logistics strategy, passed away last Friday. I didn’t know Dr. Mentzer personally, but I valued his research and always looked forward to his talks at CSCMP. Our condolences go out to his family and his colleagues and friends at the University of Tennessee. You can read more about Dr. Mentzer here.

(Note: Con-way, Descartes, LeanLogistics, Ryder, and Transplace are ARC clients).