Mexican Truckers' Lack of Interest Could Derail Program

Mexican Truckers’’ Lack of Interest Could Derail

Program

1

Labor Problems for ABF? 1

Focus on The Client—Leslie’s Poolmart, Inc.

2

Labor Problems for ABF? (Cont.)

2

Me, Myself & I—

Christina Lopez

3

In the Name of Safety– Regulating oversight

vehicles

3

FMI Welcomes 3

FMI Employee BBQ 4

FMI Challenge Winners 4

Broker Statistics 4

Happy Anniversary FMI

Employees 4

Take the FMI Challenge 4

March & April Birthdays 4

Future of FMI 2

March/April 2013

Volume 11, 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.”

Despite creating a three year pilot program in the summer of 2011, Mexican truckers are not rushing to enter the U.S. beyond the traditional 25 mile commercial zone. On Oct. 21, 2011, the U.S. gov-ernment granted the first operating authority to a Mexican trucker —Transportes Olympic—to serve the U.S. market beyond the commercial zone. Since then, only 9 Mexican carriers, 17 trucks, and 20 drivers have been granted similar rights, and only

and the Owner-Operator Independent Drivers Association (OOIDA) are suing to shut down the

pilot program, saying it is both dangerous and illegal. They argue the agreement requires Mexican drivers to be able to only identify the color red; whereas, U.S.

drivers are required to identify the colors red, yellow, and green. "Color recognition has been determined by the DOT as essential to highway safety," the union said in a statement.

13 carrier applications are pending, according to third-quarter data from the U.S. Depart-

ment of Agriculture. Such low numbers will complicate the Federal Motor Carrier Safety Administration verifica-tion of Mexican carriers’ safety performance. The Teamsters union

“A dream becomes a goal

when action is taken to-

ward its achievement.”

—Bo Bennett

Labor Problems for ABF?

Nearly every public pronouncement from A r k a n s a s B e s t contains a reference to the economic burden imposed on the unit by the current labor pact; however, ABF's woes aren't limited to labor. The company faces other challenges that will remain long after their current contract talks

conclude. In the 1st quarter of 2012, ABF’s "operating ratio," hit 1 0 5 . 5— t h e w o r s t

performance any publicly traded LTL carrier held that period. ABF continues to expand its presence in the reg iona l trucking category, whose trends are more favorable than the national LTL market's,

accounting for 61% of its total tonnage. ABF's chief problem has been

(Continued on page 2)

Leslie’s has over 600 stores

nationwide

Page 2 FMI Newsletter

Focus On The Client— Leslie’s Poolmart, Inc.

backyard and patio. Leslie’s even offers p r o f e s s i o n a l on-site equipment installation and repair services in most areas. They also offer free in-store water ana lys is , free in-store labor on repairs and free p o o l s c h o o l seminars. Their express parts

program can find any part they don’t happen to stock and get they it to

you quickly.

Retailer of Swimming Pool Supplies”. Leslie’s offers a comprehensive product line from chemicals to unique items for the

In March of 1963, a one-man pool supply operation working out of a backyard shed in North Hollywood, California began. 49 years later the one-man operation grew to over 600 retail stores in 35 states across America, plus the availability of Commercial Sales, Mail Order and Internet shopping. Thus, it fully t r an sfo rmed i n t o Leslie' s Poolmart, Inc., “The World’s Largest

“Nothing limits

achievement like small

thinking; nothing expands

possibilities like

unleashed imagination.”

—William Arthur Ward

ABF's pension expense towards non ABF workers. It is the result of a multitude of unionized trucking bankruptcies over the last 30 years that stuck surviving companies with a larger share of the pension tab. ABF could negotiate a w i t h d r a w a l f r o m multiemployer pension schemes, but it would cost about $1.7 billion to pull out from its largest multiemployer plan alone.

Labor problems for ABF? (Cont.) the 8 % compound annual increase in its union pension contribu-tions negotiated in the 2008 contract. The headache turned into a migraine in 2009, after separate agreements between the union and YRC allowed the carrier to suspend pension payments from the end of 2009 through mid-2011 and resume contributions at about o n e - f o u r t h t h e accepted rate prior to the suspension. YRC is

not expected to return to a full payment schedule until 2015, at the earliest. ABF estimates that the pension expense today accounts for as much as 2/3 of the $11 to $12 an hour per employee cost gap between YRC and ABF. ABF participates in a b o u t 2 4 u n i o n multiemployer pension plans, where surviving firms pay the pensions of retirees from failed trucking companies, directing about half of

A Special Thank You…

Thank you so much for your help Dennis. FMI was the smartest choice my boss… and the leadership team at AMSOIL could have made! .

-David Navarro, AMSOIL

Future of FMI

On April 29th Laura

B r a n s o n

w i l l b e graduating from Cal State Fullerton with a bachelors in Accounting!

