A.M. Executive Briefing - Nov. 20
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Colder Winter Predictions Raise Crude Oil Price
Crude oil prices rose in London Monday after further predictions of a colder-than-normal winter this year in the U.S., and Mideast violence, Bloomberg reported.
Temperatures in the U.S. Northeast - the country's largest heating-oil market - are expected to drop 10 to 15 degrees Fahrenheit below normal this winter, requiring more oil. However, inventories are 31% lower than a year ago, the American Petroleum Institute said. The wire service said crude oil prices rose 87 cents or 2.6% in London to $33.95 per barrel.
Another factor boosting prices is further violence in the Middle East between Israelis and Palestinians. Countries in the Mideast control a third of the global crude oil, and oil traders are concerned that Arab oil producers who often support Palestinians may curb supplies, Bloomberg noted.
12 States Push Calif.-Type Engine Standards
Twelve states plan on Monday to jointly adopt California-type emission level for truck and bus engines, in a move that could raise the price of trucks by $700 to $800, the New York Times reports.The states are Nevada, Texas, Georgia, North Carolina, New York, New Jersey , Connecticut, Massachusetts, New Hampshire, Maine, Vermont and Rhode Island. Organizers say they represent 40% of the U.S. market for truck and bus engines, and the standards they are embracing are tougher than federal rules.
he states hope to create a "critical mass" that will encourage engine manufacturers to make a much cleaner-burning model, a key organizer told the Times. The California Air Resources Board put the cost increases at $700 to $800 for trucks costing $52,000 to $108,000. Transport Topics
Diesel Engine Maker Cummins May Cut More Jobs
Cummins Inc. (CUM) may need to cut more jobs, the Wall Street Journal reported Monday, because of the continuing decline in the heavy-duty truck market.Earlier this month, Cummins said it would reduce its salaried work force by 350 employees, but it now plans to lay off some salaried office workers by year's end, the paper said.
Plant closings or asset sales are also possible, the Journal said, stating that Cummins' market share was 60% in the 1980s but stands at 27% now. Transport Topics
UPS, FedEx Say They Need Billions for Ergo Rule
United Parcel Service (UPS) estimates it will need to spend $20 billion to comply with the federal Occupational Safety and Health Administration's new ergonomics rule, and FedEx (FDX) will need $6 billion, the New York Times reported Saturday.
However, OSHA said employers are generally exaggerating their cost estimates, and called UPS' estimate unreasonable, according to the newspaper. No one company would need to spend that much, OSHA Administrator Charles Jeffress told the Times. He said the new rule's benefits of improved productivity and reduced workers compensation costs should be factored into any cost-benefit analysis.
FedEx fears it might need to use two people in each truck, and install new sorting equipment and lifting equipment at all its terminals, the Times reported. Transport Topics
Australian Truckers End Oil Terminal Blockades
Australian truckers ended their blockade of several oil terminals in the state of Victoria Monday, Bloomberg reported.The blockage started Sunday in the southeastern coastal cities of Melbourne and Geelong, but caused panic buying and depleted supplies at gas stations, the wire service reported. Truckers are campaigning for lower fuel prices, higher freight rates and safer work conditions.
Although the blockade has ended, truckers say protests will continue in Port Melbourne. Transport Topics
Manpower Says Transport Firms to Add Jobs in 1Q
Transportation and retail companies plan to add jobs in the first quarter of 2001, even though factory production has slowed down, Bloomberg reported from a survey by temporary employment company Manpower Inc. (MAN)The story quoted Manpower President Jeffrey Joerres as saying that despite signs of a slowing economy, a high demand for workers will continue at least through March 2001. Transport Topics
Roberson Acquires Timberline Assets
Truckload service provider Roberson Transportation Services has acquired certain assets of Timberline Transport, a flatbed and dry van carrier, Roberson said.The acquisition will add 200 jobs and $25 million in revenue to Champaign, Ill.-based Roberson.
Timberline, an Eastman, Ga. company, will continue to independently operate its freight and logistics services. Transport Topics
Gingrich Pushes Trucking Device
Former U.S. House Speaker Newt Gingrich is promoting a drive-up communications hookup with climate control for long-haul truckers, made by Tenessee-based Idle-Aire, the New York Times reported Monday.The device - still in prototype state - would allow truckers to stay cool or warm with-out idling their engines, while providing phone, video and Internet service, Gingrich told the Times. Transport Topics
Occupational Doctors Oppose Ergonomics Standard
A group of occupational doctors has withdrawn support for the Occupational Safety and Health Administration's ergonomics regulation, saying it lacks a firm medical basis, including a process to verify that the injury is directly related to work activities.The American College of Occupational and Environmental Medicine announced its opposition to the rule last week, noting that ACOEM had submitted several recommendations during the hearing process that OSHA did not incorporate into the final rule.
Although it is pleased with the appeals process for temporary work restrictions and work removal, ACOEM said it lacks provision for healthcare workers who have "any knowledge of the prevention and treatment of musculoskeletal disorders.
By contrast, OSHA's lead, arsenic and asbestos standards do have such characteristics, as do most workers compensation programs, ACOEM stated. Transport Topics
Construction on Northern Va.'s I-95 'Mixing Bowl' Going Smoothly
A $540 million construction project at the meeting point of Interstates 95, 395 and 495 in Northern Virginia has not caused major traffic jams or accidents, the Washington Post reported Friday.The centerpiece of the project is an overpass between Washington area's Wilson Bridge and I-95 South to Richmond. When completed, the new mile-long overpass is expected to alleviate the gridlock problem, known as the "mixing bowl," at the intersection of the three highways, the article said.
So far, the article said, the only problems the construction has caused are Saturday traffic and timing of traffic lights on local roads. On Nov. 25, a bus system that runs on weekdays will add weekend service.
For years, the mixing bowl has been notorious for accidents. Last summer, a tractor-trailer hauling explosive black powder rolled over on an exit ramp, and emergency officials shut roads for hours. Road design was among the factors blamed in the incident.
More information on the project, including lane closures, is available online from the Virginia Dept. of transportation at www.springfieldinterchange.com/. Transport Topics
Headlines From Friday's P.M. Briefing
- Crude Oil Prices Drop Further on Warm Weather Forecast
- Summit Rejects Teamsters Offer, Strike Drags On
- Rail Intermodal Traffic Falls Slightly
- Cummins, Westport Get Funding for Natural Gas Truck Engine
- Volvo Sales Slide in North America, Rising Overseas
- California Gets Strict with Truckers on I-5
- NY: Better Road Conditions, Lower Emissions Ahead
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