P.M. Executive Briefing - June 26
This Afternoon's Headlines:
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Auto Industry Teams With Clean-Air Groups to Cut Sulfur in Diesel
Automakers will join environmentalists Tuesday to support tough federal restrictions on diesel's sulfur content, arguing that they need low-sulfur diesel in order to make low-emission, fuel-efficient passenger vehicles.The automotive industry will argue this at a Los Angeles hearing on the Environmental Protection Agency's heavy-vehicle emissions proposals, which
EPA estimates put the cost of this reduction at an extra 4 cents per gallon of diesel – refiners have estimated it at 10 cents – and the EPA says improved emissions systems will drive up the price of a truck by about $1,500.
While the proposal has won support from enginemakers, most oil refiners are against it, with California refiners being an exception. Los Angeles Times (06/26/00) P. 1C; O'Dell, John
U.S. Gasoline Price Increase Slowing, Survey Finds
Lundberg Survey publisher Trilby Lundberg said the rate of increase in U.S. gasoline prices slowed in the last two weeks, with prices still gaining in most cities but declining in some places. Among the places with lower prices are Chicago and Milwaukee, where a new reformulated fuel requirement caused a gasoline shortage that Lundberg says is now over.OPEC's agreement to boost production was not enough to keep prices from rising in most places. The city with the lowest price per gallon was Phoenix, while Chicago remained at the top despite falling slightly. CNN Online (06/25/00)
Las Vegas Trucking Show This Week Has Record Number of Exhibitors
Starting Wednesday and continuing into Friday, a record-breaking 700 exhibitors will be on hand to show off their newest wares to the anticipated 35,000 attendees expected at the International Trucking Show at the Las Vegas Convention Center.A spokeswoman for the California Trucking Association, which sponsors the show, said this year's may be the biggest yet.
She noted that some press reports had reported declining attendance at the Las Vegas show, but said attendance figures in 1999 showed no particular decline from previous years.
All original equipment manufacturers except Freightliner will have corporate exhibits at the show, she said, and Freightliner dealers will be present. Freightliner was also absent, as a corporate presence, at the 1999 show.
This year, the California Trucking Association has taken over sponsorship of the annual "truck beauty contest" formerly known as "Pride and Polish" and now called "Show and Shine".
On Tuesday, the day before the show opens, an anticipated 100 contestants in the "Show and Shine" competition will form a convoy down the famed Las Vegas Strip. Transport Topics staff
US&T Completes Sale of Midnite Express
Minneapolis-based United Shipping & Technology today said it has completed a sale of its Midnite Express unit to the original owner of Midnite Express. Terms of the deal were not disclosed.As part of US&T, Midnite Express operated as an independent subsidiary of Velocity Express, which until recently was known as Corporate Express Delivery Systems and was one of North America's leading same-day delivery and logistics companies.
However, Midnite Express marketed its services under its own name, and its main thrust was same-day delivery for the entertainment industry – primarily air and some ground operations.
US&T's announcement noted that "Midnite Express' niche in the same-day delivery industry was not a key fit within the core capabilities of Velocity Express," which will focus more on e-commerce deliveries. Transport Topics staff
High Costs Spur More Fuel Thefts, Labeling Schemes
Watch out for fuel thieves of various sorts in these days of rocketing fuel prices. Fueling stations reporting more incidents of drive-off fuel thefts, in which drivers pump and don't pay; this can of course drive up average fuel costs for the rest of us even more.However, the Los Angeles Times reports another type of fuel ripoff taking place. Thieves have been stealing regular gasoline, diesel and aviation fuel from government depots and reselling it. In a case that led to an indictment in April, a fuel station owner allegedly bought aviation fuel that was stolen from a Defense Department depot, and sold it to the public as diesel. Transport Topics staff
Despite Precautions, Alabama Plagued by Hazmat Spills
Because coastal Alabama is a chemical-transportation hub, the roadways in the area see a number of spills from trucks carrying hazardous materials – the Mobile Fire-Rescue Department sees about 50 a year, from minor leaks to explosive wrecks, says department spokesman Steve Huffman. Alabama's rate of deadly wrecks involving trucks is 11th among U.S. states, with 10 large crashes of hazmat trucks in Mobile County in 1998.In the last five years, hazmat trucks in Alabama have had federal safety violations in 15% of inspections. Federal Motor Carrier Safety Administration state director Judy Van Luchene says the number of trucks and lack of sufficient inspection officers makes it hard for the agency to keep tabs on all the hazmat transport in the state. Officers hold unannounced spot inspections just about every day, and Mobile city and county police conduct their own inspections on truck-heavy roadways.
Alabama Trucking Association director of safety Gene Vonderau says both drivers and shippers tend to be very conscientious and notes that hazmat carriers have to have special insurance, drivers have to inspect the trucks every two hours, and drivers are trained and certified before they can handle hazardous loads. Mobile Register Online (06/26/00); Cusick, Daniel
Fuel-Supply Company Finds That Bigger Is Better
Kent, Wash., fuel supply company PetroCard has seen its annual revenue increase to $100 million was since its 1997 founding.Founded by Tom Farr, who spent three decades in the banking industry, the company delivers fuel to customers, such as the trucking industry, in multiple ways. A self-service cardlock system is the primary method, enabling clients to purchase fuel from any Pacific Pride station; another technique uses large "tank wagons" to carry fuel to truck fleets' own locations. The company also has its own truck fleet hauling fuel to local storage tanks.
The future for PetroCard will include and larger Internet presence and more acquisitions, mostly in the Pacific Northwest. Puget Sound Business Journal Online (06/26/00); Robinson, Sean
Litigation Often Consequence of Accidents
Louisiana State Police Lt. Tim Sharkey and Sgt. Ronnie Mayeaux, along with several other experts, spoke to the National Tank Truck Carriers Safety Council's April meeting about the threat of lawsuits following truck accidents.Even though the motorists are at fault in 72% of crashes between commercial vehicles and passenger vehicles, truckers and trucking companies often face lawsuits – and even criminal charges – no matter who is to blame, they said. Sharkey called on safety council members to partner with the government to help teach the motoring public how to share the road.
John S. Hunter, of New Orleans law firm Courtenay, Forstall, Hunter & Fontana, said the type of charges that are filed can affect carriers' decision on whether they should hire criminal attorneys to represent their drivers. Because early matters, including statements at the accident scene, can affect later proceedings, carriers should assess criminal, administrative, and civil liability as early and as completely as possible and should train drivers ahead of time for such possibilities.
Attorney Wayne Mason said companies need to have a good incident program, including accident-scene procedures for company officials and adjusters. Collision Engineering Associates engineer Wes Grimes said companies should gather as much evidence as possible, including high-quality cameras and
ccurate measuring devices for measuring skid marks and other evidence.
Groendyke Transport safety director Steve Niswander says companies need to ensure that all employees know about the products and how to handle them. The company has a "Go Team" ready ahead of time for serious incidents, including an attorney, an engineering consultant, and a third-party insurance
dministrator. Modern Bulk Transporter (06/00) Vol. 62, No. 12; P. 44
Compiled by Transport Topics staff and INFORMATION, INC. © 2000