A.M. Executive Briefing - July 17

Rodriguez Tells OPEC To Prepare To Pump More Oil

Rodriguez released a statement saying that if oil prices do not fall by the end of the month, OPEC will produce an additional 500,000 barrels per day, to be pro-rated out among the members. Saudi Arabia had previously said it would increase production to that amount itself in an attempt to drive crude oil prices down to $25 per barrel. Current prices are closer to the $30 per barrel range.

Under Rodriguez's plan, Saudi Arabia would only increase its output by 162,000 barrels per day. Transport Topics

USFreightways Reports Second-Quarter Increase, Up 4.7% From 1999

The increase comes despite operating losses due to costs incurred by the opening of new facilities and accounts in the company's USF Worldwide and USF Processors divisions. Other divisions, including USF Red Star, USF Dugan and USF Glen Moore, had excellent quarters, the parent company reported. Transport Topics

Air Canada Pilots to Reveal Possible Strike Plans Monday

Reuters said although the pilots could avoid a strike and simply pressure the company by having its pilots only perform some services, a strike that could occur as early as Thursday would cripple Canada's air cargo. For truckers in Canada and the United States, loss of a major airline's belly space would throw tonnage onto other carriers with their truck feeds, and put some air freight into trucks for highway travel. Transport Topics

Cummins May Be Prime For A Takeover, Barrons Says

Cummins' stock is trading below its 1972 levels. Takeover interest could come from DaimlerChrysler, General Electric, Fiat, Deere and Honeywell, stock watchers told the investment newspaper.

Barron's said that Wall Street may undervalue Cummins, paying too much attention to the heavy-truck market while Cummins' power-generation and filtration divisions grow. Those divisions are projected to account for 40% of sales and 75% of profits in 2000.

Tim Solso, Cummins CEO, told Barron's he has no interest in selling, nor does he expect a hostile takeover attempt. Transport Topics

Michigan Looks To Use Weigh Stations As Rest Stops

Police officials said, proportionally, the parking shortage for tractor-trailers on the road mirrors the national level. U.S. Department of Transportation figures from 1997 showed a shortage of 28,412 parking spaces. The Detroit News also reported that Michigan State Police issued 661 citations in 1999 to truckers illegally parked on freeway shoulders. Transport Topics

Arizona Towing Company Ordered To Pay $1.3 Million For Illegal Impounding Of Big Rig

The owner of Casa Grande, Ariz.-based R&R Enterprises, Oliver Roberts Jr., alleged in the suit that the son of rancher and towing company owner Roger Barnett purposely disabled one of his trucks and towed it to Tucson. There it was impounded for more than two months and cost Roberts $7,500 to get the truck back. AP reported that the Barnetts deny the allegation and will appeal the decision handed down July 14 by a Pima County jury. Transport Topics

Cable Giant Shaw Seeks All of Cancom, Provider of Truck Tracking Services

Shaw made its offer after the stock markets closed on Friday. Cancom also provides satellite-to-cable program distribution across all of Canada. The offer demonstrates how truck companies across North America not only rely increasingly on high technology companies for day-to-day operations, but also need to be aware of acquisitions involving those vendors. Transport Topics

The Bekins Company to Offer Services On-Line

The Web site offers company information and news as well as on-line access to all of the Bekins companies, including Bekins Van Lines LLC, Bekins Worldwide Solutions, Inc., and Matrix International Logistics, Inc.

The Bekins Co. operates across the United States and in 75 countries worldwide. Transport Topics