On Monday I thought it was Tuesday. Tuesday felt like Wednesday to me. I woke up on Wednesday convinced it was Thursday. And yesterday was not Friday, even though I was ready for the weekend.

It’s been that kind of a week for me. Now for the news:

Transportation companies joining SmartWay and deploying hybrid vehicles are common announcements these days. According to the UPS press release, “the 200 new HEV delivery trucks are expected to reduce fuel consumption by roughly 176,000 gallons over the course of a year compared to an equivalent number of traditional diesel trucks. The hybrids also should reduce by 1,786 metric tons the amount of CO2 gases released annually into the atmosphere.” And Con-way Multimodal “will pursue activities that support the Partnership’s goal to reduce 33 to 66 million metric tons of carbon dioxide and up to 200,000 tons of nitrogen oxide per year by 2012 by improving the environmental performance of U.S. freight operations.”

[Pause for applause]

The news from NRF regarding container traffic is encouraging. NRF expects container traffic to total 6.5 million TEU in the first half of 2010, up 10 percent from the first half of 2009. This outlook is aligned with the World Trade Organization’s (WTO) rosy forecast for trade growth this year. The WTO expects world trade to grow 9.5 percent in 2010, after declining 12.2 percent last year. According to the press release, “Exports from developed economies are expected to increase by 7.5% in volume terms over the course of the year while shipments from the rest of the world (including developing economies and the Commonwealth of Independent States) should rise by around 11% as the world emerges from recession.”

[Pause for more applause]

Increased trade activity is good news for third party logistics (3PL) companies, especially freight forwarders and customs brokers, as well as global trade management (GTM) software vendors. As I’ve highlighted in the past, most recently in “The National Export Initiative: A Catalyst for GTM Software Sales,” many small and midsize companies lack the internal expertise, processes, and IT capabilities to successfully engage in global trade. FedEx’s announcement this week is in response to this opportunity.

On the flip side, more trade activity is bad news for our transportation infrastructure. Although my posting about teleportation was partly fiction, the gridlock problem I discussed is very real. Therefore, efforts like the “America’s Marine Highway” program announced this week by the Department of Transportation (DOT) are important. According to the press release, “[This is] a new initiative to move more cargo on the water rather than on crowded U.S. highways. Under the “America’s Marine Highway” program, the Department’s Maritime Administration (MARAD) will help identify rivers and coastal routes that could carry cargo efficiently, bypassing congested roads around busy ports and reducing greenhouse gases.”

[Silence]

If this is such a great idea, why haven’t companies been using waterways more? What do manufacturers and retailers think of all this, and what’s their role in this program? Is this program being managed in isolation or is it part of a more holistic transportation infrastructure strategy?

Mode conversion is easier said than done, and it has a ripple effect on lead times, safety stock, transport costs, distribution networks, information exchange, other modes, and so on. The bottom line: While well intended, this “America’s Marine Highway” program could be a big waste of time (and money) unless it is part of an integrated government-industry strategy for how to align our overall transportation infrastructure (roads, ports, railways, waterways, and airways) with 21st century supply chains. Of course, coming up with an integrated strategy is the easy part. Figuring out how to fund it is the real challenge, which is why I’m placing my bet on teleportation.

Is it Friday yet?

Be Sociable, Share!