Security Mandates Prompt Con-Way Freight Surcharge

Compiled ByDeborah Austin To recoup costs boosted by post-Sept. 11 freight security upgrades, Con-Way Transportation Services Inc. is instituting a Homeland Security Surcharge. Effective Jan. 2, 2003, Con-Way's less-than-truckload (LTL) operating units will apply the $8-per-shipment surcharge to all shipments moving northbound or southbound across the Canada/U.S. border. The firm says security-related changes -- while necessary -- have tied up equipment, lengthened trip durations and stretched preparation times for customs clearance, impacting operating costs. Con-Way is involved in U.S. government meetings to help set up a national program -- "Customs Trade Partnership Against Terrorism" -- which intends to establish minimum physical security standards for LTL motor carrier network facilities. These mandates are expected to further boost costs. Con-Way, Ann Arbor, Mich., provides freight delivery services and logistics for commercial/industrial businesses.