A.M. Executive Briefing - Aug. 30
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Economic Good Times Mean More Gridlock on Roads
The healthy economy Americans have been enjoying has one downside – their commutes are less enjoyable because more vehicles are sharing the road, according to a Wednesday Wall Street Journal article on the U.S. transportation system.The nation's highways have become increasingly congested with the need to move more goods as well as passengers headed to their jobs; the average delay per driver per year has risen from 34 hours a decade ago to 50 hours in the 68 largest cities, the article said.
More trucks are on the roads thanks to the booming economy, but the increased congestion also increases transportation prices, the Journal said. Some companies, such as R.R. Donnelley & Sons in Chicago, also have to stay open later so they can schedule truck deliveries after the day's congestion slows, the story added. Transport Topics
DOT Pushing Public Input on Truck Safety with Web Site
U.S. Transportation Secretary Rodney E. Slater indicated that he wants to go beyond the usual suspects and involve the public in truck safety plans, by using the Internet.DOT announced Tuesday that a Web site, spp.fmcsa.dot.gov, will allow the public to view and comment on research papers in progress, review draft safety action plans, and submit to the Federal Motor Carrier Safety Administration suggestions and alternative motor carrier safety strategies about improving truck and bus safety over the next decade.
FMCSA expects to send a 10-year bus and truck safety strategy, its 2010 Strategy and Performance Plan, to Congress by the end of the year. Transport Topics
Oil Inventories Rise, But So Do Prices
Heating oil inventories rose 606,000 barrels last week to 42.8 million, but that was not enough to keep the year-on-year deficit from falling to 40%. In the markets, oil prices rose accordingly, Bloomberg reported Wednesday.Crude oil prices rose as much as 8 cents on London's International Petroleum Exchange, to $31.44 a barrel; on the New York Mercantile Exchange, prices rose 6 cents to $32.80 a barrel, Bloomberg said.
Distillate inventories, which include diesel, rose 1 million barrels last week to 112.2 million, and U.S. crude oil inventories rose by 5.3 million barrels to 286.0 million, the American Petroleum Institute said.
Concern continues over oil supplies for the upcoming winter, as low inventories could spell another spike in costs as seen this past winter. President Clinton continues to lobby for increased OPEC production, as that group prepares to meet in early September. Transport Topics
KLM Begins Talks To Sell Freight-Handling Unit
In a development that could affect who a lot of trucking firms deal with to handle air freight at major U.S. airports, KLM Cargo has begun negotiations to sell its international freight-handling unit called Cargo Service Center, the Journal of Commerce Online reported Tuesday. KLM wants to sell the 10-year-old CSC because it views it as a non-core activity, the JOC said. CSC handles handles about 1.5 million metric tons of cargo for more than 100 airlines at 70 freight stations, with operations at key air-cargo hubs such as New York's John F. Kennedy International, Chicago's O'Hare and Los Angeles International, plus key overseas locations at Amsterdam's Schiphol (KLM's home base) and Heathrow in London.
The list of potential buyers includes Lufthansa's GlobeGround, Worldwide Flight Services from the United States, Menzies World Cargo from Great Britain and Swissair's Swissport, the JOC reported. Transport Topics
Truck Parts Maker Shiloh Acquires A.G. Simpson
Shiloh Industries, which manufactures engineered blanks, stamped components and modular systems for the heavy truck market and other industries, said Tuesday it has completed its acquisition of A.G. Simpson Inc. for about $47.9 million.The purchase includes a Dickson, Tenn. plant. That 242,000-square-foot stamping and assembly facility has 11 presses as well as flexible robotic welding cells and assembly capabilities. It employs 350 and produces stampings, sub-assemblies and assemblies, mainly for such customers as Nissan Motor, Saturn, ArvinMeritor Automotive, and Ford Motor.
With this acquisition, Shiloh Industries now has 13 subsidiaries with 17 facilities in Tennessee, Ohio, Michigan, Georgia and Mexico. Transport Topics
UPS Logistics Group To Acquire Canada's Livingston
United Parcel Service subsidiary UPS Logistics Group announced Wednesday it will make its fifth acquisition of the year, having agreed to purchase Livingston Inc. of Oakville, Ontario, and Livingston Healthcare Services of Newark, Del.Livingston's 22 Canadian distribution centers specialize in supply-chain management for the high-tech, consumer products and healthcare markets. Livingston Healthcare Services, with six distribution centers in the United States, focuses on logistics for the healthcare, biotechnology and medical device markets.
With the acquisition, UPS Logistics will have more than 450 locations in Europe, Asia and North America. Transport Topics
California's Ventura Freeway Adds PrePass Capabilities To Speed Up Weighing Process
The truck-weighing process will soon be faster in part of Ventura County, Calif. (northwest of Los Angeles), as the Ventura Freeway is being outfitted with PrePass, the Los Angeles Times reported Wednesday.The PrePass system automatically weighs trucks using a special transponder, which sends a signal to sensors in the roadway. A green light tells the driver his or her load is not overweight; a red light means he or she must pull over for inspection, the article said.
Adding the PrePass sensors to the Ventura Freeway will cost $487,000, a cost shared by the trucking industry and state transportation department, according to the Times. Transport Topics
Husband-Wife Trucking Duo Now Employs Other Married Teams
Jerri and Ed Deards worked so well together as a truck driving team, they decided to hire other married couples for their own company.A recent Columbus (Ohio) Dispatch feature describes how the Deards have successfully maintained both a marriage and trucking partnership over the past eight years. Today, the Deards make a Columbus-to-Newburgh, N.Y. run five days a week, and maintain their own trucking company that includes four more husband-and-wife driving teams, the newspaper said.
In a time when the trucking industry faces a driver shortage, companies are actively recruiting husband-and-wife teams as a way to retain men – who have traditionally been the drivers – by improving their lifestyle, the American Trucking Associations' Mike Russell told the Dispatch. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Wabash National Forms Supply Partnership With J.B. Hunt
- FleetNet To Provide Emergency Road Help To TruckersB2B Members
- S. California Counties Want To Build New Freeway To Ease Congestion
- Freightquote.com Offers Logistics to DirectSource Customers
- Fritz, TradeCard Team Up For Online Logistics
- TrafficStation, Telus to Offer Customized Traffic Info in Vancouver, Toronto
- G.I. Trucking Expands Overnight Service in Three Western States
- ComRoad Pairs With Mannesmann For Mobile Navigation
- Penske Trucks to Rent on Move.com
- Exide to Close 11 Distribution Centers
