Executive Briefing - Nov. 16
- Atlanta Flights Resume After Security Breach
- Congress Passes Aviation Security Bill
- Unions Join Chamber of Commerce Transportation Coalition
- Texas Braces for More Heavy Rains
- Ford, Navistar Joining to Build Vans
- Stimulus Package May be Too Late, Economists Say
- Rail Intermodal Gains 0.2% in Weekly Matchup
- Hoffa Sees Signs of Recession
- Amtrak Financial Picture Worsens
- Volvo Truck Chief Sees Cuts, Weakening Demand
- Ford Scraps SUV Hybrid Engine, Paper Says
- ArvinMeritor to Cut 500 Salaried Jobs
- Congress Passes Aviation Security Bill
Atlanta Flights Resume After Security Breach
Hartsfield International Airport in Atlanta was reopened on Friday afternoon while officials searched for a man seen running past a guard, Reuters reportedThe white male, who had still not been captured late Friday afternoon, had been spotted on a security film.
Authorities evacuated up to 10,000 people and closed the airport to arrivals and departures for several hours. Planes at other airports which were bound for Atlanta were forced to remain on the ground. Transport Topics
Congress Passes Aviation Security Bill
The U.S. House of Representatives passed the new aviation security bill by a 410-9 margin Friday, just hours it was approved by a voice vote in the Senate, news services reported.
As part of the legislation, all airport baggage screeners are brought under federal management, the Associated Press reported. On Thursday, House and Senate negotiators reached tentative agreement on the legislation.
Although the two sides had been in agreement on many parts of the bill, such as fortifying cockpit doors, increasing air marshals on flights and screening check-in bags, House Republicans had disagreed with the Senate’s approach of making screeners federal workers similar to customs or immigration officials.
The compromise accepts the Senate approach with regard to screeners, but adopts nearly all of the other House provisions, AP said. Transport Topics
Unions Join Chamber of Commerce Transportation Coalition
The U.S. Chamber of Commerce has brought two major labor unions into its Americans for Transportation Mobility coalition, the group announced Friday in a press release.The Laborers' International Union of North America and the International Union of Operating Engineers have both agreed to join the broad-based coalition of labor and transportation groups headed by the Chamber.
"We cannot take our transportation system for granted anymore because of the critical role it plays in providing mobility for our citizens, ensuring our national defense and driving our economy," the Chamber said in its release. "Our nation's highways, railroads, airports, ports and inland waterways drive our economy, enabling other industries to achieve the growth and productivity that has made America strong and prosperous."
The ATM coalition was launched in June 2001 by the Chamber of Commerce. Thomas J. Donohue, president and chief executive officer of the Chamber, headed the American Trucking Associations prior to taking the position at the Chamber. Transport Topics
Texas Braces for More Heavy Rains
exas is bracing for at least one more day of heavy rain storms, which have already claimed three lives and flooded many roads throughout the state, news services reported.
In Austin, firefighters had to rescue many stranded motorists from cars on streets, and more than 13 inches have fallen the around the San Antonio area since Wednesday. Rainfall records were set this week in both cities.
The storms also spawned several tornadoes, including one in Buda, about 10 miles south of Austin. An 18-wheeler overturned and traffic was backed up for miles on Interstate 35, the state's main north-south route. Transport Topics
Ford, Navistar Joining to Build Vans
Ford Motor Co. and Navistar International Corp. will join to build commercial and heavy-duty vans, Stark’s News Service Interactive said.The two companies had formed a joint venture in August to build medium-duty trucks, but now they envision models that would compete with the Fiat SpA’ s Iveco and the Sprinter offered by Freightliner.
Stark’s said the chassis would be developed by Ford, the cabs from Ford affiliate Mazda Motor Corp. and V-6 diesel engines by Navistar. Transport Topics
Stimulus Package May be Too Late, Economists Say
With Congress deadlocked over the approach to economic stimulus legislation, some economists are saying the package – however it turns out – is already too late, Reuters reported.Diane Swonk, chief economist at Bank One Corp., told Reuters that the package should have been done by now. Instead, it is being stymied by Republicans pushing chiefly for corporate tax breaks and Democrats seeking more aid for low income and unemployed people.
