August 31, 1999 8:55 AM, EDT

A.M. Executive Briefing - Aug. 31

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This Morning's Headlines:

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Clarke Inc. of Canada Expands Operations in US and Mexico

Truckers Still Staging Protests in Northwest

Swift Transportation Co. Inc. Anticipates Third Quarter Results Will Exceed Analysts Estimates

Tracks for Trucks

Stoneridge Acquires TVI Europe Limited

Clarke Inc. of Canada Expands Operations in US and Mexico

The Canadian logistics provider and carrier Clarke Inc. is making inroads in the United States with the purchase of a 100,000-square-foot Los Angeles distribution site by its Concord Transportation unit, which will also debut Dallas operations in September. The Clarke Logistics division is expanding in Mexico with Mexico City and Queretaro offices. Journal of Commerce (08/31/99) P. 20; Tower, Courtney

Truckers Still Staging Protests in Northwest

As the independent truckers' job actions in Seattle and Tacoma continue with no end in sight, ports and area railyards are starting to see the effect. Craig Johnson of Pacific Maritime Association says, "The gates are open and the terminals are working, but there is some plugging up because of the inability to get drivers."

Operators at the terminals put the driver shortage between 10 percent and 35 percent. Up to 70 percent of drivers who perform container drayage between ports and railyards have walked off the job.

An AFL-CIO/Teamsters survey of Seattle-Tacoma drivers put the average daily wait time at 3 hours. West Coast Trucking President and Washington Trucking Association intermodal chairman Dan Gatchet says, "I'm surprised they're not higher," estimating waiting and processing to take up two-thirds of the truckers' workday.

The Teamsters and AFL-CIO say the truckers are making about $8.51 an hour due to the delays, with the truckers' average work week at 54 hours. Three percent of the truckers have health insurance backed by employers.

Last week, the Seattle International Gateway railyard saw a multi-union demonstration, and the Teamsters passed $200 weekly strike benefits for the truckers. The truckers are looking for higher pay, more benefits, and a system to make the ports more efficient. They also want to be able to unionize. They have not sought hourly pay. Company managers say the focus should be on higher efficiency at the terminals. Journal of Commerce (08/31/99) P. 1; Mongelluzzo, Bill

Swift Transportation Co. Inc. Anticipates Third Quarter Results Will Exceed Analysts Estimates

Swift Transportation says it expects third-quarter per-share earnings above $0.28 and revenue to beat 1998's third-quarter figure by 20 percent. Jerry Moyes, chairman and CEO of Swift, attributed the expected gains to "strong customer demand," adding that on Sept. 1 "we are implementing a fuel surcharge that we expect to help us continue our momentum into the fourth quarter." Business Wire (08/31/99)

Tracks for Trucks

Canadian National Railway and Canadian Pacific Railway are both pouring funds into piggybacking. CPR's Expressway uses flatcars that are loaded via ramps, while CN's RoadRailer adds railroad wheels to trailers. Both could meet with public approval, especially with more and more Canadians becoming upset about higher truck volumes on the roads.

One problem for railroads is trying to compete with the just-in-time logistics trucks can offer. Railroads must change an industry culture that does not focus on precise delivery times. While piggybacking was common between Toronto and Montreal between 1952 and 1965, it fell by the wayside after Highway 401 was finished and the 1966 railroad workers' strike occurred. Railroads then concentrated on handling intermodal containers from ocean lines.

CPR terminal-operations manager Ed Venslovaitis says Expressway depends on truckers' cooperation, which is a change since railroads and trucking have historically been seen as competitors.

The railroad has put $48 million into the Expressway project, which in 2000 will go to Detroit and eventually to New York.

CN, on the other hand, intends to compete with truckers using the RoadRailer, first used in the U.S. in 1986. These trailers have top-of-the-line air suspension for both highway and railroad use.

At first, RoadRailer will run weekdays between Toronto and Montreal, with as many as 60 RoadRailers per train. Later, CN could hook up to railways in America. RoadRailers are already used by several U.S. railroads, including Amtrak. Toronto Star Online (08/30/99); Gormick, Greg

Stoneridge Acquires TVI Europe Limited

Stoneridge Inc. of Warren, Ohio, has taken over TVI Europe, a Scottish maker of transportation-monitoring equipment. Terms of the deal were not disclosed. "With TVI's products, we enhance Stoneridge's ability to provide the commercial vehicle market with a totally integrated vehicle information system solution," says Stoneridge President and CEO Cloyd Abruzzo. PRNewswire (08/30/99)