News Briefs - March 1
- Survey Says Highway Diesel Will Likely Meet ’06 Standards
- Missouri Senate Rejects Higher Diesel Tax, Truck Fees
- Mullen's Largest Shareholder to Sell 1 Million Shares
- Nation’s Mayors Fight for Road Funds
- Personal Spending Rises 0.4%; Tops Expectations
- OPEC Not Likely to Roll Back Cuts
- Volvo's January Sales Down 21% Worldwide
- Southern California Gasoline Prices Still Rising
- South Carolina Forces Trucks to Right Lanes
- NHTSA Proposes New Rules for Tires
- Air-Cargo Volume Shows Smaller Decline
- Wheel Maker Accuride Reports 4Q Earnings
- Rail Intermodal Up 7.7% in Week Ended Feb. 23
- Missouri Senate Rejects Higher Diesel Tax, Truck Fees
Survey Says Highway Diesel Will Likely Meet '06 Standards
There will be plentiful supplies of diesel fuel that meet regulations to cap sulfur content at 15 parts per million in 2006, a study commissioned by the Alliance of Automobile Manufacturers and the Engine Manufacturers Association said earlier in the week.Heavy-duty trucks are major users of diesel fuel and a possible shortage might dramatically increase the cost of providing trucking services.
The study, conducted by MathPro Inc., answers concerns that diesel fuel would be in short supply when the new ultra low sulfur diesel standards enacted by the Environmental Protection Agency go into effect in 2006.
"We are extremely pleased with the outcome of this in-depth study," said Josephine Cooper, president and chief executive officer of the AAM. "It carefully examined key technical, economic and market factors shaping U.S. refinery investment decisions and concluded that ULSD, which will be required by clean diesel vehicles, likely will be fully available across the U.S. in 2006 for consumers interested in this fuel- efficient technology." Transport Topics
Missouri Senate Rejects Higher Diesel Tax, Truck Fees
The Missouri Senate rejected higher diesel fuel taxes and trucking fees on Wednesday, saying it could drive trucking firms out of the state, the Associated Press reported.State Sen. Ken Jacob tried to add several trucking provisions as part of a transportation bill being debated, but all were defeated, AP said.
Jacob, who said that trucks cause $75 million more in damage to the state's highways than they pay in taxes, was aiming to raise the diesel fuel tax to 20 cents from 17 cents, commercial truck registration fees by 30% and commercial driver's license fees to $60 from $40 annually.
Jacob also unsuccessfully sought to lower the speed limit for heavy trucks to 65 mph on rural interstates and freeways, instead of the current 70 mph. Transport Topics
Mullen's Largest Shareholder to Sell 1 Million Shares
Mullen Transportation Inc., one of the largest Canadian trucking and logistics companies, said Friday that its major shareholder, Roland Mullen, intends to sell up to 1 million shares.Mullen, the founder of the company and a member of the board of directors, currently holds 2,920,000 shares, which equals 20.3% of the outstanding common shares. He will remain the major shareholder after the sale, the company said in a press release.
The company is publicly traded on the Toronto Stock Exchange. Transport Topics
Nation’s Mayors Fight for Road Funds
The nation’s mayors are lobbying Congress to restore at least a part of the massive chunk of transportation funding that was eliminated in President Bush’s proposed 2003 budget, U.S. Newswire reported Thursday.Bush’s budget slashes $9 billion, or 28%, from federal highway programs in 2003. Such a cut could hamper the ability of states and cities to properly repair and maintain their roads – poor roads contribute to wear and tear on heavy trucks and can delay shipments.
The U.S. Conference of Mayors, and other civic leadership organizations, said that every $1 billion of federal money invested in highway construction supports as many as 42,000 jobs.
The groups urged Congress to support the Highway Funding Restoration Act, which would increase funding for highway programs by $4.5 billion to $27.7 billion in 2003. The $27.7 billion figure was authorized in the Transportation Equity Act for the 21st Century, which was passed in 1998, U.S. Newswire reported.
"Continued economic growth requires strong transportation investment in cities,” Fort Worth, Texas Mayor Kenneth Barr told the House Subcommittee on Highways and Transit. “With TEA-21 reauthorization, you have the opportunity to permit us to respond better to both our responsibility to enhance quality of life and increase competitiveness in a world economy."
Barr’s prepared comments were available on the U.S. Conference of Mayors’ Web site. Transport Topics
Personal Spending Rises 0.4%; Tops Expectations
U.S. personal spending increased by 0.4% in January, its strongest performance since October, the Commerce Department said Friday. Personal incomes also rose 0.4%, and Commerce said that was the biggest rise in six months.Consumer spending accounts for about two-thirds of the nation's economic activity and an increase can create additional demand for new goods and the truck shipments that get them to stores.
The jump in spending to $7.2 trillion at an annual rate topped the analysts' expectations, both Bloomberg and Reuters reported. Analysts polled by Bloomberg had predicted a 0.3% rise, while those contacted by Reuters forecast a 0.1% increase.
Consumers cut spending on big-ticket items by 2.1% in January, but that was an improvement over the 3.7% reduction in December. However, spending on items such as food and clothes rose by 1.2% and spending on services jumped 0.5% for the second month in a row. Transport Topics
OPEC Not Likely to Roll Back Cuts
The head of the Organization of the Petroleum Exporting Countries said it is unlikely that his organization would increase production this year, Bloomberg reported.An increase in oil production could lead to lower prices for oil, and subsequently for refined products like diesel fuel and gasoline, which are used by commercial trucks.
