News Briefs - Dec. 6
- Bioterror Bill Introduced in House
- Runge Sees Better Fuel Efficiency in 2005 Models
- N.Y. Fed President Not Sure Worst Is Over
- Up to 30 Feared Shot at Indiana Factory
- OPEC Seeks Big Oil Output Cuts from Non-Members
- Hayes Lemmerz Files for Bankruptcy
- DOT Extends Comment Period on Hazmats
- Decision on LTV Steel Delayed
- Possible Rebound Seen in Manufacturing
- DOT Launches Web Design Contest
- German Tire Maker to Cut 4,000 Jobs
- Canadian National Opens Memphis Facility
- British Market to Power Trucks With Biodiesel
- Runge Sees Better Fuel Efficiency in 2005 Models
Bioterror Bill Introduced in House
A $3 billion, bipartisan anti-bioterrorism bill was introduced into the House of Representatives, Reuters reported Thursday.The bill, prompted by the Sept. 11 terrorist attacks and subsequent anthrax mailings, is aimed at boosting preparedness against a potential bioterrorist event. The bill was presented by Reps. Billy Tauzin (R.-La.) and John Dingell (D-Mich.) as members of the House Energy and Commerce Committee, Reuters said.
A similar, but not identical bill, has been introduced into the Senate by Sens. Edward Kennedy (D-Mass.) and Bill Frist (R-Tenn.).
Under the House plan, the funds would be divided between immunization programs, stockpiling of medi-cines, research and education. A vote on the bill could come as soon as next week, Reuters said. Transport Topics
Runge Sees Better Fuel Efficiency in 2005 Models
Jeffrey Runge, head of the National Highway Traffic Safety Administration, said Thursday that the first significant mandatory improvements in fuel efficiency for light trucks in a decade are likely to come in the 2005 model year, Reuters reported.Runge told the Senate Commerce Committee there is not enough time left for considering big changes to model year 2004 vehicles, which will hit showrooms in late 2003. Results of fuel-economy tests are still being studied, he said, so he declined to recommend specific changes to the fuel economy law.
Light trucks are used in a wide variety of trucking applications, especially among utility fleets and other service-oriented businesses.
Some automakers are concerned that new standards could result in vehicles that are too expensive and that lightening vehicles to make them more efficient could compromise safety. Transport Topics
N.Y. Fed President Not Sure Worst Is Over
New York Federal Reserve President William McDonough said Thursday that he does not know whether the worst is over for the U.S. economy, Reuters reported.Speaking to the 2001 Financial Services Leadership Forum, he said he is not convinced yet that the downturn has hit bottom, although there have been some encouraging signs of late.
McDonough did say that when the recession does end, the U.S. economy should be able to grow at an annual rate of around 3.4% percent without spurring inflation.
The Federal Open Market Committee is scheduled to meet next Tuesday, and is expected to cut short-term interest rates for the 11th time this year. Transport Topics
Up to 30 Feared Shot at Indiana Factory
As many as 30 people were feared shot Thursday afternoon at a simulated wood factory in Goshen, Ind., about 100 miles east of Chicago, news services reported.No fatalities were immediately reported at the Nu-Wood Decorative Millwork building and authorities were still looking for a gunman who may have been a disgruntled employee.
The area around the factory has been closed off and work inside has stopped while victims are treated and the search for the gunman continues. Transport Topics
OPEC Seeks Big Oil Output Cuts from Non-Members
Officials of the Organization of the Petroleum Exporting Countries continued Thursday to lobby non-cartel members to join them in making sizeable production cuts in the effort to lift world oil prices, Reuters reported.In London, Brent blend slipped 12 cents to $19.10 a barrel, while U.S. light crude eased two cents to $19.47. OPEC has warned that the world price could fall below $10 a barrel, as it did in 1999.
The cartel is seeking cuts totaling 500,000 barrels per day from such producers as Norway and Mexico. Russia, after some initial reluctance, agreed Wednesday to reduce production by 150,000 barrels a day. That reduction from non-members would trigger a 1.5 million barrel per day cut from OPEC starting next year.
A reduction of two million barrels daily between OPEC and non-OPEC would slice by about 6% supplies from 15 countries that account for some 60% of world production, Reuters said.
OPEC now hopes Norway will match the Russian cut, and the oil minister of Norway told Reuters that a cut of 150,000 bpd seems natural. However, no official announcement was expected from Norway until Friday.
If Mexico then raised its existing offer of 100,000 to a 120,000 bpd reduction and Oman and Angola reduced by 50,000 bpd and 30,000 bpd, respectively, the 500,000 bpd goal would be reached. Transport Topics
Hayes Lemmerz Files for Bankruptcy
Commercial highway wheel manufacturer Hayes Lemmerz International Inc. is filing for Chapter 11 bankruptcy protection, the company said in a release late Wednesday.The Northville, Mich.-based company said the filing would only impact its operations in the United States and one Mexican subsidiary. The filing is intended to help the company better manage its debt and restructure its balance sheet, Curtis Clawson, chairman and chief executive officer, said in a statement.
