The Scarbrough Group Newsletter

 
»Issue 7, Volume 07                           www.scarbrough-intl.com                                        » July 2007    
In this issue:

Main Page
Cover Story
Scarbrough Services
Business News
Business Monitor
Scarbrough News
Congratulations

Quote of the Month

COVER STORY

Long Beach/Los Angeles Port Strikes

The Long Beach and Los Angeles ports have been threatened with strike action by 750 clerks who want more pay and benefits. The strike will set off a string of events that will put a dent in the flow of global transportation and significantly impact the United States economy.

If an agreement is not reached the consequential chain of events could have monetary impact in the billions of dollars. The 2002 port strikes caused estimated losses of nearly one billion dollars per day.

The clerical workers will likely receive support from the longshoremen who will honor the picket lines if an agreement is not reached, shutting down operations at the largest ports in the United States. These ports account for 40% of freight that moves into the United States.

Freight coming from Asia will feel the greatest impact. Importers should anticipate transit delays if the clerks and longshoremen strike.

Deadlines for agreement were set for 12:01am on Monday, July 16th. The union has since agreed to continue negotiations past the previously set deadline.

"We anticipate an agreement," said John Fageaux Jr., president of the office clerical unit of Local 63, a division of the International Longshore and Warehouse Union. "We've done just about all we can do to get an agreement reached."

Fageaux submitted a revised contract to employers that one labor official hoped would avert a possible shutdown of the docks. Fageaux said that wages were not a key issue. Instead, the main sticking points have been job security and a package proposed by employers that would limit health plan choices for new hires and temporary employees.

"These are the highest-paid office clerical workers in America, they don't pay anything for health insurance, they have the best insurance plan in America, and we need some of our needs back as well," said Stephen Berry, shipping line negotiator.

Berry said the employers’ latest offer included raises that over the life of a three-year contract would bump the employees’ hourly pay to $39.50 ($82,160 per year, based on 40 hour week); the union is seeking increases that would equal $53 per hour ($110,240 per year, based on 40 hour week) by the last year of the contract.

[Attorneys in Los Angeles and Long Beach make an average of $79,000 while Executive Assistants and Graphics Designers make $45,000 (www.payscale.com).A selection of online Salary Calculators have estimated that $82,160 in the Long Beach and Los Angeles area is the equivalent to $48,000 (avg) in Kansas City, Missouri. As the three year contract offer proposes, the clerks will be earning a Kansas City equivalent of $65,000 (avg).]

Debate as you may on this issue. If the clerks and longshore workers strike the impact will be felt country wide and will put a dent in the United States economy. The hope is that the parties involved can settle the issue quickly so as to avoid any supply chain disruptions. Importers, large and small, have obligations and commitments to customer who in turn have obligations and commitments. The ripple effective could slow freight movement for several months.

Scarbrough International will try to keep you informed as events transpire. If you have any questions or concerns please contact your customer service representative or e-mail us at info@scarbrough-intl.com.

FOR MORE...

-- Scott Woods, Marketing

 

SCARBROUGH SERVICES

Scarbrough International, Ltd. Quality and Service

"Value" is a combination of what you get, what you pay, and how you're treated." Unknown

Quality and Service

Many service based companies provide quality and service, according to their commercials and their marketing material. It is one of the most aggressively pushed offerings that companies of all types pitch to customers, campaign after campaign after campaign.

What is it though? Quality and Service. What do they mean by quality and service? So much time is spent pushing the idea that you, as a customer, will receive superior service and quality.

The great negligence of a statement such as “we provide superior quality and service” is the generalized position of the statement. It has no substance, no feel and no concept of expectation.

If you as an employee were asked to write an End of Month report, would you simply write “Stuff; last month I did Stuff?” This statement could be saying a lot, it suggests that you partook in activities of some sort and that you may have even completed something, in theory. In actuality it does not, it says “stuff,” just like the claim, “we provide superior quality and service,” and would invariably get you an invitation to pursue another career path.

Where is the Substance?

It is important as a business owner or decision maker to challenge such claims. If a company promotes itself in this way, you should know what it means and how that particular ... 

FOR MORE...

-- Scott Woods, Marketing

 
BUSINESS NEWS

2007 Peak Season  Update

U.S. container ports should stay congestion-free throughout the peak season, according to the July Port Tracker report released July 5th by Global Insight and the National Retail Federation.  The Port Tracker analyzes monthly cargo growth at the ten largest North American ports.

Even though the rate of growth has not been as strong as 2006, North American container volumes are expected to reach an all-time high in August.  The volume is expected to level off in September and break a new record in October.  With most ports expected to have single-digit growth rates, the marine terminals...

FOR MORE...

-- Nick Jung, Import Freight Forwarding Customer Service Representative

 

SCARBROUGH NEWS

China and the US Working Together against Counterfeiting

Fake Gucci purses from China were seized at the port of Detroit last September. There were 9,017 fake purses that had what looks like an “ee” design on them. After the shipment was selected for customs exam, it was determined that the design was indistinguishable from the Gucci trademark, and therefore was a violation of Intellectual Property Rights. On May 30, 2007, Customs and Border protection issued a $2,930,525.00 penalty against the importer of record that was trying to bring in the fake purses. Patents, trademarks, copyrights and trade secrets are all legally protected under Intellectual Property Rights. The Gucci trademark is protected under that law.

In 1999, Intellectual Property Rights (IPR) seizures surged. Beanie Babies were a huge craze and quite a collector’s item that helped trigger a surge...

FOR MORE...

-- Brandi Miller, Import Customer Service Representative

 

BUSINESS MONITOR

Chinas Exports and their Quality

China has slowly emerged as major player in world trade, making their presence in the early 1980’s. Their imports and exports began to increase drastically in the mid 1990’s. However, in the last five years their exports have roughly doubled, with the United States accounting for one-quarter of all their exports. As Chinas exports to nations increase one can see a growing number of product-defect claims regarding Chinese products. These claims range from tainted pet food to lead-coated toys, and most recently 450,000 automotive tires.

On August 12, 2006, Rafael B. Melo, Claudeir Jose...

FOR MORE...

-- Seth Arnold, Rates Department Intern (William Jewell College)

 

CONGRATULATIONS

Congratulations to Dana Faville

 Dana Faville, Senior CHB Customer Service Representative, attained one of Scarbrough's most celebrated milestones. On July 6th of 2007, Dana was honored for her 10 years of Scarbrough service and gifted with her own reserved parking space.

 

-- Scott Woods, Marketing

QUOTE OF THE MONTH
 

"My philosophy of life is that if we make up our mind what we are going to make of our lives, then work hard toward that goal, we never lose - somehow we win out."           

                                        --Ronald Reagan

 

" 'Simply the Best', both personally and professionally is the cornerstone of our culture."

 

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