A.M. Executive Briefing - Nov. 3
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Rail Intermodal Traffic Up for Week, Month
Intermodal freight volume at major U.S. railroads continued its increase over 1999 levels last week, up 4% to 198,216 trailers and containers, the Association of American Railroads reported Thursday. Traffic was up for the month of October, rising 3.6% to 780,192 units, AAR said.Separately, trailers continued to slump, down 12.4% to 61,870 units, while containers rose again, up 13.7% to 136,346 units, the report said.
Intermodal traffic includes trailers and containers that can be hauled by trucks or trains and involve both transport modes during their trips. Railroads reporting to AAR account for 98% of U.S. rail intermodal volume. Transport Topics
OPEC Production Up in October; Oil Prices Stay Steady
OPEC oil production increased 1.8% in October, about 510,000 barrels a day, putting it at its highest level since 1979, Bloomberg reported Thursday.Meanwhile, crude oil prices were little changed Friday by a new round of violence in the Middle East, according to another Bloomberg report. Oil rose 13 cents to $32.67 per barrel on the New York Mercantile Exchange, and fell 8 cents to $30.70 per barrel on London's International Petroleum Exchange, the story said.
Despite the increased production - which stemmed from a series of quota increases by 10 of the OPEC nations - U.S. inventories remain down, close to a 24-year low, Bloomberg noted. Transport Topics
United Shipping & Technology Sells Tricor America
United Shipping & Technology (USHP), a same-day delivery service and e-logistics provider, said Friday it has sold Tricor America Inc., a San Francisco-based air courier.Tricor, which US&T had acquired as part of the Velocity Express purchase, was sold back to its former owners for an undisclosed amount.
Transport Topics
U.S. Job Growth Slows More Than Expected
The U.S. jobless rate held steady at a low 3.9% last month, but the Labor Department reported Friday that new payroll jobs across the country increased by only 137,000 in October - well below the 180,000 range that analysts had predicted.The report implies some further slowing in economic growth last month, in line with reports this week from major retailers and the factory sector. It could reduce the risks of inflation pressures that might eventually spur the Federal Reserve or bond markets to start pushing interest rates higher again.
But the jobs report also noted that average hourly wages last month ticked up by 0.4%, while the markets were prepped for only 0.3%. So with wage pressures a bit stronger than expected, the report offered little sign that the Fed could soon ease interest rates even with the slower job growth.
For truckers, this suggests continued slack in freight traffic ahead and no near-term relief in interest costs. While interest rates should not rise soon and add further to costs of carrying debt on big trucks or company fleets, for now there seems little chance that rates might soon come back down. Transport Topics
NYC to Charge Trucks to Park in Loading Zones
On Nov. 13, New York City will begin a pilot program to charge trucks for parking while making deliveries in what may be the first such attempt in the country to fight gridlock with "congestion pricing," the New York Times said Friday.The 18-month experiment involves parking meters that charge $1 for one hour, $3 for two hours and $6 for three hours. The charges will apply between 7 a.m. and 6 p.m. Spaces will be free at all other times, in hopes of shifting some deliver-ies to night or early morning hours.
The meters accept debit cards or coins. After purchasing a receipt, the driver leaves it on the dashboard. The city trans-portation commissioner said loading zones have become de facto short-term parking on many streets, partly due to lax enforcement.
United Parcel Service (UPS) might be able to avoid some of the approximate $2 million it pays for tickets and tows each year, Earnest Rice, the company's community relations manager for Manhattan said.
However, others told the Times private cars cause far more parking problems than trucks. Transport Topics
October Retail Sales Much Lower Than Last Year
Retail sales for October rose only 2.9%, falling considerably below last October's surge of 4.9%, the New York Times said Friday.Quoting the Goldman Sachs retail composite index, the Times said high gas prices, rising interest rates and stock market volatility is dampening consumer demand. The report comes on the heels of other indicators that point to slowing freight demand in the coming months.
Clothing retailer The Gap's (GPS) lower-than-expected third-quarter profits resulted partly from problems with backup delivery systems, the paper said. Its sales declined 2% over performance in October 1999, which was still better than the 4% to 6% dropoff analysts had expected.
Even Wal-Mart Stores (WMT) said it anticipated growth of only 3% to 5% in the fourth quarter. Last December that dominant retail chain had December growth of 9.1% over December 1998. Transport Topics
Quebec Introduces "Back-to-Work" Legislation
The Quebec provincial government introduced legislation Thursday that would order the 1,200 truckers protesting at the Port of Montreal to stop such action, the Journal of Commerce Online reports.The legislation was introduced by Transport Minister Guy Chevrette and would impose penalties ranging from C$250-$1,000 for individual drivers to C$125,000 for the Confederation of National Trades Unions (CNTU), the story said.
The protest has been going on for the past 11 days and has shut down most container truck traffic into and out of the Port of Montreal, the Journal noted. Transport Topics
Headlines From Yesterday's P.M. Briefing
- ArvinMeritor Fires 240, Cuts 100 Vacancies
- Freightliner Recalls 133,000 Trucks
- Professional Transportation Group Receives Default Notice
- Celadon Posts Narrower 1Q Loss
- Economy Watch: Retailers Sluggish
- GATX Reorganizes for European Expansion
- Container Lessor Cronos Reports $0.07 Per Share in 3Q
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