"The overburdened debt structure arose from a number of recent developments, including a slow down in industry demand, a more challenging operating environment, and a series of cash acquisitions," Clawson added.
In addition to wheels, Hayes Lemmerz supplies brakes, powertrain, suspensions and other lightweight components. Transport Topics
(Click here for the full press release.)
DOT Extends Comment Period on Hazmats
The U.S. Department of Transportation's Research and Special Programs Administration has extended its comment period on proposed regulations relating to hazardous material transport, loading, unloading and storage.In a statement released Thursday, the DOT said it was extending the deadline, which was previously Nov. 30, to Feb. 1, 2002 as a result of the disruption caused by the terrorist attacks of Sept. 11.
"Mail operations have been significantly disturbed in recent weeks due to terrorist activities," said RSPA Administrator Ellen Engleman. "Not only do we want to provide commenters sufficient opportunity to submit their issues in response to delays they have encountered; we also want to ensure that we receive and evaluate as many comments as possible." Transport Topics
Decision on LTV Steel Delayed
U.S. Bankruptcy Judge William Bodoh has put off any decision on the future of LTV Corp's steel business until at least Friday, the Associated Press said.On Wednesday, the company had asked for permission to stop producing steel while a broader motion to shut down the mills and sell off the company's assets was still being considered. Officials say the steel currently being produced is only increasing the company's losses, AP reported.
Finished steel is often carried by truck, so reduced production would hurt freight demand.
LTV, which is the nation's third-largest integrated steel company, filed for Chapter 11 protection under bankruptcy laws in Dec. 2000. If the company shuts down, about 7,500 employees would lose their jobs. Transport Topics
Possible Rebound Seen in Manufacturing
After one of the roughest years in recent economic history, the manufacturing sector is beginning to show signs of recovery, the Wall Street Journal reported Thursday.The article cited Monday's release of the National Association of Purchasing Management's factory index, among other indicators, such as orders for durable which were up 12.8% in October.
The Journal said that the manufacturing sector may have bottomed out and is on the way back up.
Manufacturing is a key sector for the trucking industry, which relies on orders and deliveries from stores for much of its business.
The Journal said that a rebound in the manufacturing sector could be the key in starting an economic turnaround. Transport Topics
DOT Launches Web Design Contest
The U.S. Department of Transportation is inviting high school students across the country to design a Web site that will introduce other students to careers in transportation."It is crucial that we help encourage America's young people to examine the many career opportunities available in transportation," said Transportation Secretary Norman Mineta. "Good transportation is a powerful economic engine, so America's continued prosperity and economic growth in this century depend on the skill, vision and talent of today's students."
The theme for the contest is "Exciting Career Opportunities in Transportation," and will be open to high schoolers through March 15, 2002. Winners will be announced in April of that year. Transport Topics
German Tire Maker to Cut 4,000 Jobs
Continental AG plans to lay off 4,000 workers Reuters reported Wednesday. The German tire manufacturer said that the layoffs would all take place outside of Germany.Continental, the world's fourth largest maker of tires, said that it planned to close facilities in Austria, Sweden and Mexico. Some of Continental's factories operated by its U.S. subsidiaries, Teves and Temic, may also be shut down, the news wire said, citing a German newspaper.
The company has set $71 million aside to cover the costs involved with closing the factories, Reuters said. Transport Topics
Canadian National Opens Memphis Facility
Canadian National Railway Co. on Wednesday opened its new intermodal distribution center in Memphis, Tenn.Intermodal is the part of the rail business that is directly competitive with long-haul trucking. However rails often form alliances with trucking companies to provide the short-haul service from the rail head to destination.
Built at a cost of $5 million, the 60,000-square foot facility is equipped to handle rail-to-truck transfers of a wide variety of commodities, although main focus is on paper products, the company's press release said.
The center also features a 20-car lumber and metals transfer area and a 48-car plastics transfer area. Transport Topics
(Click here for the press release.)
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British Market to Power Trucks With Biodiesel
A British supermarket chain said Wednesday it will use chicken waste and used cooking oil to power its delivery trucks, Reuters reported.The company, called Asda, said it produces about 36,000 gallons of chicken waste and cooking fat, which will be transformed into biodiesel and used to fuel delivery trucks starting in April 2002.
The waste and oil will undergo a process called esterification, in which hydro and carbon molecules are altered, yielding a product similar to diesel oil, a company spokesman said. Transport Topics
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