A.M. Executive Briefing - Mar. 6
This Morning's Headlines:
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Mexico, Norway Say They'll Raise Oil Output Regardless
The Mexican and Norwegian oil ministers said last week more oil should be released beginning April 1 because there is too little oil on the market and that their countries would act on their own regardless of what the Organization of the Petroleum Exporting Countries decides March 27. However, neither country can raise output enough to reach 2 million barrels daily; according to numerous experts, that level would be necessary. Mexico and Norway are not members of OPEC. TruckingInfo.com (03/06/00)ILA Fears Proposal Would Cut Jobs
The International Longshoreman's Association has come out against the American Trucking Associations and the ATA Intermodal Conference request that the Federal Highway Administration put terminal operators and steamship companies in charge of the roadworthiness" of intermodal equipment.
If the FHWA ruled in favor of the proposal, the union says, the agency would be encroaching on the Federal Maritime Commission's traditional jurisdiction as well as taking work from union members and giving it to trucking companies.
Trucking industry representatives said equipment repairs required of ship lines should be performed by ILA members. Drayage owner-operators do not want to lose money by waiting for equipment repairs, and their companies want the equipment owners to pay fines for infractions.
The FHWA has no deadline for action on the proposal, and an official at the Transportation Department said the issue is not high on the agency's agenda. Journal of Commerce (03/06/00) P. 20; Spillenger, Paul
Daewoo Motor Auction May Include Commercial Vehicle Plants
Daewoo Motor may auction its two commercial vehicle plants in South Korea in addition to its car divisions. President Jung Ju-ho said some of the five companies that bid in the auction were interested in the commercial vehicle units; the auction would be a package deal.Meanwhile, about 10 troubled units among Daewoo Motor's 34 foreign subsidiaries are also to be shut down, the Daewoo Restructuring Committee said. AFX - Asia (03/06/00)
Governor Declines Request to Increase Truck Cargo Weight
Iowa Gov. Tom Vilsack turned down a trucking industry request for a temporary increase on the truck weight limit, refusing to declare a state of emergency unless the need for transportation is weighed against the potential for more road wear caused by heavier trucks.With fuel prices high, Iowa has a chance to teach the public about the benefits of ethanol and other agricultural-based goods, the governor said.
Republican legislators had asked for trucks to be able to carry 90,000 pounds rather than 80,000 pounds to help keep a lid on consumer prices; last week, the House Transportation Committee chairman said legislation might be considered that would phase in higher maximum weights. Associated Press (03/06/00)
Stolen Trucks Seized
Three stolen tractor-trailers were seized at a warehouse Saturday by police in Mirabel, Quebec; two of them, stolen in the past two months from two Ontario carriers, contained over C$500,000 worth of swimming-pool equipment and clothes dryers. The other, stolen from a company in Joliette, Quebec, was found with its contents already removed. Montreal Gazette (03/05/00) P. A3Volvo Makes Second Set of Concessions
In an eleventh-hour attempt to gain the European Commission's backing for an acquisition of Swedish truck manufacturer Scania, Volvo submitted new concessions that would cut its deliveries to truck dealers in Sweden, Norway, and Finland.Under the concessions, a combined Volvo and Scania would have 75% of the truck market in Sweden, rather than 90%; 50% in Norway, rather than 65%; and 60% in Finland, rather than 70%.
The EC was apparently about to turn down the merger due to competition concerns stemming from the 90% share of the Swedish market the combined group would hold. It will probably not consider further concessions after the submission deadline officially passes.
The metalworkers union said Friday it might no longer support a Volvo-Scania deal if there are further concessions; it sent an open letter to the EC saying Volvo had done too much to respond to competition concerns and operations at the combined group might be hurt by the current offer. Financial Times (03/04/00) P. 18; Burt, Tim; George, Nicholas
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