Executive Briefing -- Sept. 14
- FAA Clears Some European Airlines
- ATA Kicks Off 'Operation Diesel Watch’
- Crude Oil Prices Soar in London
- Waste Management Companies Bid for Clean Up
- Restoring Manhattan Phone Service to Take Months
- Paper: Suspects Crossed U.S.-Canada Border With Ease
- Congress OKs $40 Billion on Relief
- Insurance Companies Gear Up for Claims
- Fed Banks Forced to Use Trucks for Deliveries
- ATA Kicks Off 'Operation Diesel Watch’
FAA Clears Some European Airlines
The Federal Aviation Administration on Friday said that 30 to 40 European airlines would be allowed to resume flights to the United States, Bloomberg reported.The move lifted the ban on trans-Atlantic travel that was enacted after Tuesday’s terrorist attacks.
Airlines including British Airways and Deutsche Lufthansa was expecting the ban to be lifted, and was making flight plans after implementing a series of new security measures now required by the FAA, according to Bloomberg.
Also Friday, CNN reported that Congress approved a $2.5 billion relief package for U.S. airlines to help them recover losses from the grounding that took place after the attacks.
(Click here for the full press release.)
ATA Kicks Off 'Operation Diesel Watch'
The American Trucking Associations kicked off “Operation Diesel Watch” on Thursday in the wake of the week’s terrorist attacks.As part of the effort to prevent price gouging, ATA is asking that state trucking associations begin monitoring all diesel prices and availability in their areas each day.
The information gathered by ATA will go to the White House. Transport Topics
(Click here for more information from ATA.)
Crude Oil Prices Soar in London
Crude oil rose more than 5% in London on Friday due to fears that retaliation by the United States to this week's terrorist attacks will disrupt oil supplies, Bloomberg reported.The price of crude affects the prices of diesel fuel and gasoline, which are two fuels that the trucking industry depends on to power its fleets.
Retaliation by the United States could undermine governments in the oil Middle East, which could send prices higher, Bloomberg said. But the Organization of Petroleum Exporting Countries has pledged to ensure U.S. oil supplies are maintained.
Brent crude oil prices for November settlement rose as much as $1.45 to $29.82 a barrel on the International Petroleum Exchange in London. Transport Topics
Waste Management Companies Bid for Clean Up
Waste Management Inc. and Republic Services Inc., two of the largest waste management companies in North America, are bidding on contracts for the removal of debris left after the collapse of the World Trade Center, Bloomberg reported.Waste Management has already sent its Atlanta-based emergency response group to New York, while Florida-based Republic Services is preparing equipment for the work.
John Skinner, chief executive officer of the Solid Waste Association of North America, said that more than one disaster recovery and disposal company will be hired for the clean-up, which is expected to take months.
More than 1 million tons of debris – the amount normally generated over 10 days in the U.S. – must be removed from lower Manhattan, Skinner told Bloomberg.
As of late Thursday, about 6,000 tons of debris had been removed. Tiffany Wlazlowski
Restoring Manhattan Phone Service to Take Months
Verizon Communications Inc., the primary phone provider in Manhattan, said that it will likely take months to completely restore telecommunciations service to the area, the Wall Street Journal reported.This could affect trucking companies in the area because many rely on cell phones and other technology to track and remain in contact with the trucks making deliveries.
Verizon said there was still a very high volume of calls, and damaged equipment was not able to process all of the calls. Transport Topics
Paper: Suspects Crossed U.S.-Canada Border With Ease
The Washington Post reported Friday that two suspects in Tuesday’s terrorist attacks crossed into the United States from Canada with ease.The U.S and Canada share the world’s longest undefended border. In the wake of the attacks, security at the U.S.-Canada and U.S.-Mexico borders has increased. In some cases, this has resulted in trucks being delayed for hours.
According to the Post, the suspects crossed into the United States from Canada at Coburn Gore, Maine. A third suspect may have crossed at Jackman, Maine, and a fourth may have arrived in Maine by ferry from Canada. Transport Topics
Congress OKs $40 Billion on Relief
Congress passed an emergency speding measure worth $40 billion for disaster assistance for New York, Virginia and Pennsylvania to mitigate the suffering caused by this week’s terrorist attacks.The money will come in two $20 billion tranches: one charged to the current federal fiscal year and the other to the year beginning Oct. 1, according to John Scofield, a spokesman for the House Appropriations Committee who spoke to Bloomberg.
President Bush will have some discretion on how to funnel the disaster relief through various federal programs. Congressional leaders said they would vote by Sept. 14.
If the relief money is used for rebuilding damaged property, there will be a need for trucks to haul supplies into place. Transport Topics
Insurance Companies Gear Up for Claims
The insurance and reinsurance industries are getting ready for what could be the largest pay out in history, Bloomberg reported.Munich Re, Swiss Reinsurance Co. and others may raise premiums in the wake of Tuesday’s terror attacks. An increase would likely be passed on to insurance companies, and subsequently to policyholders -- including trucking companies.
The largest previous pay out was Hurricane Andrew in 1992 at $19 billion. The devastation at the World Trade Center could easily double that, analysts said.
News services are also reporting that some insurance companies may dispute claims, invoking so-called “act of war” clauses. U.S. political leaders have referred to the terrorist attacks on the World Trade Center and Pentagon in such terms.
Many policies have clauses that exempted insurance companies from paying for damages inflicted during wartime, Bloomberg reported. Transport Topics
Fed Banks Forced to Use Trucks for Deliveries
The grounding of all airplanes this week due to Tuesday’s terrorist attacks has forced Federal Reserve banks to turn to trucks to assist in the transfer of cleared checks and special deliveries of cash, Bloomberg reported.Since the attacks, some banks that weren’t scheduled to receive cash placed special orders. Pat Barron, vice president of the Federal Reserve Bank of Atlanta, said that withdrawals from the bank have risen about 20% since Tuesday.
Barron also said he expected to begin transporting cash and paper again by air by Friday afternoon, but the Fed is preparing to continue using trucks if it is necessary. Transport Topics
