Executive Briefing - Aug. 29
- Gasoline Shortfall May Raise Prices
- Corning, Gateway Cut Jobs
- Manufacturers Seen Hiring in 2002
- Some Iowa Towns Ban Use of 'Jake Brakes'
- NHTSA Warns of Underinflated Tires
- Calif. Truck Safety Measure Fails
- Drop in Confidence Sparks Recession Fears
- Companies Take Steps to Avoid Cell Phone Liability
- Corning, Gateway Cut Jobs
Gasoline Shortfall May Raise Prices
American Petroleum Institute figures released late Tuesday found that U.S. gasoline reserves shrank by 6.7 million barrels in the past week to 196.2 million barrels, the Associated Press said.Analysts said the shortfall could cause prices to rise as the summer driving season winds down.
Some relief may be on the way for the Midwest, a region that has been especially affected by increasing prices.
The Environmental Protection Agency agreed Tuesday to allow Citgo to market a blend of gasoline made with less stringent requirements than usually mandated in Chicago and Milwaukee – two cities where prices have been impacted by a fire at a Citgo refinery earlier this month.
Since the beginning of August, the price of wholesale gasoline has risen 50 cents per gallon in Los Angeles and 10 cents a gallon in Houston, the Oil Price Information Service said. Transport Topics
Corning, Gateway Cut Jobs
Fiber optic giant Corning Inc. announced it was cutting another 1,000 jobs by the end of the year, bringing this year’s total up to 8,000.Job cuts in the manufacturing sector could potentially bring down the demand for trucking services as companies order and ship less.
Also, the No. 4 U.S. computer maker, Gateway Inc., announced late Tuesday that 4,600 employees would be let go as part of a major restructuring plan.
Gateway does much of its personal computer business via direct shipping order rather than at retail stores; using package shipping companies to deliver merchandise directly to the customer.
Sales of personal computers have gone down sharply during the current economic slowdown and the company has been caught in a price war with competitors Dell, Compaq and Hewlett-Packard. Transport Topics
(Click here for the full Corning Inc. press release.)
Manufacturers Seen Hiring in 2002
The manufacturing sector has cut 837,000 jobs in the past 12 months, but it should stabilize at the end of the year and new hiring could pick up in 2002, the National Association of Manufacturers said in a report released on Wednesday.Manufacturing accounts for about 20% of U.S. economic production and is one of trucking’s largest and most important customer segments.
The slowdown, which started in the second half of last year, was caused by the com-bined effects of high real interest rates and energy prices, the report said. That forced businesses to cut back, leaving many manufacturers with an inventory overhang. The Associated Press noted that production has fallen 4.8% since the slowdown began.
But the report points to lower inventories, no change in industrial production in July after nine straight months of decline, strong consumer spending and interest rate cuts as factors that will help turn the tide for the sector. Transport Topics
Some Iowa Towns Ban Use of 'Jake Brakes'
Iowa state officials are upset that some cities have banned trucks from so-called "jake brakes" because they are too noisy, the Associated Press reported.These brakes – also called engine brakes -- use engine compression to help slow large trucks more quickly and efficiently. The Iowa Department of Transportation says banning the brakes creates potential hazards for trucks and cars alike.
Randy Van Zee, a councilman for the city of Pleasant Hill, said he can hear them being used a mile from his home. Pleasant Hill is currently considering a ban on the brakes.
However, Scott Weiser, president of the Iowa Motor Truck Association, said the noise can be controlled with mufflers, and that officials should enforce existing noise ordinances instead of banning the brakes. Transport Topics
NHTSA Warns of Underinflated Tires
About a third of the pickups and sport utility vehicles and vans on U.S. roads have at least one substantially underinflated tire, according to a survey released Wednesday by the National Highway Traffic Safety Administration.These vehicles are used in a wide variety of trucking applications, especially among utility fleets and other service-oriented businesses.
The NHTSA, which warned this is a potentially deadly oversight, also estimated 27% of cars also have underinflated tires.
Low tire pressure creates excessive stress and heat that can lead to failures, including blowouts and tread separation. Underinflated tires also can wear out more quickly and reduce fuel efficiency.
NHTSA recommends that tire pressure be checked once a month and before every long trip. Transport Topics
Calif. Truck Safety Measure Fails
The California Assembly Transportation Committee shelved a truck safety bill on Monday, which had passed the state Senate earlier in the year.The measure, SB 636, would have given the California Department of Transportation a mandate to update a 1989 study of the highway system and limit access to certain portions of it to trucks of a certain length.
CALTRANS and the California Highway Patrol would also be charged with gathering more detailed crash factors and provide incentives for trucking companies to avoid certain routes with overlength trucks.
The bill failed to obtain the required 10 votes to get out of committee. Transport Topics
(Click here for the full press release.)
Drop in Confidence Sparks Recession Fears
The unexpected drop in the Conference Board’s consumer confidence index on Tuesday has sent fears through Wall Street that U.S. consumers will cut their spending, and send the sluggish economy into a recession, news services reported.Consumer spending drives the economy, creating demand for new factory goods and the trucking shipments that get them to stores. If consumers are less confident, they are likely to curb their spending.
Reuters noted that many economists thought the index would be bolstered this summer by the tax rebate checks sent as a result of the new tax cut, and they are concerned this financial stimulus is not doing nearly as much as everyone had counted on.
Jon Brorson, director of equities at Northern Trust, compared consumer spending to the glue holding the economy together, Reuters reported.
However, Sung Won Sohn, chief economist with Wells Fargo & Co., told the Associated Press that people should not rush to judgement based on the report. He said he still expects the tax cut, lower interest rates and the cheaper cost of energy will help turn the index in the months ahead. Transport Topics
Companies Take Steps to Avoid Cell Phone Liability
Because of potential litigation, many U.S. companies are implementing restrictions on cell phones while driving for business, the Associated Press reported.Companies like General Motors and DuPont are requiring that employees pull over and stop if they are going to conduct business on their mobile phones. These moves come ahead of legislation pending in many states that would ban the practice of talking and driving. In June, New York became the first state to enact such a ban.
Over-the-road truckers have, in the past, communicated information - and passed the time - talking on Citizens Band radios while driving. Currently, many use cell phones for similar purposes.
Kenneth Abraham, professor of tort and insurance law at the University of Virginia, said that companies can be liable for accidents that occur because of deviation from assigned tasks, according to the AP.
Currently 42 states have bans pending on use of cell phones while driving. Japan, Israel, Portugal and Singapore are among 23 countries that already have nationwide restrictions. Transport Topics
