A.M. Executive Briefing - June 2

Weaker Jobs Report Sends Markets Soaring, Implies Top Near for Interest Rates

The jobless rate in May was 4.1%, up from 3.9% in April, the Department of Labor reported. This latest and most compelling evidence that the red-hot economy is starting to slow down sent stock markets soaring, as it implies the Federal Reserve must be close to ending its year-long program of pushing interest rates higher. With rates near their top, further evidence of a cooled-off economy could allow interest rates to even come down later this year or next, and set the stage for lower inflation and longer-lasting growth. Transport Topics staff

Illinois GOP Lawmakers Propose Eliminating State Gasoline Sales Tax

High fuel prices have dissuaded many truck drivers from filling their tanks in the state due to the high prices there, says state Rep. Renee Kosel, so eliminating the state fuel taxes would probably help out the state economy. Associated Press (06/02/00) ; Webber, Tammy

CCX Cuts Trip Times With New Ohio Service Center

CCX is a regional less-than-truckload commercial freight carrier. Until now, CCX had been using only a part of the Milan lot as an east-west freight relay point between Midwest and Northeast markets.

"Having a facility with docks near the Ohio Turnpike now is ideal for quick freight exchange from both the East and West. The new state-of-the-art facility will also improve local pickup and delivery services in the Milan and Sandusky areas," said Richard V. Palazzo, president and chief executive officer. Transport Topics staff

DEA Tracks Pot Trail From Mexico to Virginia

William A. Salem's trucking company made routine halls of between 3,000 and 5,000 pounds of marijuana between Mexico and Virginia for a year until one of the drivers was arrested by border patrol agents six months ago. Salem was indicted in April in Texas and pleaded guilty in Corpus Christi federal court to possession with the intent to distribute more than 1,000 kilograms of marijuana.

t the time of his arrest, Salem was found to be in possession of 2,500 pounds of the popular drug. Roanoke Times Online (06/01/00) ; Hemphill, Michael

JOC Reports Little Internet Gain for Transport...

For example, online transportation auctions generally have not had the desired volume. Nevertheless, the concept of getting transport service through the Internet is still an appealing one, and numerous different business models have arisen in response.

In the last few months, online companies have realized that both shippers and carriers have to be pursued as customers. At the same time, logistics technology companies are competing to provide services that are as broad as possible. Another idea is the use of private online auctions -- between shippers and carriers already working together -- to make business

ransactions more efficient. Journal of Commerce Online (05/31/00)

...But Economist Sees E-Commerce Units Spreading Fast

In an effort to keep drivers, many trucking companies established regional warehouse hubs so that drivers would no longer have to make extremely long trips. With the coming of e-commerce those warehouses have become very valuable to the trucking companies, since few of the thousands of new e-businesses want the trouble and expense of constructing their own fulfillment operations.

According to Armstrong & Associates, a Wisconsin-based consultant firm, there are currently about 250 successful U.S. e-commerce fulfillment and logistics companies. About a tenth of those have sprung from trucking companies, and this number is expected to increase as more trucking companies catch on to the opportunity. Schneider National and other large trucking and logistics companies are already putting together operations devoted to business-to-business e-commerce. The Economist (06/03/00)

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