News Briefs - June 28
The Latest Headlines:
- TRALA Claims EPA Misrepresented Position
- Hutchison Suggests Amtrak Haul More Freight
- Atlas Air, Union Reach Contract Deal
- Personal Spending Down 0.1% in May
- Mexico to Keep Oil Shipments Unchanged in 3Q
- 1st-Class Postage Rising to 37 Cents
- Container Loadings Set Single-Week Record
- Oshkosh's Stock to Trade on NYSE
- Hutchison Suggests Amtrak Haul More Freight
TRALA Claims EPA Misrepresented Position
The Truck Renting and Leasing Association said it has accused the Environmental Protection Agency of misrepresenting its position on the pre-buying of trucks to avoid the Oct. 2002 deadline for emissions reduction.In a letter dated June 27, TRALA President and Chief Executive Officer Peter Vroom said a meeting with EPA on June 12 had been grossly misrepresented by the government, when the Justice Department declared that “TRALA had advised EPA that its members do not intend to pre-buy or hold trucks longer than normal.”
But Vroom complained about any impression that his members' purchasing patterns might not be affected by the EPA process. Instead, he said there is little question that the 15-month pull-ahead of the deadline to Oct. 2002 will have a negative impact on the truck renting and leasing industry.
Hutchison Suggests Amtrak Haul More Freight
Sen. Kay Bailey Hutchison (R-Texas) said Thursday that Amtrak, the nation’s troubled passenger rail system, should haul more freight as a way to pull itself from the brink of financial ruin.Speaking at a joint Senate committee hearing, Hutchison said “we need to look at revenue sources from the freight side.”
She added that supplementing income with freight would be one way to maintain cross-country service and hauling more packaged freight would be a way to increase revenue.
The rail service has been losing money at a rate of $500 million a year, according to government data. The Department of Transportation is working to provide Amtrak with $270 million in loans and federal appropriations to keep it afloat until the end of the fiscal year. At that point Congress and the Bush administration hope to implement a plan that will enable Amtrak to continue to operate over the long term.
At present, the rail line is more than $1 billion in debt, according to DOT Inspector General Kenneth M. Mead. Daniel L. Whitten
Atlas Air, Union Reach Contract Deal
Airfreight carrier Atlas Air Inc. and its union continued bargaining 90 minutes past a midnight strike deadline Friday and reached a tentative deal on a new contract, Bloomberg reported.Air cargo is often transferred to trucks at airports, so any potential disruption in air traffic can carry over to trucking.
The two sides did not comment on the terms of the deal that ended 26 months of negotiations and averted a strike, Bloomberg said.
Atlas is the largest handler of airfreight for other airlines, Bloomberg reported. Transport Topics
Personal Spending Down 0.1% in May
U.S. personal spending decreased 0.1% in May, the first drop in six months, while personal incomes rose 0.3%, the Commerce Department said Friday.A decline in consumer spending, which accounts for about two-thirds of the nation's economic activity, could reduce demand for new goods and the truck shipments that get them to stores.
Despite the spending dip to $7.33 trillion at an annual rate, Bloomberg said this may reflect little more than a pause as the economy recovers because there have been signs June sales are going to be stronger.
Bloomberg said Wal-Mart Stores Inc. and several other retailers have announced stronger June sales.
Commerce said the decrease was in large part due to consumers buying fewer vehicles in May. Economists had expected no change in spending after a previously reported 0.5% increase in April, which was revised to 0.2%. Transport Topics
Mexico to Keep Oil Shipments Unchanged in 3Q
Following the lead of the Organization of Petroleum Exporting Countries, Mexico said Friday that it would keep its oil exports unchanged in the third quarter, Bloomberg reported.Crude oil is distilled into diesel fuel and gasoline, so when its supply is altered, often times the price of those fuels changes as well.
The Organization of Petroleum Exporting Countries voted Wednesday to maintain their export limits through the third quarter.
Mexico, the No. 3 non-OPEC oil exporter in the world, said that the decision was based on “national interests and the performance of the oil market,” Bloomberg reported.
Russia and Norway, the only non-OPEC countries that are ahead of Mexico in oil production, have said they plan to boost their output in July, Bloomberg reported. Transport Topics
1st-Class Postage Rising to 37 Cents
First-class postage stamps will cost 37 cents, up from 34 cents, starting this Sunday, the Associated Press reported Friday.The cost of mail affects all business and, in addition, trucking companies like UPS and FedEx often compete with the U.S. Postal Service for business.
The company reported losses of $1.6 billion last year, AP said.
Other increases that go into effect Sunday are priority mail, up 35 cents per pound to $3.85; express mail up $1.20 for 8 ounces to $13.65; certified mail up 10 cents to $2.30 and a signed return receipt up 25 cents to $1.75, AP said.
The story said the Postal Service has printed 3-cent stamps that can be used with old 34-cent stamps. Transport Topics
Container Loadings Set Single-Week Record
The nation's railroads set an all-time record for container loadings in the week ended June 22, the Association of American Railroads reported Thursday.In all, the railroads loaded 142,455 containers, breaking the record of 141,144 set June 8. Also loaded were 48, 561 trailers, bringing total intermodal loadings for the week to 191,016, which was 9.5% above loadings in the comparable period of 2001.
Intermodal is the segment of the railroad industry most directly competitive with long-haul trucking.
For first 25 weeks of the year, total intermodal loadings came to 4,364,864 up 4% from the 4,198, 345 loaded in 2001. Transport Topics
Oshkosh's Stock to Trade on NYSE
Oshkosh Truck Corp. said Thursday its common stock will begin trading on the New York Stock Exchange under the new ticker symbol OSK on July 12.The manufacturer of defense and commercial trucks and truck bodies has been listed on Nasdaq under the symbol OTRKB since its initial public offering in 1985.
Oshkosh's stock value has risen more than 500% over the past five years, the company said.
Robert Bohn, chairman, president and chief executive officer, will ring the opening bell at the NYSE on July 12, the company said in a release. Transport Topics
(Click here for the full press release.)
