A.M. Executive Briefing - Feb. 23
This Morning's Headlines:
ul>
Miami Strike Ends, But Issues Not Resolved
Although port drivers in south Florida returned to work after winning promises of higher pay from trucking companies, there was no resolution to the insurance issue that spurred the two-week strike, and unionization efforts by the drivers may continue.The drivers believe they would save money if they did not have to buy insurance from the trucking companies, who want standardized coverage and guaranteed payment. And the Teamsters union intends to keep holding rallies at U.S. ports in its effort to unionize port drivers.
Executives at ship lines say operational changes all along the intermodal chain are needed, and Cho Yang America COO Ed Kelly predicted that if container traffic increases meet projections, companies at the biggest ports may have to run around the clock. Journal of Commerce (02/23/00) P. 1; Mongelluzzo, Bill
R.I. Sets Up Fund for Drivers
Rhode Island Gov. Almond said Tuesday a new loan fund offers maximum $5,000 loans for truckers living in Rhode Island, with trucks registered in that state, to use for fuel. No collateral is needed for the 36-month, 6% fixed rate loans from the Rhode Island Commercial Truckers Diesel Fuel Fund.The governor and truck drivers are to meet Wednesday regarding the fuel issue. Providence (R.I.) Journal Online (02/23/00)
Fuel Price Crisis Prompts Bill for Interest-Free Loans
New Hampshire state Sen. Rick Trombly is sponsoring a bill to be introduced as early as March 9, that would create interest-free loans, payable within 12 months, for eligible small trucking companies and consumers suffering from lofty fuel costs.The Senate Select Committee on Heating Oil, which had its first meeting Tuesday, intends to bring a resolution to the Senate March 9 that would request the federal government prepare for future crises by establishing oil reserves that would last at least 14 days.
Trombly (D-Boscawen), who chairs the committee, would use $3 million or $4 million from the state highway trust fund to help the trucking companies. Manchester Union Leader Online (02/23/00) ; Toole, John
Expecting a Crowd, STB Extends Hearing on Rail Industry's Future
The Surface Transportation Board hearing into rail mergers and the industry's future, which begins March 7, has been extended from two days to four after over 150 requests to serve as witnesses were received. Over half of the witnesses will be shippers; most of the rest will be federal legislators and state and local government representatives as well as executives at rail companies.Burlington Northern Santa Fe and Canadian National Railway are expected to file for merger approval around March 20; other large rail companies, as well as chemical manufacturers and some other shippers, intend to try to delay the merger or oppose it outright.
When STB Chairman Linda Morgan announced the hearing last month, she said many speculate that with the other carriers strategically responding to the BNSF-CN merger proposal, further rail consolidation could take place if the merger happens. Journal of Commerce (02/23/00) P. 17; Kaufman, Lawrence H.
Volvo-Scania Monopoly Scare Downplayed
Despite the European Commission's concern that the planned acquisition of Swedish truckmaker Scania by Volvo will give it over nine-tenths of the truck market in Sweden, fleet executives and a consultant for the government-owned carrier Svelast said they will buy from other companies if prices are lower.They also denied that competitors will be hurt by the need for special insulation to handle Nordic winters; a union official said trucks that can handle the winters are available from other companies and that "a good service network" is all that is needed. One of the concessions proposed by the two truckmakers was to allow other companies access to their service networks and dealer networks. TruckingInfo.com (02/23/00)
FedEx: Latin Division Reorganized
Federal Express named Juan N. Cento to take the place of Dianne M. Stokely as the Latin America and Caribbean division president, covering over 50 countries. He was vice president for Mexico and Central America. Stokely has been named to the new position of senior vice president, customer services, in charge of global customer services and global trade services in addition to other responsibilities. The company is combining customer service functions at FedEx Ground and FedEx Express. Journal of Commerce (02/23/00) P. 16© copyright 2000 INFORMATION, INC. Terms of Service
