On September 11 2001, several young men turned our airline industry into a devastating weapon of mass destruction. What immediately followed were the inevitable recriminations, political posturing, and finger pointing about what woulda-shoulda-coulda been done. Then came the spew of regulatory goo from the maw of the US Congress.
We all know the result. Long lines at the airport, shoes on the conveyor, confiscated shampoo, and body scans of menacing grandmothers. Hollywood couldn’t stage a more convincing impression of safety if they tried. Registered voters are duly impressed. They think “Brownie’s doing a helluva job.” But how safe are we?
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It seems like everyone is looking for ways to lower business expenses, in several areas; insurance, rent, taxes, and unfortunately employees. All of those areas often require significant business process changes. One that does not is cutting your freight costs. This article speaks to inbound freight costs only. There is also an excellent article by [...]
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Ouch – is the economy really in full recovery?
Transportation providers are typically a bellwether of the economy, due to the role they play in moving goods across our nation. News yesterday from YRC (Yellow Roadway Corporation) casts doubt that a full recovery is really underway.
YRC shares fell 29%, due to a debt for equity swap [...]
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Scene: Executive conference room. CEO and management team huddled around a table evaluating a Transportation Management System proposal presented by VP of Operations: “… so in conclusion, by investing $2.5m in an enterprise TMS system, we will reduce our overall transportation spend by $6m over the next 5 years. Savings will go straight to the bottom line and we’ll meet the threats by global competitors more effectively”. Golf claps by the management team. Except for the CFO and VP of IT who exchange nervous looks like Patriots fans during the 4th quarter of a Colts game.
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In the long run, Wall Street is the most rational place on earth. It rewards one thing: earnings and more earnings. Think GE in the Jack Welch era. In the short run, Wall Street is the most irrational place on earth. It trades on rumor, innuendo, hunch, wild ideas concocted over drinks or other mind enhancing agents and the opportunity to kick someone while he’s down or apparently so, commonly called short selling. Think Enron.
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