P.M. Executive Briefing - Sept. 1
This Afternoon's Headlines:
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State, Local Officials Urged to Apply for Funds
The Federal Highway Administration is accepting applications from state and local governments for National Corridor Planning and Development Program grants as well as Coordinated Border Infrastructure grants. These grants will fund initiatives to speed trade at the northern and southern U.S. borders.The Transportation Equity Act for the 21st Century will provide a total $700 million for programs over the next five years, although the Transportation Secretary can give $10 million of it to the General Services Administration. Applications are due Nov. 29, and the comment period will end Jan. 27. Journal of Commerce (09/01/99) P. 20; Hall, Kevin G.
American Freightways to Open Centers in the Dakotas
American Freightways will be opening sites in North and South Dakota as of October. When this is complete, the LTL carrier will have service in 32 states. Company officials do not think the Dakotas expansion will affect revenue or earnings much, although there are plans for further expansion in 2000.Stephens Inc. analyst Tim Quillin anticipates that American Freightways stock will go up in value between 10 percent and 20 percent over the next year. Quillin and Anthony Gallo of Deutsche Banc Alex. Brown both figure the stock price will hit $25 in the next year, with per-share earnings to hit $1.40 in 1999 and $1.65 in 2000. Arkansas Democrat-Gazette Online (09/01/99); Lovel, Jim
National Pool Proposed as Way to Reduce Costs
Due to deregulation in the ocean shipping sector, there is a push to make truckers take possession of chassis and create chassis pools.Maher Terminals Vice President Frans van Riemsdyk proposed to an Intermodal Association of North America meeting to create a coast-to-coast container pool. Burlington Northern &
anta Fe Railroad Assistant Vice President Richard Ebel projects a 25 percent savings in costs for maintaining chassis fleets if such pools are created. Maher currently manages chassis pools in New Jersey and Georgia, and others are in place at other sites in the East.
Sea-Land Service Vice President Bill Hamlin points out that ship lines can face insurance liability for highway crashes if they own the chassis in use. Also, rate reductions make carriers have less money to cover chassis costs, he says.
Maryland Port Administration traffic/intermodal manager Dale Boyd says pooled chassis can be moved around from site to site to meet seasonal needs. If pools are not in place, ocean lines and railroads could be forced to hire truckers to move the chassis around.
"One of the biggest burdens for steamship lines is repositioning of empty equipment," Boyd says.
Trucker ownership of chassis is the rule everywhere but in North America, some North American ocean lines are starting to go that way as well. Right now, Sea-Land is testing, selling and leasing some Florida chassis to drayage companies. A downside to trucker control of chassis is that ocean lines and railroads will not be able to ensure that chassis are available wherever needed. Journal of Commerce (09/01/99) P. 1; Watson, Rip
American Freightways to Raise Rates in Fall
On Oct. 1, American Freightways spot rates will go up an average 5.2 percent. The company expects revenue gains of 2.5 percent to 3 percent. Journal of Commerce (09/01/99) P. 20© copyright 1999 INFORMATION, INC. Terms of Service
