Executive Briefing - June 25
- Fire Damage Closes Bridge on I-80 in N.J.
- New Penn, G.I. Trucking Open New Terminals
- Highways Receive Attention in Alberta
- EPA Holds Hearings on Clean-Air Policy
- Fed Likely to Signal More Cuts
- American, TWU Reach Accord
- Isuzu Unveils New Hybrid Truck
- Hyundai, Daimler in Commercial Parts Talks
- New Penn, G.I. Trucking Open New Terminals
Fire Damage Closes Bridge on I-80 in N.J.
Fire damage has closed a bridge on Interstate 80 in northern New Jersey, leaving a four-mile detour on Route 46 from the westbound lanes near Exit 39, the New York Times reported.Delays could persist on I-80 for several months in the Denville Township in Morris County, which is a major trucking route as well as a popular route to the Pocono Mountains in Pennsylvania and to New York. An estimated 133,000 vehicles travel this route each weekday.
The bridge itself was burned by a crash involving a gasoline tanker, and a temporary bridge may be opened by the end of the week. Transport Topics
New Penn, G.I. Trucking Open New Terminals
New Penn Motor Express, a subsidiary of Arnold Industries Inc., said it has completed construction of a new facility near Albany, NY which will serve that metropolitan area as well as portions of Massachusetts and Vermont.
The new services include enhanced overnight and second-day delivery operations.
Meanwhile, New Penn said the new terminal was made necessary by its continued growth in the region over the past 15 years.
Arnold Industries is ranked number No. 36 and Arkansas Best No. 12 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release from New Penn.)
(Click here for the full press release from G.I. Trucking.)
Highways Receive Attention in Alberta
Highway construction will be the busiest ever in Alberta, Canada, as nearly $530 million is devoted to highway construction.The repairs and improvements come in response to more freight moving to trucks from trains and more new companies in the area, the Calgary Herald reported.
The north-south trade corridor, designed to move freight from Alberta into the United States, will receive $130 million worth of attention alone.
Transportation Minister Ed Stelmach stated the province’s rapid growth as the reason for the high 3.5% of the budget for the highways.
The new construction, almost 35% more than last year, has created a shortage in skilled workers, particularly heavy equipment operators and engineers. Transport Topics
EPA Holds Hearings on Clean-Air Policy
Before completing its recommendations for the President on August 17, the Environmental Protection Agency will hold public hearings in four cities as a restudy of the “new-source review” program which it has used to combat air pollution, the Wall Street Journal reported.Current laws require oil and energy manufacturing plants to apply state-of-the-art pollution-control technology if they make major improvements in a facility, allowing them to save money by quietly overhauling old equipment instead, which is a major concern of EPA.
Oil refinery and energy industries say the laws inhibit their installation of the more efficient equipment and expansion of production capacity.
Hearings set for Cincinnati on July 10; Sacramento, Calif. on July 12; Boston on July 17 and Baton Rouge, La. on July 20 will allow all interest groups to offer their opinions to EPA before the proposal is completed. Transport Topics
Fed Likely to Signal More Cuts
The Federal Reserve is expected to lower interest rates again when it meets later this week, and it is also likely to signal that additional reductions are possible because the economy is showing few signs of turning around, Bloomberg reported.Financial analysts who follow the trucking industry note that any rate cut can immediately reduce monthly interest expenses for some trucking operations, if they carry large floating-rate debt on their equipment.
Analysts told Bloomberg that the slump in manufacturing has deepened, as the latest figures on industrial production showed. Also, business investment in equipment and software may show a third straight decline in the second quarter, the first time that's happened in 18 years.
The Federal Open Market Committee starts its two-day meeting on Tuesday, and the Fed's policy-setting group is expected to announce its decision regarding any interest-rate change about 2:15 EDT on Wednesday. Transport Topics
American, TWU Reach Accord
American Airlines has reached agreement with the Transport Workers Union on a new three-year contract covering 15,000 aviation maintenance technicians and related employees.The agreement, announced Sunday, provides for immediate base pay raises of 8% to 22%, plus 3% raises in the second and third years of the contract. It is still subject to ratification by the union rank-and-file.
Because nearly 60% of air cargo flies in the bellies of passenger planes, any disruption in air traffic, such as strike if American’s negotiations had not produced an agreement, could push more cargo to trucks or force shippers that use an airline to seek alternative carriers.
Trucks might also benefit from airline shipping costs pushed higher by the wage agreement.
In a related development, Comair pilots have ratified a new five-year contract and will will go back to work July 2, with flights to 26 cities.
omair, which is owned by Atlanta-based Delta Air Lines, is headquartered at Cincinnati/Northern Kentucky International Airport and operates a hub at Orlando, Fla.Transport Topics
(Click here for the full press release.)
Isuzu Unveils New Hybrid Truck
Isuzu Motors Ltd. will introduce a small, hybrid truck with a diesel engine and battery-powered electronic motors to reduce fuel consumption, the Nikkei English News reported.The trucks, which could be unveiled as early as next year, emit 20% less carbon dioxide than standard trucks and will sell for 20% more than conventional diesel engine small trucks.
Isuzu, Japan’s third-biggest maker of commercial vehicles, is based in Tokyo and is 49% owned by General Motors Corp. Transport Topics
Hyundai, Daimler in Commercial Parts Talks
Hyundai Motor Co. said it is in talks with DaimlerChrysler (DCX) AG’s Detroit Diesel unit to establish a U.S. commercial vehicle parts distribution network, Bloomberg reported. The two companies have several ventures together, including ones to build commercial vehicles and truck engines.
Hyundai is seeking to replace Bering Truck Corp. as its U.S. commercial vehicle distributor after the deal was terminated.
Detroit Diesel had been an independent parts distributor for Bering and could do the same for Hyundai in the future. Transport Topics
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