A.M. Executive Briefing - Feb. 11

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This Morning's Headlines:

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  • Truck Convoy Shot At in South Florida
  • Owner-Operators Win Suit on Credit Card Surcharges
  • Truckers Cruise Statehouse to Demand Relief From High Fuel Prices
  • Cannon Reports 11.6% Drop in Revenue
  • Union Leaders Demonstrate to Support Striking Teamsters
  • Kansas Highway Deaths Increase More Than In Any Other State
  • Some Wisconsin Truckers Levying Fuel Surcharges
  • Seismic Waves May Weigh Trucks
  • Lobbyist Gift Ban, Harvest Trucking Rules Advance in Senate

    Truck Convoy Shot At in South Florida

    A six-truck convoy was shot at on the Florida Turnpike Thursday, increasing tensions as an independent truckers' strike, greatly slowing movement at the Port of Miami, continued into its second day. The highway patrol was uncertain whether the turnpike shooting was related to the strike.

    Port Everglades truckers joined the strike Thursday, ruining plans to divert freight there to avoid the shutdown at the Miami port. The strikes were set off by a fast rise in fuel prices, although truckers also want higher rates from shippers and federal legislation to change their industry.



    Miami-Dade Mayor Alex Penelas held meetings Thursday with shippers and truck drivers, saying his larger concern is losing freight to ports elsewhere if the problems keep up. He wants to create a local body that will bring shippers and truckers together, but pointed out that the county is not in charge of fuel prices and that Customs and Drug Enforcement Administration inspections slow Miami port shipments.

    Owner Operator Independent Drivers Association executive vice president Todd Spencer said independents' main problem is low rates and an inability to raise them and advocated re-regulating trucking.

    Oscar Pupo of the Support Trucking Group in Miami said other problems there are truckers asked to pay their own insurance and not take any more money for handling overweight loads. Drivers also cited port delays resulting from the lack of freeway access from the downtown Miami port. Miami Herald (02/11/00); Fields, Gregg


    Owner-Operators Win Suit on Credit Card Surcharges

    The Tennessee Appeals Court ruled in favor of an Owner Operator Independent Drivers Association suit that said Flying J and Pilot Truck stops improperly charged more for diesel bought with MasterCard and Visa cards.

    The suit, filed by OOIDA and four of its individual members, said adding surcharges to credit card sales violates the contracts between the merchants, banks, and credit-card firms.

    The court said the truck stops did not dispute that they added credit-card surcharges. But Flying J vice president and general counsel Barry Burgon said Flying J did in fact dispute that it imposed a credit card surcharge, saying the company was giving a cash discount allowed by law and the contracts.

    Believing the decision will be overturned, Flying J will ask for a rehearing by the appeals court and take the case to the state Supreme Court if there is no reversal. Heavy Duty Trucking Online (02/11/00); Lockridge, Evan; Lockridge, Deborah


    Truckers Cruise Statehouse to Demand Relief From High Fuel Prices

    In a Thursday fuel-price protest organized by southern New Jersey independents, some 100 trucks drove slowly around the statehouse in Trenton to call for help from Gov. Christie Whitman, holding up area traffic for hours.

    Independents were protesting in Port Elizabeth the same day, blocking trucks that were still operating and asking the drivers to participate in the protest. There was no reported violence, but one trucker predicted "a bloodbath." They said they would protest again Friday.

    Whitman wrote last month to President Clinton to request that some oil be released from the Strategic Petroleum Reserve and called for a federal probe into possible price gouging; truckers hope she will wield her clout in Washington to get such a probe underway. Truckers

    sked her to repeal fuel taxes temporarily, but she did not respond. Energy Secretary Bill Richardson turned down a request by Rep. James Saxton (R-N.J.) Thursday to let some oil out of the reserves. Associated Press (02/10/00); Parry, Wayne


    Cannon Reports 11.6% Drop in Revenue

    Cannon Express said it had a $326,001 (10 cents a share) loss in the second fiscal quarter, 132.6% greater than its year-earlier loss of $140,140 (4 cents a share), as revenue fell 11.6% to $21.3 million.

