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| Stimulus Funds |
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| Continued Concern Over Future Capacity |
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We have been speculating about what will happen with trucking capacity since the middle of last year. In the most recent quarter, supply and demand have both been racing downward at breakneck pace. As a result, industry analysts, trucking companies and shippers are attempting to predict what the landscape will look like when we achieve a more balanced market place.
In a recent article in the Journal of Commerce, statistics released from a report by Transport Capital Partners indicated some fairly significant trends:
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| Are You Overpaying on Import Duties? |
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The Offshore Assembly Program (OAP), formerly known as the 806/807 Provision of the US Tariff Code, has been renamed the 9802 Provision of the Harmonized System Code. This program allows American firms to export component parts and have them assembled overseas. When the finished product is imported back into the US, duties are paid only on the foreign value added.
Shippers should estimate the production characteristics of the US OAP activity, and in particular, whether this activity is intensive in the use of non-production labor as compared to the overseas production. They should also examine the sensitivity of OAP imports to real exchange rate movements.
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| Sustainability Is Here to Stay |
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Whether your company is proactive or reactive when it comes to 'Green' initiatives, there's no denying the trend is here to stay.
 Due to the recent power shift in Washington, we are likely on the verge of unprecedented regulation of carbon emissions. Many of the largest American companies are already factoring sustainability into their procurement process, so manufacturers and distributors should start positioning themselves early to maintain and/or win contracts with eco-conscious corporations.
While adopting environmentally-friendly operational processes can be prohibitive for some small and mid-sized companies, adopting Sustainable Shipping practices can be a way to tout one's Green credentials without the large up-front costs usually associated with such activities.
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| Technology Corner |
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Introducing the Transportation Tips Blog
In order to keep you better informed of the trends and issues impacting the fields of manufacturing and distribution management, we at M33 have launched the Transportation Tips Blog. It's a news resource that will update frequently, so bookmark it today.
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| Note to Readers |
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