Target Corp.’s Gabrielson, NITL leaders focus upon priorities in workshop sponsored by AAPA, MARAD By Paul Scott Abbott, AJOT Stability and sustainability are top priorities for shippers, according to the logistics head of Target Corp., the No. 2 U.S. importer of containerized cargo. Rick Gabrielson, Target’s director of international transportation, was joined by leaders of the National Industrial Transportation League in outlining industry challenges and solutions during a Jan. 19 panel discussion at the fifth annual Shifting International Trade Routes Workshop, co-sponsored by the American Association of Port Authorities and U.S. Maritime Administration, hosted by the Tampa Port Authority. (For reception photos, please turn to page 23 of this edition of AJOT.) “Most shippers really look for stability,” said Gabrielson, who has served as president of the Waterfront Coalition and as vice chairman of the Marine Transportation System National Advisory Council. Gabrielson said virtually all shippers are concerned about pricing volatility as carriers seek profitability at a time of worsening overcapacity. The issue is of particular interest to mega-shippers such as Minneapolis-based retail giant Target, which trails only Wal-Mart on the list of top U.S. containerized importers. Target serves more than 1,750 stores in 49 states via 37 U.S. distribution centers, and it operates 26 sourcing offices in 33 countries. In response to a question from Curtis J. Foltz, executive director of the Georgia Ports Authority, regarding “massive fluctuations” in shipping rates, Gabrielson said he believes index-based contracts could provide a solution for imports. Gabrielson added that carriers “desperately need more accurate forecasting” and said that longer-term contracts not only are preferred by carriers but also by many shippers as well. NITL Chairman Terry L. Bunch, who is director of logistics and customer service for Jesup, Ga.-based Rayonier Inc., which annually exports some 50,000 twenty-foot-equivalent units of performance fibers, mostly through the Port of Savannah, said he shares in the concerns about carrier finances and their impact on pricing predictability. “While it may seem like we want to see rates real low,” Bunch said, “we’ve got to have stability.” Like other speakers throughout the Jan. 19-20 workshop, Bunch said adequate U.S. transportation infrastructure is essential. The panel discussion’s moderator, NITL President Bruce J. Carlton, a former assistant administrator of the U.S. Maritime Administration, said that, particularly with 2012 being a presidential election year, Congress is “failing miserably” in addressing the seemingly apolitical issue of transportation infrastructure Gabrielson said investments not only are needed in infrastructure at ports but also in their road and rail connections, commenting, “If you don’t work on those last-mile connectors, it’s for naught.” Noting that the number of important transportation infrastructure projects in the nation far outstrips available funding, Gabrielson suggested that an objective “centralized office” be put in place to determine which projects must move forward with funding. Gabrielson, who is president and founding member of the Coalition for Responsible Transportation, said another priority in making supply chain decisions is using trucking companies and ocean carriers that focus upon environmental sustainability. He cited in particular CRT’s work with the U.S. Environmental Protection Agency and stakeholders in developing and implementing clean trucks programs for the drayage industry. The change in the U.S. model for providing chassis, away from provision by ocean carriers, is another concern for Gabrielson, who said shippers “haven’t felt like they’ve had a seat at the table.” Gabrielson also detailed room for improvement in schedule integrity and truck turn times via both West Coast and East Coast port gateways, saying, “All ports need to be much more engaged with their customers, and that’s the s