transportation commodity original message djcustomclips djinteractive com mailto djcustomclips djinteractive com sent tuesday september 18 2001 10 43 pm 168842 mailman enron com subject rahil jafry transportation commodity transportation commodity bill hensel jr 09 10 2001 joc week copyright c 2001 journal commerce inc rights reserved enron corp houston based energy giant familiar commodity markets addition energy business best known enron world largest metals trader company also understands transportation ships products diverse coal steel forest products project cargo enron proposing change face road trucking domestic intermodal services treating commodity bought sold like product company enron freight markets unit promises help shippers carriers manage risks associated fluctuating diesel fuel prices shipping costs enron quote set rate dock dock moves guarantee service promised contract enron freight markets created march develop market freight capacity buy sell spot forward capacity transportation futures markets soybeans pork bellies buyer contract would option taking delivery service closing position enron successfully used similar formulas create markets energy trucking intermodal freight capacity barry par ker consultant bdpl consulting ltd specializes freight economics said could work transportation like markets marketplace needs things transportation marketplaces really receptive parker said applaud uphill battle enron took first step hill year acquisition webmodal firm provides domestic intermodal technology logistics services carriers shippers service providers former webmodal office chicago houses enron freight 24 hour customer service operations center summer enron took another step acquiring trucking capacity two years major trucking companies enron said recently signed first firm sales contract major shipper declined identify dan reck vice president enron freight markets said company offer shippers carriers performance obligation terms considerably different others enron freight markets trying commercialize risk management products freight market reck said key service standardization general contractual terms conditions standardized areas would include specific delivery times specific consequences non performance fixed price contracts act stabilize fuel surcharges spikes shipping volumes fluctuating carrier rates enron said deep pockets make market liquid also using technology evaluate optimal routing modes customers sign long term contracts ends happening obligations parties comes much clean predictable reck said carrier perspective really count revenue stream piece business clean operational parameters also trying shippers sign us terms conditions enron reputation innovator approach natural gas electric power markets trying change way markets steel structured efm sees transportation another commodity price basis hedging speculation kind commodity agnostic reck explained care commodity sell capacity enron approach differs significantly others entered trucking field technology based intermediaries nte former national transportation exchange puts buyers sellers directly together logistics com uses contracting process identify cost effective matches shippers carriers unlike online services enron contracts directly party involved wait two matched website enron ideal contract damages non performance spelled explicitly part belief market work buyers must able bank reliability contract example suppose carrier accepted contract price 1 20 per mile shipment freight atlanta chicago enron provide carrier load next best alternative carrier find 70 cents per mile enron pays difference process would work reverse carrier promised provide truck enron would provide replacement higher price trucker would make difference reck said standardized contract would dictated enron would evolve negotiations public forums efforts way introduce company shippers carriers intermediaries enron officials say talked 400 500 shippers since march one goal persuade independent group trucking association committee marketplace participants sponsor forum negotiations company believes would add legitimacy first contract enron acting carrier since shipper already working third party logistics provider enron considers distinct 3 pls focuses dock dock moves leaves supply chain optimization others aim allow parties minimize risk example giving shippers ability hedge possibility diesel pass fees enron extensive user internet however last year launched enrononline traders trade natural gas oil electricity various commodities online one expects enron new freight capacity product capture immediate acceptance even enron acknowledges acceptance slow reck said take time overcome cultural resistance change freight industry enron prepared done every market gotten reck said find economic benefits business way overpowers resistance time show benefits jocoo 000 c copyright 2001 journal commerce inc rights reserved http www joc com folder name rahil jafry relevance score scale 100 79 review revise folder visit http www djinteractive com contact dow jones customer service e mail custom news bis dowjones com phone 800 369 7466 outside u canada call 609 452 1511 contact local sales representative copyright c 2001 dow jones company inc rights reserved