Executive Briefing - May 31
- AAR Reports Intermodal Loads Down 5.3%
- Volvo AB May Supply International Engines
- Some NTSB Recommendations Being Ignored
- BNSF to Begin New Intermodal Service
- Moody’s Cuts Dana’s Debt Ratings
- Economic Hopes Pinned on Tax Rebates
- President Names Customs Commissioner
- N.H. Bill Would Target Irresponsible Driving
- Volvo AB May Supply International Engines
AAR Reports Intermodal Loads Down 5.3%
Intermodal traffic on the nation's railroads continued to trail last year's performance, according to the Association of American Railroads.Railroading, like commercial trucking, is considered an important economic indicator. Intermodal traffic, which tends to be merchandise rather than bulk commodities, is more directly competitive with trucking and more reflective of the state of the economy.
The AAR said 170,182 trailers and containers were loaded in the week ended May 26, which was down 5.3% from the 179,725 loadings counted in corresponding week of 2000.
Trailer loadings were down 9.7% for the week, while containers were down only 3.3%. Part of this disparity can be attributed to weakness in the domestic economy, although intermodal use of trailers has been dropping, compared to containers, for years.
Volvo AB May Supply International Engines
Volvo AB (VOLVY) and International Truck and Engine (NAV) are negotiating a long-term agreement under which the Swedish company would supply 12-liter and 13-liter engines for International trucks.
Volvo AB, based in Gothenburg, Sweden, is parent company to Volvo Trucks North America and Mack Trucks, both competitors of International.
According to the two company’s press releases, the engines will be manufactured by Volvo’s Powertrain business unit, which has a plant in Skovde, Sweden, but would eventually be produced in the United States.
Volvo and International have signed a letter of intent, while negotiations proceed. Transport Topics
(Click here for the International press release.)
(Click here for the Volvo press release.)
Some NTSB Recommendations Being Ignored
Over the last 30 years, thousands of the National Transportation Safety Board’s recommendations have led to new laws and safer travel.However, other important recommendations have been ignored by the federal and state governments for years, the Associated Press reported.
ome of the recommendations affecting the trucking industry that have been ignored are:
- Install automatic data recording devices in trucks and buses. First proposed in 1997.
- Update regulations governing how long drivers can work. First proposed in 1990.
- Allow police officers to stop and ticket motorists solely for failing to wear their seatbelts, imposing both fines and points against a driver’s license. First proposed in 1996.
- Encourage all states to enact new drunken driving laws and prevent younger motorists from driving late at night. First proposed in 1999. Transport Topics
BNSF to Begin New Intermodal Service
The Burlington Northern and Santa Fe Railway Company (BNI) said that it will offer a new two-day intermodal service from Chicago, Ill. to San Bernardino, Calif., to complete more directly with trucking beginning next week.
"This new service is a direct result of listening to our most service-sensitive customers and providing them with a true competitive option to over-the-road transportation," said John Lucas, assistant vice president, Intermodal Direct Marketing.
The service departs Chicago early on Tuesday and Wednesday mornings and arrives in San Bernardino early on Thursday and Friday mornings. Transport Topics
(Click here for the full press release.)
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Moody’s Cuts Dana’s Debt Ratings
Vehicle parts maker Dana Corp. (DCN), whose debt ratings were cut to junk status on Wednesday by Moody's Investors Service, said that it plans to continue cutting costs as it struggles from sharp declines in light- and heavy-truck production.
On Wednesday, Moody's cut its senior debt ratings for Toledo, Ohio-based Dana to "Ba1," its highest junk grade, from “Baa3,” and the Dana entities' short-term ratings to “Not Prime” from “Prime-3.”
The downgrades affect about $2.4 billion of debt, Reuters reported.
Dana’s Chief Financial Officer Bob Richter said that the company has recently expanded its revolving credit facility by $250 million and reduced inventory by more than $100 million.
(Click here for the full press release from Dana.)
Economic Hopes Pinned on Tax Rebates
The Bush administration hopes the prospect of bigger-than-expected tax refund checks will turn the nation away from recession, the Associated Press reported.According to the reports, Treasury Secretary Paul O’Neill is applying pressure on Internal Revenue Service officials to speed up the timetable for mailing checks.
The current schedule calls for the first of an estimated 95 million checks to start showing up in late July, but the bulk of the mailings would not be completed until the end of September or later.
According to some private economists the rebates, which could be up to $300, could make the difference between continued growth and recession. Transport Topics
President Names Customs Commissioner
Robert C. Bonner will be nominated to become Commissioner of Customs at the Department of the Treasury, the White House announced Wednesday.As commissioner, Bonner will be involved in border policies, which is of great interest to the trucking industry.
Bonner is currently a partner with the law firm of Gibson, Dunn and Crutcher in Los Angeles.
Previously, he served as U.S. Attorney for the Central District of California during the Reagan administration and was appointed by former President Bush in 1989 to serve as a judge on the U.S. District Court for the Central District of California. Transport Topics
N.H. Bill Would Target Irresponsible Driving
A bill working its way through the New Hampshire legislature that would have targeted truck drivers who failed to remove snow from their vehicles, has grown to include all drivers who fail to drive responsibly, the Telegraph newspaper reported.The Senate Transportation Committee recently voted 3-0 to recommend the bill for a full vote in Senate after the House approved the legislation.
Although the bill does not identify a specific action that constitutes negligent driving, it would include anything that takes a driver’s attention away from the wheel including reading or drinking. It also would target drivers who fail to clean off ice from their roofs. Transport Topics
