A.M. Executive Briefing - Dec. 22
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OPEC Officials Set Price Limit for Oil Export Cuts
Officials at the Organization of Petroleum Exporting Countries said Friday that they plan to cut oil exports by 500,000 barrels per day if oil prices fall below $22 for 10 consecutive days, Bloomberg reported.OPEC officials will meet on Jan. 17 and had originally planned to cut production then. But now, officials are indicating there may be production cuts before the meeting if the price stays below $22 per barrel, the article noted.
Thursday's oil price in London dropped to $21.64, starting the 10-day clock, according to the wire service. Transport Topics
Rail Intermodal Traffic Near 1999 Levels
Intermodal freight volume for the week ending Dec. 9 showed a total of 182,970 trailer and container units, edging above 1999 levels of 182,946 units during the same week, the Association of American Railroads reported Thursday.Trailer figures continued their downward trend, while container traffic continued to climb. The number of trailers fell 10.5% with 59,236 units. Containers, on the other hand, rose 6% with 123,734 units.
Railroads reporting to AAR account for 98% of U.S. rail intermodal volume. Transport Topics
GM to Idle Six Plants After New Year's
General Motors Corp. (GM) announced late Thursday that it plans to idle a total of six plants, including three light-truck plants, during the first week of January, the Associated Press reported. About 9,000 workers will be temporarily laid off.The truck plants that will shut down include the Shreveport, La., plant that makes mid-size pickups and the Linden, N.J., plant that produces mid-size pickups and sport-utility vehicles.
Additionally, the plant in Moraine, Ohio, which makes SUV's, will stop production for one day. The GM assembly plant in Janesville, Wis., will also idle for one day, the article said. Two car plants in Kansas City, Kan., and Ste. Therese, Quebec, will shut down for one week.
The wire service noted that the cuts come amid slowing U.S. truck and car sales. Transport Topics
Ford to Cut Output, Warns on 4Q Earnings
Ford Motor Co. (F) followed General Motors Corp. (GM) Thursday when it announced that it would idle several of its plants in January, the Associated Press reported. Ford also warned that it expects earnings in the current fourth quarter to be weaker than analysts had been expecting. The shutdowns will likely affect trucking shipments of parts to vehicle assembly plants as well as truck hauls of finished vehicles in coming months.
Ford said it would shut down 16 North American factories and temporarily lay off 36,000 workers. Ford did not indicate the specific plants.
Ford, along with GM and DaimlerChrysler (DCX), have idled plants due to weak demand.
And in what will certainly be a pattern for other major manufacturers, Ford said recent harsh winter weather across North America had added to fourth-quarter costs by disrupting production schedules. Transport Topics
US&T Appoints Executives, Raises Prices
United Shipping & Technology (USHP), the largest same-day delivery company in North America, on Friday announced several business initiatives - including a nationwide price increase - and a realignment of the company's senior management team. The company did not say how large the price increase would be.
The other initiatives were created under the direction of Jeffry Parell, president and chief of Velocity Express. They include a business sector analysis, the review and standardization of numerous policies and operating procedures, and comprehensive training for employees with front-line customer contact. Velocity Express is US&T's largest subsidiary.
The senior management changes include the appointment of Wesley Fredenburg as US&T's general counsel and secretary. Additionally, Mark Ties, formerly vice president of finance, has been named chief financial officer and treasurer. Timothy Becker, the former CFO, will direct the company's mergers and acquisitions activities. Transport Topics
Ashcroft is Bush's Pick for Attorney General
Defeated Sen. John Ashcroft of Missouri is President-elect Bush's pick for attorney general, CNN reported Friday.If confirmed by the Senate, Ashcroft will oversee antitrust efforts and be the major federal enforcer behind civil and criminal law as the head of the Justice Department.
Justice has wide discretion to review mergers for antitrust concerns, and the trucking industry has seen a wave of mergers in recent weeks. It can also review mergers between airlines, which often carry cargo delivered by truck. Transport Topics
SUVs, Small Trucks Stealth Target of EPA Rule
The Environmental Protection Agency's new diesel emissions rules for heavy trucks and buses are also aimed at smaller gasoline-powered trucks in hopes that they will be adapted for diesel, the Washington Post reported Friday.Industry officials told the Post that EPA's long-term goal is to switch sport-utility vehicles and other small trucks to diesel, because that fuel has greater mileage efficiency.
Those smaller vehicles especially need the very-low-sulfur fuel that EPA's new rules require, the paper said.
A greater range of diesel-powered trucks could make life easier for fleet managers who oversee diverse groups of vehicles. In addition to fewer storage tanks, the slightly lower explosion hazard posed by diesel could make storage safer. Transport Topics
Whitman Administration Has Favored EPA Diesel Rule
New Jersey was one of the few states that sent written support to the Environmental Protection Agency when it proposed the diesel emission rules for heavy trucks and buses, the Washington Post reported Friday.This revelation takes on added significance as President-elect Bush is expected to announce that state's governor, Christine Todd Whitman, as his choice for EPA administrator.
The state's environmental commissioner, Robert Shinn, testified last summer in favor of the rule at a New York hearing, the paper said.
The state's plan for federal Clean Air Act compliance assumes that ultra-low-sulfur diesel fuel will be available, the Post said. Forcing refiners to make ultra-low-sulfur fuel is a linchpin of EPA's plan. Transport Topics
Teamsters Plan New Organizing Push for FedEx
An "opinion letter" issued earlier this year by the Department of Labor has given the Teamsters new hope in its effort to organize FedEx Corp.'s (FDX) ground delivery personnel, the Wall Street Journal reported Friday.The Labor Department apparently views the ground-delivery drivers as employees, rather than independent contractors, the paper said. If Labor's view prevails, it could have implications throughout trucking since other companies have their workforces structured the same way. The letter did not actually mention FedEx, the paper said.
FedEx has contended that the drivers are independent contractors because they usually own their own trucks, pay for their own fuel and other operating expenses, and have flexibility in their work routines, the Journal said.
Pilots are the only unionized group in FedEx's work force of 124,000. FedEx told the Journal the letter raises no new issues. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Port of Vancouver Looks to Trucking Assoc. to Settle Drayer Dispute
- Penske Truck to Acquire Comcar Leasing
- Online Sales Surge in November
- Bush Economy Warnings Stir Debate
- Freight Connection Reports Decreased 3Q Earnings
- Anticipation of OPEC Cut Drives Up Oil Prices
- Whitman, Thompson Seen Accepting Bush Job Offers
- Ice Hits Alabama Interstates While Plains States Shiver
- Volvo Faces New Challenge After Renault Merger
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