OPEC Secretary-general Ali Rodriguez said a production increase is unlikely because the slow world economy is continuing to hurt oil demand. Rodriguez also said he was confident that Russia, the world's No. 2 oil exporter, would also maintain its current production levels, Bloomberg reported.
The news caused the future price of oil to gain as much as 30 cents, 1.4%, to $21.63 a barrel on the International Petroleum Exchange in London
The oil cartel and several non-affiliated oil producing states cut production on Jan. 1 in an effort to boost sagging oil prices. Transport Topics
Volvo's January Sales Down 21% Worldwide
Lower demand for heavy trucks in North America pushed sales of the world’s No. 2 truck maker down 21% during the first month of 2002, the Swedish company announced Friday.Volvo AB said it delivered 9,814 trucks in January, down significantly from the 12,435 the company sold in January 2001. In North America, sales plummeted 45% to 1,693 vehicles, while in Europe sales only fell off 19% to 6,633 units.
“We are very satisfied with the way Volvo's new heavy truck range has been received in the market,” said Leif Johansson, president and chief executive officer of the Volvo Group. “We had a weak month in North America, in particular within Mack, and today we do not see any indication of a recovery on the North American market." Transport Topics
(Click here for the full press release.)
Southern California Gasoline Prices Still Rising
The price of gasoline rose for the eighth consecutive week in Southern California and now stands at an average of $1.326 per gallon, the Automobile Club of Southern California said Friday.While the largest trucks run on diesel fuel, a significant portion of commercial trucking is carried out in smaller, gas-powered trucks.
The average price of self-serve regular unleaded gasoline in the Los Angeles-Long Beach area is currently $1.326 per gallon, That is 2.6 cents above last week's price, and 12 cents higher than last month, but still 26 cents below the price at this time last year.
In San Diego, the price rose 3.2 cents to $1.40, and drivers in the central coast are paying an average price of $1.410, which is 2.7 cents above last week's price. Transport Topics
(Click here for the full press release.)
South Carolina Forces Trucks to Right Lanes
The South Carolina Department of Transportation said Thursday tractor-trailers will have to use the two right-hand lanes on about 100 miles of interstate highways throughout the state, effective March 1.SCDOT Chairman L. Morgan Martin said in a press release that the new law "will make our highways safer for South Carolinians and visitors to our state."
Signs warning of the restrictions will be uncovered on Friday along portions of Interstate 26 in Berkeley and Charleston counties; I-85 in Greenville and Spartanburg counties; I-77 in York; I-20 in Lexington and Richland and I-77 in Richland. Transport Topics
NHTSA Proposes New Rules for Tires
The National Highway Traffic Safety Administration proposed new, tougher rules Thursday concerning the performance of tires on light trucks and passenger cards.NHTSA said it was looking for a substantial upgrade to the current high speed and endurance tests for new tires and a new test to assess likelihood of a tire failure as a result of hitting a pothole or other road hazard.
"In developing this proposal, NHTSA placed particular emphasis on improving tires to withstand the effects of factors mentioned during the consideration and enactment of the TREAD Act -- tire heat build up, low inflation and aging," said Dr. Jeffrey Runge, NHTSA administrator. "We have identified an array of amendments for revising and updating our tire standards and improving tire performance. Some would upgrade existing tests, while the others would add new ones."
The Transportation Recall Enhancement, Accountability and Documentation, or TREAD, Act was passed in 2001, in response to tire failures involving Firestone tires and the Ford Explorer. Transport Topics
(Click here for the full press release.)
Air-Cargo Volume Shows Smaller Decline
January produced the smallest decline in Air-cargo volume in six months, the Air Transport Association said Thursday, in another sign that the U.S. economy may be coming out of the recession.The Wall Street Journal reported that since the Sept. 11 terrorist attacks, some shippers turned more to trucks to move cargo in an attempt to save costs. Trucks are also used to deliver goods to and from airports.
The 9.3% decline in January marked the 12th consecutive drop, but it was not nearly as large as the 16.4% dip in December and was the smallest since July. Transport Tropics
Wheel Maker Accuride Reports 4Q Earnings
Accuride Corp., one of the largest manufacturers of truck wheels, reported earnings of $8.7 million in the fourth quarter of 2001, before taxes and other charges. This is up $300,000 from the Accuride's results for the same quarter of 2000, the company said Thursday.The Evansville, Ind.-based company had net sales of $71.4 million in final three months of the year, a decline from the $91.1 million in net sales the company declared in 2000.
The company said the decrease was largely due to the continuing "downturn of the heavy/medium commercial vehicle market." Transport Topics
(Click here for the full press release.)
Rail Intermodal Up 7.7% in Week Ended Feb. 23
Loadings of trailers and containers on the nation's railroads in the week ended Feb. 23 totaled 171,612, which was 7.7% ahead of the 159,377 loaded in the same period last year, the Association of American Railroads reported Thursday.Intermodal is the segment of the railroad business most directly competitive with long-haul trucking.
For the first eight weeks of 2002, trailers and containers loaded totaled 1,299,718, down 0.9% from the 1,312,068 loaded in the first eight weeks of 2001.
Container loadings in the single-week period were up 13.2% from last year, and up 2% in the eight-week period.
Trailer loadings were down 4.6% in the single-week period and down 8% in the eight-week matchup. Transport Topics