    Chairman Dean Cannon blamed higher fuel costs and the continuing driver shortage, reported that the fleet size was down 11.8%, and said Cannon Express is replacing its older trucks with newer ones to try to appeal to drivers. It also raised pay in November.

    Cannon Express' owner-operator program has attracted 200 drivers since it started in July, and it has picked up about 10 independent owner-operators since it started signing with them three weeks ago.

    Stephens Inc. transportation analyst Dan Moore blamed the earnings drop on higher fuel prices and said the entire industry has felt "a profound impact" from the fuel prices. Arkansas Democrat-Gazette Online (02/11/00) ; Wieland, Barbara


    Union Leaders Demonstrate to Support Striking Teamsters

    AFL-CIO chief John Sweeney led a march and 20-minute rally in Dayton, Ohio, Thursday to back the Teamsters' strike of Overnite Transportation.

    The demonstration was joined by close to 400 members of the Teamsters and other unions, with other leaders including Teamsters secretary-treasurer Thomas Keegel, Ohio AFL-CIO President William Burga, state Sen. Rhine McClin, and International Union of Electronic Workers President Ed Fire. Fire's union has given the Teamsters $25,000, with another $50,000 on the way, for the Overnite strike.

    The demonstration, which also included a Teamsters tractor-trailer, did not affect operations at Overnite's terminal in Dayton or intimidate workers there, said terminal manager Chuck Littleton. Associated Press (02/10/00)


    Kansas Highway Deaths Increase More Than In Any Other State

    Federal statistics show that since Congress repealed the 55 mph speed limit in 1995, Kansas has seen a 34% increase in fatal crashes on the non-interstate highways and a 17% increase on all roads and highways.

    The 34% rise for non-interstate highways beats that in any other state, while Kansas' 17% overall rate comes in third behind the rates for Nevada and Oklahoma. However, deaths per 100 million miles traveled, which state Transportation Department officials consider the best way to demonstrate traffic safety, have been even.

    In addition, traffic volume is not included in the federal statistics, so part of the rise in accidents could be related to that factor.

    A national survey conducted by the Insurance Institute for Highway Safety says the level of traffic fatalities has remained steady in seven states where speed limits were not raised, compared to a 15% rise in fatalities in 25 states that increased limits. Residents of some areas of the state have been opposing higher limits, including places where roads have been widened and given increased limits.

    State Patrol Capt. John Gaunt said he believes higher speeds make it harder to avoid accidents, while Eric Skrum of the National Motorists Association, which is against national speed limits, said raising the limits allows smoother traffic flow and better safety.

    State Sen. Christine Downey (D-Newton) said raising the limits on interstates has worked, but she was unsure about the two-lane roads where limits went up to 65. Wichita Eagle (02/10/00); Lavinia, Hurst


    Some Wisconsin Truckers Levying Fuel Surcharges

    Some Wisconsin carriers, including Schneider National, have begun putting fuel surcharges on shipments bound for the Northeast, which is seeing diesel prices above $2 per gallon. Schneider is also asking drivers to conserve fuel by going slowly.

    Many of Kreilkamp Trucking's drivers are getting fuel in Youngstown, Ohio, and trying to make it last until they get to the Midwest. Youngstown's diesel prices per gallon are between $1.40 and $1.50. Some of Duplainville Transport's owner-operators are turning down loads bound for the Northeast because of the prices. Associated Press (02/10/00)


    Seismic Waves May Weigh Trucks

    A new 25-pound device, held in two hands, promises to weigh trucks by measuring the seismic waves they generate as they pass at a set speed. It was invented by Frank Tatom, who made the original seismic tornado detector, and preliminary tests have found it successful.

    Tatom has been granted close to $100,000 by the state of Florida for a feasibility study of seismic truck scales at state Transportation Department locations. Land Line Magazine Online (02/10/00)


    Lobbyist Gift Ban, Harvest Trucking Rules Advance in Senate

    The Arizona state Senate Thursday endorsed a bill, SB 1448, that would let truckers carrying some perishable crops drive 16 hours a day or 112 hours in seven days. The state currently limits drivers to 10 consecutive working hours with eight consecutive rest hours required. The Thursday voice vote will be followed by a final vote. Another voice vote endorsed a ban on some gifts from lobbyists. Associated Press (02/10/00)

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