A.M. Executive Briefing - Aug. 29
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Diesel Prices Surge; West Coast Hit Hardest
Diesel prices nationwide surged last week as the national retail price increased 6.5 cents to $1.536 per gallon, the U.S. Department of Energy reports.Increases of about six cents were reported by several regions, but the West Coast was hit hardest with a 12.6-cent increase; in California alone the average diesel price shot up by over 11 cents, according to the report.
The American Trucking Association's weekly Fuel Line publication says the national diesel price is now at its highest point since January 1994, when the Energy Information Administration began reporting prices weekly.
Freightliner Fights Back Against Weak Truck Market With High-Tech Offerings
The North American truck sales market is in a slump, so Freightliner Chief Executive Officer James Hebe is turning to technological innovations to keep buyers happy and coming back for more, the Wall Street Journal reports.A Journal feature story Tuesday looks at Freightliner's approach in the face of a declining market. Hebe has that DaimlerChrysler truck-making division leading the year-to-date market share for U.S. retail sales at 30.2%, thanks to use of new technology for driver comfort and efficiency, the article says. However, the company has also announced a big round of layoffs and production cutbacks.
Soon to come among its new offerings is "Truck PC," which will give drivers limited Internet and email access plus computer games, the Journal noted. It also transmits truck engine performance data back to fleet headquarters.
Freightliner's lead is also due to aggressive tactics against such rivals as a planned truck-parts exchange, the Journal reports, and a program of buying back its used trucks from fleets to refurbish them. Transport Topics
Mitsubishi President Will Resign Over Coverup Accusations
Katsuhiko Kawasoe, president of auto and truck maker Mitsubishi Motors Corp., will resign in September over accusations that the company covered up customer complaints that might have led to recalls, the Asahi News Service reported Tuesday.Kawasoe has said he will not step down until after Japan's Transportation Ministry determines disciplinary action against Mitsubishi in September, company sources told Asahi.
The president met with heads of Mitsubishi divisions, and that group is allegedly pressuring him to quit, the article said.
Mitsubishi is under investigation for possible violations of Japan's Road Vehicles Law. The company allegedly covered up recalls and customer complaints and submitted false reports to Transportation Ministry inspectors, Asahi reported. Transport Topics
Revenues Increase But US Trucking Takes Loss For Quarter
US Trucking – which provides over-the-road, intermodal and third-party logistics services – reported record operating revenues but a net loss for the quarter ending June 30.he company attributed those results to costs related to discontinuing the agency portion of its truckload segment, and the closure of several unprofitable terminals.
Operating revenues increased 118.6% to $22.3 million, and the company experienced a net loss of $5.91 million for the three months, as compared to a $194,000 profit reported in the same period of 1999. Transport Topics
Oakland Transportation Commission Awards TravInfo Contract
The Metropolitan Transportation Commission (MTC) of Oakland, Calif., announced it has awarded a six-year, $38 million contract to PB Farradyne Inc. to operate the Bay Area's traffic and transit information source, called TravInfo(R). The company will also design, build and operate a revamped system.TravInfo provides real-time information on Bay Area road and bridge conditions through a local-access telephone number. With recent approval of 511 as a nationwide, three-digit traveler-information phone number, the Bay Area will begin using 511 rather than its current number – becoming one of the first in the United States to make the switch.
PB Farradyne is a division of Parsons Brinckerhoff Quade & Douglas, an engineering firm based in New York. Transport Topics
Railroad Plans Big Memphis Intermodal Terminal
Aiming to build a world-class intermodal rail-truck facility, Canadian National Railway and its Illinois Central unit late last week unveiled a tentative agreement with Memphis, Tenn. plus city and state officials to build a hub on 249 acres, The Commercial Appeal newspaper and the Associated Press reported.Once a final deal is reached, construction of what CN calls its "Super Terminal-Memphis" will take about 15 months at a total cost of $106 million; that includes $28 million government authorities have already spent on infrastructure in that area of southwest Memphis, plus what could be a first-phase investment of under $40 million by CN, the newspaper said.
The intermodal container terminal is billed as the anchor tenant for a 1,000-acre industrial development.
Memphis is on the Mississippi River just east of Arkansas, and is a junction for east-west Interstate 40 plus north-south I-55. It is also home to the huge air freight hub of Federal Express. Transport Topics
New Tucson Intermodal Center Expected to Boost Manufacturing, Trucking
A new intermodal center in Tucson, Ariz., should help manufacturing in that area by increasing import/export opportunities, the Associated Press reports. It would also boost local local and regional trucking, which will haul containers into the hub to be put aboard trains for cross-country trips.The Century Park Research Center and Port of Tucson facilities are expected to be completed this fall, the AP report said.
Plastic storage case manufacturer Nexpak plans to move into the center, as well as corrugated box maker Whitmark and Cheng Fwa, a Taiwan electronics maker, the article said. Transport Topics
Ward Trucking To Also Increase Rates, But Less Than Some
Less-than-truckload carrier Ward Trucking Corp. recently announced a general rate increase of 4.95%, with minimum charges increasing by $2. The increase is effective Sept. 1.The company said the rate increase is lower than the industry average for a third straight year. Other recently announced increases, such as Old Dominion, Yellow and CF, have been between 5% and 6%.
Ward is a regional carrier serving several Mid-Atlantic states from its base in Altoona, Pa. Transport Topics
Headlines From Yesterday's P.M. Breifing
- DaimlerChrysler Extends Tender Offer for Detroit Diesel Shares
- Trinity Industries Picks ProCert for Licensing and Registration
- Drivers Still Sought By Werner, But 100 Other Positions Being Cut
- Medina, Ohio, Wants To Re-Route Big Rigs Past Downtown
- General Motors To Work On Reducing California Smog From Diesel
- BillBoard Video To Give Refueling Truckers an Eyeful
- Sale of PLM's Trailer Leasing Okayed
- "Click It or Ticket" Also Comes To North Carolina Roads
