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Article Excerpt
AT LAST YEAR'S FMA Toll Processing Conference, the Outside Processors Council gathered representatives of the supply chain to discuss one of the industry's most pressing issues: transportation and logistics.
Last month, the discussion continued, with an even greater sense of urgency.
Jerome Hack of Dearborn Steel moderated a second roundtable forum at the toll processors' annual gathering in Florida featuring Chantel Campbell of CSX, Gordon Gustafson of ADS Logistics, David Frink of Olympic Steel and L. Bruce Johnson of Mittal Steel to bat around the difficulties of getting steel from Point A to Point B.
Rising fuel prices and a nationwide truck driver shortage have been exacerbated by two new challenges: a change in the U.S. Department of Transportation's Hours-of-Service regulations and a new discipline among steel producers that limits the amount of product in the pipeline.
Gustafson, vice president of Integrated Solutions for ADS, said the changes to the Hours-of-Service rules, which went into effect in October, can have a significant effect on steel distributors. The changes make it crucial that processors and service centers are ready to ship when a truck arrives.
Historically, Gustafson said,...
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