A.M. Executive Briefing - Jan. 10
This Morning's Headlines:
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Bloodied but Unbowed
Overnite Transportation intends to pursue the business of small and medium-sized customers as it tries to grow its customer base as the new year begins. The carrier hopes to find shippers who want Overnite's rates and service and will overlook the Teamsters strike.It says fourth-quarter 1999 numbers showing 1.5% higher revenue than the year-earlier quarter, despite 1.6% lower tonnage, are evidence that the strike is not impacting the carrier much. While company officials do say the two Teamster strikes have cost Overnite $28 million for defense since July, President, Chairman, and CEO Leo H. Suggs said the carrier's high cash flow allows it to fund the strike costs out of cash reserves.
The strike and the lower stock performance of the trucking sector are delaying UP's intended initial public offering. As Overnite tries to go after more small and medium-sized shippers, it is focusing on one- and two-day business, expanding the Advantage Overnite program across the country. That service is growing more quickly than any other sector at Overnite.
Company officials also believe anti-union Overnite employees have become more solidified in that viewpoint during the strike. The company reported being 98% on time throughout its system through freight-heavy December and a 31.8% drop in "exceptions" during the last quarter. Traffic World (01/10/00) Vol. 261, No. 2; P. 27; Schulz, John D.
Truckers Say Ferry Change Will Raise Prices on Island
The British Columbia Trucking Association said prices will increase on Vancouver Island now that trucks and other large vehicles can no longer use any B.C. Ferries route other than Duke Point-Tsawwassen.Roughly a third of commercial traffic entering and leaving the island used the Departure Bay-Horseshoe Bay route until it was closed to trucks last week because of new fast ferries that cannot accommodate big rigs. The trucking association figures the Tsawwassen terminal's traffic will probably go up 20%.
The change will force trucks coming from or going to north and west Vancouver to take an extra 2.3 hours per round trip on average, said association President Paul Landry. By itself, that added time will raise Vancouver Island freight costs by C$3million, said Landry.
A spokeswoman for B.C.Ferries said the company is tracking the situation, that the Duke Point terminal was specifically established to handle commercial traffic from Nanaimo, and that an additional sailing has been put in place on each side of the Duke Point-Tsawwassen route. Vancouver Sun (01/10/00) P. B1
Tennessee Lawmakers Will Pursue Lane Restriction Bills
Two truck-related bills are awaiting the Tennessee General Assembly as it prepares to reconvene this week.Tractors and tractor-trailers will have to use the right lane of multi-lane divided highways or face a $50 fine under HB0265, which has been given to the Department of Safety for study. Sen. Tim Burchett introduced SB0345, a Senate counterpart to the above house bill, which was introduced by Rep. Jamie Hagood.
Burchett and Hagood intend to pursue the bills in the coming session, they said. Land Line Magazine Online (01/10/00)
Truck Traffic Woes
Interstate 94 in Michigan is seeing more trucks, and more truck accidents, since Nafta went into effect in 1993. In Jackson County, truck crashes account for close to 25% of traffic deaths in the last three years, twice the national rate.USF Holland Motor Express driver Greg Fleming said there are many new trucking companies, perhaps some with unsafe trucks. Some of them have drivers who do not speak English, cannot read road signs and do not know the rules for U.S. driving, he said, and many of them are on schedules making them stay on the road longer at higher speeds.
An AAA Michigan study found that commercial trucks are in 13% of deadly crashes across the country despite making up 3% of all traffic. But Jackson-based Sercombe Trucking's owner Tom Sercombe said this is partly due to congestion and partly due to motorists unable to share the road.
AAA Michigan found that up to 80% of deadly accidents between cars and trucks might be the fault of the motorists. As the state's truck traffic has risen 35% since Nafta, there has been a 64% rise in trucking-industry employment in Jackson County. Citizens for Reliable and Safe Highways put Michigan in 11th place among 1998 deadly truck crashes, saying it was one of 16 states that had higher truck-crash deaths in 1998 than in 1997.
Sercombe said the problem is exacerbated by the obsolete I-94, which he said should be widened. The state Transportation Department is looking into that possibility, and the state Highway Traffic Safety Planning office also gave police agencies extra funding for I-94 truck patrols last summer. Jackson (Mich.) Citizen-Patriot Online (01/09/00); Stiles, Linda
Castle Hills May Fight Hazmat Plan
The San Antonio suburb of Castle Hills could oppose the city's proposed hazmat-routing plan, which would keep hazmat trucks from using downtown elevated roadways.Routing the trucks through Castle Hills on Loop 410 in the most traffic-dense section of Bexar County will probably bring opposition from Castle Hills Mayor Bob Anderson unless he is presented with better arguments in favor of the route, he said. But residents near the downtown elevated roadways back the routing plan, remembering the December acid spill that caused the evacuation of their homes and schools.
Castle Hills Councilwoman Dorothy Harle said she would back the routing plan if San Antonio promises to keep a mutual-aid deal to help Castle Hills with major spills. She said Castle Hills will be able to regulate the trucks more easily if it goes along with other suburbs in backing the routing proposal. The suburb will vote Tuesday on whether it will back the plan at the San Antonio-sponsored hearing Jan. 24. San Antonio Express-News (01/09/00) P. 1B; Huddleston, Scott
Traffic Study Getting Back Into Fast Lane
Louisiana highway officials have turned down a portion of a New Orleans traffic study that would have interviewed interstate highway drivers about their destinations and routes up until that point. Now, the interviews will take place on U.S. 90 and Airline Drive. The ongoing Regional Planning Commission study also includes surveying truck drivers, monitoring pedestrians, driving diaries, and other methods. It is being conducted by the firms Parsons-Brinckerhoff, Urban Systems, and MetroSource. New Orleans Times-Picayune (01/09/00) P. B1; Scallan, Matt© copyright 2000 INFORMATION, INC. Terms of Service
