A.M. Executive Briefing - August 6
This Morning's Headlines:
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Proposal to Cut Hours Truckers May Work
Several trucking-industry officials expect the Federal Highway Administration to raise truckers' required hours of rest from eight to 14 hours a day soon.Although truckers can only spend 10 hours a day driving, those who support the new limit say there are no guarantees that truckers spend their mandatory eight-hour breaks sleeping. Thus, they believe mandatory 14-hour breaks might allow truckers to get eight hours of sleep a day.
Preliminary statistics issued by the government indicate that driver fatigue was at fault in only 4 percent of the truck crashes that killed approximately 5,300 people last year.
On Thursday, the American Trucking Associations requested that the FHWA describe publicly how it settled on the proposed new rules.
The ATA plans to battle the proposal, questioning the plan's scientific basis. ATA officials state that what drivers really need regular schedules with sufficient sleeping time to improve their safety records.
FHWA spokesman Dave Longo says the proposed rules result from government research into daily sleep cycles and fatigue. Federal hours-of-service rules have not been altered for more than six decades. USA Today (08/06/99) P. 1A; O'Donnell, Jayne
Consolidated Freightways Signs Service Pact with Merzario
A new deal has been inked between Consolidated Freightways and the Italian transport firm Merzario, both of which have been trying to expand beyond their LTL businesses.Consolidated says it will be able to provide more service across Europe, Asia and South America as a result of the agreement, which will combine the company’s time-definite PrimeTime Air service with Merzario's freight network.
F European division general manager Steve Soukup says, "Merzario offers the perfect mix of stability, experience, and market coverage." Journal of Commerce (08/06/99) P. 11
Canada's Largest Port Losing Millions in Strike
The two-week strike by independent dock truckers in Vancouver has led to an estimated loss of $43 million Canadian, according to port authority officials, and ships are starting to call at ports in United States instead of Vancouver.The truckers want more money for carrying the containers to Vancouver-area destinations.
Port tie-ups might start to get in the way of railyard operations, which load containers onto freight trains for delivery across North America.
Officials say neither the strikers nor their managers have any bargaining units, but strikers are expected to vote today on a management offer.
Ultimately, the port authority fears that Vancouver will be seen in a bad light by carriers, which might reverse the 44% growth in the port's container business during the first half of this year. Reuters (08/05/99); Dowd, Allan
Regulatory Reforms Pay Off for Sector, OECD Report Says
The Organization for Economic Cooperation and Development reports that Mexican transportation-deregulation and its resulting changes have caused costs to drop as transportation became more efficient.While the OECD had good things to say about Mexican rules allowing private airlines and other changes in the country's economy during this decade, the organization had particular praise for the deregulation of the trucking industry since 1989.
Before that year, the Mexican government had tariffs on trucking trade, gave permits only for specific routes, and otherwise engaged in stringent industry oversight.
Trucking rates dropped 37% from 1987 to 1998, while the period from 1989 to 1996 saw a 92% rise in registered trucking units. This increase was credited to formerly non-registered truckers, to new companies and to growing older ones. Each year since 1989 has seen cargo traffic grow an average of 8.6%. Journal of Commerce (08/06/99) P. 4; Zarocostas, John
Trucking News: VW, Wisconsin Long Trucks
Having failed in its plan to purchase a heavy-truck maker, Volkswagen has decided to build its own trucks at a Brazil plant.In other news, Wisconsin has abandoned overall-length limits and permit requirements for trailers up to 53 feet long on certain parts of state routes 46, 80, and 182. However, there are still trailer-length limits. Land Line Magazine Online (08/05/99); Carlson, Donna
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