Jackie Muro

received her certification in CPR/AED with American Red

Cross to help the community program in Monrovia, CA.

Jackie ’s son R a y m o n d received both a yellow belt in karate, and a school award for accelerated reading at Santa Fe Middle School.

Page 3 Volume 11, Issue 2

Me, Myself & I— Christina Lopez

I was raised in a close k n i t f a m i l y of six

ch i ldren and two wonderful parents. I have also been blessed with incredible additions to my immediate family through the siblings’ marriages and their beautiful children, and am ecstatic to officially call my sister’s fiancé my brother in July.

With a family that is always moving through-out the U.S, travelling is as much a hobby as a necessity. And I have to say, I love the sense of adventure that a good

road trip can bring.

In 2011, my brother, sister, and I graduated college with bachelors degrees.

My favorite thing about

FMI is not only that the company strives to meet its clients needs, but also that it really does feel like a family. From the moment I started work at FMI, I felt the close-knit bonds that resembled my own family. I look forward to

the workday because I work with incredible people and have wonder-fully kind co-workers. They brighten my day.

My favorite thing to do is spend time with those that I love: doesn’t mat-ter whether it’s watching movies with my mom, video games with my brothers, shopping with my sisters, LA with my boyfr iend , runn ing around with my nephew, or discussing events with my dad. If I’m with them, I’m happy. Overall, I’m extremely blessed to have such incredible people in my life.

In The Name of Safety– Regulating overweight vehicles

FMI Welcomes

Freight Management is proud to welcome some new partnerships with

the following companies::

We look forward to working with you in the

near future!

T e rm i n a l , P a c h e c o Trucking, Perez Express Trucking, and Franco Trucking. The fifteen count complaint alleges that employees, officers and contractors of LAHGT engaged in overloading their trucks and driving them upon the highways. In some instances the trucks

were overloaded by more than seven tons.

The LBPD will continue to ensure public safety by enforcing the rules of the road on commercial vehicles.

On October 23,2012 the L B PD ’ s C omme r c i a l

E n f o r c e m e n t U n i t demonstrated their strong position by presenting a case to the Long Beach City Prosecutor’s Office. Charges were filed against the following companies: Los Angeles Harbor Grain

Due to overweight v e h i c l e ’ s d a nger ous nature, the Long Beach Police Department is taking an aggressive stance on enforcing regu lat ions . Some negative effects of overweight vehicles are as follows: substantial damage to roadways, increase chance of overturning and stopping distance. Overloading trucks also unfairly allows trucking companies to compete for contracts against others who oper-ate lawfully within the city of Long Beach.

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

These words and shapes, and their positions, can be used to derive a word or saying. Solve all three: MEREPEAT GR 12” AVE faredce insult + injury i4i

Fax or email answers and address to 714-632-7221 or krunkle@freightmgmt.com to collect your prize. Winners will be announced monthly.

Take the FMI Challenge

FMI Challenge Winners

Answer:

There are 44 chickens and 28 rabbits.

Congratulations

Amy Castillo– Megatrux

Anna Tyminski– Spectrum Chemical

Cecilia Laursen—ICEE

Debbie Stutts—Spectrum Chemical

Debbie Todd—ICEE

Gina Van Arnam—Associate

Jay Schwartz—Medtronic

John Pace—Camelbak Products

Kecia Niederhauser– Javo Beverage

Kenny D Debes—Estes Express

Prem Jain—Spectrum Chemical

Wayne Evangelista—ICEE

March and April Birthdays Broker Statistics

• There are over 19,500 active brokers.

• Over 2,500 of those brokers also have active carrier authority.

• Almost 400 of them have authority as HHG brokers.

• FMI ranked number 12 in 1969.

Employee Appreciation BBQ

In March, Freight Management put together a delectable barbeque in appreciation of its employees. Aside from the deliciously grilled meats and vegetable kabobs, there was an assortment of chips, salsa, and mouthwatering salads.

Happy Anniversary FMI Employees

Millie Vega, Auditor—16 years Dwayne Phillips, Director of Technology —12 years

Ina Cordova, Account Manager — 8 years Greg Alder, On-Site Coordinator—5 years

Laurie Galli, Accounting Coordinator —5 years Tina Nguyen, Data Entry—4 years

Jennifer Choo, Data Entry —5 years Sandra Aufdenkamp, Account Manager - 4 years

Tom Morin, On-Site Coordinator—2 years

Dennis Rihn 3/23

Jennifer Choo 4/14

Marian Thompson 4/18

Above: Set up in a buffet style, Freight Management employees not only help themselves, but also help serve each other.

Above: Dennis Rihn serves as grill master, cooking kabobs to delicious perfection.

R ight : Fre i ght Management employees enjoy the food, company, and gorgeous weather.