P.M. Executive Briefing - June 28
This Afternoon's Headlines:
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Go Ahead and Celebrate; the Fed Kept Interest Rates Steady
As expected, the Federal Reserve today announced that at least for now it is no longer pushing short-term interest rates higher, although of course it also warned that it is still on alert for potential inflation pressures. That was also expected.That means those rates to borrow for new equipment may have peaked, and the interest-rate pressure that has already been weighing down some trucking-related business profits may have plateaued.
FTC Issues Subpoenas in Midwest Fuel Price Investigation
Subpoenas have been issued to oil refiners, pipeline owners and operators, terminal owners and operators along with a number of other plant owners as part of the Federal Trade Commission's investigation into spiraling fuel prices in the Midwest, Reuters reported today.FTC Chairman Robert Pitofsky told the House Commerce Committee today that the investigation will be "thorough, objective and as expeditious as possible" in determining if the recent fuel price spike was the result of illegal practices.
Gasoline prices in the Midwest have gone from $1.85 to $2.50 per gallon, Reuters reported. Diesel fuel, with an average price of $1.44 per gallon, has not seen as dramatic an increase in the Midwest. But the region still has among the highest diesel prices in the nation. Transport Topics staff
If Your Truck Hauls for Air Canada, Stay Tuned
Pilots of Air Canada could strike as soon as Saturday night, and that could not only disrupt trucking of airplane belly freight for that airline but could throw an extra load onto many others.Reuters has reported that Air Canada pilots voted Monday to authorize a strike against the dominant Canadian carrier over wage and pension demands, but the union was waiting until after a meeting today with the airline before deciding whether to issue a strike notice.
It has happened before. A 1998 Air Canada strike lasted 13 days, Reuters said.
Air Canada is so big that it could affect a number of U.S. airports as well as those in Canada, and have a sizable impact on air cargo as well as passengers in busy hubs like Chicago. Whenever any major carrier is shut down, freight shippers scramble for alternative belly space, and truckers have to scramble along with them. And Canada is the largest trading partner with the United States. A scramble for belly space could cause more shippers to load freight into over-the-road trucks to cross what is already a heavily traveled series of border crossings like that connecting Detroit with Windsor, Ont.
Reuters noted that a key collection of Canadian shippers – the Alliance of Manufactures and Exporters Canada – has called on the federal transport minister to make sure the airline keeps flying because it is an essential service with no viable alternative. But so far there were no plans to introduce legislation on this issue. Transport Topics staff
Schneider National to Provide Inland-U.S. Transport Links for Fastship
The largest U.S. truckload carrier, Schneider National, will provide key logistics support including complete rail and truck cargo control for inland-U.S. shipments for European cargo connections for the high-speed ocean service of Fastship Inc. The companies today announced their partnership, which Fastship said could supply door-to-door cargo schedules to match airfreight for half the cost.The agreement calls for Schneider to also take the lead in logistics communications with customers of the new service, and the announcement said the trucking giant might also make a financing commitment to Fastship. The trans-Atlantic ship line said it plans a high-speed service that links the middle of Europe with the middle of the United States. Transport Topics staff
Dueling Price Tags For I-49 In Arkansas
A report on the Interstate 49 project presented Tuesday to the Arkansas Highway Commission gave a cost estimate of $3.5 billion, more than 65% higher than a private proposal estimated.The Arkansas Democrat-Gazette reported Wednesday that the five-member commission used those findings to respond to criticism that it moved too slowly in applying for federal credits, which would have paid for a third of the project. The deadline for that application process was May 31.
A proposal from the I-49 Roadbuilders group estimated the cost at $1.2 billion for the highway that would connect Texarkana and Fort Smith. The financing plan in the Roadbuilders proposal called for loans and tolls. The state staff report, however, said the private proposal was flawed since it used traffic volume projections based on a toll-free highway. Studies have shown, the Democrat-Gazette reported, that many motorists avoid toll ways. Transport Topics staff
New Chief Named for Con-Way Western
Con-Way Transportation Services has named Dave McClimon to be president and chief executive of its Con-Way Western Express of Buena Park, Calif., one of its regional less-than-truckload carriers. McClimon, a 23-year industry veteran, was previously vice president of sales at the regional Con-Way Central Express in Ann Arbor, Mich. Bruce Moss is replacing McClimon at the Ann Arbor position.CON-WAY is a subsidiary of Palo Alto, Calif.-based CNF, which is a $5.6-billion management company of supply chain services including regional trucking, air freight, ocean freight, customs brokerage, global logistics management and trailer manufacturing. Transport Topics staff
Compiled by Transport Topics staff and INFORMATION, INC. © 2000
