P.M. Executive Briefing - July 21

Industrial Nations Call for Oil Price Relief

In G-7 terminology, this is strong language. Since these members are all from top oil-consuming nations, their call for greater stability in oil prices is aimed squarely at oil exporters.

The fear is two-fold: that rising oil prices could trigger inflation that would lead to higher interest rates, and that surging fuel prices alone can take a big bite out of consumer demand. Either way, economic growth would be at risk.

Boiler Makers Join ATA In Suit Against EPA

"It defies all logic that EPA can set air quality standards with complete disregard for how the standards will be implemented," said ABM in its brief filed July 21 before the high court.

The Supreme Court is expected to rule on whether EPA exceeded its authority and whether the federal agency must consider costs and technological feasibility questions as part of the air quality standard-setting process.

EPA has asked the court to determine whether the court of appeals, which ruled in ATA's favor, exceeded its jurisdiction in rendering its decision. John Wislocki, Transport Topics

Southern Calif. Air Quality Regulators Want Sulfur Cut Back By 2004

Where the federal Environmental Protection Agency has proposed a rule to reduce sulfur in diesel fuel by 2006, the South Coast Air Quality Management District wants it done by 2004 in the Los Angeles basin.

Opponents of the AQMD plan, which include the trucking industry, Gov. Gray Davis and officials for the California Air Resources Board, feel such a move would result in fuel shortages and higher prices. The want the AQMD to stay with the EPA proposal.

At its meeting Friday, the AQMD board scheduled a hearing on the proposal for Sept. 15. Transport Topics

Big Canadian Rail Lines to Share Track in Key Areas

Reuters reported that under a five-year agreement, CN will gain access to CP's lines in the U.S. Northeast, while a separate three-year deal lets CP use CN's route between Chicago and Toronto.

Shared tracks could boost the efficiency of both companies. That could allow each to carry more intermodal containers to connect with truck lines, while also competing more strongly against trucks for certain types of freight moves.

Late Thursday, CN and BNSF said they were calling off their merger plans, which would have created the largest-ever railroad in North America, after a U.S. appeals court last week upheld a U.S. regulatory moratorium on new rail mergers. Transport Topics

Intermodal Rose on Major U.S. Rail Lines Last Week

AAR surveys its member lines each week and separates the freight into various categories. The data gives a weekly snapshot of freight activity. Rail hauls of truck-driven trailers continued to slide significantly but the gain in rail loadings of more efficient containers gained enough to more than offset the trailer decline.

Trailers are in a long-term declining trend versus containers, but the steep 10.4% drop last week and 9.1% fall so far this year also reflects a slowing domestic economy. Container growth, however, captures a lot of the still-strong international trade. The railed container numbers were up 12.3% last week and 10.3% year to date. Transport Topics

Court Awards Truck Driver $3.5 Million In Blueberry Accident

Willie Terry of Ocala, Fla. has chronic back and neck pain and can no longer drive due to the accident, which happened two years ago in a Shaw's Supermarket warehouse in Methuen, Mass., his lawyer said in the article.

Terry was working between the two pallets of berries he had delivered when a warehouse forklift operator pushed the two together and trapped him between them. Terry's attorney said in the article that the forklift operator had admitted to not following Shaw's safety regulations, but also was never disciplined for the accident.

Terry is now on pain medication and can no longer drive a truck, his lawyer told the Herald. Transport Topics

Asbell Replaces Dial as Professional Transportation Group CFO

Dial, who was CFO since January 1998, resigned effective July 14 to "pursue other professional interests outside the motor carrier industry," and will consult the company on an "as needed" basis, the announcement said.

Since joining the Marietta, Ga.-based company in March 2000, Asbell has been vice president and general counsel, and was formerly a partner with Professional Transportation Group's outside counsel.

Professional Transportation Group Ltd. offers ground transportation and logistics services to the airfreight and trucking industries. Transport Topics

Aussie Protester's Truck Catches Fire, Thought to Be Work of Arsonist

No one was hurt but the truck's owner-operator, Nick Sztynda, told reporters he thought it could be the work of an arsonist, as he and other protestors had received threats.

Many Australian truckers are demonstrating in protest over lower freight rates, which has reduced their pay. The article said some owner-operators are working for an estimated $5 per hour. Transport Topics

Australian Officials Look to Improve Trucking Practices

The Australian Associated Press reported Friday that the NSW Motor Accidents Authority is conducting the inquiry. Trucking industry leaders hope this action will help create a code of practice for trucking on the eastern seaboard, the article said.

Law allows Australian truckers to drive 14 hours a day, six days a week, but some are driving 22 hours a day, according to the report. Evidence has also been found of wide-spread drug use. Transport Topics

Estes Will Open Center in San Juan

The new center will also boost Estes' service to the Caribbean islands of St. Thomas and St. Croix.

Estes also offers direct service to more than half the continental United States and all of North America through its ExpressLINK network. Transport Topics

Tanker Truck Explodes in R.I., No Serious Injuries

Esdras Rodas was speeding according to police when he lost control of the truck, which then rolled over. John Cifelli's car went through the spilled fuel and caught fire. The truck then exploded and fuel spilled into the nearby Pawtuxet River, the article said.

Rodas and Cifelli were both treated for burns at a nearby hospital and released, according to the Globe. The accident also caused some damage to a nearby overpass, police said. Transport Topics

Wisconsin DOT Studies Marquette Interchange

The interchange handles 300,000 vehicles daily and engineers say it needs to be rebuilt. Possibilities include expansion or a total renovation, the article said.

According to the WisDOT Web site, problems with the interchange include:

• deteriorating bridges,
• rusting steel reinforcing bars,
• deterioration in the surface concrete
• increasing maintenance costs and associated disruptions to traffic, and
• a high accident rate (well above the state average) due to inadequate design of exit/entrance ramps.