News Briefs - May 14
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The Latest Headlines:
- EPA Investigating Possible Pre-Buying, Tribune Reports
- FMCSA Toughens Safety Standards for New Carriers
- Colorado Bill Sets Up Toll Roads
- EGL Reports Net Loss of $3.9M
- Wabash Sees 1Q Loss Narrow
- Oil Prices Poised to Soar, Agency Warns
- Isuzu Denies Report It May Separate Diesel Unit
- N.D. Lawmakers Debate Speed Limits, Penalties
- NHTSA May Redefine Cars, Trucks
Teamsters to Vote on UPS Strike Authorization
Members of the Teamsters employed by United Parcel Service are expected to vote this weekend, possibly giving their leaders the authority to call a strike if necessary, Bloomberg reported Tuesday.
The results of the vote should be released next week, Bloomberg said. The union and UPS began talks Jan. 30. The current labor agreement, covering about 210,000 employees, expires July 31.
Negotiations are expected to take place next week and should include discussions on pay and other economic issues, Bloomberg said. Transport Topics
EPA Investigating Possible Pre-Buying, Tribune Reports
Caterpillar Inc. and Cummins Inc. have denied encouraging customers to “pre-buy” diesel engines before new emissions rules go into effect this October, the Chicago Tribune reported Tuesday.
he Environmental Protection Agency began an inquiry into the issue after receiving reports that some companies might be circumventing a 1998 consent decree requiring them to meet, in 2002, emission standards previously set for 2004.
A letter was sent to the engine makers involved in the consent decree asking if they have taken any action to encourage pre-buying.
A spokesman at Caterpillar, which has said engines that comply with the consent decree won’t be ready by Oct. 1, said the EPA itself is precipitating a pre-buy by refusing to delay implementation of the October target, the Tribune said.
He also said most large fleets say they haven’t had adequate time to field test the new engines.
Many fleet owners fear the new technology to be required on all engines sold after Oct. 1, will degrade performance, the Tribune said.
In April, Cummins received EPA approval for a new engine that complies with the new standards (Click here for related coverage.). Transport Topics
FMCSA Toughens Safety Standards for New Carriers
The Federal Motor Carrier Safety Administration said Monday that it has established new, stricter minimum requirements for new U.S. and Canadian motor carriers.
Starting next year, applicants will be required to demonstrate knowledge of safety regulations and undergo an on-site safety audit within the first 18 months of operations before receiving permanent operating authority.
In addition, new entrants will have to certify they will comply with requirements covering driver qualifications, hours of service, drug and alcohol testing, vehicle condition, accident monitoring and hazardous materials transportation.
Mexican carriers will be subject to similar application and safety monitoring procedures established by the FMCSA in March. Transport Topics
Colorado Bill Sets Up Toll Roads
An 11th-hour transportation bill passed by the Colorado General Assembly creates a new toll road authority in the state, paving the way for new toll roads in Colorado, the Denver Post reported.
The measure, which also transfers $11 billion from sales tax revenues into the state's Department of Transportation, is intended to raise $4 in toll revenues, pumping a total of $15 billion into road construction and transit projects over the next two decades, Gov. Bill Owens told the Denver Post last week.
The bill passed in the waning moments of the assembly's 2002 session on Friday.
Even before the bill passed, several private contractors were interested in building toll roads around interstates 25 and 70 near Denver, the Post said. Transport Topics
EGL Reports Net Loss of $3.9M
EGL Inc., the parent company of freight forwarder and logistics provider Eagle Global Logistics, reported a net loss on Tuesday for the first quarter of $3.9 million, or 8 cents per share, compared with a net loss of $9.1 million, or 19 cents per share, in the year-earlier period.
Excluding one-time charges, EGL's net income would have been $412,000, or 1 cent per share.
Net revenues declined 3% due to continued weakness in the U.S. and Asian economies, the Houston-based company said in a release. However, operating expenses were down 8% compared with the first quarter of 2001.
(Click here for the full press release.)
Wabash Sees 1Q Loss Narrow
Truck trailer maker Wabash National Corp. said Monday that its first-quarter loss narrowed to $14.6 million, or 65 cents per share, compared with $17.7 million, or 79 cents per share, a year earlier.
Net sales for the quarter was $162 million, down 33% from last year.
The Lafayette, Ind.-based company credited the effects of their restructuring over the past nine months for the improved results.
Wabash designs, manufactures, and markets truck trailers under the Wabash and Fruehauf brands.
(Click here for the full press release.)
Oil Prices Poised to Soar, Agency Warns
The International Energy Agency predicted Monday that production curbs and shrinking inventories could send oil prices soaring, perhaps to the 1999 level of more than $35 a barrel, Reuters reported.
The prices of diesel fuel and gasoline, both used by trucks, tend to track closely with fluctuations in the price of oil.
The IEA warned that current production by the Organization of the Petroleum Exporting Countries, which fell in April to its lowest level since June 1993, could cause stocks to fall dangerously low by September.
The price in Asia for U.S. light crude rose to $28.66 a barrel Tuesday, Reuters said, extending a 39-cent rise seen Monday on the New York Mercantile Exchange.
Weekly U.S. fuel stocks figures due to be released later on Tuesday by the American Petroleum Institute are expected to show a drop in national crude inventories of about 2.5 million barrels. That would take levels into a year-on-year deficit for the first time in 2002, Reuters said. Transport Topics
Isuzu Denies Report It May Separate Diesel Unit
Isuzu Motors Ltd., the Japanese truck maker controlled by General Motors Corp., denied a published report that it may place its diesel engine unit into a joint venture as part of its reorganization plan, Bloomberg reported Tuesday.
A newspaper in Japan had reported that Isuzu plans to separate the unit into a venture with GM, but a spokesman said Isuzu is not considering splitting off the diesel unit.
The paper also noted that Isuzu will look for another alliance partner for its truck unit. Possible partners include General Motors affiliates, Fiat SpA's truck division Iveco SpA and Hino Motors Ltd.
Although the truck maker is cutting its group workforce by a third, closing a plant and selling its headquarters, GM may want more cuts, Bloomberg said. Transport Topics
N.D. Lawmakers Debate Speed Limits, Penalties
A measure in the North Dakota legislature to overhaul speeding fines is being separated from another proposal to stiffen the point penalties against drivers who speed, the Associated Press recently reported.
Speeding fines and points are usually included in the same legislation, but dividing them will allow lawmakers to favor higher fines while opposing a point increase, AP said. There are concerns that point changes could have too large an affect on insurance premiums.
tate lawmakers are also considering several proposals involving the speed limits in the state. Transport Topics
NHTSA May Redefine Cars, Trucks
The National Highway Traffic Safety Administration may change the definitions of car and truck for fuel-economy purposes, Dow Jones reported Tuesday.
Currently, sport-utility vehicles, minivans and various car-truck hybrids are classified as trucks, the news service said, which allows them to be heavier, more powerful and less fuel-stingy than vehicles classified as cars.
The light trucks made by a manufacturer must average about 20.7 miles per gallon under present rules, while the cars made must average at least 27.5 miles per gallon.
If some vehicles now called trucks by NHTSA are reclassified as cars, averages would change for the worse. Transport Topics