Mark Zandi, an economist at Economy.com, said the package cannot stimulate the economy for the upcoming holiday season. He and others also noted that the congressional proposals do not include aid to states, which badly need it because since the attacks they have had to spend huge amounts of funds and face a falloff in tax revenue.
Swonk also pointed out that financial markets both at home and abroad have priced in the government aid, lessening its impact when it finally comes, Reuters said. Transport Topics
Rail Intermodal Gains 0.2% in Weekly Matchup
Railroad intermodal loadings during the week ended Nov. 10 totaled 187,645, which is a gain of 0.2% over the loadings in the corresponding week last year, the Association of American Railroads reported.For the year-to-date, loadings of trailers and containers totaled 7,799,674 which was 2.8% below the 8,021,585 loaded in the first 45 weeks of 2000.
Intermodal is the segment of the railroad business most directly competitive with long-haul trucking. It uses rail cars to move trailers and containers over the long-haul and trucks for short-haul pickup and delivery on either end.
As has been the case most of the year, container loadings outstripped trailer loadings by a big margin. In the week of Nov. 10, container loadings ran 4.3% ahead of last year, while trailers were 8.6% behind.
For the year-to-date, container loadings of 5,530,925 were 0.6% above the comparable 2000 figure, while trailer loadings of 2,268,749 were down 10%. Transport Topics
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Hoffa Sees Signs of Recession
Teamsters President James P. Hoffa said that he sees signs that the U.S. economy is already in a recession, the Associated Press reported. Empty trucks and laid-off drivers that normally would be delivering Christmas merchandise are clear indications of the economy's struggles, he told AP.
He also noted that Teamsters members include workers at rental car companies, airlines and other travel-related fields. They too are suffering from the gloomy economy. Transport Topics
Amtrak Financial Picture Worsens
The slowing U.S. economy and high security costs has forced Amtrak to put off maintenance, mortgage assets and use capital funds on operations, according to the Amtrak Reform Council. This group voted last week to issue a finding that Amtrak won't meet a congressional deadline for self-sufficiency. And the Wall Street Journal reported that Amtrak's financial performance is only getting worse.
At a news conference this week, Thomas Till, executive director of the Amtrak Reform Council, called the railroad a case study in how not to build a company, the WSJ said.
Amtrak gets 43% of its revenue from non-passenger business and has recently been hauling more freight to try to increase revenue. Transport Topics
Volvo Truck Chief Sees Cuts, Weakening Demand
The head of Volvo AB's (VOLVY) truck division said the company will have to cut jobs and expenses in the face of continued weak demand for heavy trucks, Bloomberg reported Friday.Jorma Halonen said the company expects the market for trucks to decline by as much as 15% in Europe next year, and as a result, must cut jobs and costs.
The Swedish company has already trimmed 5,200 workers from its payroll this year. Rivals DaimlerChrysler AG and MAN AG have also cut jobs this year.
The slowing global economy has hurt demand for shipments of goods and, subsequently, demand for trucks. Transport Topics
Ford Scraps SUV Hybrid Engine, Paper Says
Ford Motor Co. has shelved plans to use a hybrid gasoline-electric engine in its popular Explorer sport-utility vehicle, the Detroit Free Press reported Friday.The plan was abandoned after tests showed that fuel efficiency was only increased by 5% to 10%. The No. 2 automaker also cited the expense involved and the company's tight financial situation as reasons for the move away from the hybrid.
A small amount of commercial trucking is conducted with SUVs and vans; a hybrid engine could be useful to the industry because of increased fuel efficiency. Transport Topics
ArvinMeritor to Cut 500 Salaried Jobs
ArvinMeritor Inc., a leading maker of heavy truck axles, announced that it would eliminate as many as 500 salaried positions, Bloomberg reported.The company, which reported a fourth-quarter loss Thursday, said the cut would amount to about 1.5% of its global workforce of 33,000.
A company spokeswoman said that the cut would cost the company $15 million in the fiscal first quarter of 2002, which ends Dec. 31.
The Troy, Mich.-based company supplies a broad range of systems and components for car, truck and trailer markets, as well as products like filters and shock absorbers. It announced previously that it plans to close a plant in Utah that makes air and oil filters at the cost of 175 jobs. Transport Topics
(Click here for more on ArvinMeritor's earnings statement.)
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